A proposed strategy for introducing moderately priced American brand merchandise in China

Abstract

PurposeThe purpose of this paper is to provide a path forward, for the marketing mix elements, to be adopted by a US retailer entering the moderate brand market in China.Design/methodology/approachA number of recent studies focusing on the Chinese retail market, especially the apparel market, are examined. In light of these, the best method of progress for US retailers operating and/or intending to operate in China is formulated.FindingsThe emergence of the Chinese market is coupled with demographic, economic, cultural and technological factors as well as consumers' highly positive perceptions of Western brands seen as status symbols that have attracted foreign investors. However, when entering the market consideration should be also given to structure of retail environment, brand image, distribution formats and positioning efforts recalling that the Chinese market is relatively brand‐uneducated and diverse. Based on the information obtained emphasizes that diversity is the key in defining the market and limited localization should be the main concern of product mix.Originality/valueThis paper serves as a comprehensive guideline as it provides an overview of the Chinese market in addition to detailed strategies for US investors entering into China. It combines carefully studied opinions and viewpoints of experienced observers of the marketplace. The author contributes over 30 years of experience in the textile, apparel and retail sectors. Recommendations are provided for US retailers aspiring to serve this market by differentiating their marketing mix.