What Needs To Be Known Before The International Expansion Of Retail Apparel Brands?

If a company succeeds in the United States, it assumes that it will be the same in other parts of the world, which is not necessarily true.

Even if the biggest retailers are likely to grow on cultural differences, it is imperative to understand the local lifestyle before embarking on the international development journey.

When the company is in

Setbacks may affect the whole business of the company as a whole.

"The importance of remembering this is very important, so we can not assume that all of them want to buy exactly the same thing in exactly the same way," said the European Union's white paper, "the importance of successful internationalization and adaptation to the market".

Understand local market for fashion

Industry is particularly important.

DDT's 2014 global retail predator study reveals that fashion retailers are more likely to adopt international strategies than other retailers.

On average, they expand 22.2 countries, which are two times the 250 largest retailers in the world expanding the average of national figures.

Jeremy Grantham, co-founder of Grantham Mayo van Otterloo, a fund management company, believes that although internationalization is inevitable, it should be controlled.

Rapid expansion in developing countries may hurt the overall foundation of the company, because companies tend to grow beyond capital base, and this growth must raise more capital.

On the other hand, slowing growth allows companies to have time to learn and understand local culture, which is a key factor in the success of global market penetration.

For example, Global Lifestyle Monitor Survey Survey, Cotton Corp and the international cotton association of the United States, found that Chinese consumers living in big cities such as Beijing, Shanghai and Guangzhou had similar increases in clothing consumption and purchase frequency.

This can be explained in a corresponding way. According to the data of Ou Rui International, why is China expected to become the world's largest clothing market by 2020? At present, 81% of the Chinese consumers who live in big cities love or love to shop for clothes, compared with the US consumers only 56%.

Among Chinese consumers living in big cities, 63% buys more than once a month, which is more than doubled from 31% ten years ago.

All these figures are very attractive to retailers and brand dealers who expect growth.

According to Euromonitor International, the lack of suitable retail establishments has strangled the growth of many emerging markets.

According to the report, "shopping mall is the preferred shopping place in major cities in Western China."

Therefore, in China, retailers need to stabilize in several high-end department stores in order to gain market share.

Global Lifestyle Monitor accelerator found that although Chinese consumers' preferences for department stores dropped from 40% in 2003 to 35% in 2014, they still liked retail outlets in department stores.

Among their favorite retail channels, followed by department stores, online shopping (from 0% in 2003 to 31% in 2014), exclusive stores (from 23% in 2003 to 21% in 2014), and chain stores (both 2003 and 2014 were flat, 3%). Online shopping clothing sales are expected to quadruple in 5 years.

Data from the global lifestyle survey also show that most Chinese consumers living in big cities (69%) get the inspiration of matching clothing from the Internet.

However, Ou pointed out that China's

It's not as well accepted by other consumers as online shopping.

Therefore, retailers still need to grasp the channel of department stores.

According to the data of the global lifestyle survey, Chinese consumers get the inspiration of clothing matching. After the Internet, consumers have already enjoyed and enjoyed (55%), window displays (47%), friends and colleagues (46%), magazines (35%).

EU believes that retailers should realize that the average income of emerging countries, including Chinese consumers, is still less than that of developed countries.

Therefore, clothing retailers need to convince local consumers that their brands are superior to other inexpensive alternatives.

DDT's research shows that in Latin America, the growth of retailers has outpaced growth in other countries. From 2007 to 2012, composite retail revenue increased by 14.7%, followed by 13.5% in Africa / Middle East, and 8.7% in other Asian / Pacific regions (excluding Japan).

Japan is lagging behind, only 2.3%.

Brazil is the largest clothing market in Latin America. It is expected that clothing consumption will increase by nearly 1/3 by 2020. Columbia is expected to become one of the fastest growing clothing markets in Latin America. It is estimated that clothing consumption will increase by 34% by 2020.

75% of Brazil consumers and 78% of Columbia consumers said they love or love to shop for clothes, and in the past ten years, the frequency of buying clothing has increased in these two countries.

38% of Brazil consumers said they bought more than once a month, an increase of 30% over 2003.

41% of Columbia consumers said they bought more than once a month, an increase of 27% over 2003.

But unlike in the US, most consumers shop at parity stores (24%) or chain stores (24%), and almost half of Brazilians are in chain stores (49%), followed by independent stores (22%), exclusive stores (13%) and department stores (3%).

Columbia people are also different from American neighbors. Most of them shop in exclusive stores (31%), independent stores (29%) and department stores (17%).

According to the global lifestyle survey, 94% of consumers in India also "love or love to shop for clothes".

In addition, according to euro's data, by 2020, when the US dollar is expected to be 116 billion 700 million, India is expected to become the third largest apparel market in the world with an estimated sales volume of 116 billion 700 million dollars.

Quality is the most important factor for India consumers to buy clothes. 71% of India consumers said they noticed that other quilts were replaced by the quilt, 65% of consumers said they noticed that the clothing had not worn out in the past, and 63% of consumers said they found that the fabric was thinner than before.

Again, as pointed out by Ou Rui, although temptation is strong, "internationalization is becoming more and more important, but it is by no means a simple task."