H&M tries to retain market share in China after a consumer boycott of a range of Western fashion brands – including also Nike and Burberry – on its Xinjiang stance by launching two new brands. The results with the consumers in China have been mixed, says marketing expert Arnold Ma in Jing Daily.
The Jing Daily:
“There are reports saying some consumers still turned their back to the two brands having found their link to H&M, which shows the brand still hasn’t been fully forgiven by Chinese consumers,” said Arnold Ma, founder of China-focused digital marketing agency Qumin.
“On the other hand, the latter two have challenged the image of H&M as a ‘roughly-made’ fast fashion brand by providing better quality products at a higher price,” he continued. “So, the premiumization, to some extent, helps the two win over some Chinese consumers who pay more attention to quality and design.”…
While H&M, Nike, and Burberry have all pushed ahead in China, they have done so to varying degrees of success. Burberry, which has bounced back faster than the others, has partially benefited from being a luxury brand. As Yam, who has more than a decade of Chinese digital marketing experience, said, “It’s harder to replace — you don’t have another Burberry. For Nike, [consumers] can find the China version, Li-Ning, which is popular in China now. And for H&M, there’s so much fast fashion.”
None of this is surprising, as China accounts for less than 5 percent of H&M’s global revenue, while Burberry’s China revenue accounts for almost half of their global total, Ma noted. Indeed, China is just one — albeit very important — market for these global companies. Recovery, therefore, not only entails reevaluating China tactics but also ensuring a strong global network for when a crisis eventually hits.
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