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Lina+Brenda+Xin

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- used to increase productivity in manufacturing clothes as well as running enterprises

- functions well for practicality and productivity within stores and online retail

- can be used as an advisory role to recommend clothes to customers based on their height, weight, shape, and current size
- virtusize; finding perfect fit in online dressing room & able to create an online wardrobe to mix and match
- alexa

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Mylo is a sustainable leather alternative made from mycelium, the root-like system of mushrooms.

As a material, Mylo delivers the timeless aesthetic and luxurious feel of leather, but without the planetary impact associated with raising livestock.

While cows require extensive resources and years to raise, the mycelium used to make Mylo is grown in less than two weeks inside a state-of-the-art vertical farming facility powered by 100% renewable electricity.

The material that started a " mushroom leather" revolution, Mylo™ was created by the scientists and engineers at Bolt Threads and is a mycelium-based leather of choice for world-class brands including adidas, Stella McCartney, and more.

Together with our growing network of brand partners, we've developed Mylo to meet the highest possible aesthetic and performance standards for high-end, lower impact products.

Why Unleather?

Leather is an amazing material. But at the scale it's used today, it is simply unsustainable.

The global cattle industry - where the majority of leather comes from - has a massive environmental impact,

Because Mylo doesn't require the enormous amount of energy, land and calories needed to raise livestock, we can offer customers all the beloved properties of leather but without the devastating environmental impact of cattle.

Unleather™

[ən-leT͟Hər]

The radical act of choosing products made sustainably with infinitely renewable mycelium over animal and synthetic-based materials.

Eager to get a feel for Mylo? Get in touch to explore the possibilities of unleather.

FAQ

Mylo™ material is a sustainable leather alternative made from mycelium, the root-like structure of mushrooms, created by the scientists and engineers at Bolt Threads, a material solutions company based in Berkeley, California with manufacturing facilities in The Netherlands.

The process to make Mylo™ material starts with reproducing what naturally occurs beneath the forest floor. Inside a vertical farming facility powered by 100% renewable energy, fungal cells are mixed with sawdust and organic material to grow dense mycelial networks that rise from the substrate and form soft foam-like mats.

Once mature, the mycelium is harvested and the remaining substrate is composted. Guided by Green Chemistry principles, the mats are processed and transformed into sheets of soft, earthy biomaterial ready for surface texture and finishing by an LWG gold-rated tannery.

For a closer look at the process, visit our Material page.

Where can I purchase Mylo products?

Products made from Mylo™ material are available directly from our growing network of brand partners. Product availability, release dates, distribution, and points of sale are controlled by partners individually.

Sign up to receive the Mylo Newsletter and get updates on upcoming product launches.

Get the latest news by subscribing to the Mylo Newsletter.

You're on the list. Check your email to confirm.

Source: United Nations Food and Agriculture Organization (FAO) Global Livestock Environmental Assessment Model ( GLEAM) and United States Environmental Protection Agency ( US EPA)

Created by Bolt Threads. If you have questions about the accessibility of this website or require accommodation due to a disability, please contact us for immediate assistance.

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Meet Mylo™ - the sustainable Unleather™ made from infinitely renewable mycelium. Explore this revolutionary material, discover products, and more.

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- use product life cycle to produce new items: water for harvesting raw materials, landfill waste products

- collective global sustainability campaigns in the fashion industry

- measuring environmental impact.
benchmark and tools for the fashion industry

- as an example, H&M's recycling machine make new clothes from used apparel is one of the initiatives sustainable program, H&M Conscious

- Patagonia core values:

1. Building the best product

2. Causing no unnecessary harm

3. Using business to protect nature

4. Refusing to be bound by convention

- Textile recycling strategies are focused on understanding their classification:

post-production products, such as yarns, textiles, and fibres, which result from manufacturing process waste.

materials discarded after their useful life has ended, such as clothes, carpets, shoes, and furniture.

Traditional textile recycling involves returning them to a productive process that includes:

classification according to the conditions and form of fibre; at this stage, it is determined whether garments can be reused, crushed, or reprocessed.

re-classification, which includes sorting the granulated material by colour before crushing, carding, and spinning it.

- Veja

raw material sources: purchase organic cotton directly from farmer associations in Brazil and Peru.

upcycling sources: used “fish leather” from tilapia in their shoes. Usually discarded by freshwater fish farms, the skin gets upcycled through a handcrafted process involving vegetable dyeing.

transparency:

1. map their production and publish their fair trade documents, organic labelling certificates, and results of chemical tests carried out on the sneakers.

2. the shoelaces aren’t made from organic cotton and the eyelets don’t contain nickel but come from metal the company didn’t source themselves.

Practices in Fashion Industry

Made-to-order:

As consumers seek to reduce their waste, made-to-order has been a for luxury brands for some time, such as high-end fashion or homewares, but this conceptualization is adopted by many brands across and spectrums.

Giorgio Armani and Ralph Lauren are the latest to launch made-to-order offers, with the former extending its service to women and the latter offering a made-to-order of its signature polo. A of early fashion brands are also in this space, including Toast, Oyuna and Before July.

Switch sustainability to Regenerative

Regenerative fashion refers to clothing made in ways that support circularity.

It's either through the used economy by upcycling materials otherwise discarded or through the soil-to-soil cycle of regenerative agriculture, which will be the focus of this article.

The fashion sector was responsible for some 2.1 billion metric tons of greenhouse-gas emissions in 2018.

25 billion pounds of textile products are made every year in the U.S., and the average American is dropping 70 pounds of clothing every year.

LVMH and London- design school Central Saint Martins have changed over the focus of their Maison/0 programme from sustainability to regeneration.

Component of the initiative will see it launch a new master diploma in regenerative innovation inwards 2022.

The uptick in paper trials

H&M Group uses recyclable paper packaging solutions for e-commerce channels across its brands, including Cos and Weekday.

A lifestyle clothing brand prAna promised 100% of its styles will have plastic-free packaging for Autumn 2021. Along with its Vela paper bags as one alternative.

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How H&M’s Recycling Machines Make New Clothes From Used Apparel | World Wide Waste

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- Technology based on biology

- Utilize harmless cellular, biomolecular and living organizations to create different products such as yeast to make bread and microorganisms to make cheese and yogurt, which help improve our live & health of our planet

- Enzymes are used to wash & bleach textiles, to give jeans a denim look or to prevent wool from shrinking

- Bio-dye copies nature's processes in a lab setting, by replicating the 'DNA message' that codes for color in an organism. This tricks the genetically-modified bacteria to create and fill up with those exact same colors

- Create fabric that is grown out of mycelia — the roots of mushrooms

- Lab-grown, biodegradable materials mainly used in fashion such as leather, silk like fiber

-  Fabric decomposes naturally and quickly compared to other fabrics such as polyester

- AMSilk, based in Germany, using fermentation bioreactors where bacteria produce spider silk protein which is then spun into fibers, creating a brand new material with unique properties

AMSilk worked in product using spider silk fibers including sneakers for Adidas

- Bolt Threads, based in California, microsilk spun from same protein as spider silk, using biology fermentation and traditional textile production

Their latest product, Mylo, innovation of sustainable leather made from mycelium

Mycelium is a fungus bacterial colony, consisting of a mass of branching so strong they hold the planet together

Mylo products from adidas, lululemon, Stella McCartney, and more in the future

- NEFFA, based in Dutch research changing material and production techniques which crossover with textile, technology and microbiology

Create fabric from the roots of mushrooms - mycelia

The fungi are grown in discs, then stuck together to create custom clothes without seams

Not only reducing waste throughout the production phase, but also resources like water, farmland, and transport

Already created several prototypes of dresses, jackets and purses and collaboration with fashion designers like Tommy Hilfiger Menswear

- Colorifix, based in UK is the first company to use a biological process to produce, deposit and fix pigments onto textiles

Via DNA sequencing into making a pigment, then translate message into engineered microorganisms

Create color at the lab, then ship  live microorganisms to fermentation partners to grow the color, microorganisms are then transported, used directly in place of dye liquor, requiring no additional specialist equipment or toxic chemicals

- San Francisco-based Mango Materials, turning polymers that offer sustainable alternative to petroleum-based polyester.

