Marketing Fashion to China

Topics: China, People's Republic of China, Brand Pages: 55 (17379 words) Published: September 6, 2010
Notes about the final paper:

* Consumer model (fishbein, behavioral)
* Gate keeper, influencer(celebrities, friends)….roles of people? * Buying process
* Buying motives
* High quality @ low price?
* Maslow?
If you see a behavior and you need to change it, how do you change it?
***the behavior we need to change is to get our target customers to make the switch to Mia since we’re a new brand. Ex…stealing customers from H&M
We need to develop brand loyalty? How? .....avatars?

China’s Profile
All of China has more than 1.3 billion people. There is a super-group of purchasers within this large country that range in age from 16 – mid-30s. Its gross domestic product per capita has also rocketed from RBM7,651 (US $1,113.02) in 2001 to RBM22,735 (US $3,307) in 2008, more than tripling over that period of time. This has lead to a huge increase in spending especially on consumer goods, for example, apparel. According to the National Bureau of Statistics of China, the total retail sales of consumer goods in 2008 exceeded RMB 10,000 billion (US $1,454.7 billion), a tripling of the RMB, 3,759.5 billion (US $546.9 billion) in 2001. China’s economy grew by 10.2% in 2005 and 10.7%. As jittery consumers in the West have tightened their belts in hope of weathering the financial woes, emerging markets like China have become a panacea for multinational businesses. Although many brands still admit that China is quite complex market to enter, however, just because of its diverse possibilities, more potential markets can be rendered. At present, the consumption of Chinese young generation forms a thriving market. Because young consumers are usually impressed with a positive, up-market perception of foreign department stores, and they tend to become more brand-oriented than purely price sensitive, and willing to pay a premium for better quality. Therefore, Mia can take advantage of this to further set up their brand image. China is a member of the World Trade Organization. Only companies or institutions authorized by the Ministry of Foreign Trade and Economic Co-operation (MOFTEC) can run foreign trade operations. The customs duties and taxes on imports is 8.37% (according to UNICTAD) which is a relatively low rate. To reduce customs clearance time, certain companies can, in cases where description, specification and quantity of import of goods are determined, imports are dispatched, before the arrival or in the 3 days which follow the examination of the goods directly and will release the goods after their arrival. Trademarks and Design Patent Law last for 10 years. The average work week in China is 40 hours. The average retirement age is 55 years old for women and 60 years old for men. There is no legal minimum wage in China. The average monthly gross earnings in China is CNY 1,868 (USD 273). Social security contributions paid by employers is 60% and the social security contributions paid by employees is 11%. China is a ‘collectivist’ society group prevailing over the individual. As a result, Chinese consumers largely ‘adhere’ to the standards and rules of the group to which it belongs. Enormous passion for golf in China (1 million golfers) during the last few years, testifies to this need to belong to a group (the affluent) and the consequent conformity of attitudes of individuals to the group expectations. Also, advertising promotions in China frequently directs groups rather than individuals. Today, the single child generation wants to live a very good life and thus spend (education, luxury items, consumption goods), especially in large cities. The consumption is often ostentatious as witnessed by the explosion in the number of luxury cars in the Peoples’ Republic of China, as to the need for conformity with the reference group, there are hardly any individuals ready to run the social risk of being different as compared to their reference group. Contrarily,...
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