30 years ago, foreign brands were virtually unknown in China. But things changes dramatically in these 30 years. China has grown from a underprivileged country to the world¡¯s largest factory, and become the engine of the world economy. Now, China is one of the largest luxury consumtion countries in the world. As more foreign brands enter into the market, how can local lingerie brand compete with global high end brands?
The Competition between Foreign and Local Brands
If the foreign brand wants to open up the Chinese market, they must slash a great amount of money in marketing. They should plan a much cohesive strategies, build a much energetic image promotion and quality service to win people’s approval.
 
This pushes them to position themselves as the luxury brand or first class brand in China, selling at fashionable department stores. As a result, they have to charge for more price, with price tags at several hundred to over a thousand Yuan. But only wealthy people and some of the well off people can afford this high price. However, wealthy people are still a small percentage of the total population in China, around 3.7%, according to the data.
 
People with low income are a large percentage of the total population. And this medium-to-low end of the market is the opportunities for local brands. Domestic products in local boutiques sell for about Rmb100. And urban consumers in China can usually afford underwear costing Rmb100 to Rmb200 (HK$93 to HK$186). Products within this price range account for 60% of total sales, according to the data.
 
Compared to foreign lingerie companies, local lingerie companies may not have innovative designs, quality fabrics, advanced manufacture management, high-tech machine and fine workmanship as well as smooth supply chain system. Their lingerie product may be not as delicate as foreign brands. But local lingerie company can provide affordable products with good service to most Chinese people. Their quality is not bad and stands wear and tear. That is what most Chinese people need in their daily life. Also, local lingerie companies have never end to improve their manufacture management, upgrade their technology and streamline their supply chain. It is expected that more and more China’s local brands would step into the global market like Aimer.
 
Editor’s Note
“Water flows downward, man struggles upward.” As an old Chinese saying goes, people is always looking up to the higher place that they cannot reach at the moment. So, to citizens in the first-tier cities in China, like Beijing, Shanghai, Shenzhen, Guangzhou, etc, they may adore global high-end brands, like LV, Aubade, etc. However, to people living in the second-tier cities or rural areas, they may value less expansive local brands. And there are just few big cities but large amount of second-tier cities and rural areas in China. Local brands can “encircle the cities from the rural areas”, as Mao Zedong, the former chairman of People’s Republic of China, saying. It is suggested that local lingerie brand can first seize the market share in the rural area to accumulate wealth and then expand to big cities in China.

 

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