The company make fermentation vessel with water & bacteria, which feed on the methane gas, rapidly growing until a type of bio-plastic known as PHA is produced.

These pellets form the basis of biodegradable bio-polyester fibers

The company signed deals with activewear and outdoor clothing brands with plans to announce in the near future.

- NOVOZYMES, based in Copenhagen, Denmark which focuses on the research, development, production of industrial enzymes and microorganisms

Targets on year 2022

committed to help solving 3 global challenges : Climate, Water and sustainable Production & Consumption

3 financial targets: Organic sales growth, EBIT margin and ROIC incl. goodwill

Using enzymes instead of stones eliminates the need for multiple rinses and saves water.

Result with : undamaged fabric, long-lasting quality, and that same stonewashed look.

Enzymes are stable and biodegradable which are able to work at low temperatures and moderate pH levels. This makes them the most environmentally-friendly catalysts.

Finding the right enzyme, Finding the right gene, Transferring the right gene to grow quickly, Finding the right balance, after fermentation separate out the enzymes leaving a mix of unused nutrients, water and microorganisms

Use DeniSafe®  system, enables safe use of enzymes in new, low-water, spray washing machines using mist technology, the safe spraying ensures enzyme exposure limits aren't exceeded.

- Future of biotechnology on fashion

There is still a long way to go before biotechnology/  biofabrication replaces traditional fabric producing and dyeing methods

One of the big challenges is the process includes transforming prototype biological processes into industrial-scale production, which will be the key to make these products widely available and affordable.

Another challenge is determining the real impact that these new processes actually have on the environment, longer R&D cycles and slower consumption patterns are needed.

Clothes will be made and dyed by living microbes, ditching many of the chemical processes that make fashion one of the most polluting industries in the world

Biotechnology has developed new products, opened up new markets, speeded up production and helped to clean up the environment.

Enable sustainable, environmentally gentle global development to be achieved and the development of the bio-based economy, where intelligent applications of biology become the main driving factor behind growth and wealth creation

Although this will take time, biotechnology will definitely be the future of fashion

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A sustainable future

Our mission is to lead the change to better and more sustainable products in the new era of biomaterials. At AMSilk, we believe in the value of lasting relationships with customers, suppliers and industrial partners. We offer our customers a number of options for close collaboration that enable them to provide their consumers with highly innovative products.

AMSilk is the world's leading supplier of biotech silk materials. Our key to success is an outstanding technology platform, protected by a best-in-class patent portfolio. We offer customized solutions - and together with our partners we have brought many products to the global marketplace.

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Our mission is to lead the change to better and more sustainable products in the new era of biomaterials. At AMSilk, we believe in the value of lasting relationships with customers, suppliers and industrial partners. We offer our customers a number of options for close collaboration that enable them to provide their consumers with highly innovative products.

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Rouge Sur Mesure Personal Lipstick Shade Creator by YSL beauty.
- Allows customers to create their own unique shade of lipstick with the help of a simple app

- This would save on excess wastage of packaging if makeup could be created by the customers at the comfort of their own home

- Virtual Reality has its entertainment benefits when it comes to games or watching films but in the current pandemic it would really help many loves ones to somehow have a virtual connection and experience with their family members but in a less 2 dimensional way.

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Rouge Sur Mesure Personal Lipstick Shade Creator | YSL BEAUTY

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- As you all know, unlike ordinary printers, 3D printers have big feature that they can make results in 3D.

- Danit Peleg
ㄴ Fashion designer and a pioneer in 3D printed fashion from Islael.

ㄴ She made international headlines for being the first designer in the world to create an entire collection using 3D  printers for her graduate project.

- Environmental protection
ㄴ no need to kill animal for garment
ㄴ no need to run factory.

- ADIDAS
"Create the New"
Adidas company which is famous brand for sports clothing is create the shoes named Adidas 4DFWD shoes.
ㄴ Using a midsole 3D printed by Carbon
ㄴ Feature support, flexibility and breathability
ㄴ Eco-friendly
ㄴ Reducing the braking force on the front of the foot by 15% compared to normal shoes

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A 3D-Printed Garment That You Can Buy Online

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Fashion and art

Alexander Mcqueen

Robotics could be a fantasy when it comes to fashion and art.

-In the 1990s, Alexander Mcqueen used two metal robots that were originally from a car manufacturing plant, sprayed black and yellow on white cotton trapeze dress.
https://www.anothermag.com/fashion-beauty/9225/the-magnificent-impact-of-alexander-mcqueen-ss99

Adidas-Speedfactory

In late 2015, Adidas also came out the idea of opened automated manufacturing facility in Ansbach called speedfactory. Speedfactory would would pair a small human workforce with technologies including 3-D printing, robotic arms, and computerized knitting to make running shoes
https://www.youtube.com/watch?v=cCkqmJwlyJI
https://www.youtube.com/watch?v=ECFNWQor8lY

Respond customers needs

Flexibility in product design

Better utilization of existing production capacity

https://www.youtube.com/watch?v=ECFNWQor8lY

https://www.adidas-group.com/en/media/news-archive/press-releases/2019/adidas-deploys-speedfactory-technology-at-asian-suppliers-by-end-2019/

-Benefits for fashion house or brand keep their stock in warehouses, stores and factories

- Robotics could help by decreasing the damage of goods/product

-Robotics could decrease the risk of workers being injured
-Robotics in textiles which are heavily being use in china company

-In the 1990s, fashion’s relationship with robots was a fantasy.

Alexander mcqueen s/s99

Present to future

·       Benefits for fashion house or brand keep their stock

in warehouses, stores and factories

- robotics could help by decreasing the damage of goods/product

-robotics could decrease the risk of workers being injured
-robotics in textiles which are heavily being use in china company

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- culture is made from society, education, values, norms and etc.
-  fashion is influenced by cultural changes, such as modernization, art, and even technological innovation.

- fashion brands and companies would need to understand how consumers interpret fashion these days.
- also, whether they are influenced more by their own culture or popular culture.

- there are 3 types of culture in the fashion industry:

High culture means elite activities like visual art, auditory art, and applied art like photography, design, and architecture.

For example, Spring/Summer 2008 Louis Vuitton collection, Marc Jacobs and Richard Prince decided to bring the artist’s recent iconography to life. A nod to his famous Nurse paintings, the models walked down the runway dressed in see-through nurse dresses.

Other references to Prince’s art were worked into the LV bags a coup that had previously proven successful with the famous Takashi Murakami x LV bag collection, as we will see in the following.

Pop culture or popular culture is a cultural segment, which is followed, appreciated, and understood by a larger portion of the world audience. Usually, it is highly influenced by movie or music celebrities. For example, fashionable TV shows, like ‘Sex and the City’ made viewers want to dress up like the central characters of the serial.

Low culture includes local street activities like graffiti or Hip Hop. The power of subculture to fashion can be seen clearly in skateboard culture from the 70s to the present day. For example, the Japanese Harajuku girls, who are teenagers, originally from Tokyo’s Harajuku district, dress in a particular way. American singer Gwen Stefani named her 2005 world tour as well as her clothing line after these girls.

FENDI MENSWEAR S/S 2022

The collection resembles neoclassical architecture’s arched pathways at three different hours of the day.

The boldest piece on Fendi’s fresh horizon was a chic, vaguely retro, double-skirted tennis (ish) dress in white linen with striped, shrunken shirts-sleeves and a silk collar, worn with a cute bucket hat/bucket bag.

