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Shanghai Fashion Week: UK brands battle for China's growing market | |
(2 days later) | |
Over the next week Shanghai Fashion Week will fill the city with models, designers and buyers. The show is becoming a key route into China but the lucrative market remains difficult to navigate. | Over the next week Shanghai Fashion Week will fill the city with models, designers and buyers. The show is becoming a key route into China but the lucrative market remains difficult to navigate. |
London-based fashion designer Roksanda Ilincic says she admires the adventurous spirit of her Chinese customers. | London-based fashion designer Roksanda Ilincic says she admires the adventurous spirit of her Chinese customers. |
They're experimental with a taste for clothes that are "vibrant and sculptural yet feminine", she adds. | They're experimental with a taste for clothes that are "vibrant and sculptural yet feminine", she adds. |
"The Chinese market really resonates with those parts of my DNA." | "The Chinese market really resonates with those parts of my DNA." |
For the first time Ms Ilincic is taking part in Shanghai Fashion Week, joining a wave of other foreign brands in search of exposure and crucial business contacts. | For the first time Ms Ilincic is taking part in Shanghai Fashion Week, joining a wave of other foreign brands in search of exposure and crucial business contacts. |
Observers say Shanghai Fashion Week, which runs until 3 April, buzzes with young talent and commercial potential. | Observers say Shanghai Fashion Week, which runs until 3 April, buzzes with young talent and commercial potential. |
Launched in 2003, it's not one of the top four shows - London, Paris, New York and Milan - but its importance has grown alongside China's economic rise. | Launched in 2003, it's not one of the top four shows - London, Paris, New York and Milan - but its importance has grown alongside China's economic rise. |
"In Asia, there's an emerging market where lots of the money is spent on Shanghai," says Tianwei Zhang of Women's Wear Daily (WWD) . | "In Asia, there's an emerging market where lots of the money is spent on Shanghai," says Tianwei Zhang of Women's Wear Daily (WWD) . |
Many will skip Tokyo's fashion week in favour of Shanghai "because there's more money here", he adds. | Many will skip Tokyo's fashion week in favour of Shanghai "because there's more money here", he adds. |
Last year, a report by consultancy Bain showed that Chinese spending accounted for one-third of the global luxury market - itself worth 260bn euros ($292bn; £223bn). In 2018, the country's luxury goods market posted its second straight year of 20% growth, Bain said. | Last year, a report by consultancy Bain showed that Chinese spending accounted for one-third of the global luxury market - itself worth 260bn euros ($292bn; £223bn). In 2018, the country's luxury goods market posted its second straight year of 20% growth, Bain said. |
Western brands have long eyed the potential of China's growing middle class, seeking to find their way into the lucrative - but sheltered - market. Securing business partners and buyers is crucial. | Western brands have long eyed the potential of China's growing middle class, seeking to find their way into the lucrative - but sheltered - market. Securing business partners and buyers is crucial. |
The British Fashion Council (BFC) is one group helping UK designers make inroads in China - from finding a space, to negotiating contracts or licensing arrangements. | The British Fashion Council (BFC) is one group helping UK designers make inroads in China - from finding a space, to negotiating contracts or licensing arrangements. |
BFC chief executive Caroline Rush says that while businesses can do it alone "the norm is to go in with a Chinese partner". The group is in Shanghai this week to build its network. | BFC chief executive Caroline Rush says that while businesses can do it alone "the norm is to go in with a Chinese partner". The group is in Shanghai this week to build its network. |
It wants to plug into independent retailers across China that reach their customers through social platforms like WeChat and Weibo, and often sell through those channels directly. | It wants to plug into independent retailers across China that reach their customers through social platforms like WeChat and Weibo, and often sell through those channels directly. |
"We're also looking at partners that can help them open retail stores and the big e-commerce players that can help them in terms of mass distribution," Ms Rush says. | "We're also looking at partners that can help them open retail stores and the big e-commerce players that can help them in terms of mass distribution," Ms Rush says. |
