Sunday, October 26, 2008

Can A Dog Have Tourette?

know-how in exchange for sales and market shares on China China

Excerpts Chinese Affairs

An example of perfect integration, maximum optimization of resources and different experiences of Italian companies and Chinese is important Italian textile group, also very active in the field of packaging and distribution of fashion and women.
Their strategy integrates very efficiently the concept of Italian Style - China Made, maximizing the efficiency of the system-on-China China, tracing, perfezionaldolo, the model presented in Figure 7 above.
must start by saying that we are talking about a very large group, in which the problem is more like entering China, but as always seek out new investment opportunities and growth. So it's not the problem of small business that wants to put one foot in China, but that of a big company that wants to take root, to increase market share, turnover and margins.
Their strategy, however, is illuminating and worth a description.
The company operates for many years under various brand names, not strong enough to stand alone stores in China, as is the case in Italy and Europe.
Investments to overcome the threshold of visibility for these brands in China were very heavy (the benchmarks in marketing and advertising are obviously unreachable brand of great Italian fashion and French) and returns still uncertain and long.
addition, their product placed in the middle class in Italy was likely to average out the Chinese market, which is similar articles (Chinese) a lower price. You would then have to do a re-sizing of all collections to fit the different physical structure of Chinese women, for a product replacement fast, low-priced, this could be very costly. All operations
still feasible and absolutely within reach of a large company, but like I said, very slow and uncertain outcome, the entry threshold is somewhat higher.
The company instead sought investment opportunities, turnover, market shares and profits in the short.
They then decided to focus on their strong elements: the perfect knowledge of the methods of distribution, marketing of the product fast fashion, the large capacity and flexibility in styling. They know exactly how to serve the middle-class women, they know perfectly the profile of the consumers they serve, have a great ability to create image and style that is unmistakably Italian. And experience to sell. In short, everything the necessary know-how.
With these assets in the portfolio have begun a search for industrial partners in China who have capacity, especially of their own brand and its own direct distribution channels ....
...
The brand is now one of the most famous and popular Chinese brands in women, and the company performs constant monitoring of new shopping centers in which to open new stores. Preside over the new location once it has become now they must.

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