Fendi Menswear S/S 2022 uses a lot of statement pieces, including a languid silk pajama set boasting an archival map of Rome.

https://www.youtube.com/watch?v=lBgNc5kYG28

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- Systemic racism is a form of racism that is embedded through laws and regulations within society or an organization. It can lead to such issues as discrimination in criminal justice, employment, housing, health care, political power and education, among other issues.

- In order to implement meaningful change, brands must introduce clear, public goals for which they are accountable. (The BoF Podcast: Tackling Systemic Racism in the Fashion Industry, 2020)

- “Black people have set the foundation for the fashion industry, but we’ve never held leadership roles.” said Harlem Fashion Row Chief Executive Brandice Daniel

- Brands like Telfar and Brandon Blackwood NY have strong identities whereby they still have style and flair but they have a cause at the end of the day which is to fight for their people and to fight injustice.

- This kind of an approach will not only deliver the message but also stick in people's minds for a very long time. Its a kind of USP where you're allowing people to feel and understand your message in a hands-on basis.

- In the new age of "wokeness" in 2021, people want an outlet that they can support and voice out their opinions and sometimes voicing out their opinions is by carrying your statement bag or wearing your statement garment. With this, ethnic brands can implement transparency reports on how they are helping their communities and also include designs that reflect their ethnic group really well.

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-make it do-clothing restrictions in world war II

-United Kingdom ration clothing, united states restricted in using less fabric

-US: civilians were encouraged to purchase or make clothing from cotton, rayon, or rayon/wool blends

-“Rosie the Riveter” became icon for working women

-no longer categorise one size fits all, one size fits one person, universal

-people who are disable want to feel fashionable and dress up confidently

- adaptive clothing typically offers rear-closure designs so that an individual can be dressed more easily by a carer or even by themselves. For example, rather than buttons and zippers, hidden magnets or Velcro may be used for garment and footwear closures.

- adaptive clothing is specialised clothing that is modified to enable easier dressing for people with a disability. The clothing is modified to help people with a high degree of disability and their carers or to assist individuals with a lower degree of disability to dress independently.

-instead focus on achieving maximum access and usability.

- real design should have an impact on flexibility takes into account varying body types, cognitive capacities, communication styles, and other differences

-labelling/targeting product, vocabulary such“normal/abnormal,” “able/disabled,” and “male/female,” should be rejected

-designs should make someone feel included in the world

-with this direction design is able to uphold someone’s dignity and human rights to be treated ethically

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- Values are essential and the most critical area as it's able to guide or motivate people, organizations, and communities

- provide a basis for social justice and belief in necessary institutions
- express personal and collective judgments

- The “common good” refers to both the interests that members of a community have in common, and the material, cultural, and institutional factors that allow them to serve those interests

- Valuing Digital Equity; Everyone deserves an opportunity to fully participate in public life. Digital equity is emerging as a shared value and a global goal - in order to enable everyone to have the information technology capacity necessary for full participation

- Valuing Human Dignity; Inequality is only getting worse, and exacting a heavy toll on dignity.The world is getting richer, but wealth is being concentrated in fewer hands.

- Valuing the Environment; Increasing sustainability and combatting climate change requires shared values.  The efforts to establish shared values that can propel us down a more environmentally sustainable path have included the founding of Earth Day in 1970.

- Trust as a Value; Faith in institutions and in each other is vital during a crisis. The COVID-19 pandemic has made clear that trust in institutions and between institutions is necessary to cope with global challenges.

- Dolce & Gabanna

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Dolce & Gabbana under fire over racism accusations | DW News

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- The future of media continue to change with digital advancements for entertainment, news and business. and this is an important opportunity for business. According to the Pew Research Center, the digital media industry continues to grow and 86% of American adults watch news through online. As the audience of online media increases, so does the number of platforms.
- and now currently pandemic is accelerating the use of digital media. These are driving people to use more online so that consumers have shopped more online.

- Future of entertainment
The future of entertainment will no longer provide information only with sounds and voice, but use photos or videos to visualize the subject. Nowadays Singers and musical actors are unable to hold conserts due to Covid-19. but consumer can participate through online. In Korea, all fashion shows have been canceled due to Covid-19. so the clothes that Korean designers had prepared for long time were in a situation where they could not see the light. however, model Han Hye-jin wore 100 pieces of clothes and held a fashion show online. audience who waited for fashion show highly praised and it was 2 million views on youtube. other fashion brands also host fashion shows online without audience like Moschino Spring Summer 2021.

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[최초공개] World Class Model! 한혜진의 100벌 챌린지! 그 역사적 패션쇼로 여러분을 초대합니다!

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- QR code gives a ‘born identity’ so that the garments features like how it was made that allows to ‘stay in touch’ with their customers

- Consumers trust in brands has been eroding nowadays, this will involve across the way of business activities in the future

- Provide people with more transparency by sharing the supply chain, giving people access to learn about their garments and journey

- The "Garment Journey" builds value and reinforces the brands focus on sustainability

- Allows interested customers to engage with the product on a more detailed level to understand the origin and composition of the garment

- Gabriela Hearst partnered with EON, a leading digital identity platform / create cloths' passport

EON built a bridge between product information and the entire supply chain, making product data easy to access

Connecting products by unlocking visibility, traceability and  insight through a QR code

By scanning the QR codes on the labels of Spring Summer 2020 collection, they are given access to information about : materials used, country of origin, production process, certifications, and the inspiration of the garment

Gabriela Hearst’s Womenswear Spring Summer 2020 show was a Carbon Neutral Show.

Worked with EcoAct & Bureau Betak to examine necessary aspect of its production, design and installation process, in an effort to reduce carbon footprint to its very minimum

EcoAct = international advisory consultancy & project developer

Work with clients to meet the demands of climate change

Work with many large and complex multinational organizations to offer solutions to their sustainability challenges

Believe that climate change, energy management and sustainability are drivers of corporate performance, they seek to address business or organizational problems and opportunities in an intelligent way

-  The R Collective, a Hong Kong-based sustainable apparel company, is changing consumer behavior in its The Denim Reimagined project

Features digitized QR code to explore garment’s design journey linking to #WearAndCare campaign

The denim collection is accompanied by scannable garment labels that offer four digital experiences to customers : supply chain information, less energy consumed washing & drying tips

They are restyling tips to advice on recycling the garment at the end of its life

Every piece from The R Collective is created to eliminate waste

Every piece from The Denim Reimagined is made from upcycled Levi’s® aged inventory and leftover samples in a creative design effort to prolong denim’s lifespan

Rescued Fabric : 82,000 Yards

CO2 Reduced : 52,000 Kg

- Veja, a French based footwear with a presence in over 50 countries since 2004 without advertising

Transparency is more effective than advertising

They concentrate their financial revenue on raw materials and their people

Which leads their success, rooted in their commitment towards climate and community

- The needs are growing more intense to integrate concepts which allow brands to stay connected with consumers even after the garment has been bought

- Once identify products and recognize their materials and components, it is easier to keep those products at their best use, enabling more than one lifecycle and making their use, reuse and recycle easier, helps reduce waste to our environment

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Gabriela Hearst has partnered with EON, which is a leading digital identity platform for fashion and apparel - connecting products throughout their lifecycle by unlocking visibility, traceability, and insight through a QR code. The goal is to provide customers with more transparency by sharing the supply chain and giving them access to learn about their garments journey.

"One thing is for sure - [fashion] needs transparency. Even for myself, who is passionate about the subject, it was hard to gather this information." - Gabriela

When customers scan the QR codes on the labels of the Spring Summer 2020 collection, they are given access to information about materials used, country of origin, production process, certifications, and the inspiration of the garment. The Garment Journey builds value and reinforces the brands focus on sustainability. It also allows interested customers to engage with the product on a more detailed level to understand the origin and composition of the garment.

