Marketing fashion to china assignment

Social security contributions paid by employers is 60% and the social security contributions paid by employees is 11%. China is a ‘ collectivist’ society group prevailing over the individual. As a result, Chinese consumers largely ‘ adhere’ to the standards and rules of the group to which it belongs. Enormous passion for golf in China (1 million golfers) during the last few years, testifies to this need to belong to a group (the affluent) and the consequent conformity of attitudes of individuals to the group expectations. Also, advertising promotions in China frequently directs groups rather than individuals.

Today, the single child generation wants to live a very good life and thus spend (education, luxury items, consumption goods), especially in large cities. The consumption is often ostentatious as witnessed by the explosion in the number of luxury cars in the Peoples’ Republic of China, as to the need for conformity with the reference group, there are hardly any individuals ready to run the social risk of being different as compared to their reference group. Contrarily, once a product is adopted by the reference group, the passion is extremely rapid and to a wider extent. It is not a single China, but many Chinas.

Shanghai has increased its role in finance, banking, and as a major destination for corporate headquarters, fuelling demand for a highly educated and modernized workforce. Shanghai has recorded a double-digit growth for 14 consecutive years since 1992. In 2005, Shanghai’s nominal GDP posted an 11. 3% growth to 915. 4 billion yuan (US$117 billion). As in many other areas in China, Shanghai is undergoing a building boom. In Shanghai the modern architecture is notable for its unique style, especially in the highest floors, with several top floor restaurants which resemble flying saucers.

For a gallery of these unique architecture designs, see Shanghai (architecture images). The bulk of Shanghai buildings being constructed today are high-rise apartments of various height, color and design. There is now a strong focus by city planners to develop more “ green areas” (public parks) among the apartment complexes in order to increase the quality of life for Shanghai’s residents, quite in accordance to the “ Better City – Better Life” theme of Shanghai’s Expo 2010. Historically very Western in lifestyle, Shanghai is increasingly a critical center of communication with the Western world.

Clothes tend to get fairly wet after minutes of walking. Autumn is generally sunny and dry, and the foliage season is in November. Winters are typically grey and dreary, with little or no snowfall. The city has a few Typhoon spells during the year, none of which in recent years have caused considerable damage. Shanghai is the financial and trade center of China. It began economic reforms in 1992, a decade later than many of the Southern Chinese provinces. Prior to then, much of the city revenue went directly to the capital, Beijing, with little return.

Even with a decreased tax burden after 1992, Shanghai’s tax contribution to the central government is around 20-25% of the national total (Shanghai’s annual tax burden pre-1990s was on average 70% of the national). Shanghai today is the biggest and most developed city in mainland China. The 2000 census put the population of Shanghai Municipality to 16. 738 million, including the floating population, which made up 3. 871 million. Since the 1990 census the total population has increased by 3. 396 million, or 25. 5%. Males accounted for 51. 4%, females for 48. 6% of the population. 2. 2% were in the age group of 0-14, 76. 3% between 15 and 64 and 11. 5% were older than 65. 5. 4% of the inhabitants were illiterate. As of 2003, the official registered population is 13. 42 million; however, more than 5 million more people work and live in Shanghai undocumented, and of the 5 million, some 4 million belong to the floating population of temporary migrant workers. The average life expectancy in 2003 was 79. 80 years, 77. 78 for men and 81. 81 for women. Shanghai and Hong Kong have had a recent rivalry over which city is to be the economic center of China.

Based on data released by the Bureau, 967 retailing chain store enterprises were found nationwide in 2003, of which 64 belonged to the department store category. By 2007, the number had climbed to 1, 729 including 109 department stores. Thus, China’s fashion retailing industry can be said to have enjoyed a boom over the intervening years. Many renowned international brands have eyed China with longing, and started stylish fashion chains and brands such as H&M, ZARA, Mango, Sisley, Coach, Max Mara and Folli Follie, to name just a few, have established branches in China.

