Fashion can sometimes be risky to invest in. Trends come and go, and it may be that the investment will go with them. However, one thing that can be said for sure is that the Chinese market favors European fashion brands. Considering the popularity of European brands in the Chinese market, it seems as though, these brands would only profit if they moved into China. However, the fact of the matter is that international fashion brands tend to thrive better than domestic brands in China.
With this in mind, is there any hope for European brands who want to move into China? Of course, there is! There are just a few factors that need to be considered first.
Set Reasonable Prices
Customers in China are willing to pay for quality brands, but not if they are outrageously priced. So you can operate ethically (see how here) and seduce the Chinese market, it’s not a contradiction. Areas of China have different standards of living, and some of these places have very low minimum wages. This means that they cannot afford to spend a great deal of money on the latest fashions. This tends to be why they gravitate towards products from overseas; the lower price tags are a good incentive for them.
Domestic brands in China need to price their products affordably while being careful to still retain profit after their expenses have been paid. Retailers must pay close attention to the Chinese market if they hope to set up shop there. They should be informed of fair market value, as well as consider the cost of inflation.
Learn From Others
It is important to note that there are key differences in a country’s methods when it comes to customer service. Chinese brands that originally set up in China understand this, and therefore they hire a customer service team who know the culture and etiquette of that particular area. In contrast to this, European brands who come to China will tend to hire employees from their own country. They may very well be good employees, however, they lack the knowledge of the Chinese market, and they are not familiar with appealing to Chinese customers.
Hiring local talent from China may give you the head start that your brand needs to thrive in the country.
Adapt to the Onset of E-Commerce
Judging by the recent spike in popularity, E-commerce is the new mode of shopping that retailers should focus their efforts on. Customers in China (just like a dozen of other countries), enjoy having the convenience of making purchases from the comfort of their homes. E-commerce belongs to the 12 business opportunities that can work for the Chinese market. Fashion brands should take advantage of this new trend, and use it to benefit their brand.
By developing an online brand strategy, more people will be able to get the message and see what the product can offer them. Social media sites are helpful for attracting loyal customers, who enjoy the discounts and coupons that you can offer them. Virtual shops will become popular among customers because they can browse through all the different items without having to leave their homes. If they happen to find something they like, they can either purchase it or go to the physical store to see it in person.
In conclusion, fashion brands from Europe can definitely profit from moving into China. However, they must stay aware of a few key factors, and always be ready to adapt with the changing times. They should also inspire from successful Chinese brands that Marketing to China referenced in this article.