One of the garments featured in the Garment Journey is the Ares Dress, which is made from sustainable hemp linen.
View the Ares Dress Garment Journey Here

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Gabriela Hearst has partnered with EON, which is a leading digital identity platform for fashion and apparel - connecting products throughout their lifecycle by unlocking visibility, traceability, and insight through a QR code. The goal is to provide customers with more transparency by sharing the supply chain and gi

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At The R Collective, our "Celebrate Life" initiative aims to shine a light on the diverse stories of passion, motivation and joyful living within ...

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VEJA is Brazilian for " look ", looking beyond the sneakers, looking at how they're made.

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Page 17 - 18
- The brand value of clothing and shoes fell 18% and 19%m but sportswear sector recovered strongly and increased 7%. (CAGR)
- Burk said it was time to change the men's wardrobe, not sportswear but casual. -> Casal menswear market? (Ref)
- In 2019, e-commerce accounted for 10-15% of global luxury goods sales, Europe and China ranked at the bottom, and the United States ranked at the top. (Consumer Behaviour)

During the pandemic, people came across a lot of digital like online.
So many brands are paying close attention to online and embrace digital such as live streaming, customer service, video chat and social shopping (Digitalization Landscape)

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1. Surya:
During one of the hardest recessions in decades it has been noted that the demand for demand for fashion is unlikely to bounce back due to restrained spending power amid unemployment and rising inequality.

According to the McKinsey Fashion Scenarios Analysis, it has been said that fashion industry revenue pool will shrink by 15-20 percent in the Earlier Recovery Scenario or by 25-30 percent in the Later Recovery Scenario

China had a positive turnover by 4 percent in June when it came to consumer's with the intent to shop for apparel, footwear, accessories and footwear meanwhile the US was still down by 27-35 percent - Yeezy x GAP

A full recovery of global fashion sales is not expected to come to pre-crisis levels until the third quarter of 2022 and that's the earliest

However fashion sales in China was predicted to return to pre-crisis level by the first quarter of 2021.

2. Lina:

- A full recovery of global fashion sales to pre-crisis levels will not come until the third quarter of 2022 at the earliest.

- Lockdowns and restrictions on movement have strongly influenced consumer choices around what to wear.
- Growing inequality and financial uncertainty are prompting consumers to seek out value.

- The expectation of the increased consumer interest in health and wellness to persist beyond the pandemic, meaning demand for athleisure and activewear.

- The casualization trend that was already in motion before the pandemic and that accelerated throughout 2020 is likely to emerge as a dominant force across many fashion categories in 2021.

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- winning brands in 2021 will be those that have clear, long-term ambitions, while demonstrating enough flexibility, speed and agility to navigate an uncertain short-term future.
- Adapt to fast pace of change and identify more than 80% threats. (external environment)
5 years - Long term (3-5 yrs) & short term goals (1-2)
Present - Long Term (12-18 months) & short term (3-6 months) - Collaborations 1+1= 3 / 1 + 1 = 1

- Make faster decision making on major implementations (execution) know howthan before
- Prepare strategic responses on multiple scenarios since there will be much uncertainty, this will give brands to respond quickly and capture market opportunities

- Set aside traditional budget and strategic planning, and maximise organisation responsiveness
- Reevaluate their initial assumptions about sales and volumes based on real time results
- Reimagine budgeting from zero base approach to allocate with different possible scenarios - hit or miss

- Remodify chains of command, simplifying decision-making and enabling greater autonomy down the hierarchy
- Ensure continuous dialogue and information-sharing with employees and shareholders, communication across the organisation

- Adaptability will be key

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CASE STUDY: Jumia-Balancing Speed with Discipline in a Crisis

-e-commerce platform in Africa
-selling things from luggage, laptops, food, footwear, paid bills and so on

-Jumia's room of growth of e-commerce on the continent, it’s still about two per cent, three per cent.
-Consumers can buy virtually anything on Jumia, not just fashion products and beauty products. They can buy airtime for mobile phones and pay bills on Jumia.

-accusing of being a clone of Amazon, citing the successful roll-out of services like Jumia Prime, Jumia Express

-consumers are already used to a certain way of interacting e-commerce, so Jumia adapt the e-commerce model

-to gain trust from customers in logistic
-creating cash on delivery option with three attempts to make a delivery, a payment solution and all kinds of special
-adapting the e-commerce model for the African environment and customising it to the African consumer

- to manage sales platform for consumers in Africa
-due to lack of establishing logistics that could reach every part of the country who were also willing to take cash on delivery, so we had to create a network of third-party logistics providers

-Jumia assortment across African nations
-operate across 11 countries
-partnerships with certain brands
-customise our marketing ex: YouTube

During the pandemic, net losses were reduced because sales and advertising expenses are not being healivy spend.
-Staff costs and other operational expenditures held down the gross merchandise value, which it wasnt a phenomenal growth.

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- The Chinese economy thrives as a manufacturing powerhouse and the nation's products seem to be everywhere.

- In addition to its low labor costs, China has become known as "the world's factory" because of its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices.

- China's business ecosystem of networked suppliers, component manufacturers, and distributors has evolved to make it a more efficient and cost-effective place to manufacture products.

- Industry and construction account for about 48% of China's GDP. China ranks first worldwide in industrial output. Major industries include mining and ore processing; iron and steel; aluminum; coal; machinery; armaments; textiles and apparel; petroleum; cement; chemical; fertilizers; food processing; automobiles and other transportation equipment.

- With almost 255 billion US dollars in exports in 2012, China is the undisputed textile and garment export champion of the world. According to the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT), the lion’s share of 44.8 percent goes to the Asian countries, followed by Europe with 23.3 percent and North America with 16.8 percent.

- With more than 100,000 manufacturers, China's garment industry is huge and employs over 10 million people. In 2012, China made 43.6 billion pieces of garments with an export value of 153.219 billion US dollars.

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- More than 90% of garment enterprises have maintained the level of their production and the supply chains have generally recovered, shows that china have a good system on government and managing fashion industry

- Efforts have been made to improve the adaptability of products according to changes in consumer demand - from various aspects such as technological, design, management and service innovation

- While continuously optimizing the product, China is also paying particular attention to a new generation of information technology

- As we can see fashion industry isn’t only overcoming current pandemic difficulties, it is also laying a solid foundation for the next transformation and upgrade ecommerce platform

- One of the leading trends is the direct integration of shopping functionality into the content display on social media, enabling high-speed, "inspire and sell" customer conversion (e.g., DouYin ). The audience is increasingly shifting from desktop to mobile, and improving the mobile browsing and checkout experience is becoming crucial.

- According to the Digital Market Outlook, apparel segment online revenue in China is expected to grow to 285.981,4 million U.S. dollars in 2025. The forecast is adjusted for the expected impact of COVID-19.

- China has deflected the blow of the health crisis and continues to see considerable luxury market increases after a small setback due to nationwide lockdowns. According to the Business of Fashion-McKinsey State of Fashion Survey 2019, the Greater China area has for the first time in centuries overtaken the U.S. as the world’s largest fashion retail market

- China e-commerce sales surpassed the combined total of Europe and the United States. Today, in the shadow of a global economic downturn caused by the virus, China owns the largest digital buyer population in the world, amounting to more than 710 million people

Source: XXXXX

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SOCIAL COMMERCE

Internet users: 54.3 % (2017)

Social commerce: shop via social media > sales projected to reach $363 billion in 2021.

Brands that use social media influencers are reporting much higher conversion rates than through traditional advertising models.

the US:  48% of internet users aged 18 to 34 bought something through social commerce in 2019, with an average order of $70.

