Export Finland Fashion Studies China Summary
Transcript of Export Finland Fashion Studies China Summary
Fashion Market overview: China
Business Opportunities for Finnish Companies
Executive Summary
Having achieved a market size of Approximately $185 Billion in total apparel sales in 2013, China is expected to become the world’s largest apparel market surpassing the US by 2018. Due to the nearly unlimited potential of the market it offers vast opportunities for foreign fashion brands wishing to develop their international business.
This market study is prepared for Finpro and attempts to accomplish several things:
• Inform the reader of the general China market• Educate the reader about the Fashion industry in China• Provide a detailed analysis of the Fashion distribution eco system in China• Discuss opportunities for Finnish brands in the China market• Provide a clear understanding of the marketing landscape in China, especially as it relates to digital marketing and accentuate the need for Finnish brand to optimize their digital strategy.
• Provide a road map for Finnish brands detailing keys to success in the China market.• Provide key recommendations for China market entry specifically tailored to the needs of small to medium Finnish Fashion brands.
Executive Summary
Key Finding of the following China market study include:
• China will be the largest apparel market by 2017/18.• Chinese consumers are willing to experiment with new brands. • Although department stores still dominate the retail sector, multi brand boutiques, online and mobile are the fastest growing channels.
• China is the largest e-‐commerce market in the world surpassing the US in 2013.• Online retail sales in China totaled $458 billion in 2014.• By 2020 the number of multi brand buyer boutiques is planned to exceed 5,000 stores with annual revenue of more than 60 Billion RMB.
• Due to the proliferation of showrooms and trade shows there is increased competition from both foreign and local niche brands, but few manage to make an impact due to their undifferentiated marketing strategy.
• Chinese consumers are the most digitally savvy in the world and brands require an optimized digital strategy.
• Effective PR is imperative to build a positive e-‐reputation in China.• Chinese consumers are very susceptible to brand image. • In order to succeed in China brands must be fully committed to the market and pursue innovative marketing tactics. They must control and manage their marketing program, create localized offerings and pursue more involved forms of market entry.
Executive Summary
Due to the fast growth of the China fashion market there exists numerous opportunities for Finnish fashion brands each with its own advantages and challenges. Highlighted below are some of the key opportunities:
• Due to the growth of multi brand buyer outlets in China considerable opportunities exist for Finnish fashion brands either through utilizing showrooms or direct sales to the boutiques.
• Showrooms are located in key cities primary Shanghai and Beijing and offer fashion agency services promoting the brand to key multi brand buyer outlets.
• Opportunities exist to form a collaborative showroom to exclusively promote Finnish brands while establishing direct relationships with key fashion buyers in the China market.
• Opportunities exist for Finnish fashion brands to create co-‐branded collections with Chinese designers and thus gain positive reputation in the market and also increase channel opportunities.
• Three options exist for E-‐Commerce sales in the China market:– Exporting direct from overseas website– Exporting via third party platforms in China such as Tmall– Exporting Via China hosted e-‐ commerce site, which can be a monobrand or Finnish collaborative multi brand website and APP
Executive Summary
• Department stores are restructuring leading to some unique opportunities for Finnish brands to directly open shop-‐in-‐shops in select locations or work with a distributor who will open on their behalf.
• Since the process of opening a wholly owned retail business has been relaxed, opportunities exist to open a company owned specialty or collaborative Multi brand store.
• Opportunities exist to participate in a growing number of trade or showroom shows to directly meet potential multi brand outlet buyers, distributors or fashion ecommerce buyers.
• Opportunities exist for Finnish brands to optimize their digital strategy including creating a localized • Chinese website and setting up key Chinese social media pages on Weibo, Weixin and Youku.
In SummaryAs this plan will indicate, there is a vast amount of potential for Finnish brands to capitalize on the growth and size of the China market. But due to increased competition from both foreign and local brands and differences in culture, consumer attitudes, environment and other market complexities in China challenges do exist in the market. It is therefore critical for foreign brands to create strategies, which differentiate themselves in the market. Likewise they need to create marketing strategies and offer products that resonate with and offer value to Chinese consumers.
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