How Small Brands Can Enter to the Huge Chinese Fashion Market?

The Chinese Fashion Market is Really Big, difficult to put a Figure, but its the biggest in quantity, and in Value. You should know that it is the most dynamic with a 10% increase per year. 

 

 Why is Chinese Fashion Market so interesting for Small Brands? 

 

The living conditions of the middle-class in China have been improved. Now consumers have become highly brand conscious and the possession of luxury products is seen as a status symbol. ”Conspicuous consumption’’ means having the need to buy goods, not because you need it but to show off to others, and this phenomenon occurs not only in Chinese culture but also in Western culture.

 

The Power of Branding

Branding in China

According to a recent study conducted by Boston Consulting Group  (a consulting company), mainland China is the sixth in the world for the expenses on luxury goods ranked by countries. In 2010 it was a USD$ 17.7 billion market where Louis Vuitton, Chanel, and Gucci are the most desired luxury brands. However, in recent years they are losing favour among Chinese consumers while the so-called fast fashion companies H&M, Zara, Uniqlo, etc are still popular amongst the young generation in China.  You can also see in China, a market for niche Brands in Premium Fashion

China is the largest Fashion Market of the world

The report by McKinsey & Company and the Business of Fashion (BoF) says that in 2019 China is set to overtake the U.S. as the world’s largest fashion market for the first time. However, Joann Cheng, Chairman of Fosun Fashion Group & Lanvin, expresses her belief that the trade war will have minimal effect on China’s business. “I don’t think that the fashion industry is the area that will be hit by trade wars. China is still a large economy with very strong internal consumption power,” explains an expert.

The Chinese consumers’ fashion market is huge as domestic luxury brands are presented here just as foreign brands. A reason why the Chinese love to wear foreign luxury brands is that they are convinced that it’s quality better.

The Luxury of Optimism

The report by McKinsey & Company and BoF reveals that the premium and luxury fashion sector demonstrates overall stability – the rich stay rich and are getting richer. In Asia specifically, 51 per cent of executives surveyed believe the fashion sector will “become better” in 2019, with a further 19 per cent believing it will “stay the same.” Meanwhile talking about North America’s market, 64 per cent of executives believe the industry will “become worse,” suggesting America is more cautious of impending trade war tariffs.

 

Market Potential

China’s role in the global fashion market is quickly evolving. “China is no longer simply the factory to the world. It is the world’s fastest-growing consumer market, accounting for more than 18 per cent of all final goods consumed.”

For luxury, this means more of what’s being made in China is now being sold domestically, and Chinese consumers are becoming increasingly sophisticated. Despite the rise of the international fast fashion market, the industry, in general, is still very fragmented in China, so there is still plenty of opportunities for new brands to meet the growing demand for trendy fast fashion. Marketing is the Key to success in China

How to Market Small Brands in China? 

  1. Social media: WeChat is the Top App 
  2. Weibo is a good Awareness Social Media with Native Ads 
  3. PR: leverage online Media to get More exposure 
  4. Word of Mouth, maximize Forums, and KOL to Get more Credibility 
  5. E-Commerce: little Red book is the cost-effective platform to sell in China 
  6. Tmall is quite expensive but good for medium and large Brands with big ambition 
  7. Some Specialist E-Commerce websites can be the first Step 

Do you want to know Pricing and the details of these Solution? 

Contact us, we are a Cost-Effective agency, and can help you to perform in China. 

 

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5 thoughts on “How Small Brands Can Enter to the Huge Chinese Fashion Market?”

  1. Nice information thank you SEO AgenCy China, How does a foreigner start up a business in China? start by Registration? Can we do it by ourself or need a Registration agenCY? Why has no U.S technology company succeeded in China? What strategies are US brands using to enter the Chinese Market?

  2. How to start a clothing Label in China? Where to start? I have my design, and my factory, iwant to Start a business in China, do not know where should I begin..

    How to Be a recognized Fashion Designer when we are foreigner in China and we do not speak Chinese? Would you recommend to speak Chinese First?

    1. Hi Estella,
      Where to start? good question maybe by setup your Social Media Channels, start to create a small buzz for your brand, then I guess develop your eCommerce part, create more engagement, eleverage KOL and then boost sales , distribution networks . If you want a plan, drop us an email.
      Actually most fashion Designer that are famous are “foreigner”, easier when you are a Foreigner to have the credibility in China.
      Have knowledge of Chinese yes, speaking CHinese will take you too much time, better to use Chinese Stuff or a Chinese partner like us and use this time to create value

    2. Hi Estella,
      Where to start? good question maybe by setup your Social Media Channels, start to create a small buzz for your brand, then I guess develop your eCommerce part, create more engagement, leverage KOL and then boost sales , distribution networks . If you want a plan, drop us an email.
      Actually most fashion Designer that are famous are “foreigner”, easier when you are a Foreigner to have the credibility in China.
      Have knowledge of Chinese yes, speaking CHinese will take you too much time, better to use Chinese Stuff or a Chinese partner like us and use this time to create value

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