| Through the reform and opening up in1979, joining the WTO in2001and holding Olympic Games in2008, China has had a remarkable period of rapid growth. In2012, China GDP followed after the United States. Especially China’s clothing market has had rapid growth. Clothing consumption reached$768trillion in2007and it increases by10%each year. We can see the great possibility of China’s clothes industry.Now global companies want to enter into China’s fashion market, Korea as well. Because of "the Korea Wave", many Korea companies have benefited in China market. The loyalty and awareness of Korea brand are as high as France and Italy brand which are the most famous countries in the cosmetic and clothing industry in China. According to a BBC survey,52%of the respondents regarded Korea brand as a good one,28%of the respondents did negatively.Internet has become a very powerful platform that has changed the way we do business and the way we communicate. Through Mobile technology we have made possible a much greater reach of the Internet, increasing the number of Internet users everywhere. So today international marketing is getting important to the global company. Also, the most enterprises avoid to the mass marketing because the customer needs are changing really fast today. Accordingly, E-land used a strategy that subdivides a large homogenous market into clearly identifiable segments with similar needs, wants, or demand characteristics:market segmentation. Therefore, they could design a marketing mix that precisely matches the expectations of customers in the targeted segment and more flexible in the market.It was not easy for the foreign company to get success in China’s market. The reasons for the failure are as follows:the rapid growth of manufacturing cost, the localization problem, the low brand awareness and so forth. But there is a successful example as well:the garment enterprises "E-land". E-land has a rapidly growth in the fashion industry as well as other industries:starting from children’s wear industry in1989, jewelry, watch industry in1990, medical business in1994, food and hotel industry in1996and so on. Their total sales already reached$4million in1993. In1994E-land got to launch Shanghai, China. They got through a hard time just like other companies. But after2000E-land showed that their total sales reached$2billion. Their strategy leads E-land to the successful outcomes from the consistent effort in researching Chinese fashion market.The first thing is the good quality against the price. As increasing the middle class’ population, consumption and the standard of living, customer’s needs is getting high. According to this, using high quality materials, luxury interior design and good brand image, E-land drives customers to their stores. The luxurious atmosphere and the good quality products attract lots of customers and make them regular customers.Secondly, they have been using the marketing strategy in which cooperates with lots of brands like PUMA, BIGJHON, COURREGES and other luxurious and popular overseas brands and sets a good image for the brand. Being collaborate with other high-grade brands makes customers think E-land as good quality brand. It helps E-land save their investment and improve their brand image.Thirdly, it is the differentiated distribution strategy. When most Korea clothing enterprises enter to the Chinese markets, they usually choose the shop in the street because it has much lower management fees than in the department store. However, this way could be difficult to boost brand image after stabilized in the market. Even though the company wants to change their sales method, it would be difficult. Thus, although E-land could get some risks, they decided to sell products in the department store. At the end, it affected positively to raise the brand image.Fourth, It is "the multi-brand marketing strategy" in which promote two or more similar products by the same firm under different and unrelated brands. From this, they could catch the customers who like to experiment with different brands. Besides, although other brand targets are only teenagers, E-land targets teens and20-to-50year olds and obtain greater shelf space leaving little for competitors’ products.The bottom line is that E-land finds its own proper way in China’s market: gather the data on the basis of Chinese consumption habits which are dramatically changed; collect information and find their own appropriate way. They produce good quality goods, cooperate with the company having good brand image, start to sell products in the department store and use the multi-brand strategy. They develop their own ways they do not use in Korea. So I think E-land could be a good example to China and Korea companies. |
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