The Chinese retail clothing market
China represents today one of the most potential market of the world and attract more and more foreign capital. There are approximately 1 200 Frenchcompanies established in China with 200 000 employees. It is one of the largest markets in term of inhabitants (1, 3 billion potential consumers), and in term of economic growth as it has become in less than 20 years the fourth economy of the world. China is a region of great opportunity for all types of companies - not just large multinationals. But doing business in China can still be challenging.During the last few years, China clearly established itself on the international level of textile production and trade.
It is a good opportunity for Caroll to enter the Chinese market because its target- the executive’s women from the middle class- is approaching the 4 millions peoples only for the main cities of the eastern China coast.
To penetrate the Chinese market, Caroll will have totake into consideration some very important factors. The legal environment can be hard to face, the brand will may need legal partners to set up a subsidiary in China. In term of products, the brand will need to realize surveys on consumers and trends, and analyze them to know what kind of products the Chinese wants and likes. Caroll will also have to adapt their products in term of sizes,prices; colors etc…, study the location of the stores and make a partnership with a local communication agency in charge of their publicity.
The purpose of this report is to design a marketing plan for the French “fashion house” Caroll which is aiming to enter the Chinese market.
In order to realize an appropriate marketing plan, several steps have to be taken.
We will first focus on thebrand Caroll, with a presentation of its current situation and an internal analysis of the company. Then we will analyze the Chinese market, its strengths and weaknesses, its culture, its consumer’s habits, and all the elements that are necessary to better understand this country and make sure that Caroll’s decision is a good and sensible one. Finally, we will be able to create a Marketing plan forCaroll to enter the Chinese market, how the group should enter the country, in what condition and what they should think about? In order to be more efficient some special marketing tools will be used all over the report.
Caroll was founded in 1963 by two men, Raphaël Levy and Joseph Bigio. At this time, the company was specialized in knitwear, morespecifically Shetland woolens. In the 70’s they met a great success with up to 1 000 outlets. It was in the 1980’s that Caroll began to evolve when it added a ready-to-wear collection in its stores and had its first franchise shops in France. Four years after, Caroll International was listed on the stock exchanged and the André group, which was to become Vivarte in 2001, purchased a large share in thecompany. In 1994, new strategies and new positioning came up, “Caroll Paris” brand was created in order to become a key player in the world of fashion, for a targeted yet sizeable female clientele, well-informed and with high standards.
In just a few years, Caroll International succeeded in completely changing its image and significantly increased its market share. After having transformed itsnetwork in France, Caroll International began to expand in other countries in 1997.
Since 2000, the new challenge of Caroll is the application of luxury codes to distribution. The Brand is now particularly appreciated for the quality of its products, its expertise and its style.
Caroll’s mission is to use diversified talents to the same and unique brand. It wants to offer good quality...