China is one of the biggest textile manufacturers in the world; countless famous foreign brands outsource their production in China. But in this article, we want to emphasize the Chinese clothing industry – The Chinese Brands. With the increase of the middle class, the clothing industry can still develop locally; furthermore, it has a huge potential and ability to expand internationally, as long as it has the right strategy.
If we see the famous Chinese brand “Bosideng”, which is one of the top selling brands in China, according to Forbes. The brand tried to go global in 2012 through a new shop in London, however it didn’t meet much success, but why? The brand went international with the mind-set of being famous and recognized in China, yet it wasn’t the case in UK. Bosideng failed to invest rightfully, to make its brand recognized by the consumers, and to follow British purchasing trends.
The London store fail affected their Chinese sales too, in three years their profit dropped by 90%, and their shares trading in Hong Kong have slumped by 66%. Basically, the risk Bosideng took when it opened the London store without sufficient investment in Marketing and Branding, not only ensued the store shutdown, but influenced their Chinese sales too. As Bosideng’s executive director Kelvin Mak said, “If we want to re-enter the international market, we will be more careful in taking that step”.
Selling overseas is not only about putting fancy and fashionable clothes in shelves with some salespeople in a store. It is all about the brand and its story, the Chinese clothing industry is still having difficulties to build a brand with product that have both functional and emotional aspects.
China’s fashion design is being more recognized by the world, many fashion designers were appreciated during the last fashion weeks such as Xiao Li, Haizhen Wang, Ryan Lo and many more. The Chinese clothing industry has potential to expand internationally, still the brands need to be ready to invest money and time in order to prevent a fail due to the lack of understanding from future customers. The brand image and awareness are the key, and the company needs to devote enough time and resources to build different strategies that will suit each of the foreign markets. Going global with your current strategy might be time saving and cheaper, but will end up soon in a fail. Thus, if you intend to expand internationally invest thoroughly in your branding strategy.
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