Fashion Apparel Paul Smith Two Degrees To Enter The Chinese Market How To Avoid Repeating The Same Mistakes

Britain

The news of brand Paul Smith returning to the Chinese market has attracted the attention of the fashion industry.

The two fashion brand in the Chinese market has shown its sincerity: opening the first Paul Smith flagship store in China, which will be completed in Shanghai by the end of this year.

Its efforts to break through the Chinese market again include: cooperate with Lane Crawford, ImagineX, and open 24 stores in the next 5 years.

Five years ago, Paul Smith quit.

Market.

No doubt, it missed China.

The market has erupted most rapidly in recent years.

The key word to return is caution.

After all, it has to be on guard against two degrees of failure.

Then, in the Chinese market where the major brands have gathered, how can the brands that have been withdrawn from the Chinese market break through the Chinese market again?

Missing the Chinese market

In 2007, perhaps Paul Smith did not realize what kind of market it had missed.

That year, the designer of the same name, Paul Smith, withdrew from China.

In 2008, the US financial crisis swept the world, and luxury brands encountered almost no winter in mature markets such as Europe and America.

It is the rising Chinese market that has saved many luxury brands that are in deep mire. In a negative growth, the Chinese market's contribution to over 50% or even double growth is particularly "eye-catching".

After that, luxury brands began to expand in China.

In a few short years, the neglected Chinese market suddenly became the world's largest consumer of luxury goods.

Paul Smith must be upset.

After the withdrawal from the mainland of China, Paul Smith also described the market as "extremely dangerous" by outside media: the rent is high, most people dress only for shelter, while a few people only want to show off their wealth.

But he was also very aggrieved, because the reason why he was forced to withdraw from the Chinese market was that the franchised partners of the time did not sell his brand anymore, but his simple, simple and interesting clothes were withdrawn from the market.

The reason is that Li Zhe, partner and vice president of management consulting company, analyzed the interview with "First Financial Daily": "many foreign brands are entering China in inappropriate ways when they are not at the right time (under the immature market conditions of China), such as failing to find suitable agents, resulting in poor operation of the market, or in the market positioning, without a single shot, unable to reverse the incorrect positioning of consumers for brand formation, and, of course, lack of patience with the brand, unable to anticipate or wait for the maturity and growth of the market."

Return to plan

Now, choosing to return to the Chinese market, perhaps Paul Smith also saw the rapid growth of the Chinese market, and the consumer's awareness of the brand has matured. Let alone the growth of the foreign market is weak, and to find the brand new growth space, the emerging market has become an inevitable consideration.

Indeed, compared to the setback of Paul Smith, the Chinese market is becoming more and more mature and large-scale. But in recent years, luxury brands have poured into the Chinese market.

Even a large international luxury brand CEO can not help sighing when accepting this newspaper interview: "nowadays, it is really difficult for new brands to enter the market."

For that reason, the key decision for Paul Smith to return to the plan is to find suitable partners.

In May of this year, Paul Smith and Junsi group reached an exclusive licensing agreement.

The latter is sister company of Hongkong department store, which specializes in introducing foreign brands into China.

Future Junsi will be responsible for the operation of Paul Smith in Chinese stores.

And their cooperation plans are also moving cautiously: opening 24 stores in China in the next five years.

Two degrees breaking through the Chinese market, apart from "prudent", in Li Zhe's view, the brand should be considered more comprehensively.

"In the past, the development of foreign brands tended to rely on brand advantage. After finding an agent in the country, they were less concerned about the follow-up market operation. The development mainly depended on brand advantage and luck (whether the market was accepted, and whether the distributor's comprehensive ability is strong).

According to Li Zhe, "the success of a brand operation can not be achieved by one or two points. We must consider all aspects of operation, including customer positioning, advertising, market level, store type, product selection, retail operation and so on. At the same time, we should consider the time dimension and consider the development focus and pace of each stage in a medium and long cycle."