Having achieved a market size of Approximately $185 Billion in total apparel sales in 2013, China is expected to become the world’s largest apparel market surpassing the US by 2018. Due to the nearly unlimited potential of the market it offers vast opportunities for foreign fashion brands wishing to develop their international business.

1. Fashion
Market
overview:
China
Business
Opportunities
for
Finnish
Companies

2. Executive
Summary
Having
achieved
a
market
size
of
Approximately
$185
Billion
in
total
apparel
sales
in
2013,
China
is
expected
to
become
the
world’s
largest
apparel
market
surpassing
the
US
by
2018.
Due
to
the
nearly
unlimited
potential
of
the
market
it
offers
vast
opportunities
for
foreign
fashion
brands
wishing
to
develop
their
international
business.
This
market
study
is
prepared
for
Finpro
and
attempts
to
accomplish
several
things:
• Inform
the
reader
of
the
general
China
market
• Educate
the
reader
about
the
Fashion
industry
in
China
• Provide
a
detailed
analysis
of
the
Fashion
distribution
eco
system
in
China
• Discuss
opportunities
for
Finnish
brands
in
the
China
market
• Provide
a
clear
understanding
of
the
marketing
landscape
in
China,
especially
as
it
relates
to
digital
marketing
and
accentuate
the
need
for
Finnish
brand
to
optimize
their
digital
strategy.
• Provide
a
road
map
for
Finnish
brands
detailing
keys
to
success
in
the
China
market.
• Provide
key
recommendations
for
China
market
entry
specifically
tailored
to
the
needs
of
small
to
medium
Finnish
Fashion
brands.

3. Executive
Summary
Key
Finding
of
the
following
China
market
study
include:
• China
will
be
the
largest
apparel
market
by
2017/18.
• Chinese
consumers
are
willing
to
experiment
with
new
brands.
• Although
department
stores
still
dominate
the
retail
sector,
multi
brand
boutiques,
online
and
mobile
are
the
fastest
growing
channels.
• China
is
the
largest
e-­‐commerce
market
in
the
world
surpassing
the
US
in
2013.
• Online
retail
sales
in
China
totaled
$458
billion
in
2014.
• By
2020
the
number
of
multi
brand
buyer
boutiques
is
planned
to
exceed
5,000
stores
with
annual
revenue
of
more
than
60
Billion
RMB.
• Due
to
the
proliferation
of
showrooms
and
trade
shows
there
is
increased
competition
from
both
foreign
and
local
niche
brands,
but
few
manage
to
make
an
impact
due
to
their
undifferentiated
marketing
strategy.
• Chinese
consumers
are
the
most
digitally
savvy
in
the
world
and
brands
require
an
optimized
digital
strategy.
• Effective
PR
is
imperative
to
build
a
positive
e-­‐reputation
in
China.
• Chinese
consumers
are
very
susceptible
to
brand
image.
• In
order
to
succeed
in
China
brands
must
be
fully
committed
to
the
market
and
pursue
innovative
marketing
tactics.
They
must
control
and
manage
their
marketing
program,
create
localized
offerings
and
pursue
more
involved
forms
of
market
entry.

4. Executive
Summary
Due
to
the
fast
growth
of
the
China
fashion
market
there
exists
numerous
opportunities
for
Finnish
fashion
brands
each
with
its
own
advantages
and
challenges.
Highlighted
below
are
some
of
the
key
opportunities:
• Due
to
the
growth
of
multi
brand
buyer
outlets
in
China
considerable
opportunities
exist
for
Finnish
fashion
brands
either
through
utilizing
showrooms
or
direct
sales
to
the
boutiques.
• Showrooms
are
located
in
key
cities
primary
Shanghai
and
Beijing
and
offer
fashion
agency
services
promoting
the
brand
to
key
multi
brand
buyer
outlets.
• Opportunities
exist
to
form
a
collaborative
showroom
to
exclusively
promote
Finnish
brands
while
establishing
direct
relationships
with
key
fashion
buyers
in
the
China
market.
• Opportunities
exist
for
Finnish
fashion
brands
to
create
co-­‐branded
collections
with
Chinese
designers
and
thus
gain
positive
reputation
in
the
market
and
also
increase
channel
opportunities.
• Three
options
exist
for
E-­‐Commerce
sales
in
the
China
market:
– Exporting
direct
from
overseas
website
– Exporting
via
third
party
platforms
in
China
such
as
Tmall
– Exporting
Via
China
hosted
e-­‐ commerce
site,
which
can
be
a
monobrand or
Finnish
collaborative
multi
brand
website
and
APP

5. Executive
Summary
• Department
stores
are
restructuring
leading
to
some
unique
opportunities
for
Finnish
brands
to
directly
open
shop-­‐in-­‐shops
in
select
locations
or
work
with
a
distributor
who
will
open
on
their
behalf.
• Since
the
process
of
opening
a
wholly
owned
retail
business
has
been
relaxed,
opportunities
exist
to
open
a
company
owned
specialty
or
collaborative
Multi
brand
store.
• Opportunities
exist
to
participate
in
a
growing
number
of
trade
or
showroom
shows
to
directly
meet
potential
multi
brand
outlet
buyers,
distributors
or
fashion
ecommerce
buyers.
• Opportunities
exist
for
Finnish
brands
to
optimize
their
digital
strategy
including
creating
a
localized
• Chinese
website
and
setting
up
key
Chinese
social
media
pages
on
Weibo,
Weixin and
Youku.
In
Summary
As
this
plan
will
indicate,
there
is
a
vast
amount
of
potential
for
Finnish
brands
to
capitalize
on
the
growth
and
size
of
the
China
market.
But
due
to
increased
competition
from
both
foreign
and
local
brands
and
differences
in
culture,
consumer
attitudes,
environment
and
other
market
complexities
in
China
challenges
do
exist
in
the
market.
It
is
therefore
critical
for
foreign
brands
to
create
strategies,
which
differentiate
themselves
in
the
market.
Likewise
they
need
to
create
marketing
strategies
and
offer
products
that
resonate
with
and
offer
value
to
Chinese
consumers.

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