The emergency of these trends highlights a subtle change in the fashion retailing pattern in the country. The number of malls and department stores that have arisen in China over the last ten years in vast, however, in the last several years the department store has seen a drop off and the stand-alone store has become the new shopping venue. Whether in a mall or literally standing alone, these stores have taken the place of the traditional department store experience in China. The appeal of these large stores has fallen to the wayside.

More global brands are expected to come and participate in this market turf war. Likewise, the Times Square shopping centre recently expanded to Dalian and Ms. Hau believes that more and more world-known fashion chain stores entering China reveals the transformation of both the fashion retailing business and transformation of both the fashion retailing business and its consumers, and that the country will soon be well connected to international trends. Owing to the great and sound success achieved by others, plenty more brands will be attracted to venture into China, further reinforcing the existing prosperity.

She holds high hopes for the development of China’s fashion retail business, and certainly for its young fashion market. As other markets shrink, China continues to move forward and expand as an international selling site. China is Nike’s second-largest market after the U. S. for clothing sales, and the company says that while sales in its home U. S. market in its March-May quarter fell 2 percent from a year earlier, they rose 6 percent in China. This number is even more impressive because it is based on the Olympic sales year of 2009 in which sales jumped 60 percent.

Rising incomes, growing urbanization, and an economy that has grown 10 percent annual from 1979 to 2006, have resulted in a consumer boom in China-and a highly prized demographic for international marketers. Among all purchases in China’s youth market, the symbolism culture is most strongly evidenced in young people’s apparel preferences. Most of them prefer to pay set prices for brands because of the belief that owning brands conveys prestige and status. This symbolism culture can also be applied to the marketing of luxury fashion goods in China. “ For young people, the main luxury purchases consist of smaller personal items such a apparel.

In purchasing luxury brands, young people are generally less pragmatic than the average Chinese consumer because they value the symbolism and want to show others that they have a good life and good taste. Although young consumers are less tradition bound, craving fashionable and brand names, they are still restricted by some Chinese traditional values and beliefs, such as balancing quality, price, and utility. The combination of traditional and modern ways manifests itself in young consumers’ choices of what they wear and their apparel purchasing preferences and patterns.

Mia’s current goals are to intensity sales in existing stores, as well as to increase the number of new stores by 14% per year. Meet “ Mia” Hello. My name is Mia Ngyen. I would like to introduce myself. I am 23 years old. I have lived in Shanghai my entire life. I am fluent in Mandarin, French, and English. I love talking to my friends on my mobile phone. I mostly hang out a western style bars and discos, even on weekday evenings. Most of my friends work at Internet start-ups or western firms-like I do. I am easily becoming adapted to western ways. My family would say that I am a product of modernization and global marketing.

I would just say that I am going with the times! I loved high school and excelled easily. I always knew that I would go to college-my family would never accept any different. I graduated near the top of my class in college. College was hard, but I made a lot of great friends that I still talk to every day. I had many great experiences in college. One of my favorites was that I traveled to London for a semester abroad. London was amazing. I love doing new, different, and exciting things as often as I can. I enjoy trying new things. I missed my family and friends, but it was a great experience to be on my own.

I believe in the same traditions and values, but I also like new things and ideas. I love the look and style of westerners. They are so beautiful and elegant. My family doesn’t understand this desire of mine to be more western looking. My friends all get it. They feel the same way that I do. They want nose bridges, formed eyelids, and lighter hair-the look that westerners have. My friends and I want to wear Gucci and carry a Fendi bag. We love Nike, McDonalds, and Starbucks. I really love my friends so much. They are the best. Don’t tell anyone, but I really just want my friends to think that I am cool.

