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Survey advises Hong Kong apparel brands to target China

27 Feb '13
5 min read

Consumers are generally satisfied with the customer service of garment sales channels and clothing stores, giving them a rating of almost four out of a maximum of five. Promotions involving discounts, stands at shopping malls and TV or radio commercials are the most effective promotion channels.

In Shanghai, Beijing, Wuhan, Chengdu and Guangzhou, however, respondents said that garment exhibitions were more effective than promotional shopping mall stands or broadcast commercials to induce them to buy clothes.

Overall, mainland respondents find Hong Kong brands fashionable in style, unique in character and excellent in material or quality. Almost 20 per cent of respondents were willing to buy more Hong Kong branded garments in the future.

They were also willing to pay a premium, ranging from 14 per cent to 133 per cent, for Hong Kong brands over mainland brands that offered similar product quality. Among the cities surveyed, respondents in Hangzhou were willing to pay the highest premium while those in Beijing the lowest.

Route to Better Sales

Most survey respondents were receptive to new brands, particularly from Hong Kong. Hong Kong companies could therefore capitalise on this advantage and clearly define their market positioning and target customers. By so doing, they should be able to build their brands and raise their reputations as well as enhance market receptiveness and establish a reputation for quality.

Hong Kong garment brands should ideally target the mid-range market and foster a new consumer culture by offering Hong Kong styles, brand names, designs and management that suit mainland fashion trends and consumer preferences. Hong Kong companies can consider setting up points-of-sale in department stores, the main focus of clothing sales.

The overall benefit could well exceed that from establishing chain stores or independent shops. Regarding promotion strategies, Hong Kong companies can attract customers and raise awareness by participating in discount promotions or by setting up promotional stands in shopping malls. This, coupled with popular TV or radio commercials, would boost brand penetration.

As consumers attach increasing importance to quality and service, Hong Kong companies should strengthen, or ask their mainland retail outlets to strengthen, sales and after-sales services, in addition to maintaining good and competitive price performance ratios.

The latest survey showed that offering free alteration services and increasing product ranges and styles can help raise customer satisfaction. Consumer habits vary from city to city and among different consumer groups, so Hong Kong companies should formulate corresponding marketing strategies, offering the right products for the right needs.

HKTC

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