Showing posts with label Banana Republic. Show all posts
Showing posts with label Banana Republic. Show all posts

Monday, July 16, 2012

More losers than winner in fashion brands - Shaun Rein

Shaun Rein
H&M and Zara might be winners in the competitive fashion market in China, tells author Shaun Rein of "The End of Cheap China" to the BBC. But brands like  Gap, Marks & Spencer, American Apparel, Abercrombie & Fitch and Banana Republic belong to the majority of the losers.

The BBC:
Shaun Rein, managing director of Shanghai-based China Market Research Group and the author of the "The End of Cheap China", says that fast fashion retailers like H&M and Zara that quickly churn out affordable copies of runway designs are most likely to succeed. 

He says brands like Gap, Marks & Spencer, Abercrombie & Fitch and Banana Republic will find it difficult to gain any traction in China because they fall into a middle-class image trap, where the product is fairly expensive for the local market, but carries little prestige. 
"The middle class in China - they trade up or trade down and anything in the middle will struggle," he says. 
"That's why I am very bearish on M&S as their DNA is very middle class. You buy our clothes because you want to present yourself as middle class - that's not something that any Chinese person I've ever met wants. 
"When we interview Chinese who are middle class, they really think they are on the way to riches because everyone knows someone that 15 years ago was a dirt-poor farmer but now is driving a BMW." 
Branding has also presented challenges for some players in China. 
US retailer American Apparel found that its overtly sexy marketing was not to local tastes and ultimately had to close down some stores. 
Gap promotes its 1969 jeans, but in China the year is associated with the violence of the Cultural Revolution not flower-power nostalgia, Mr Rein notes. 
And even the foreign fashion brands that have the biggest market share in China are not yet household names that trip off local shoppers' tongues
More at the BBC.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.
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Friday, October 29, 2010

Foreign brands struggle as Chinese retailers rise - Paul French


The GAP logo.
Image via Wikipedia
Depending on how you look at the figures, retail grew up to 20 percent in China, retail analyst Paul French tells Forbes and compares the fate of foreign retailers like Gap force domestic competition from the Trinity Group and China Lilang.
Paul French in Forbes:
Take a look at people like Trinity Group (controlled by Hong Kong’s Fung brothers) who recently acquired Kent and Curwen and Gieves and Hawkes. They’re positioning well to catch the next wave of wealthy Chinese men – i.e. the one’s who will probably not just be content with Dunhill! Also take a look at China Lilang, recently IPOed and who are typical of the new Chinese apparel retail entrepreneurs in that the company is designing, sourcing, manufacturing and retailing casual apparel very successfully. Trinity and Lilang represent the two major strategies – acquisition vs manufacturer-turned-retailer. In reality both work.
Paul French is not sure whether recent plans to enter China are that smart:
I’m not sure where The Gap will fit. As a brand struggling internationally and in its home market, it’s perhaps a little late to hope China will save them. It is still true that the trends that sweep China emerge from Europe, and to a lesser extent America and Asia (really only Japan and Korea) and Chinese retailers imitate them. Right now the apparel market is moving from a five-year love affair with sportswear — and a massively crowded market of foreigners and locals — towards fast fashion. Currently all the running really is being made by foreigners in this sector: Zara and Mango — the global phenomena of Inditex, C&A, H&M, Vero Moda, and others. Gap would have been far smarter to come to Shanghai with their Banana Republic brand right now if they wanted to catch a profitable wave.
More in Forbes.

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Paul French is a speaker at the China Speakers Bureau. Do you need him at your meetin
paulfrenchPaul French by Fantake via Flickr
g or conference? Do get in touch.