The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
A new white paper released by the consultancy and Chinese retail giant stresses that brands must invest in omnichannel, location-based services to cultivate customer loyalty, China Daily reports.
Where the Chinese market became accustomed to e-commerce in various forms over the decade between 2010 and 2020, customer acquisition rates have since slowed, making it all the more important for brands and retailers to build long-term relationships with existing shoppers to stand out in a crowded, more democratised online ecosystem.
To do this, businesses need to tailor strategies to specific target groups (for example, beauty-obsessed shoppers) according to their consumer journeys, which will differ according to their age and location.
“There is often this misperception that it is critical to raise brand penetration in order to beef up sales. But our research suggests that it is frequency and spending per purchase that really make a difference in sales, and both of these gauges are reflective of brand loyalty,” Jonathan Cheng, a Bain partner and head of retail practice in China, told China Daily.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.
While travel to Europe remains muted, Chinese shoppers are flocking to Singapore, Thailand and other Southeast Asian destinations where fashion retailers are hoping Lunar New Year marketing investments will pay off.
Local fashion designers experimenting with puffers and other down clothing have scored collaborations with outerwear companies like Moncler and attracted the attention of prominent international retailers like H.Lorenzo.