Creating brand equity in the Chinese clothing market

Abstract

PurposeThis paper aims to explore the effectiveness of eight selected marketing activities in creating brand equity in the Chinese clothing market.Design/methodology/approachA shopping centre intercept survey is conducted to collect data in the two largest Chinese cities, Beijing and Shanghai. The empirical tests, using a structural equation model (SEM), support the research hypotheses.FindingsThe results indicate the positive effects of store image, celebrity endorsement, event sponsorship, web advertising, and non‐price promotions on brand equity in China as well as the detrimental impact of frequent price promotions.Research limitations/implicationsThe study is limited to consumers in Beijing and Shanghai.Practical implicationsThe findings answer the following questions: how do foreign clothing brand suppliers develop effective brand strategies for the China market? Should marketing activities designed to build brand equity be modified to accommodate different attitudes or behaviors in China?Originality/valueFew studies have investigated how to build brand equity in China. A structural model was used to examine the relationship between eight widely used marketing activities and the dimensions of brand equity for imported clothing brands in China. The study also examines the directional relationships between brand equity dimensions.