In China, the 2020 Shanghai Fashion Week was entirely live-streamed, creating opportunities for offline content to be monetized online.

Ranked in 31 out of 190 countries as best countries for doing business

understand the importance of accommodating the global market and government policies are more favourable toward foreign companies.

even though the minimum wage and the working standards had increased through the years, China is still cheaper than most developed countries when it comes to manufacturing.

60% of the population in urban areas are gen Z & millennial consumers in China

It’s predicted to increase up to 65% by 2025. The lifeblood of social media and in turn, of fashion brands and retailers.

The Louis Vuitton Show in Shanghai in August 2020 as an instance has drawn in 68 million viewers on Weibo, 18 million on Douyin, and 8 million on Tencent, compared to just 3.3 million on Instagram and 33,500 on Facebook.

Louis Vuitton stores in Shanghai had their biggest sales weekend of all time after the fashion show

Chinese gen Z and millennial consumers respond better to online shopping via social media when a KOL or other celebrity is involved.

KOLs serve as a stamp of approval so to speak when it comes to making purchases.

SUPPLY CHAIN

The Chinese textile manufacturers are moving toward automation and smart production through technological innovation to rise up the standard of the supply chain.

China covers the supply of:

raw materials

designing and development

weaving, dyeing and processing

garment making

retail

There is a rising number of orders from Western markets to flow back to China from India after the production disruption since the epidemic last year.

The current pandemic has made brands include sustainability within their brand and values.

to increase the word of mouth and credibility of the story narrative, This can be done through events such as Fashion Week, governmental institutions, and brands and manufacturers working together during a large media conference to raise this issue and create a workshop/action plan together creating future initiatives.

Creating a sustainable community in parallel to market entry both through a CRM-focused strategy and community building is what our partner and planning director has created for some big brands in the China market.

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Economy rankings

Economies are ranked on their ease of doing business, from 1-190. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The rankings are determined by sorting the aggregate scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to May 2019. Read the methodology, explaining how the ease of doing business rankings and the ease of doing business scores are calculated (PDF), or download the ranking table (PDF).

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Economies are ranked on their ease of doing business, from 1-190. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The rankings are determined by sorting the aggregate scores on 10 topics, each consisting of several indicators, giving equal weight to each topic.

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JiaYi+Hayden+Surya

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Population - 84.69 million
- +1.0% (806 thousand) compared to 2020
- 76.3% lives in urban centres
- 23.7% lives in rural areas

Internet users - 65.80 million
+6.0% (3.7million)  compared to 2020.

Statistic of social media
- 60.00 million users in 2021 (+6.0 million)

The total amount spent in consumer ecommerce categories in U.S dollar
Fashion & Beauty - $4.72 billion (+42.5%)

Number of people purchasing consumer goods via the internet
- 37.20 million

Sources of New brand discovery
Ads on Television - 42.2%
Ads on social media - 41.6%
Search engine - 41.6%
Brand or Product website - 37.2%

- Economic growth soared at the beginning of the year, with GDP growing 7.3% annually, the fastest pace in three years.

- Exports of goods and services from external fronts rose 3.3% on an annual basis in the first quarter after flat in the fourth quarter.

Turkey's 2020 unemployment rate - 13.2%
The number of unemployed - 4.08 million
The number of unemployed people aged 15 or older - 4.06 million
The number of employed people aged 15 and over - 26.8 million
Non-agricultural unemployment - 15.3%
The unemployment rate in the 15-24 age group - 25.3%

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EU imports from Turkey of select product categories

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"Turkey is grabbing limelight as one of the possible alternatives to China in the global textile value chains."

- Global brands, particularly those in the EU, have already started placing orders in increasing numbers after their conscious shift from doing business with China, especially after the Xinjiang controversy.

- Turkey has been a large beneficiary of the shift in trade flows such as the Xinjiang incident and also the aftermath of Covid-19. Brands especially based in the EU wanted a more diverse supply chain that is also flexible and efficient.

- The textile and clothing market in Turkey also remains a large market for global textile related exports. EU being its largest import partner as well, sent more than USD 2.5 billion worth of goods to Turkey.

- Textile and clothing demand from the European countries has helped the Turkish industry grow much faster. EU constitutes more than 60% of Turkey's textile and clothing exports.

- Turkey is largely sustainable and is also one of the few countries in the world which have prohibited the use of genetically modified organisms in agriculture, rendering the quality of its cotton much finer, while also maintaining its farm productivity as one of the highest in the world.

- Global buyers of Turkish cotton are known to pay more for Turkish cotton for its better cotton quality.

- Economies such as Turkey will have a lot to gain from these shifts that are currently happening as they have a good bond with the European fashion industry.

https://www.fibre2fashion.com/industry-article/9081/a-longer-road-ahead-for-turkey-s-textile-success

- While approximately 14% of Turkish apparel sales occurred online at the end of 2020, the Istanbul Apparel Exporters’ Association (IHKIB) believes this percentage can grow to 50%.

- In 2020’s pivot to e-commerce, Turkish apparel manufacturers stepped up to the plate, exporting 10% more apparel goods than in 2019.

https://sourcingjournal.com/topics/sourcing/ihkib-turkey-apparel-supply-chain-digital-digitization-manufacturing-289967/

Ecommerce

- The biggest player in the Turkish eCommerce Market is hepsiburada.com. The store had a revenue of US$987 million in 2020. It is followed by trendyol.com with US$792 million revenue. Other platforms like ciceksepeti.com ranked 5th with US$200 million revenue.

- These are the top fashion destination platforms that are mostly visited by Turkish people.

- Amazon.com Turkey falls short at 15th most visited platform but is very accesible by plenty of sellers from around the world.

https://ecommercedb.com/en/ranking/tr/all

Social Commerce

- The top two most used social media platforms in Turkey are Facebook and Instagram. According to GlobalStats StatCounter, 47.28% of Turks frequently use Facebook while 25.27 Turks frequently use Instagram.

- According to Appbrain.com, the top communication app for Android users in Turkey are Whatsapp leading by 5 B+ downloads, Messenger by 5 B+ downloads, Whatsapp Business by 100 M+ downloads and Bip by 50 M + downloads.

- Whatsapp, Messenger, Telegram and Bip all rank as top communication apps for Apple users in Turkey, accordingly.

https://gs.statcounter.com/social-media-stats/all/turkey
https://www.appbrain.com/stats/google-play-rankings/top_free/communication/tr
https://sensortower.com/ios/rankings/top/iphone/turkey/social-networking?date=2021-08-10

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IMPORTS AND EXPORTS
In 2020, Turkey exports amounted 169 billion 482 million US dollars with a decrease of 6.3% compared to 2019.
Meanwhile, imports increased by 4.3% and reached 219 billion 397 million US dollars.

Export/Import coverage ratio was 77.2%

Due to covid-19, Turkey did face a drop-down 324 billion US dollars, but recover during the third quarter of the year, which increased 33.8% and reached 43.3 billion US dollars.

Knit-T shirts
Turkey exports $2.94 billion for non-knit women’s suits

Turkey is the third-largest exporter of knit T-shirts, with a 6.18% share of an annual market worth $46.5 billion

In 2019, Turkey exported $2.85B in Knit T-shirts, making it the 3rd largest exporter of Knit T-shirts in the world. At the same year, Knit T-shirts was the 7th most exported product in Turkey. The main destination of Knit T-shirts exports from Turkey are:Germany ($600M), United Kingdom ($386M), Spain ($288M),Netherlands ($188M), and France ($183M).

In 2019, Turkey imported $186M in Knit T-shirts, becoming the 40th largest importer of Knit T-shirts in the world. At the same year, Knit T-shirts was the 195th most imported product inTurkey. Turkey imports Knit T-shirts primarily from: Georgia($38M), Bangladesh ($30.4M), Spain ($22.9M), Italy ($14.1M), andMoldova ($12.7M).

