Can The Enterprises That Enter The Chinese Electricity Supplier Market Play Well?

U.S.A

Michael Mente, one of the founders of REVOLVE, now recalls that five years after the website was founded, it received the first order from Chinese consumers one day in 2008.

As a result, the young company sniffed business opportunities in some "distant" markets, then developed Chinese pages and Chinese customer services.

In 2012 and 2015, they launched the payment function of Alipay and UnionPay. At present, they are applying for the WeChat payment function.

Although the economy is not very good, it still can not stop consumers from buying clothes.

Among them, clothing business is booming.

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"Products" become the hearts and minds of the Chinese and global seafood groups.

Relevant data show that in 2015, 45% of China's Hai Tao people bought such products. Hai Tao's website was updated with rich styles and more affordable prices, making Chinese consumers have huge demand for these overseas shoes and bags.

Take REVOLVE as an example, its annual sales growth is 50%. In 2015, the company's sales figures were $400 million.

It is said that China has also become the largest international market for REVOLVE outside the US market.

There is no doubt that China, with its large population, is the market that many overseas apparel companies want to enter. Strong international brands such as ZARA, UNIQLO and H&M have entered the market several years ago and have gradually gained a foothold.

Perhaps the best way for those companies that are more well-known in their country to enter is the electricity supplier.

Like REVOLVE, France's largest clothing business La Redoute recently announced its entry into the Chinese electricity supplier market and established the official website's Chinese website.

According to public information, La Redoute was founded in 1837. It was originally a mail order company, operating household and apparel business. Now it has become the largest clothing electricity supplier in France, and its sales platform covers 26 countries.

International business has accounted for 1/4 of the total turnover of La Redoute, and China is the first country to enter La Redoute in Asia.

Reporters in La Redoute's official website saw that its flagship French fashion, in addition to self owned brand clothing, and the sale of other third party brands such as New Balance, Clarks, Asics, etc., more than 10000 goods and French shops at the same price.

Competition in this market is intensifying, and not all foreign companies entering China are successful.

ASOS2013, the largest fashion dealer in the UK, has been doing well in the US and Europe since its entry into China.

However, after two and a half years, he was still not convinced, and China's business lost 8 million 600 thousand euros.

In order to adapt themselves to Chinese consumers, new entrants have tried everything.

La Redoute's CEO NathalieBALLA said: "in order to do well in the Chinese market, we specifically studied the online shopping habits of Chinese consumers."

The online shopping process of La Redoute official Chinese net is designed to build around the online shopping habits of Chinese consumers.

The website has introduced the Chinese local payment methods such as Alipay and China UnionPay, and has also provided professional Chinese customer service mailboxes for consultation, and has opened micro-blog's, WeChat and other Chinese localized social accounts.

In order to attract more Chinese consumers, the REVOLVE implemented a comprehensive free mail in the first quarter of 2016.

Whether these new entrants can play this game well or not depends on their next strategic plan.

Although in their country, maybe they are big guys and gallop in the European market, brand recognition is the first test in China.

Effective marketing deployment is very important. If we want to win a place, we must withstand the competitive pressure of all sectors of the industry.