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The reason for internationalizing
The reason for internationalizing
Major reasons why fashion brand is focusing on international expansion:
Target global customers
Entry into a new market
Increase potential revenue
Gain competitive advantage
Improve brand reputation
Why this country and brand/retailer will be a good fit?
China is a lucrative and promising market.
China's fashion industry has been growing steadily, with a growing population with more purchasing power than ever before.
China's fashion industry is one of the most lucrative in the world. China's fashion market is growing by 25%.
China produces 65% of the world's clothing and is the world's largest producer and exporter of textiles.
China favors online sales.
ARITZIA has a wide variety of clothing to meet the one-stop shopping needs of consumers.
The price of the brand is not high, but the quality is good, so it is not a fast-fashion brand.
The web page of ARITZIA's online sales is designed to be very simple and convenient for consumers to choose from.
Entry Strategy in the Chinese market
Entry Strategy in the Chinese market
Aritzia should use the omnichannel strategy to best expand retail operations in China.
Collaborate with T-mall to build its online presence and e-commerce platform.
After the brand can successfully attract its target consumers and gain brand awareness and reputation, Aritzia can start to open brick and mortar boutiques in the following locations:
T-Mall
T-Mall
Founded in 2008, T-Mall is part of the well-known Alibaba Group's Tmall and is a subsidiary of the e-commerce site Taobao. Its target market is mainly B2C (business-to-consumer).
Sanlitun Village in Beijing
Sanlitun Village in Beijing
One of the biggest popular destinations for shopping, dining, and entertainment in China.
Flagship stores of world-famous brands, various bars and restaurants with international cuisines and unique five-star hotels are gathered here.
K11 Art Mall in Shanghai
K11 Art Mall in Shanghai
The first art mall in Mainland China.
K11 Shopping Art Gallery opened on June 28, 2013. This innovative commercial project is located in the heart of Huaihai Road, Shanghai's central shopping street.
Aritzia's international expansion strategy in China
Aritzia's international expansion strategy in China
Franchising Strategy
Franchising Strategy
We believe that franchising can be artizia's primary strategy to enter the Chinese market as it strikes the right balance between maintaining control of the brand and managing venture capital. In short, it can be a shortcut to new markets and can tap into the expertise of local players, which will facilitate entry into new countries.
Some points they need to consider:
IP (Intellectual property) protections
Register the trademark under the Chinese law
Global Competitive Context
As a creator of everyday luxury, it provides engaging services, beautiful and high quality products in an affordable price to satisfy all customers.
Lululemon is charging a higher price and is less fashionable.
Gap and urban outfitters are in the similar price range but they are less fashionable and the quality is much worse than Aritzia’s.
Challenges / Barriers
The fashion brand market is highly competitive.
Local brands dominate the apparel market.
The online broadcast sales of goods affect the sales of retail stores.
Brand sustainability and product quality.
Chinese consumers are increasingly concerned about clothing quality and sustainability.
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