Sample Essay
Another key challenge to entry is the different regions in China. Consumer behaviour and preferences for food, fashion and lifestyle change significantly in these regions. For example, retailers should not assume that products or fashion styles that sell in Shanghai will also be popular in Xiamen which is in southern China (Ong, 2007).
The cities of influence for fashion apparel in China are Shanghai, Beijing and Guangzhou. In addition locals and tourists travel to Guangzhou, Shanghai, and Shenzhen for major fashion brands at cheaper prices (Ong, 2007).
The market for apparel was initially divided into two major sectors:
- Low-priced basic apparels, sold as local brands, offered in Chinese department stores, foreign hypermarkets or small family owned specialty chains
- Premium brands, sold either through franchised boutiques or through upscale department stores. Due to the economic boom, and the emergence of China as the new economic superpower, the middleclass has grown at a very rapid pace, giving rise to a new category, involving quality brands, both Chinese and foreign, which are being sold in department stores and specialty stores (Ong, 2007).
These consumers are turning out to be are increasingly sophisticated, by demanding higher quality, variety and innovation in products from their retailers. Consumers are becoming increasingly brand conscious and association with a brand is usually seen as a symbol for high status. For many segments, particularly younger consumers, well known foreign brands are still regarded as superior and a symbol for elite status. “Brands that are made in US and Europe are more highly valued than those from Australia, or other Asian countries like Singapore, Taiwan (Ong, 2007)”. Although Chinese consumers are sensitive to price, recent researches show that consumers are becoming increasingly concerned about product quality and customer service, particularly with respect to apparel (Ong, 2007).
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