Turkish knitted fabrics manufacturers are aware of the increasing trend in international markets for more environmentally friendly products and have adapted themselves to these developments.
Many Turkish fabrics manufacturers have obtained ecological labels for their products. Many of them include best-known eco-labels like Oeko-Tex Standard 100, Organic Exchange, GOTS, etc.

-Turkey economy grew by 1.8% in 2020.
-Turkish share in global has yet to reach 2% in economy.
-household consumption has taken up 2/3 of the economy, it jumped 7.4%
-annual basis has contributed 12.2%, which is the biggest contribution for the manufacturing sector
-The size of the economy grew to &728.5 billion in the first quarter from $717 billion in current prices last year
-for exports,it rose 3.3%, which are annual basis while imports dropped 1.1%
-Turkey exports $177 billion worth of goods each year and is currently ranked the 29th largest export economy in the world. The country has a negative trade balance of -$25 billion after deducting annual imports of $202 billion from its export total. Between 2013 and 2018, Turkey managed to increase its exports by $14.5 billion.

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Findings:
- China's garment industry is able to complete in a timely matter which secures its front ranking in the world market in terms of capacity and quality.

- With almost 255 billion US dollars in exports in 2012, China is the undisputed textile and garment export champion of the world.  With more than 100,000 manufacturers, China's garment industry is huge and employs over 10 million people.

- Brand recognition plays an important role for Chinese consumers as they love branded products for their quality and value.

- China (Toxic Campaigners East Asia) is still identifying which kind of chemicals to be reduced or banned to reduce waste and pollution.

- Even though China produces products really fast however Chinese factories in most industries, China is not known for ideal working conditions. As wages for garment workers in China still make up only 36% of a living wage, for example, one that can adequately house, feed, and clothe a garment worker and her/his family.

- Chinese consumers and businesses have ideal regional locations in mind therefore other than first-tier cities are important but also second-tier and third-tier cities are also the same.

- E-commerce is strong in China and is significant for brands to have a friendly internet presence for their consumers to reach out.

Summary of Findings:
- China is a well-developed country with a strong economy that consumers have more spending power which a lot of fashion brands are urging to enter the country to do business.

Implication

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Findings:
- Turkey ranks 7th in the world in textile products export. and there are more than 50,000 textile companies in Turkey.

- Global brands is US shifted their Europen production to Turkey
Turkey is viable option to either supplement already existing supply chains.

- Knit-T shirt
Exports: to Germany,UK, Spain,France and Netherlands
Imports: to Gerogia, Bangladesh, Spain, Italy and Moldova

- Hepsiburada.com, this Turkish online shopping website is the leading wholesaling and dropshipping e-commerce website in Turkey. With more than 10,000 suppliers, they are able to cater to the needs of 50% of their customers who are outside Turkey major cities and also more than 22 million unique monthly visitors. https://www.chinabrands.com/dropshipping/article-10-best-turkish-online-shopping-websites-clothing-wholesale-dropship-15742.html (2020 article)

Summary of Findings:
- There are so many textile companies in turkey that Job opportunities are offered to approximately 2.5 million workers. including companies, shops, workshops and factories

Implications:

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- China is divided in to twenty-three provinces, five autonomous regions, and four municipalities.

- China is communist country and the presidential term is 5 years.

- The highest level of government administration consists of the prime minister deputy prime minister, councillor and various ministers. The state Council handles internal politics, defense, economy, culture and education. The member is appointed and can be dismissed by the president's order.

- The legal system is a combination of tradition and statute.
ㄴ In 1987, A rudimentary civil law was enforced.
ㄴ In 1980, a new law was enforced.

- The state continues to strive to improve the law in civil, administrative, criminal, and commercial sectors.

- The Supreme Court is the Supreme People's Court, which oversees lower courts, listens to appeals and explains national law.

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- Before the 20th century, in China, women had only access to domestic areas, and most men dominated all aspects.

- As the country began to modernize in the 19th century, opportunities increased, and under communism women were encouraged to work outside the home

- Today women work in medicine, education, business, sports, art and science and other fields. but so far, men are still at the top of the corporate and government ranks.

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- Cuisine can be broken down into four main geographic varieties.

- Beijing & Shandong, specialties Beijing duck served with pancakes and plum sauce, sweet and sour carp, and bird's nest soup. Shanghainese cuisine is known for seafood and cold meat dishes. Food is spicy in Sichuan and Hunan provinces.

- Southern cuisine of Canton & Chaozhou is the lightest of the four. Seafood, vegetables, roast pork and chicken, and steamed fish are served with fried rice. Dim sum, consisting of a combination of different appetizer style delicacies popular

- Cooking reflects the country's history caused by natural disasters and war.

- Special occasions and large family gatherings often entail big, elaborate meals

- Ceremonial meals common to important state gatherings and business occasions, usually held at restaurants

- Government faces problems collecting taxes in provinces that are becoming increasingly autonomous, such as Shanghai and Guangzhou.

- Labor force consists of 700 million people

- Unemployment roughly 10 percent in the cities and higher in the countryside

- Government taken approach, to improve irrigation and transportation and trying to curb population growth by allowing each family to have only one child

- Mao's priorities was a program of land reform.

- While farmers and other individuals have much more control over their land than in the past, the majority of it is still owned by the government.

- Much commercial activity revolves around agriculture. Farmers sell a portion of the yield to the government, but the rest goes on the open market where supply and demand determine the price

- Hong Kong, with a fully capitalist economy, developed under British rule into an international financial center. The main commercial activities there are banking and high-technology product and services.

- Major industries include iron and steel, coal, machine building, armaments, textiles and apparel, petroleum, footwear, toys, food processing, automobiles, and consumer electronics.

- Tourism, which increased during the 1980s, fell sharply after Tiananmen Square; however, it has picked up again as the economy has continued to open to Western investors.

- China imports mainly from Japan, the United States, Taiwan, and South Korea. Exports primarily to the United States, Hong Kong, Japan, and Germany.

- Under communism, urban workers were assigned jobs by the government. Wages were predetermined and did not reward productivity. Many continue to engage in community work and projects.

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Etiquette = The requirements of custom behaviors according to the conventions of society

- Hierarchy which places older people above younger and men above women

- Wont confront easily

- Appearing to be in the right / attempting to please someone > important than honesty

- Considered rude to refuse a request even if one is unable to fulfill it

- Fear of losing face is a concern that governs social interactions. Exp : failure to perform a duty brings shame on the family & community

- Individuality often subsumed in the group identity

- Visiting is important part of social life, guests often drop in unannounced will invited to join family meal. It is customary to bring a small gift when visiting.

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Religious Practitioners: Confucianism and Taoism do not have central religious figures. In Buddhism, there are monks who devote their lives to prayer and meditation.

The position of political working as a religious significance. The current Dalai Lama lives in exile in India and pursues the cause of Tibetan independence.

Rituals and Holy Places:

Taoist temples are dominated by the roof, usually yellow or green, with images of gods and dragons.

The interior usually consists of a courtyard, the main hall with an altar where offerings are placed, and sometimes small shrines to various deities.

Buddhist temples incorporate pagodas, a design that came from India around the first century C.E.

The temples also display statues of the Buddha, sometimes enormous sculptures in gold, jade, or stone.

Worship generally takes the form of individual prayer or meditation. One form of spiritual practice that is very popular is physical exercise.

Death and the Afterlife: The higher the social standing of the deceased, the more possessions and people were buried with him or her to ensure entry into the next world.

Chinese mourners dress in white and wrap their heads in white cloth.

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It is forbidden to produce work that criticizes the Communist Party or its ideals in China. Imperial patronage of the arts continues today in the form of state-funded literary guilds that pay writers for their work.

