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5 Key Points to Understand Before Starting to Sell Fashion Goods in China

Last modified: October 6, 2020
Streetwear

Want to sell your fashion brand into Chinese market? What things you need to know before you sell your product based on Chinese Economy? And what’s the fashion trend in China? Who will really buy your brand? How digital works for your fashion brand? Why E-commerce works so well in China today? 5 key points will guide you to understand how your business can work in Chinese market recently.

   1. Understand current the Chinese economic situation

Foreign business investment in Chinese market.

Chinese domestic market is growing fast for luxury goods and high- fashion end product. However, it is getting tougher for foreign companies. According to CIMB economist Fan Zhang said: “Given the current economic situation the FDI number stays slow and it is not as good as previews year".

So, it is not really good time to set direct investment in to the Chinese market. By far, are you thinking of slowing down your business strategy into Chinese market? Of course not, you should not think this is the end of investing your fashion business into the Chinese market.

By GMA
By GMA

For fashion in China, you need to go digital

Chinese customer have been doing their own way to maintain their satisfaction of western brand by shopping online! And now the most important things for you is to sell your fashion brand to target your Chinese customers online instead of directly set a physical store in the Chinese market maybe.

     2. Today’s fashion boom in China

Even though the economic situation is not as good as previews years, However, Chinese fashion market will go fast and expected to become the largest market within the next few years. The France’s fashion federation Didier Grumback claimed that China is a country that is passion about fashion and aim to become not just manufacturing powerhouse, but also the country known as a design and innovation center of the world as much as like Apple, Louis Vuitton etc. So you should not think that creating fashion brand and product is no longer worthwhile in China fashion market in the future.

Louis Vuitton ad
By GMA

     3. Chinese culture and fashion industry: a reputation relation

Understand that Chinese are holding foreign brands in a high esteem

Chinese are already the largest shoppers online. Chinese people have a global outlook for any brands, especially foreign premium fashion brands with “heritage” appeal. They search any information of the product online and make a decision very quick by just clicking the button of shopping carts. This trend made online shopping agents and E-commerce websites very profitable (according to statistic from The economists, sales by oversea shopping agents reached to nearly 75 billion in 2013).

By GMA
By GMA

Chinese consumers will buy your brand if they like your brand and no matter what it takes

Recently, most foreign websites and e-commerce site like Alibaba or Amazon are running direct delivery service and cross border services for Chinese customer in terms of favorable profit of selling product online to Chinese customer. So it is crucial to have a good website of your fashion brand and good e-commerce of your fashion brand to gain more Chinese customers and it is a wise choice which based on Chinese economic situation.

By GMA
By GMA

     4. Go e-commerce if you want to succeed on the Chinese fashion market

China has 193 miilion online shoppers which is even more than developed country like U.S.A and Japan. According to business editor Luaren Indvik from Mashables’s New York headquarters, by 2020, customer in China spend $1000/year online and same amount that American 170 million online shoppers spend annually recently.

By GMA
By GMA

There are many factors showing that why you should do your fashion business on E-commerce business:

  • Firstly, there are increasing numbers of middle class who have more money to spend on luxury and leisure product, especially for women.
  • Secondly, the internet and mobile phone have increased the potential shoppers.
  • Thirdly, great selection of products from e-commerce sites and normally they have more discount and cheap offer compare with retail store. The most important of all; buying on the e-commerce sites are convenient!

     5. China’s digital trend guides fashion brands to adjust to digital world

There were 1 billion smartphone users in 2020 and it is expected that the smartphone users will grow again. This trend cannot stop in China and you would better to make the most of the benefits from digital for your fashion business and it works in China.

By GMA
By GMA
  • Firstly, social media like Weibo, Youku, WeChat and Douban have millions of users to comments, and share the information of anything happened in China. What’s the benefit for the fashion brand from these social media platform? It will increase your brand awareness amongst the netizens.
  • Secondly, social media helps you to capture more potential customers from online to offline, and push your traffic and sales scale. Today, Chinese people are more trust social media than traditional media in terms of the power of the key opinion leaders (KOL) and get quick response from the professionals.

Trust our agency for your fashion services in China

To sum up, based on today’s Chinese economic situation and fashion trend in Chinese digital market, It is better for you go with e-commerce as your first step of Chinese business. To get more insight of doing fashion business in China, you can ask some suggestions from professionals like our fashion Agency and they can provide you fashion marketing solutions. Contact us on our website Marketing to China website and start to establish your brand, e-reputation and visibility in China!

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2 thoughts on “5 Key Points to Understand Before Starting to Sell Fashion Goods in China”

  1. Pingback: Shanghai Fashion will shake the fashion world! - Fashion China

  2. I would also add a 6th point, be careful to communicate! It is so important to care about e-reputation and visibility to differentiate from competitors in China

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