How China Fashion Companies Use a Foreign Brand to Achieve Success

Introduction

China is the largest emerging market economy in the World about total economic product and population. It is also the largest exporter and second importer in the World and also has a faster consumption rate. The primary industries; telecommunication, agriculture, and manufacturing. However, this research focusses finding out how Chinese fashion has thrived in business by the use of other foreign brands. This study will unearth different strategies which Chinese organization has adopted to achieve its goals and objectives in fashion industries globally. This can be expounded by acknowledging the influence of international fashion marketing brands in the success of Chinese companies. The main purpose is to give insightful suggestions regarding international fashion brands operating in China.

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The idea is looking keenly at how the said organizations are capitalizing and turning tables to their advantage. With interest in the market fueling up, the Chinese brands are trying all means to gain a competitive advantage with the market dynamics. The study is guided by the question "to what extent does China fashion companies use a foreign brand to achieve success?", which has a numerous advantage in the light of international trade. This study will expound on both negative and positive impacts of foreign fashion brands on cultural, economic, political, environmental, technological and global relations. Additionally, the research will play a critical role in evaluating the primary reasons for the success of the Chinese fashion industry when compared with other international organizations. This study will be useful in educating the readers on the strategies that Chinese fashion industries have adopted from different international brands to achieve massive success.

Research Methodology

This research will use interviews and questionnaires to collect data on the relationship between the Chinese and the international market. The quizzes will be shared to the respondents via email while the interviews will be conducted through telephones and skype for more efficiency. The questionnaires will help in presenting the first-hand information from the employees who have experienced the influence of Chinese brands. However, this might face significant setback if the respondent fails to reply in time. Also, the respondents can as well offer invalid information, thus making it difficult to achieve the study. Secondary sources will also be useful in this study for the in-depth analysis, evaluation, and answering this research question. News articles, business textbooks, and company's annual reports will be used in the study. These will offer data and comparisons on the impact of the Chinese market globally, especially the fashion industry.

This study will employ both quantitative and qualitative research tools. Quantitative methods will major in collection and analysis of numerical data from the standardized questionnaires. Qualitative research tools will be useful in exploring different individuals' opinions, attitudes, feelings and behaviors towards the Chinese fashion impact in the global market. This study will major in collecting data from different companies which have faced the wrath of massive Chinese success in the worldwide market. The interviews will expound to customers who are consumers of the goods which the Chinese fashion brands have affected in the global market. This adjustment will assist in comparing the information got from the employees and the customers, thus giving out a clear picture of the study.

Strength of China Fashion Industry

China is a very innovative country. The country is the World's largest clothing manufacturing industry. China has set policies gives an edge in brand positioning, bottle-like revenue, and name recognition. A good example can be related with their designers who posses two avenues of distribution, ready-to-wear line and a couture line more reachable to the buyer with low income. This is indeed a strength as it allows the names of the designer to spread out to the audience of customers and the brand to generate more sales. In 2017, Chana re-claimed its rank of the largest exporter in the World. The manufacturing industry in China imports raw materials from countries such as the USA and then exports the textile to foreign markets (O'Cass et al., 342).

The country's' population plays a critical role in providing market and labor for the manufacturing sector. The growth of Chinese domestic fashion brands within the past years has played a role in the growth of the brands within the international boundaries. For example, in 2016, MJ Style has expanded more than 150 new locations, therefore becoming of the largest brands globally. This shows how china is heading in the right direction in the international market. This also helps in building a better reputation of the "Made in China" goods, therefore, success for china. A study by both Han and Xiuli Wangof Peking University, illustrate how media coverage on Chinese goods have influenced the public opinion on Chinese products and also shaped the perceptions of the Chinese made products (Tong et al., 560).

Opportunities

Foreign brands have created various opportunities in China. A few years ago China was inaccessible as a source of raw materials and labor due to intergovernmental tensions and Chinas attitude towards commerce. Nevertheless, China has recently loosened its commercial restrictions and has become an open-source for manufacturing, labour, raw materials and goods. This has provided the opportunity of accessing cheaper labor force, lower price goods, and discovery of the new market. Technological development in the manufacturing industry are also opportunities created because technology makes production faster and also increases its efficiency.

