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Global apparel brands to enter Hong Kong market
Dec '11
Global apparel brands like Gap, Forever 21, Abercrombie & Fitch plan to enter Hong Kong market in near future. This will increase competition for Hong Kong fashion brands. But, Hong Kong's local brands such as Giordano, Esprit, etc., seem to have more home-court advantage.

After opening four stores in Beijing and Shanghai, Gap now plans to open new stores in Hong Kong very soon. Abercrombie & Fitch intend to enter Hong Kong market next year. Forever 21 recently held a fashion show in Macau. These brands will compete with already existing foreign brands like Uniqlo, Mango, Zara and Hennes & Mauritz.

The brand image and recognition of these brands will improve on entering the Hong Kong market, but in order to develop customer base, they will have to understand the unique characteristics of Hong Kong market and mentality of customers.

According to James Roy, a senior analyst with China Market Research Group, Hong Kong people prefer local brands like Giordano, which has 75 stores in Hong Kong. There are also local brands like Bossini, G2000, etc., which are not as fashionable as international brands, but Hong Kong people have a special feeling for these brands.

Hong Kong's domestic brands have some advantages like they can offer lower prices and also enjoy higher popularity. In addition, they are convenient for people to buy due to their location. Moreover, these brands are more familiar with Asian bodily form, and hence the clothes designed by them are more suitable for Asian people.

Gap has chosen a location that will cost five million Hong Kong dollars per month in rent. Similarly, the location chosen by Forever 21 for its store has a rent of 11 million Hong Kong dollars per month. The rent of Abercrombie's outlet is seven million Hong Kong dollars per month.

Apparels have a large share in Hong Kong market and the demand is expected to rise to 47 billion Hong Kong dollars by 2014.

Fibre2fashion News Desk - India

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