The BFC is hosting a trade showcase with Roksanda Ilincic and Peter Pilotto in Shanghai, two brands Ms Rush describes as part of London's "new guard". | The BFC is hosting a trade showcase with Roksanda Ilincic and Peter Pilotto in Shanghai, two brands Ms Rush describes as part of London's "new guard". |
From buyers to fashion writers, industry figures routinely say Chinese consumers are drawn to the "creativity" of British design. | From buyers to fashion writers, industry figures routinely say Chinese consumers are drawn to the "creativity" of British design. |
Among them is Yvonne Gan, chief executive of The Balancing, a chain of Shanghai boutiques, which sell top names including Britain's Stella McCartney, Victoria Beckham and Anya Hindmarch. | Among them is Yvonne Gan, chief executive of The Balancing, a chain of Shanghai boutiques, which sell top names including Britain's Stella McCartney, Victoria Beckham and Anya Hindmarch. |
Ms Gan says 40% of total investment in the latest collections was spent on British brands. Chinese labels accounted for just 5%: "Local design is not as creative as British designers [and] also quality is not comparable." | Ms Gan says 40% of total investment in the latest collections was spent on British brands. Chinese labels accounted for just 5%: "Local design is not as creative as British designers [and] also quality is not comparable." |
Still, British firms are competing in a crowded market, trying to please the Chinese consumer - and not all of them get it right. | Still, British firms are competing in a crowded market, trying to please the Chinese consumer - and not all of them get it right. |
A high-profile stumble from Dolce & Gabbana over an ad campaign widely seen as offensive led to a severe backlash in China with several retailers pulling the firm's products. | A high-profile stumble from Dolce & Gabbana over an ad campaign widely seen as offensive led to a severe backlash in China with several retailers pulling the firm's products. |
Meanwhile, Burberry drew some criticism for missing the mark over its latest Chinese New Year campaign. | Meanwhile, Burberry drew some criticism for missing the mark over its latest Chinese New Year campaign. |
Other British brands have struggled to gain traction in China. Marks & Spencer left the market in 2017, New Look withdrew last year and Topshop has had troubles with local partners. | Other British brands have struggled to gain traction in China. Marks & Spencer left the market in 2017, New Look withdrew last year and Topshop has had troubles with local partners. |
Irene Yu, senior director of merchandising at Chinese accessories retailer Pedder Group says Chinese consumers are "very fashion savvy". | Irene Yu, senior director of merchandising at Chinese accessories retailer Pedder Group says Chinese consumers are "very fashion savvy". |
"They are sophisticated, well-travelled and demanding in quality and newness." | "They are sophisticated, well-travelled and demanding in quality and newness." |
Pricing is also a concern. While wealth is rising, hefty import taxes drive the cost of Western luxury labels beyond the reach of many. | Pricing is also a concern. While wealth is rising, hefty import taxes drive the cost of Western luxury labels beyond the reach of many. |
"British fashion designers are still at a slightly higher price point," WWD's Mr Zhang says. | "British fashion designers are still at a slightly higher price point," WWD's Mr Zhang says. |
He says while spending power is rising, Chinese consumers are not yet as willing to spend on designer clothes as they are on shoes and accessories. | He says while spending power is rising, Chinese consumers are not yet as willing to spend on designer clothes as they are on shoes and accessories. |
The competitive threat from local talent is also mounting. | The competitive threat from local talent is also mounting. |
There are big names like Angel Chen and Shushu/Tong, along with emerging designers like Caroline Hu and 8on8, all set to gain plenty of attention in Shanghai. | There are big names like Angel Chen and Shushu/Tong, along with emerging designers like Caroline Hu and 8on8, all set to gain plenty of attention in Shanghai. |
"There are more and more upcoming Chinese designers taking the international stage," says Pedder Group's Ms Yu. "They give a fresh perspective." | "There are more and more upcoming Chinese designers taking the international stage," says Pedder Group's Ms Yu. "They give a fresh perspective." |
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