Foreign Brands Compete In The Chinese Market For Domestic Brands.

The war at home is the war of globalization. Winning in the doorway is, in a sense, the triumph of globalization.

In recent years, although many well-known domestic garment enterprises have extended their tentacles to the international market through various channels, the internationalization process of Chinese garment enterprises is still at the initial stage.

Is the Chinese clothing enterprise really going to the "going out" time? How should the internationalization of Chinese garment enterprises go?

When China becomes a life-saving straw

In 2009, under the influence of the financial crisis, a large number of European and American luxury brands declined and even fell into debt crisis.

However, when the European and American economy is still in the doldrums and lingering, China's economy has taken the lead in stabilizing and recovering, and the domestic market has been growing strongly.

This attracted the world's major luxury brands to compete in China.

"People all over the world know that the future market of the world is in China."

France

The cold wind of the economic crisis has brought more and more international clothing brands to the Chinese market, and the Chinese market has been rising in the global consumer market.

This year's China International Clothing and accessories

This phenomenon further shows that China's market as the most growing consumer market, its market potential has attracted more and more attention from overseas brands.

While speeding up the opening up of the Chinese market, some luxury brands are operating under pressure, and are actively sending some olive branches to some Chinese investors or some operators, hoping to negotiate cooperation or acquisitions to break through the crisis.

In March 2010, Wu Zhize, chairman of the news bird group, was invited to discuss brand cooperation in Europe.

One of them is a famous fashion brand. At present, there are some markets in China.

Wu Zhize proposed that only China's regional acquisitions should be done, and the other party said nothing. He said, "the Chinese region can't open up acquisitions, it must be bought with a whole asset package". The other brand is Italy's second-line brand, which has done better in Europe, but it has not yet entered the Chinese market. Similarly, Wu Zhize only asked for the agency power in China, and demanded the purchase of trademark ownership in China.

The other side said, "in addition to China, any country can sell".

Wu Zhize sighed that this shows that the famous brands in the world are very optimistic about the Chinese market, and even the brands that have already fallen have great hopes for the Chinese market.

War at home

There will be competition if opportunity arises, and in 2009, more and more.

In the future, in China, the Chinese clothing brand begins to expand from the low to the high end, while the international brand launches the second line brand from the high end to the middle and low end.

This directly forms a face-to-face competition.

Therefore, Wu Zhize believes that "the next ten years will be the ten year of comprehensive competition between Chinese brands and international brands".

After China's entry into WTO, China's apparel industry has become an important part of the global garment industry.

In the process of global economic integration, no matter where your business is on the earth, you will face competition from the world.

Zheng Yonggang, chairman of the board of directors of Shanshan holding group, said that enterprises do not necessarily have to go abroad to be internationalized.

Therefore, after considering the market structure, he took the strategy of opening cooperation and developing independently, opening up the market from different levels, and finally taking the brand group to occupy the market and cultivating a brand clothing enterprise with both competitiveness and profitability.

Wu Yibing, a McKinsey Co director who has been active in the Chinese business community, said more clearly: "competition in China's domestic market is global competition."

In fact, many enterprises in China have already felt the heavy implication of this sentence.

Walking into the department stores in Beijing and Shanghai, it is hard to see the local high-end clothing brand.

The world's top 20 garment Brand Company have all entered the Chinese market. Strong domestic demand has become the driving force for the steady growth of China's garment industry. The competition of clothing brands at home and abroad has been launched in China.

With China's entry into the WTO, Chinese and foreign enterprises will be more intense.

Wu Yibing said, "pnational corporations are investing more and more actively in China. Their goal is no longer to get a fast growing market, but to gain equal resource advantages with Chinese enterprises and compete with domestic enterprises, such as establishing low-cost manufacturing bases in China, setting up R & D centers and establishing offshore service centers."

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This competitive environment leads to difficulties for any enterprise in China, and the future price war is no longer the patent of the domestic clothing brand, and foreign brands may be "competing with domestic brands" in the Chinese market.

Chinese garment enterprises must consider globalization strategy if they want to win in competition.

This is not only because some enterprises themselves are in a globally competitive industry, but also participating in global competition can help Chinese enterprises to increase their competitiveness.

In Wu Yibing's view, the fiercely competitive Chinese market has become the base for creating global winners, and has produced a lot of competitive machines in China.

The long-term survival of the harsh environment is undoubtedly a good fight against Chinese clothing enterprises to the global stage, that is, competitiveness.

Resisting foreign aggression Home Safe

For the course of internationalization of Chinese enterprises, the president of the Yangtze River Business School pointed out from a management scholar's point of view, "on the road of internationalization, we must stick to the domestic market and fight outside the country first."

In the past one or two years, China's IT companies have begun to return to great strides. For example, after BenQ's acquisition of SIEMENS's mobile phone business, they could not afford to lose their money. Finally, they could no longer give up. After the acquisition of Thomson color TV business, TCL could not be effectively integrated.

For Lenovo, who started by home computers, after experiencing the pains of internationalization, the two key points of "emerging market and Chinese market" have also been strengthened.

If the traditional "globalization" is often narrowly defined as having to be able to have a substantial relationship in the market of "developed countries", whether it is to set up branches in the market, establish a channel network, or achieve the role of "pnational corporations" through mergers and acquisitions.

Nowadays, with the rise of emerging markets, people will gradually realize that "the war at home is a global war, and winning the victory at home is, in a sense, the triumph of globalization."

As Chinese garment enterprises are increasingly yearning to become an international company and embark on the trend of internationalization, Chinese clothing enterprises must always bear in mind that internationalization is the reason for China's internationalization, because the Chinese market is already emerging as a new market, and it is leading a global market.

When emerging markets, including China, are becoming a "core" of new globalization, Chinese garment enterprises have no reason not to do well in the Chinese market.

"If we want to achieve success in international competition, we must first occupy the mainland.

If you can't even defend your doorstep, what's your ability to talk about others?

Wu Yue, deputy general manager of tiger capital group, said that although the company has registered in 55 countries around the world, it is necessary to strengthen and expand in the domestic market before accumulating certain strength and experience to consider expanding the international market.

Similarly, as the leader of China's household electrical appliance enterprises, Gome can fully implement its internationalization strategy with its own financial strength, but Wong Kwong Yu is not eager to do so.

In his view, the most important task of internationalization is not to choose any foreign market to expand its retail chain, but to do well in the domestic market.

Before the foreign retail giants entered China, Wong Kwong Yu completed the nationwide layout and established a powerful chain retail network, seized the limited market resources, and built a strong competitive advantage to deal with the strong challenge of foreign large chain business capital.

Wong Kwong Yu believes that for Chinese enterprises, if we want to remain invincible in the fierce competition in the international market, we must have an in-depth understanding of the domestic market and consumers, and combine the advanced international experience to create the concept of operation and service with Chinese characteristics.

Now, the domestic appliance retail enterprises headed by Gome and Suning can also dance with wolves. Making solid efforts at home will become a deterrent to the international giants.

So, looking at the "internationalization" of Chinese enterprises, we must look at two levels: what is the internationalization of a level, where is the battlefield of internationalization? Where are the key points of internationalization at second levels? What is the measure of internationalization of an enterprise?

Having made sure of this, Chinese garment enterprises may have a better understanding of the opportunities and challenges of internationalization, and actively respond to them.