I want to fit in with them more than I want anything else. I just want to be accepted in my group of friends. That would make me so very happy with my life. I just have to, have to, have to??? have everything that my friends have! I must! This helps me to fit in if I get what they have and what they want. If one of my friend’s wants a shirt from a certain brand then I also have to have something made by that brand-even if I didn’t need it. If several of my friends are raving about a new brand of clothing, especially if it a foreign brand then I really need to have it! If I buy an tem that my friends love and I don’t really like it I will still wear it just because my friends like it. That is how important my friends’ opinions are to me! My friends pick out and buy the greatest, coolest items. They get the latest technology, the coolest clothing, and the best new gadgets??? and I want all of it! I still live with my parents and they still pay all of my bills, so the money that I earn I usually just spend-mostly on fashion, I admit! I do save, but only a little??? and it’s usually just to buy more clothes. My parents paid for my college, so I don’t have any debt.

These are very important to me right now. I really like to try out new brands of products, especially western brands. I love to try new things. When I wear this new clothing-if I receive many compliments, my friends like them, I feel like I fit in then I will be a customer to this brand for life! Once I find a brand that I like-I am very loyal that way. In my spare time I enjoy selling and buying things on Taobao. com, it is sort of like your ebay. I also enjoy playing video games on my new cell phone. I regularly practice tai chi to try to stay healthy. I love going to the most recent Chinese animation film released with my friends.

I walk through the malls in Shanghai dreaming of the feel of the new Hermes bag draped over my shoulder, of the latest Gucci shoes over my toes, and the most recent Channel dress “ wowing” my friends. I am about renewal, fresh ideas, challenging tradition and yearning for the new. I find change exciting, not intimidating. I am impetuous and unpredictable. I am colorful irreverent, entertaining, sometimes shocking, and almost always rebellious. I am on the vanguard of fashion, music, and popular culture. I am in a word-energy! I am the future, in its entire mystifying, complex, exciting uncertainty. I am Mia. Mia’s Strategy

These new policies put China in a position to play an important role in promoting Chinese modernization. There were two main phases in advertising development in China. First, form 1979-2001 in which there was a movement from utilitarian to hedonistic appeals in Chinese advertisements. Utilitarian appeals involved satisfying basic physiological needs, whereas hedonistic appeals involved fun, gratification, and pleasure. In the second phase, from 2001-present, Chinese advertisements are described as a “ melting pot” of cultural values, namely incorporating western and European modernity and values.

Mia’s VALS Survey Results: The VALS??? Survey Top of Form 1. I am often interested in theories. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 2. I like outrageous people and things. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 3. I like a lot of variety in my life. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 4. I love to make things I can use every day. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 5. I follow the latest trends and fashions. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 6.

Mostly disagree Somewhat disagree Somewhat agree Mostly agree 28. I like the challenge of doing something I have never done before. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 29. I like to learn about things even if they may never be of any use to me. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 30. I like to make things with my hands. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 31. I am always looking for a thrill. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 32. I like doing things that are new and different. Mostly disagree

Somewhat disagree Somewhat agree Mostly agree 33. I like to look through hardware or automotive stores. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 34. I would like to understand more about how the universe works. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 35. I like my life to be pretty much the same from week to week. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 36. Sex: Male Female 37. Age: 18??? 24 25??? 29 30??? 34 35??? 39 40??? 44 45??? 49 50??? 54 55??? 59 60??? 64 65??? 69 70??? 74 75 or older 38. What is the highest level of formal education you have completed?

This group is dramatically different from other age groups in China in terms of habits, lifestyles, and ideology. They tend to be less-tradition bound and are quicker to accept and create new environments. Mia-The Brand The product that we are proposing to introduce into China is a woman’s clothing line we call Mia. The name Mia was chosen because it reflects the name of a Chinese female from the young royals demographic (16-30 year olds). In essence Mia is our consumer profile or ideal consumer. All the products from the Mia brand are tied to meet the need of these female target customers who are 16-30 years of age.