Even though the writers were supported, it was a different case for artists as they have to be dependent to sell their artwork.

Literature: Chinese poetry is linguistic and considered to be classical that expresses rhyme and tone as well as through the physical layout of the characters.

Literature in China became more vernacular with the influence when the Western came in the nineteenth century

Graphic Arts: Landscapes strive to achieve a balance between yin, the passive female force, represented by water, and yang, the male element, represented by rocks and mountains.

Writing is considered the highest art form, and calligraphy is said to be the deepest expression of a person's character.

China has been known for sculpture and pottery since before the earliest dynasties. The art of pottery reached its pinnacle during the Song Dynasty when porcelain was developed.

Performance  Arts: The singers or instruments follow the melodic line. Traditional instruments include a two-stringed fiddle (erhu), a three-stringed flute (sanxuan), a vertical flute (dongxiao), a horizontal flute (dizi), and ceremonial gongs (daluo).

Opera is known in China as a the performances are elaborate and highly stylized, involving acrobatic movements and intricate makeup and costumes.

Actors play one of four types of roles: the leading male (usually a scholar or official), the leading female (usually played by a man), the painted-face roles (warriors, heroes, demons, adventurers, and other characters), and the clown.

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History and Ethnic Relations + Medicine and Health care

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History and Ethnic Relations + Medicine and Health care

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Medicine Health care
1 . Traditional medicine remedies and treatments are still widely practised
2. All natural elements, including human beings, are thought to be made up of yin (the female force) and yang (the male force). These opposing forces are part of the body's qi
3.Remedies to right the imbalance include snake gallbladder, powdered deer antlers, and rhinoceros horn, as well as hundreds of different combinations of herbs.
4.Another method of treatment is acupuncture, which involves the insertion of thin needles into the body to regulate and redirect the flow of qi. Massage techniques are also used, and doctors avoid cutting into the body.

History and Ethnic Relations
The government recognizes fifty-five minority groups that have their own distinct cultures and traditions.
1.The vast majority of Chinese people are of Han descent.
2.Some minority groups, such as the Manchu, have assimilated almost entirely. While they maintain their own languages and religions, they identify with the nation as well as with their own groups.
3.Other minority ethnic groups tend to identify more with their individual cultures than with the Han.
4.For some minority groups, the issue of independence has been an acrimonious one and has led those groups to identify themselves deliberately in opposition to the central culture and its government.

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- New Year Day: 01/01

- International Working Women's Day: 08/03

- International Labor Day: 01/05

- Youth Day: 04/05

- Dragon Boat Festival: May or June

- Children's Day: 01/06

- Founding of the Communist Party of China Day: 01/07

- Founding of the People's Liberation Army Day: 01/08

- Teacher's Day: 10/09

- National Day 01 & 02/10

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The hierarchical class system does not differ from centuries ago and now. China in the early times went by a system which started of with scholars, followed by farmers, artisans, and finally merchants and soldiers and now we can see an underlying segregation between the ganbu, or political leaders, and the peasant masses.

Despite sharing similar values, there is a large and growing gap between the rich and the poor. Wealthy people live in the cities, while the poor tend to be concentrated in the countryside. However, farmers have begun to migrate to the cities in search of work in increasing numbers, giving rise to housing and employment problems and creating a burgeoning class of urban poor people.

Some symbols of social stratification can be seen in their lifestyle such as having a car or running hot water were all measured when people spoke about high social and economic standing.

Clothing too used to be dull, simple and dark among the “peasant masses” but with recent times the accessibility to name-brand or imitation American name brand clothing have been widely available. Minority groups however choose to opt for their traditional attire.

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Danwei or work units are state-run corporations that provide their employees amenities such as housing, child care, medical care etc.

Forms of pensions and compensations for the old, disabled or injured are also provided.

These initiatives are concentrated in the cities where housing, education, and food are subsidized; in the countryside, the burden of social welfare often falls to companies, organizations, and individual families.

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Marriage:
- In the older days, marriage was arranged by the family but it's still common to use matchmakers.

- People adopt a pragmatic attitude to marriage, and even those who choose their own spouses typically weigh practical as well as love factors.

- Expensive affairs for weddings are paid by the groom's family. Western-style weddings are popular tooo

- Legal age for marriage is 20 for women and 22 for men.

- A marriage law enacted by the communists in 1949 gave women the right to choose their husbands and file for divorce.

Domestic Unit
- After marriage, a woman traditionally leaves her parents' home and becomes part of her husband's family.

- Usually the husband's mother runs the household and sometimes treats a new daughter-in-law harshly

- The oldest son often stays at home, as it is his duty to care for his aging parents.

- Many young adults continue to live with their parents after marriage, partly because of a housing shortage in the cities.

Inheritance
- Generally passes to the oldest son

- Since the communists came to power in 1949, women have been able to inherit property. (It has gradually changed)

Kin Groups
- Extended family is extremely important, and the wealthy and well educated often hire genealogists to research their family trees.

- The passing on of the family name is of great importance.

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1. Primary political factors that interfere Chinese market is its government regulations.

Socialist Chinese government known for making unsettling changes to policies overnight.

Affects both Chinese and foreign traders.

As a result of this, long-term marketing plans becomes almost an impossible concept in China.

2. Strong presence of Communist Party

All businesses must keep in mind at all times.

Any product / service / any of its peripherals are deemed to be against the ideals of the Communist Party, it will be strictly banned.

All advertisements & marketing strategies need to be revised accordingly when dealing with the Chinese market.

Although China enjoys a stable political environment, the lack of political freedom is an area of major concern.

3. Government’s international policies.

Recent trade war with USA had deep impacts on the Chinese market and the American traders who operate in that sphere.

4. Current Political Leaders

The only political party in the country is the CCP (Chinese Communist Party)

8 other registered small parties, but controlled by CCP.

Currently the political situation in China has been stable, with the Chinese Communist Party (CCP) firmly in power

Government reinforced official political rhetoric & control in 2020, both internally and in terms of foreign policy

Weak global demand & strained foreign relations expected to intensify calls for economic self-sufficiency emphasizing the importance of the domestic market

Most immediate challenges in 2021 are related to the economic, social & public health impacts of the COVID-19 pandemic.

5. Type of State

According to the Constitution, "a socialist state under the people's democratic dictatorship".

Centralized unitary State fully administered by the Chinese Communist Party.

The Party has all the jurisdiction & authority in the country.

Deng Xiao Ping proposed the phrase "market socialism" to describe the evolution of the PRC in the early 1980s.

The socialist market economy (SME) is the economic system of economic development

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Live Streaming, E-commerce Marketing boost up the economy:

China's emerging live streaming e-commerce industry has witnessed explosive growth amid the COVID-19 pandemic, thus creating new growth opportunities for a wide range of businesses and injecting new impetus into the economy.

A way for brands to gain awareness and boost sales, and for smaller operators such as farmers to have better access to consumers, especially during the pandemic period when many people are still stuck at home.

Over the past 10 years, China accounted for 38 percent of global fashion industry growth across segments. Since 2012 it has been responsible for an impressive 70 percent of expansion in the luxury segment.

China happens to be the world's biggest web-based business market with more than 50% of international online exchanges happening inside the nation.

China makers sell merchandise online all through the nation without the need of an actual store. This has enabled the e-commerce sector in China to flood in prominence, as selling on the web is the least expensive and most effortless path for more small-scale organisations to gain more access into a more substantial market and customer base.

China has proposed new guidelines pointed towards controlling the powers of its greatest web organisations. The guidelines recommend expanding anxiety in Beijing with the developing impact of digital platforms.

89 percent of surveyed respondents have established an e-commerce business and among them, around 94.4 percent are selling via WeChat.

