Fashion Design in China, Essay Example

China is one of the fastest growing economies in the world and it is no surprise that China has also been able to survive the recent financial crisis much better than many of the leading economies. In addition, middle class is booming in China and over the next 15 years, the Chinese middle class is expected to reach 800 million which is more than double the today’s figure (Wang). China overtook Japan as the world’s second largest luxury market in 2010 according to a report by a leading consulting firm, Bain & Company and an association of Italian luxury product producers. The report also found that while luxury sales grew by 12 percent, 6 percent, and 22 percent in the U.S., Europe, and Asia respectively in 2010, the sales growth was 30 percent in the mainland China (People’s Daily Online). Thus, it is clear that there are lucrative opportunities available for fashion designers in China. The key to success is to understand the tastes and preferences of Chinese customer and develop and implement an effective competitive strategy.

A conversation with Chinese nationals reveals that while Chinese are fascinated with the West, they also take great pride in their own culture and history. Thus, one way an upcoming fashion designer can differentiate himself/herself is by incorporating Chinese elements into his/her designs. A Reuters’ report found that Chinese design cues are expected to drive the future creative direction in global fashion design. One designer and retailer mentioned the fact that the Western world knows little about China’s aesthetic sensibility. But the good news is that Chinese customers still desire at least some Western elements even in their local design creations. A look at some of the dresses presented during Shanghai Fashion Week last year confirms that even local Chinese designers incorporate western elements in their creations (Daily). Thus, a fashion designer who is equipped with western design knowledge and is willing to incorporate Chinese elements may have a great opportunity to establish a solid presence in China.

Any upcoming fashion designer in China will also have the advantage of being one of the first movers. As noted above, Chinese middle class will reach at least 800 million over the next 15 years which is a little less than three times the current U.S. population. This will be a huge market and will be able to support a lot more fashion designers than the currently competitive U.S. and European markets support. Now, the competition is still low and the new fashion designer will have ample time to develop reputation and loyal client base. Chinese fashion industry is still very young and the oldest Chinese fashion brand Exception de Mixmind has been in business for less than two decades now (chinesepeoplehavenostyle.com).

The demand for western design elements is still strong so an upcoming designer will have ample opportunity to learn more about Chinese design elements while establishing client base at the same time. The experience of a Chinese fashion design graduate Vic Huo demonstrates the preference for western design elements in China. Ms. Huo worked for four fashion designers and at each job, Ms. Huo faced demands to incorporate western elements into her creations (Farrar). Another opportunity for a western fashion designer may be to build goodwill by focusing more on Chinese design elements which still face huge commercial hurdles. The designer will still have the enigma of being a foreign brand but at the same time, he/she will be able to establish himself/herself as one of the pioneers of upcoming Chinese design revolution.

There are things an upcoming fashion designer may be wise to follow as well as some that should be avoided. The first recommendation is to build contacts with the Chinese Textile Industry Association and its local chapters. This is because the Association and its local chapters own valuable real estate assets which could prove beneficial in obtaining not only good location but also good rental terms. A designer should also try to find a manufacturer that is willing to make small samples because most manufacturers do not want to deal with small orders. This is important because Chinese market is quite different from the West and it may be better to go for controlled growth rather than ambitious growth. Similarly, the upcoming fashion designer should also take advantage of local social networking websites such as Weibo which is the China’s version of Twitter. The actions that should be avoided include organizing a runway show and taking a local business partner and registering the business in his name to avoid foreign investment restrictions. Runway shows are not recommended because they seldom result in sales in China, unlike the western markets and are waste of limited resources. Taking a business partner carries the risk that the business partner may cheat later (Hung).

Another advantage for locating in China will be lower production costs and comparable quality to the clothing produced in the west. The quality of Chinese clothing products has greatly improved. Even upscale brands such as Prada, Giorgio Armani, and Burberry have been moving production to China (Chung). The decision to mix western and eastern elements may also be a sound strategy because even some of the biggest brand names are attempting this approach. French brand Hermes announced in 2010 that it will launch a luxury brand in China that will be both designed and manufactured in the country (Knowledge@Wharton).

The critics may argue that Chinese are not as avid spenders as those in the West. Moreover, Chinese customers have been embracing western design elements, thus, there is no way they would embrace a foreign designer who incorporates Chinese elements in his designs. Critics may also argue that Chinese customers will remain loyal to established brands.

As far as first argument is concerned, the new generation is different from previous generations in terms of spending habits. Single women are the fastest-growing consumer class in China. These single women have high levels of disposable income and craving for designer labels. Moreover, consumer spending is the highest among those between the ages of 20 and 49 (factsanddetails.com). Chinese have traditionally been conservative in their spending habits but the trend has been reversing due to the emergence of new consumer groups who are still young and have grown up admiring the western popular culture. This bodes well for those looking to exploit China’s still infant fashion industry. Critics should also realize that even major brands such as Hermes have started a local brand because they foresee the emergence of designs with Chinese elements in the future. As far as the last argument is concerned, Chinese market is big enough to support many brands. Moreover, even in the West not everyone can afford Hermes, Chanel, and Prada etc. and more affordable brands such as Guess and Coach enjoy phenomenal success.

China is not only one of the fastest growing economies but also the second largest in the world. The country’s younger population admires western design elements and even though Chinese design elements are expected to become popular in the near future, they still face significant hurdles in gaining mainstream popularity. This gives a valuable opportunity to an upcoming fashion designer from the west to establish a firm footing in China. He/she will have western credentials but at the same time, also a valuable opportunity to build goodwill by showing appreciation for local design elements.

References

chinesepeoplehavenostyle.com. The History of Chinese Fashion Design, China. 15 November 2011. 20 March 2012 <http://chinesepeoplehavenostyle.com/2011/11/15/the-history-of-chinese-fashion-design-china/>.

Chung, Olivia. China’s global luxury brand workshop. 14 April 2007. 21 March 2012 <http://www.atimes.com/atimes/China_Business/ID14Cb02.html>.

Daily, Jing. China’s Emerging Fashion Powerhouses. 23 March 2011. 20 March 2012 <http://www.signature9.com/style/fashion/chinas-emerging-fashion-design-powerhouses>.

factsanddetails.com. Chinese Consumer Customs and Behavior. 21 March 2012 <http://factsanddetails.com/china.php?itemid=370&catid=9&subcatid=59#500>.

Farrar, Lara. Will Chinese designers get left behind in China’s fashion boom? 29 September 2011. 20 March 2012 <http://www.cnn.com/2011/09/15/living/china-fashion-designers/index.html>.

Hung, Huang. ChinaFile: Do’s and Don’ts for Launching Your Fashion Label in China. 21 March 2012. 21 March 2012 <http://www.wwd.com/fashion-news/fashion-features/chinafile-dos-and-donts-for-launching-your-fashion-label-in-china-5812622>.

Knowledge@Wharton. All That Glitters: What’s in Store for China’s Luxury Fashion Market. 31 March 2010. 21 March 2012 <http://www.knowledgeatwharton.com.cn/index.cfm?fa=viewArticle&Articleid=2201&languageid=1>.

People’s Daily Online. China becomes world’s second-largest luxury market. 6 May 2011. 20 March 2012 <http://english.peopledaily.com.cn/90001/90776/90882/7372293.html>.

Wang, Helen. Will China’s Consumer Driven Middle Class Become the Saving Grace for America’s Economic Woes? 14 March 2011. 20 March 2012 <http://helenhwang.net/2011/03/will-china%E2%80%99s-consumer-driven-middle-class/>.