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    The Way Of Running Chinese Clothing Enterprises In Korea

    2011/4/27 11:52:00 38

    Korean Clothing

    Editor's note: China is recognized as a big exporter of clothing. It is fair to say that the competition in China's local clothing market should be fierce. But Korean clothing brand has been "easy" to succeed in China.


    It is necessary for Chinese enterprises to learn from Korean brand practices.


    In Beijing Yansha friendship mall, if you see fashion

    Casual Wear

    Brand "Rapido", you certainly do not know that it belongs to Samsung Electronics Trading Company (Shanghai) Limited under Samsung Electronics Group.


    As early as 8 years ago, "Rapido" began to be sold in China, and the Samsung FA Shen trade (Shanghai) Limited, established in April 2002, has already made profits in China.


    Samsung's French gentry was not the first to enter China's gold rush.

    clothing

    Enterprises such as Jin Huli, attachment and other brands entered China earlier, and are well known in China.


    South Korea's "Seoul news" quoted the clothing industry's market survey statistics, and now the Korean clothing brands entering the Chinese market have reached more than 40. In China's major cities, Korean clothing brands have opened more than 400 stores, among which the knitted apparel brand "SSON" and "ONANON" have been well received by consumers in the Chinese market, and sales have expanded rapidly.


    There are signs that Korean garment enterprises are lifting the garment industry in China.

    Korean wave

    "Business is also moving towards success.


    The goal of choice is China.


    Analysts pointed out that the Korean economy in the past few years has been slow enough, coupled with the narrow Korean market, the population is less than 50 million, competition among garment enterprises is fierce.

    The pressure of competition and the need to open up new markets force companies to turn their attention to China.


    Although Korean clothing is expensive in China, EXR sports casual wear usually costs around 1500 yuan, but Korea Companies's forecasts for the Chinese market are generally optimistic.


    "We estimate that the number of young people between the age of 25 and 35 who earn more than ten thousand a month may reach 50 million."

    The prediction of Jin Shangxian, chairman of EXR's China subsidiary, Shanghai, is astonishing, but he immediately explained: "I mean it's possible to produce such a huge amount in a few years."


    EXR only opened its first store in Shanghai in August 2004. Now its sales revenue has exceeded RMB one hundred million yuan, and the monopoly market has reached 49.


    The huge market is not entirely explained.

    Korean clothing

    Why are companies moving so fast on the way to China?

    "I think Korean clothing can be accepted by more and more Chinese people, because Koreans and Chinese are close together and have very close aesthetic views."

    Zhu Jianwei, director of Beijing Office of Samsung FA Shen trade (Shanghai) Co., Ltd.

    He further compares the differences between Korean clothing companies and Japanese garment enterprises in China: "compared with Korean clothing trends, Chinese clothing is closer than that of Korean clothing stores, for example, the planning of Korean department stores is only five or six years ahead of China, and Chinese people are more receptive."


    The price is more expensive than in Korea.


    According to last year's statistics, South Korea's per capita income and other indicators have been listed in the developed countries, while China's per capita income has just exceeded 1000 dollars.

    In order to seize the Chinese market, the Korean clothing products newly entered China should lower the price. The reality is that after the Korean brand clothing enters the Chinese market, the price will not drop or rise.


    A set of "Rapido" sports suit, the cheapest price is 800 yuan, the most expensive price is about 2500 yuan.

    EXR's sportswear suit is usually priced at around 1500 yuan, while Adidas's product is 500 yuan ~800 yuan.


    "Even in Korea, our costumes are much better than ours.

    Adidas

    And the price of Nike is 1/3. "

    Wu Xuemeng, marketing manager of the Shanghai Business Co., Ltd.


    "We use Korean fabrics and sometimes fabrics imported from Europe and the United States.

    We need to pay taxes and fees for the import of fabric. Transportation needs to pay the freight. With these costs, the price of our products in China is 1.5 to 2 times the Korean price, but we are not ready to reduce our price.

    Because we sell brand clothes.

    Jin Shangxian said.


    The domestic brand clothing that dares to set this price is very rare.

    In the field of sportswear, Lining is the most famous domestic brand. The price of a set is between 300 yuan and 700 yuan, which is far from Korean clothing prices.

    This makes Korean clothing brands almost no competitors at the same price.


    Specializing in "corner gap"


    For Korean clothing brands in China, Korean experts have concluded that Korean clothing brands do not compete with Chinese companies for the vast market segments, but specialize in the "side gap" market segments of Chinese clothing.

    These fragmented markets are negligible compared with the whole Chinese clothing market, but "fast selling, fast updating and high added value" make enterprises successful.


    But Zhu Jianwei said: "some people say that clothing depends.

    brand

    To win, but when we first entered the country, we didn't have any popularity. We built quality brand and brand.


    "We built a factory in Qingdao to produce EXR brand clothing and fabrics from Korea.

    Even so, output accounts for only 20% of our sales, and more products come from imports. "

    Wu Xuemeng said.


    "Some domestic manufacturers counterfeit our products, we sell more than 1000 yuan, they sell three hundred yuan, consumers can only tell the true and false with their hands, because the quality difference is obvious."

    Zhu Jianwei said.


    Apart from quality, Korea has achieved good results in China.

    clothing

    They all have distinct characteristics.


    EXR launched the concept of personalized sportswear.

    In order to improve the beauty of clothing, EXR did not even provide a bigger style than XL.

    "Our clothes are for those thin skinny people. These people are good because of their good shape and they like to publicize. They are not only our users but also our advertisements in the form of image, so that our influence can quickly disperse and make us succeed quickly in China."

    Wu Xuemeng explained.


    This is not a very high income city in Shenyang.

    EXR

    It has been successful in opening 6 stores, because the clothing has been sought after by young people aged 25 and ~35, and has become the pronoun of the local high-end fashion.

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