Chinese belong to the smartest shoppers of this planet, says branding guru Tom Doctoroff. They do not mind to pay a premium, as long as there is a good value proposition. “They seek both reassurance and inspiration” from brands, he says. And if a brand like Apple does not offer a new phone this year, they will just wait, hurting Apple in its revenue.
Category Archives: fashion
China’s consumers are becoming increasingly a force the rest of the world has to take into account, writes Beida business professor Jeffrey Towson at his weblog. Not only have Chinese more disposable income, they not only go for cheap offers, and regularly disrupt the world.
Coca-Cola surprised many branding experts by launching a tin of sparkling water called ‘Valser’ to Chinese consumers for US$9. It is not impossible, says branding guru Tom Doctoroff to the South China Morning Post, but then they have to change their marketing dramatically. “Turn it into a social currency,” Doctoroff says.
Marketing guru Tom Doctoroff explores his insights in the different generations he saw in China, born in both the 1980s and 1990s, in a lecture for the Asia Society, just before leaving China after 18 years. “They want a free mind, but within a framework,” he tells his audience.
Fashion has been changing massively, as low-cost manufacturing moved from China to other countries, and the fashion brand focus on value, more than on cheap production, tells Shanghai-based retail expert Ben Cavender in Just-Style. And the transition process in fashion brands will continue to cause pain, as robots move in.
Victoria Secret took on China online, but has now decided to open its first offline retail flagship store in Shanghai. They move very cautiously, says retail expert Ben Cavender in AdAge, and they have a fair chance of getting it right in one of the most difficult retail markets in the world.
Fashion retailer M&S got it all wrong in China as they focused on non-exciting customers, says retail analyst Paul French to Bloomberg. M&S decided to close down some of its China operation to cut their losses, after a very ambitious start in 2008 in Shanghai.
Western fashion brands have a hard time succeeding in China. Getting local was the old mantra, but as globetrotting Chinese find a difference between localized products and their global appeal, they also have a problem, says branding expert Shaun Rein to Reuters.
Peking University business professor Jeffrey Towson notes at his LinkedIn page that many consumers at the Beijing subway have started to wear sports wear. Adidas is one of the winners in a convincing trend towards a healthier lifestyle, he argues. Although he expects this catches on among women more than smoking men.