China has around 1.400 million people and in 2020 it is expected that Chinese middle class will account for 40% of the total population.
Due to its quality, design and affordability, Spanish brands have a huge potential in the Chinese market.
Over the last few years, China has become a market with a tremendous potential for the fashion industry. In 2012 the imports of fashion products rose 21% in comparison to 2011 while exports of Spanish fashion to China grew up to 43% in 2011 and around 34% en 2012. According to ICEX data, in 2013 the Spanish exports of fashion to China increased around 11,3%.
In light of this situation many Spanish fashion companies have decided to penetrate the profitable Chinese market.
Spanish fashion brands are increasingly more attractive to Chinese customers
Nowadays, Chinese buyers are more willing to purchase Spanish brands due to different social and economic reasons such as the rising disposable incomes and the social status that provides them purchase foreign brands. In addition, the number of potential consumers is growing due to the increasing Chinese middle class.
Increasingly more Chinese shoppers are interested in purchasing foreign fashion brands, including Spanish firms. The popularity of Western brands is because they are identified by Chinese consumers as synonymous of fashion and uniqueness.
The reality is that Chinese shoppers are choosing Western brands instead Chinese firms for fill their wardrobe. They are looking for quality and authenticity in the foreign brands. Spanish brands are seen as affordable fast fashion brands and this is a demanded fashion segment in China. Spanish companies should tap this market opportunity in order to extend their business to China.
Affordable good fashion is the upcoming trend in China
The demand for affordable fashion is rapidly growing than ever in China, even more than luxury brands, as reported by Kim Mercado from CBRE. The emergence of a growing middle class could be the reason why fast fashion has become more desirable in China.
These days, European brands are dominating the fashion’s sector in China. For instance, Zara, a well-known Spanish fashion brand has more than 450 stores in China and it is expected to increase its number of stores up to 500 by the end of 2014. China has become the country where the Galician brand has the greatest presence, after Spain.
Mango is another Spanish textile company with strong presence in the Asian giant.
More and more textile companies have decided to try their luck in the Asian giant market just like Zara. But behind Zara’s Inditex, the group includes also other brands such as Massimo Dutti, Stradivarius, Bershka, Pull & Bear, Oysho and Uterqüe, all of them with a successful presence in China.
The transformation of the Chinese market in recent years has made important Spanish multinationals such as Zara, Mango, Adolfo Dominguez or Loewe have expanded their business to China, but have also adapted their products and strategies to Asian consumer interests.
However, the success of any business involves develop an efficient marketing strategy.
In China, the development of the fashion industry is strongly linked to Internet because the use of e-commerce platforms has boosted the fashion sales in the country. Therefore, Spanish brands have to launch online stores to increase their success possibilities.
If a brand decides be part of the Chinese market, should have presence on Internet and in the Chinese social networks such as Renren, Weibo or WeChat and also in the most popular search engine in China: Baidu. Baidu is very helpful to fashion brands in order to expand their brand awareness in China.
As mentioned before, Internet and e-commerce boom have contributed to the development of fashion in China. According to Baidu in the second quarter of 2013, the Spanish fashion brands most searched were, Zara, Mango, Loewe, Bershka and Pull & Bear. Of these, Zara was ranked number five in the top ten of international daily searches related to fashion brands in China.
In recent years, Spanish brands are becoming more and more popular in China because they are affordable and also provide consumers the uniqueness they are seeking when they buy western clothes.
Internet gives more choice to Chinese customers
The reality is that due to internet, shoppers have the chance to know more about European styles and brands and therefore they are more influenced by Western style. That’s why Spanish brands have a huge potential in China and also because they are linked with quality, design and affordability.
If you are interested to penetrate in the Chinese market, contact us!