Forever 21 might not conquer China’s fast fashion market – Ben Cavender

 

Ben Cavender

US fast fashion brand Forever 21 tries for the third time to get access to the China market. But Shanghai-based market analyst Ben Cavender wonders if the US brand and its Western competitors in fast fashion might succeed this time, he tells Reuters. “It will be difficult to claw away market share as most Chinese consumers either haven’t heard of the brand or don’t really know what it stands for,” he says.

Reuters:

Gaining and retaining market share, however, remains a tough task for mass market foreign fashion brands in China. Some, including H&M, have been plagued by controversy while others, including major sportswear companies Nike and Adidas have lost ground to local brands Li Ning and Anta in recent years.

“It’s clear within the fast fashion space there has been somewhat of a shift towards nimble domestic fashion brands, so if anything it is harder now for international fast fashion to compete here than in the past,” said China Market Research Group managing director Ben Cavender.

“It will be difficult to claw away market share as most Chinese consumers either haven’t heard of the brand or don’t really know what it stands for.”

More at Reuters.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more experts on the China consumption market? Do check out this list.

H&M tries to regain confidence of China consumers – Arnold Ma

 

Arnold Ma

H&M tries to retain market share in China after a consumer boycott of a range of Western fashion brands – including also Nike and Burberry – on its Xinjiang stance by launching two new brands. The results with the consumers in China have been mixed, says marketing expert Arnold Ma in Jing Daily.

The Jing Daily:

“There are reports saying some consumers still turned their back to the two brands having found their link to H&M, which shows the brand still hasn’t been fully forgiven by Chinese consumers,” said Arnold Ma, founder of China-focused digital marketing agency Qumin.

“On the other hand, the latter two have challenged the image of H&M as a ‘roughly-made’ fast fashion brand by providing better quality products at a higher price,” he continued. “So, the premiumization, to some extent, helps the two win over some Chinese consumers who pay more attention to quality and design.”…

While H&M, Nike, and Burberry have all pushed ahead in China, they have done so to varying degrees of success. Burberry, which has bounced back faster than the others, has partially benefited from being a luxury brand. As Yam, who has more than a decade of Chinese digital marketing experience, said, “It’s harder to replace — you don’t have another Burberry. For Nike, [consumers] can find the China version, Li-Ning, which is popular in China now. And for H&M, there’s so much fast fashion.”

None of this is surprising, as China accounts for less than 5 percent of H&M’s global revenue, while Burberry’s China revenue accounts for almost half of their global total, Ma noted. Indeed, China is just one — albeit very important — market for these global companies. Recovery, therefore, not only entails reevaluating China tactics but also ensuring a strong global network for when a crisis eventually hits.

The Jing Daily.

Arnold Ma is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more experts on China’s consumers at the China Speakers Bureau? Do check out this list.

Why the China internet went after H&M – Shaun Rein

 

Shaun Rein

H&M got hit by an unprecedented boycott from Chinese consumers, as the China internet went after the company for its stance on labor in Xinjiang. Partly that vehement outpour of anger was caused because internet companies have been under government investigations, says veteran business analyst Shaun Rein, so they had to prove more than ever they were not a danger for that government, he says at AP.

AP:

“It’s a form of self-preservation,” said Shaun Rein, managing director of China Market Research Group in Shanghai.

Rein said the outpouring of anger at H&M is the harshest he has seen against a foreign brand. He said companies are especially sensitive because this comes at a time when Chinese anti-monopoly and other regulators are stepping up scrutiny of internet operators.

“If they don’t try to criticize, they’ll also get in trouble,” Rein said.

More at AP.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

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Why China hits back at H&M and other European companies – Shaun Rein

 

Shaun Rein at the BBC

European sanctions against China triggered off a backlash against fashion brand H&M and business analyst Shaun Rein explains at the BBC why China’s consumers are starting boycotts against European companies like H&M.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more strategic experts at the China Speakers Bureau? Do check out this list.