The Mia Logo The logo we have created is a simple oval with our brand name in the center. The colors we chose are warm red hues. These colors were chosen because they are considered the colors of luck and happiness and are also the colors of the national flag. Mia: A Foreign Brand Being that we are an American company, it is essential to ensure that Chinese consumers will be accepting of our brand in their country. Every industry is different, but for the apparel industry, it seems as though the Chinese consumers are open to try foreign brands. That is, as long as the product takes into account their needs.

However, we know that they respond best to multimedia kiosks, video boards, internet ads and television ads. These are all things that would be a good investment when allocating advertising dollars. On the other hand, there are some sources that are outside of our control which are widely relied upon which are product reviews and input from friends or coworkers. All of this information can be summed up in the chart below. Funds Access Before a purchase can be made, the consumer must make some access of funds to pay for the product. China is much different than the United States when it comes to purchasing apparel and related items.

In America, the typical 16-30 year old female might purchase her clothing on a credit card and pay it off at some later date. In China, this is not the case because credit is not easily available. Credit cards in China represent high social status and most people under 30 do not have access to them. In most cases, the Chinese will carry a debit card which pulls money from an account which has already been funded by them. Or, in some cases the Chinese people are known to save for a period of time just to keep up with the current fashion trends. Consumption in China is said to be very competitive. Store Contact

Debit cards are commonly used when purchasing consumer goods, as well as cash and checks. Information Search Our target market uses a variety of methods to search for information. The most popular method is online searches, referrals, kiosks and product reviews. The often tend to search for information close to the time they are going to purchase the goods. Major Motivators & Influences (why they buy) Chinese women are particularly fascinated in western culture which is a major motivator for them to buy fashionable clothing which reflects western influence.

We see many women going so far as getting plastic surgery on their eyes to appear more western. Chinese women will spend money on clothing lines to make themselves fit into the western image because it is much more affordable than plastic surgery. Younger generations have the attitude that “ it’s all about them. ” (From Interview) Younger Chinese women want to veer from traditional society and wear new styles. Consumption is competitive in China. People want to show that they can afford the latest in fashion trends, therefore they engage in conspicuous consumption…or the purchasing of goods to “ show off” to others.

According to results released last month, H; M planned to add 225 stores worldwide. Influences 1. Cultural Influences Culture is derived from the Latin word cultura which means “ tending” or “ maintaining”. It means consists of patterns, explicit and implicit, of an for behavior acquired and transmitted by symbols constituting the distinctive achievement of human groups, including their embodiments in artifacts; the essential core of culture consists of traditional ideas and especially their attached values; culture systems may, on one hand, be considered as products of actions, on the other as conditioning elements of further actions.

Levels of Culture Supra-Culture Economic System, Economic Development, Ethnicity, Religion Macro-Culture Nationality, Origin, Residence Meso-Culture Industry or Professional Culture Micro-Culture Organization, Family, or Clan Individual Identity These culture levels cannot be considered isolated from each other, they are intertwined and influence each other. China, the country with more than 5, 000 years of history, is full of cultural richness and at the same time is coveting the Western way. This mix of cultures influences everything including buying behaviors. 2.

One becomes noble by developing oneself in five specific areas: benevolence, righteousness, proper conduct, wisdom, and trustworthiness. The most important theory being that when relationships between family members, specifically children respecting parents, are in harmony then the world is also peaceful. b. Taoism ??? This concept stresses the cooperation with the flow of live. Moving with the motion. Also, look for balance hence the yin-yan symbol. c. Overseas Chinese Evangelicals (OCE) — This group is becoming more and more prevalent in large cities within China.

They have very strong conservative views and mores. The adoption of this religion within families will lead to the influence of these beliefs and therefore more conservative buying behaviors. 4. Sub-Cultural Influences ??? conformity is widely accepted in China and being part of the group is something to be proud of. Therefore, if an acquaintance tells someone that a product is good and should be purchased then that is enough information to make the purchase. Even if the item would not otherwise be desired or needed it will be purchased to be part of the crowd.