THE FUTURE IS china
If you want to look at the future of retail, look at China. Already the world’s largest market for luxury goods, China is continuously breaking records. In this year alone, e-commerce in China surpassed 50% of retail sales in a global historic first.
At ArcOn Brands, we understand the huge opportunities and challenges that come with launching in a foreign market. With our help, we help our clients navigate across a terrain that has unique consumers, cultures, and eco-systems.
by 2030, china will OVERTAKE USA
as the world’s largest ECONOMY
FOREIGN BRANDS FLOCK TO CHINA
Huge increase in listings
In 2015, Tmall, the ‘Amazon of China’ had just 5000 foreign brands.
Today that list is 250,000.
Fast-growth in revenue
Leading accessible luxury companies such as French labels Sandro and Maje expect China to account for 50% of revenue by 2025.
Outperforming the West
Fashion line DVF has opted to close select stores in Europe and instead refocus on China, where it has been profitable for five years.
quick rebound
In line with most parts of Asia Pacific, China has successfully pursued an ‘elimination’ strategy of Covid-19. This has yielded positive results as the economy has rebounded strongly, with the first quarter of 2021 recording a growth of 18.3%. This is propelled by stronger demand at home with life returning to near normality.
Globally, retail destinations have suffered from the lack of travelling Chinese, which has seen China benefit from pent-up demand at home.
online market
Before the arrival of COVID-19, China was already one of the most dynamic e-commerce markets in the world. This fact has only been further accentuated by the pandemic with China taking a once-unthinkable step ahead in its digital transformation. In 2021 it is forecasted that over half of the country’s retail sales will come from e-commerce.
In the US, that figure is just 15%.
MARKET ACCESS
In China, the digital landscape is entirely different from the West, making it challenging for foreign brands to launch on their own.
One example would be Tmall, which is known as the ‘Amazon of China’. To access Tmall, businesses are required to pick a suitable trade partner (TP) - from which there are thousands to choose. On top of this, a brand needs to embark on live streaming, in station, and outstation digital marketing strategies.
STORE PRESENCE
Although China is a hugely dynamic and digital market, physical stores still play a pivotal part in building clientele. Permanent (or pop-up) stores are essential to brand development and building familiarity, as they offer Chinese consumers a true experience of brands they are not yet fully acquainted with.
At ArcOn Brands, we hold relationships with key landlords in the region who own and operate the most sought after malls. With our background in store development, we have consistently negotiated the best market terms and locations for our clients.