The Chinese E-commerce Market – International Players Want to enter China’s market
After seeing impressive performance of the domestic brands that have gained so much through Internet Retailing, International apparel manufacturers also want a piece of the action.
Indeed, with over 100 new stores, opened in China in 2011, 30 of which were Zara, and an annual profit of 2.6 billion USD in 2011, the foreign apparel manufacturer market showed a figure of 11% up compared to the previous year. Generally speaking, they expanded online business in China in 2011. Nike and Levi Strauss, by launching different product line for online sales channels, reduced priced competition between online and store-based retailers. But how these brands can be insured of a successful market entry in China?
Macy’s Online Strategy – an example of Successful Move in China
Being Online Without Physical Presence – Not a Good Idea in China
However, the Social Network can help the brand to avoid these difficulties, by reinforcing consumer trust and being a tools to develop a great Branding strategy.
Possible Consolidation and Future Prospects of Apparel Internet Retailing in China
As international players entering the internet retailing market in China, a growingly more competitive market can be expected and the collision will be inevitable. Consolidation will be intensified by the competition between distribution channels. It seems that with the will of international brands to expand, local players do not have competitive advantages like advanced logistics systems and extraordinary consumer service.
As e-commerce further develops in China, international style-savvy brands that fluidly integrate their online and in-store platforms seems to be able to find the rewards far outweigh any investment. For apparel manufacturers over the world, the potential of the Chinese e-commerce apparel market is currently a once in a lifetime opportunity.