Threats

Most brands in the fashion industry are primarily threatened by politics and the economy. Political instability, government policies, inflation, and economic downturns are all threats to the accessibility of the raw materials, brand recognition and exposure, distribution as well as consumption.

Chinese Networking

Since the colonial period, the chinese business organizations are known to have strong linkages but deficient in structure and sustainability. The strength of the network ties amongst the chinese family businesses is one of the fundamental characteristics of the business. However, the way chinese do their business is closely associated with their cultural practices. Chinese business strategies mainly favor expansion and interrelations within their business circles. For instance, hong kong economy has undergone transitionally over a short period since it was a small fishing ground as well as fishing center. Furthermore, the europeans did not understand why the chinese business networks grew so fast and efficiently. The main reason behind this is that the chinese could speak the local language, and were also familiar with the local customs and practices. These are some of the facts that helped them establish strong business bonds. These bonds are presumably the reason why the chinese businesses became more and more networked but less reliable. Chinese business networks are very rational up to today and have helped greatly in the growth of its economy.

Compared to the Europeans, the Chinese could move within the local villages establishing more Chinese links. The Europeans later recognized the value of the Chinese port cities, and at some point, they destroyed the indigenous trading communities, but unfortunately For them, their bonds became stronger. The intense political relationships amongst the Southeastern Asian traders significantly bothered the Europeans so much that they increased Discrimination against them. Even so, the Europeans could not succeed in their businesses Without having to collaborate with the Chinese. The rapidly growing economies of the East Asian nations have called for in-depth research on the organizational structures of their institutions. Most of the studies in this area redirect to the cultural norms of the Asian society which are believed to be the leading contributors to the economic developments in Asia. The Asian community is known for its Perseverance, thrift, familyism, and obedience. The validity of the Chinese network systems is witnessed in their economic thriving that extends to the relocation of businesses in the country.

One of the other evidence-based arguments of China's productive networking strategies is the acceptance of China as a member of the world trade organization. China was also approved to be capable of hosting the 2008 Olympics confirming the country as the key player on the Ecosphere's economic stage.

Why Do Europe Brands Have So Much Success?

For the past few years, European has continued to dominate in the fashion brands ahead of Chinese. One of the main reasons behind this is the perception of customers. Customers have the perception that European brands are superior because they are driven by lifestyle and class. The marketing strategies employed by European industries match with the fast fashion which involves "see it, want it" nature. To deliver this kind of bands, many industries have started initiatives of acting like media brands coalescing entertainment, shopping, and entertainment. The fast fashion has influenced retailers to have an efficient customer journey hence giving buyers to enjoy a more comfortable and instantaneous experience. The European fashion brands are very marketable because the majority of customers have adopted the western culture, especially in the clothing.

Brand awareness in China is not keen hence justifies the reason that makes the brand development of the country to be reduced. Small and medium businesses like T-shirt manufacturers, still conduct original equipment marketing. Although the companies using OEM maximize benefits on a short-term basis, in the long term, it is not recommendable. The brand of the product is hard to establish a distribution network that is fully independent and not easily controlled by competitors. Furthermore, brand positioning is inferior. According to Philip Kotler, effective brand positioning requires brand owners to specify the difference between competing brands and explaining to the target market the differences.

Trust issues in China is another notable weakness of the Chinese fashion industries globally bearing in mind the bad reputation which comes along with the "Made in China" label. Many of the Chinese products consumers identify the term Made in China with low quality and low cost, thus destroying their brand reputations in the market.

The world economy today has been undoubtedly dominated by the Europe brands for the longest time and for that reason, they have established themselves both locally and globally. According to (Talbot,2019) the success of American brands such as Apple, Google and Samsung to mention but a few are majorly attributed to excellent communication and consumer engagement. The two attributes help build the necessary trust between the business and the consumers hence the growth in the brand and building of loyalty with the consumers. This long-term relationship plays a significant role in building the brand both locally and on the international scene, thus succeeding without difficulties in most cases. Adaptation to foreign markets, cultures, and tradition is another major notable factor that the Europe brands have capitalized upon in their quest for overseas markets and their long-term establishments. The best example is the Disney brand that has spread across all major markets, including France and China. For instance, Disney Paris was built in correspondence with the culture and the French traditions, including the architectural d...