Chinese fashion brands address new challenges

[ 2008-10-13 ]

YOUNG Chinese, especially the "Me" generation, love their clothes - which means good business for fashion stores. But as more international brands make their way into China, local brands are lifting their game to meet demand too, writes Michelle Zhang.


When Zara opened its first outlet in Shanghai in 2006, dedicated Chinese shoppers waited in queues, vying with each other to try on flattering, affordable pieces freshly delivered from Europe.


The Spanish fashion brand recently launched its fourth store in Shanghai, which is within a stone's throw of H&M's flagship store and a C&A store on Huaihai Road M.

In fact, high-street fashion brands like Zara and H&M have become so much part of the fashion landscape nowadays that when a person says they bought a piece from Zara or H&M, people are no longer surprised.

The stores are always crowded. Checking out new arrivals almost daily has become a routine for many a fashionista in town.

It is always good for consumers to have more options, the more the better. But at the same time, the thriving business of such brands in China is certainly making their local counterparts uncomfortable.

Kiki Fang, a 26-year-old Shanghainese lady, used to be a VIP customer with Esprit when she was in school.

Today, however, she no longer shops at the Hong Kong-based fashion chain. Like many of her girlfriends, she has become a big fan of H&M and Zara.

"I usually buy casual clothes from H&M they are cheaper compared with those in Esprit,'' explains the office worker. "And I buy formal wear and dresses from Zara. The prices are the same as Esprit, but the clothes are definitely more fashionable.''

With her office on Huaihai Road, Fang visits the two stores at least twice a week. "I don't always find something there,'' she says. "But I couldn't dream of going more than a week without a visit.''

Fang is representative of a large group of young people, especially those living in big cities in China. Domestic brands have come to realize that they have to make changes, or they will lose the battle.

"I think it's good that more and more international brands are coming to China,'' says Ray Fung, general manager of Bossini in the Chinese mainland. "It shows the huge potential of the market, as well as Chinese people's rising fashion awareness.''

Founded in 1987 in Hong Kong, Bossini is a widely recognized casual wear brand in China. It opened its first store in the Chinese mainland in 1993, and now has 522 stores around the country.

The brand is known for its comfortable, easy-to-mix-and-match style. It offers a full range of products at affordable prices, covering the needs of men, women and children.

Last month, it opened a three-story flagship store in a prime location on Nanjing Road W., the city's retail business heart. Meanwhile, it has also launched a nationwide brand revamp campaign, introducing a new shop concept and a new brand icon.

"We hope the campaign will help more people recognize the brand, and attract new customers,'' Fung explains.

The company debuted Bossini Style a more expensive line designed specially for office ladies two years ago when it sensed the increasing need of classic formal wear among young people in China.

"We launched the brand in the Chinese mainland before we introduced it back to Hong Kong,'' Fung says.

"The clothes are of better quality, with more attention to detail. The line has been warmly welcomed by young ladies around the country.''

Seeing the success last year, the company introduced another new line, Yb by Bossini, targeting teenagers, together with clothes for women in maternity and infants.
Two months ago, when "Prison Break" star Wentworth Miller appeared in major newspapers and magazines as the brand ambassador for Me & City, many people thought the American actor was simply working for another international fashion brand, eager to grab a slice of the lucrative Chinese market.

But the fact is, Miller is actually working for a Chinese brand a brand-new one, too.

Founded by China's leading apparel company Metersbonwe Group, Me & City targets the same client group of H&M and Zara, with the aim of building itself into a global brand.

"Our ideal clients are aged between 22 and 35 people who represent China's 'Me' generation,'' says Zhou Long, marketing manager of Me & City.

Miller was in Shanghai on Saturday for the opening of Me & City's flagship store on the bustling Nanjing Road Pedestrian Mall. The five-story, 3,500-square-meter store sells low-cost, high-speed, trendy clothes for young people.

According to Zhou, the "internationalized design team'' will introduce at least 4,000 styles every year almost as many as Zara and H&M.

Brazilian model Bruna Tenorio and Miller have already done an advertising campaign photo shoot with the pictures taken by renowned Mitch Epstein.

Me & City currently operates 20 stores in 20 cities in China including Shanghai, Beijing, Tianjin, Shenyang (Liaoning Province), Xi'an (Shaanxi Province), Wenzhou (Zhejiang Province), Chengdu (Sichuan Province), Nanning (Guangxi Zhuang Autonomous Region) and Guangzhou (Guangdong Province).

Its parent company, Metersbonwe Group, has more than 2,000 outlets scattered through almost every province in the country.

According to its Website, its retail sales revenue amounted to 3 billion yuan (US$4,400 million) last year, making it the largest casual wear retailer in China.

In some small cities and towns, Metersbonwe appears to be the only branded store.
The brand might not be as popular as Zara in big cities, but it is the first (and only) choice for many people in secondary cities.

The same is true about some thriving domestic sneaker brands such as Xtep and Anta.

Founded in 2001, the Fujian-based Xtep is one of the most successful sports brands in the country.

Similarly, it is not as popular as Nike or Adidas in Shanghai or Beijing, but its ubiquitous branches around the country have helped create a thriving business and more than 1.3 billion yuan in sales revenue last year.

International retailers have come to realize the importance of secondary cities too. Zara operates an outlet in Hangzhou, Zhejiang Province, while H&M recently opened stores in Nanjing and Wuxi, both in Jiangsu Province.

Another is set to be opened in Changzhou, Jiangsu Province, by the end of the month.

"When we expand, we always consider which location is geographically nearest to our existing stores, since it is more economical logistic-wise,'' says Anne Wu, PR manager for H&M in China. "China is still new to us and we are learning every day.

"We would like to explore more and more cities but it will take years to learn about this country. Our commitment to China is long term, so we have time to make good planning for this country.''


Source: Shanghai Daily