The Fashion Brand Market in China represents a great opportunity for Designer Brands. Indeed, with a population exceeding 1 billion, the increase in household purchasing power, and the new expectations of consumers, the market is open to many opportunities and innovations for companies wishing to expand their activities in the region. Empire of the Middle.
Market Overview of the ready-to-wear in China
The industry represents a huge market in terms of clothing and accessories consumption, with total sales of around $ 125 billion and annual growth of around 10%, there are many opportunities in the market.
In addition, the development of the Chinese middle class plays an important role in the market due to its increase in hedonic spending. This class aspires to new expectations, its consumption behavior is in full change and this is felt in many industries since it greatly influences the restructuring of the different domestic markets.
In the ready-to-wear market, two segments can be seen:
The first will constitute the premium market, which will include high-end and luxury brands. This segment will particularly attract consumers in search of exclusivity, originality, and quality with higher purchasing power. The chat experience is an important element in buying behavior on this type of segment.
And the second, which is the mass market where we will find all the brands of mass-market like H & M, Zara, Bershka, etc … this market is therefore turned to fast fashion with collections of clothing renewed every 6 weeks on average to meet a need for renewal in the wardrobe of young consumers.
International brands dominate the high-end ready-to-wear market. The market is highly competitive and to stand out, brands entering the market must absolutely improve and boost their brand image and brand awareness as quickly and efficiently as possible.
Luxury has always had some impact on the mind of the Chinese consumer, which consumes luxury in an optics to show its value through it. Luxury is bought for membership in a certain category of individuals. However, there is a decline in luxury purchases that could be seen as ostentatious in favor of high-end brands and creators.
Indeed, the Chinese consumer is no longer looking for products that will convey an image of wealth but is looking for brands to which he can assimilate because they correspond to his values, his philosophy, and brands that convey and Offer unique, exclusive, and original products. Where the logo had a strong meaning in the mind of the consumer, this image disappears little by little to make way for a high-end market a little soberer.
Distribution in the ready-to-wear market in China
As in many markets, the ready-to-wear market has a multichannel offer to reach the consumer at all points of the meetings with the brands. Physical stores are still the most-used channel when buying on the market. The sensory dimension is still very important and attached to the consumers in the market, who have a need to touch and try the product before purchase.
This channel is all the more important for high-end brands since it allows them to animate and energize the customer experience in-store and to bring him a unique and exclusive experience. The relationship between the customer and the brand is very important in the segment.
However, we should not forget the growth of the online channel, which accounts for one-third of purchases made by the Chinese. Digital in China is a significant opportunity because the channel becomes a means more and more used by individuals in their daily lives.
E-Commerce for Designer Brands in China
According to China E-Commerce Research Center, the digital channel in the ready-to-wear market draws several trends to come:
- An increase in sales through M-commerce will be noted
- An effort on the part of the platforms on the security of online payments
- The development of the brands of an Offline to Online model
- A trend towards customization by brands for their customers
In this market, there are two main platforms for online sales, which are Tmall and JD. The advantage for a brand to go through the online channel is that it saves a certain cost, this will allow it to gain access to the data of the market and its customers and the sales channel and is very well adapted and facilitates the disposal of stocks.
Many opportunities remain to be exploited in the market. In this second part, we will see what means it is interesting to use to promote its brand in the Chinese market?
Investing in digital solutions to increase your visibility
The Chinese digital sphere is one of the largest in the world, with more than 800 million Internet users connected across the country, developing its presence on the various platforms offered by the country is a crucial element to your development.
To create consumer interest in your creator brand, digital is the key to your business in China. For this, several tools are available to you to improve your online reputation as the need to be present on e-commerce platforms and social media.
Social media as a stepping stone to your development
Social media is booming in the country. WeChat, the application most used by more than 800 million people in China is a means by which you must invest to gain visibility.
The application is the basic, an instant messaging application that has become over time a real digital ecosystem, accompanying the Net surfers in their daily lives. This application, which is increasingly used by brands, will help you connect with your customers and your prospects as it helps to strengthen the proximity between brand and consumer.
Weibo is also a platform on which you should position yourself for sharing content and promotional campaigns in the country. These two platforms are generally complementary in the marketing campaigns of brands.
Online press relations are a way to make a name for yourself
In China, magazines in physical or digital ways have a strong impact and a strong influence on consumers’ purchasing behavior as they are transmitters of trends. Consumers in China work a lot with trust and reputation. When a brand is known there is no brake on purchase. Magazines, on the other hand, are drivers of confidence and quality content, which influence consumers to buy particular brands.
So, you need to write quality content that traces the history of your company, its values, its philosophy, and its product offerings so that it can be effectively disseminated by these magazines.
Target the Fashion Communities
A large majority of Chinese consumers seek before purchasing decisions reviews, advice, advice, and recommendations on the products they will potentially buy. For this, they will trust the opinion leaders who are public figures that are generally found on the internet and who are a source of inspiration for individuals at first.
And on the other hand, on the forums where individuals exchange among themselves to get as much information as possible about a brand and its products. On the forums, you will find fashionistas communities committed to fashion trends of the moment and to brands. Building your reputation through forums is a very important way. You can target forums such as Baidu Tieba or Zhihu.
Little Red Book is also very popular in China among Fashionista.
Use a local agency
- To promote your brand in the Chinese digital sphere you will have to adapt to the standards of this environment operating in a totally different way from our Western countries.
- Having a local partner who will accompany you in your marketing and communication efforts in the country is an interesting and effective way to effectively grasp this market.
- Vita Wei, a Chinese designer, took the challenge of trusting us, the Gentlemen Marketing Agency, to develop its digital strategy in China. You can find here, the course of the marketing campaign carried out for the brand.