A Luxury U.S. Fashion Brand Enters China
Our Objective
A U.S. luxury fashion line hoped to enter the China market with its first retail outlet. This particular market is highly challenging due to both competition from domestic fashion lines and intellectual property theft. The establishment of a foreign retail operation can also be complex given its unclear regulatory landscape, competition for the best locations (and potentially hefty rents), and the need to adapt branding and marketing to local tastes.
Our Approach
Our team was retained by the CEO to develop a comprehensive China market entry strategy, ranging from providing high-level advice and relationship-building down to negotiating with shopping malls to launch their first retail space. We worked with our client to build critical government relationships at the central level in Beijing, as well as in Shanghai, where they planned to locate. We developed central and local stakeholder maps identifying a wide array of key officials, actors, and associations and foundations critical to their success in the market over the long term, providing both introductions and targeted messaging. To set our client apart even further, we explored how they could showcase their unique philanthropic foundation to empower women — an integral part of their brand philosophy. This included driving the process to establish the foundation and identify the right partners. Throughout the engagement, we provided high-level intelligence on the China market, as well as in-depth briefings on how the Chinese system actually works, and what political and commercial issues should be monitored and prepared for, such as intellectual property rights protection.
Our Impact
The brand now has more than 30 stores throughout China, with their largest in Shanghai, and a thriving shop on the Tmall online platform. A decade later, the brand’s revenue in China is almost on par with the U.S.
