With an economic growth of nearly 10%, China looks very attractive to a lot of companies today. The emergence of a strong middle class characterized by a high purchasing power makes opportunities plentiful. However, China's huge market is much more complex and specific than western ones. That is why designing a tailor made marketing strategy is crucial if a business wants to succeed there. Is China a good potential market target for a French fashion company? Are French fashion companies able to adapt to this very specific market? Could they be successful in it? This is what we are going to study in this article with the example of Caroll, the largest French clothing retailer by sales. Attracted by this fast growing market, the company wants to set up operations in China and make the best of this opportunity. The aim of this study is to design a strategic marketing plan for Caroll in China. In order to achieve this result, we will analyze the company in the first chapter, and take a closer look at Caroll's history, positioning and culture. In the second chapter, we will conduct a market audit of China. We will see what are the main characteristics of the country, what consuming means in china today, what the attitudes of Chinese middle class consumers are regarding brands and prices, and we will finish by taking a closer look at the Chinese clothing retail market with a competitors analysis. In the third and last chapter, we will practice a strategic marketing analysis using appropriate tools such as the 7 Ps, the 3 Vs, Porter's five forces, the Boston Box, the Ansoff matrix and a SWOT analysis. The conclusion will be dedicated to finding an appropriate solution to our issue: can Caroll be successful in China?
[...] Caroll will also have to take in consideration the specificities of China concerning promotion. What are the habits? TV spots, magazine, press, radio, internet. How many people have an internet connexion? What are used to do competitors? What results did they achieve during their past campaigns? Is viral marketing important? Is direct marketing more likely to produce the desired results? Physical Evidence The physical evidences Caroll will have in China are their stores and its website. The company will have to translate its website in local languages, certainly more than Chinese because there a lot of dialect within the country (Mandarin, Cantonese The design of the stores will be very important too. [...]
[...] Value Network How to deliver Caroll will certainly have corporate brand stores and some corners in big stores. Porter's Five Forces Strategy Porter's five forces model is used to determine the competitive intensity and therefore the attractiveness of a market. Generally, experts use this model when making a qualitative evaluation of a firm's strategic position. Threat of new entrants - The problem of counterfeits: China is the country where most of the counterfeits of the world come from. If somebody produced Caroll's products counterfeit it could damage the company's reputation. [...]
[...] It also means that there is an interesting market for Caroll in Chinese cities. Urban Trends This graphic shows the urbanization trend within the country. People are moving from rural areas into cities. It is an interesting factor for Caroll. Actual and projected urban and rural population trends We can see through this graphic that the urban trend will continue in the future. It will have as main effect for Caroll to keep increase its demand. Economic growth rate (GDP) China's growth is on average of 10% during the past decade. [...]
[...] The aim of this study is to design a strategic marketing plan for Caroll in China. In order to achieve this result, we will analyse in a first chapter the company itself. We will have a closer look at Caroll's history, positioning and culture. In a second chapter, we will realize a market audit of China. We will see what are the main characteristics of the country, what means consuming today in China, what are the attitudes of Chinese middle class consumers regarding brands and prices and we will finish by having a closer look at the Chinese clothing retail market with a competitors analysis. [...]
[...] Forecasts anticipate that middle class will make up for 40% of the Chinese population in 2020. According to recent studies, Chinese middle class very like branded luxury goods, especially in clothing. The average income for this group is more than ¥100,000 (about $12,500) a year. The emergence of independent and modern Chinese women According to statistics, more and more women expect to get their economic independence thanks to a job which allows them to contribute to the household expenses. They do not want to depend on their husband anymore. [...]
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