Want to sell your fashion brand in the Chinese market? What things do you need to know before you sell your product based on the Chinese Economy? And what’s the fashion trend in China? Who will really buy your brand? How does digital work 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 the Chinese market recently.
1. Understand current the Chinese economic situation
Foreign business investment in the 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 a good time to set direct investment in the Chinese market. By far, are you thinking of slowing down your business strategy in the Chinese market? Of course not, you should not think this is the end of investing in your fashion business in the Chinese market.
For fashion in China, you need to go digital
Chinese customer has been doing their own way to maintain their satisfaction with western brands by shopping online! And now the most important thing for you is to sell your fashion brand to target your Chinese customers online instead of directly setting up 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 in previous years, However, Chinese fashion market will go fast and is expected to become the largest market within the next few years. France’s fashion federation Didier Grumbach claimed that China is a country that is passionate about fashion and aims to become not just a manufacturing powerhouse, but also the country known as a design and innovation center of the world like Apple, Louis Vuitton, etc.
So you should not think that creating a fashion brand and product is no longer worthwhile in China fashion market in the future.
3. Chinese culture and fashion industry: a reputation relation
Understand that the 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 for any information about the product online and make a decision very quickly by just clicking the button on shopping carts.
This trend made online shopping agents and E-commerce websites very profitable (according to statistics from The Economists, sales by overseas shopping agents reached nearly 75 billion in 2013).
Chinese consumers will buy your brand if they like your brand and no matter what it takes
Recently, most foreign websites and e-commerce sites like Alibaba or Amazon are running direct delivery services and cross-border services for Chinese customers in terms of favorable profit from selling products online to Chinese customers. So it is crucial to have a good website for your fashion brand and good e-commerce for your fashion brand to gain more Chinese customers and it is a wise choice based on the Chinese economic situation.
4. Go e-commerce if you want to succeed in the Chinese fashion market
China has 193 million online shoppers which is even more than a developed country like U.S.A and Japan. According to business editor Lauren Indvik from Mashable’s New York headquarters, by 2020, customers in China spend $1000/year online and the same amount that American 170 million online shoppers spend annually recently.
There are many factors showing why you should do your fashion business on E-commerce business:
- Firstly, there are increasing numbers of the middle class who have more money to spend on luxury and leisure products, especially for women.
- Secondly, the internet and mobile phone have increased the number of potential shoppers.
- Thirdly, great selection of products from e-commerce sites, and normally they have more discounts and cheap offer compare with retail store. Most important of all; buying on e-commerce sites is convenient!
5. China’s digital trend guides fashion brands to adjust to the digital world
There were 1 billion smartphone users in 2020 and it is expected that the number of smartphone users will grow again. This trend cannot stop in China and you would better make the most of the benefits from digital for your fashion business and it works in China.
- Firstly, social media like Weibo, Youku, WeChat, and Douban have millions of users to comment and share information about anything that happened in China. What’s the benefit for the fashion brand from these social media platforms? 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 more than traditional media in terms of the power of the key opinion leaders (KOL) and getting a quick response from professionals.
Trust our agency for your fashion services in China
To sum up, based on today’s Chinese economic situation and fashion trends in the Chinese digital market, It is better for you to go with e-commerce as your first step in Chinese business. To get more insight into doing fashion business in China, you can ask for some suggestions from professionals like our fashion Agency and they can provide you with fashion marketing solutions.
Contact us to start establishing your brand, e-reputation, and visibility in China!
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