102 million domestic trips were made during the festival, an increase of 144.6 percent year-on-year and a recovery to 94.5 percent of the same period in 2019.

Cotton prices alone have jumped to around $2,600 a tonne in early March, compared with around $1,990 a tonne in mid-February.

The increase in demand from Western countries exiting lockdowns, causing a shortage of shipping containers and a back up of shipments at ports where goods manufactured in China and the rest of Asia would normally be unloaded.

The imports from China to the US rose 1.2 percent over the past year, the fastest increase since 2012, with most of the increase coming in the three months ending in February

Along with financial pressures from the pandemic, in early 2020 brands started switching their focus to brand-run live streams.

Brands are running their own, so they could have more control over the content and product pricing as influencer collaborations usually require brands to offer hefty discounts. It also gives brands increased ownership over the traffic and the viewer data, as well as an opportunity to develop relationships with customers and gain direct feedback.

China has the highest rate of e-commerce of any country as a percent of total retail sales (over 35% in 2019)

Chinese e-commerce is projected to be $1 trillion dollars in 2020, up from $862 billion in 2019.  In 2020 over 700 million Chinese are expected to shop online compared to 600 million in 2018.

$60 billion annually. Last year over 430 million people, about 30% of China’s population, viewed livestreams

In 2019 approximately 37% of China’s online shoppers made livestream purchases.

In 2020, it’s projected to reach 560 million, or around 39%. Sales from live streams are expected to grow more than 100% in 2020 vs. 2019 to almost 9% of all online retail sales.

China Retail Sales:

China's retail sales of consumer goods went up 29.6 percent year on year in the first four months of 2021.

In April, consumption in urban areas stood at about 449.4 billion U.S. dollars, increase up  to 17.6 percent from a year earlier.

The figure in rural areas went up 17.8 percent year on year to reach 426.5 billion yuan.

Online consumption remained a bright spot, with online retail sales rising 27.6 percent year on year to reach about 3.76 trillion yuan in the Jan.-April period.

Online sales of physical commodities went up 23.1 percent year on year, accounting for 22.2 percent of total retail sales during the same period.

The retail of sales of consumer goods in:

urban areas: 9,134.5 billion yuan

Rural areas: 1,387.5 billion yuan

Over the past 10 years, China accounted for 38 percent of global fashion industry growth across segments. Since 2012 it has been responsible for an impressive 70 percent of expansion in the luxury segment.

89 percent of surveyed respondents have established an e-commerce business and among them, around 94.4 percent are selling via WeChat.

102 million domestic trips were made during the festival, an increase of 144.6 percent year-on-year and a recovery to 94.5 percent of the same period in 2019.

Cotton prices alone have jumped to around $2,600 a tonne in early March, compared with around $1,990 a tonne in mid-February.

The increase in demand from Western countries exiting lockdowns, causing a shortage of shipping containers and a back up of shipments at ports where goods manufactured in China and the rest of Asia would normally be unloaded.

The imports from China to the US rose 1.2 percent over the past year, the fastest increase since 2012, with most of the increase coming in the three months ending in February.

President Xi Jinping has recognized climate change as one of his administration’s top concerns, and Beijing has made a variety of pledges to address it. These include:

achieving carbon neutrality by 2060;

reaching peak carbon dioxide emissions before 2030;

having renewable energy sources account for 25 percent of total energy consumption by 2030;

reducing carbon intensity, or the amount of carbon emitted per unit of GDP, by more than 65 percent by 2030;

installing enough solar and wind power generators to have a combined capacity of 1.2 billion kilowatts by 2030; and,

boosting forest coverage by around six billion cubic meters by 2030.

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- China is the most populous country in the world with a total population of over 1.4 billion.

- 60% of Chinese people live in urban areas. As the economy grew, the standard of living of the Chinese population has also increased.

- From 1980 to 2015, China had a one-child policy. This means that most families were not allowed to have more than one child. The policy was installed to b

- China has a massive market for consumer products as the average wage level has gone up over the years resulting in an increase in consumer spending.

- Increased consumer spending and status symbols are great opportunities for both domestic and foreign companies.

- The literacy rate in China is 96.4%

- Chinese culture is closely connected to the country's Communist political environment. This indicates that goods are often controlled, and the majority of the public supports such laws.

- China has significantly improved its quality of education. There are several university rankings that rate universities globally, and China is nowadays well-represented.

- The official dialect of China is Mandarin, known as “Putonghua”. More than 70% of the Chinese population speaks Mandarin, but there are also several other major dialects in use in China: Yue (Cantonese), Xiang (Hunanese), Min dialect, Gan dialect, Wu dialect, and Kejia or Hakka dialect.

- Soccer and basketball are the most popular, although ping pong, often known as the "national ball game" (guóqi), and volleyball, brought to the forefront by the success of beloved figure Láng Png, are also hugely popular.

- People adopt a pragmatic attitude to marriage, and even those who choose their own spouses typically weigh practical as well as love factors.

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- The biggest technological factor aiding the Chinese market is its internet usage. There are almost 450 million internet users in China, and this dictates their purchasing pattern.

- E-commerce is another huge factor that has aided the Chinese population’s purchasing power. The website Taobao is China’s biggest e-commerce store and a huge percent of the population accesses all their goods from this platform.

- China has set a vision to be a global leader in science and technology. To achieve this, the country launched ‘mass entrepreneurship and innovation’ programme in 2015. This programme aims to spread entrepreneurship throughout China.

- China's technological skills have grown in conjunction with its economic expansion during the last few decades. Many sectors have grown considerably more advanced and creative as a result of Chinese government stimulation.

- China has become one of the largest providers of highly skilled personnel. The country has increased the quality of its education and is now able to deliver many engineers and scientists every year.

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China's legal system has long been criticized for its

(1) lack of transparency
(2) ill-defined laws
(3) weak enforcement capacity
(4) poorly trained lawyers and judges.

Over the past decade, government made great strides on the legislative factors

China's environmental law-makers demonstrated increasing sophistication in their understanding of how to negotiate, and draft a technically sound & politically viable law.

There are still weaknesses within judicial system.

- Lack training of lawyers & judges

- Intervention of external political or economic factors into the judicial decision-making process.

- Difficulty of enforcing poor written laws.

Most prominent of non government organization = Center for Legal Assistance to Pollution Victims, Beijing

- Leads by an energetic & innovative law professor, Wang Canfa.

- Trains lawyers to engage in enforcing environmental laws.

- Provides free legal advice to pollution victims through a telephone hotline, and litigates environmental cases.

The burning legal issue relating to Chinese economy is formation of...

E-commerce legislation

- Such as : intellectual property rights, consumer rights, tax policies.

- E-commerce is still new sector in China, the development of its legality will largely aid the current developmental model that the economy is following.

They also published some draft laws & regulations on their websites to invite public comment, an important improvement in the transparency of China's legal system.

Trade related legalities.

- Something that is under constant change.

- Usually poised towards prohibiting the establishment of a neoliberal economy.

- Expected that there will be a reduced import tax, once the economy reaches its full capabilities.

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Western luxury brands are not going to make progress by simply using their communication departments to pass on information about their CSR policies.

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Based on several historic cases, Chinese consumers are very much aware of the possibility of harmful and low-quality materials being found in both food and textiles.

Some initiatives have worked. Siboni highlights the Prada Re-Nylon pop-up store at SKP-S in Beijing in late 2020, where shoppers could watch a short video series highlighting production techniques for recycled nylon.

He also cites the Hugo Boss Responsible Workshop Program, a WeChat activation including games to inform and educate customers about its responsible collection.

(Article from Vogue)

China outlined plans for implementing the UN’s 2030 Sustainable Development Goals, achieving a degree of success, according to the UN. In addition, in September 2020, China announced its intention to reach carbon neutrality by 2060.

China is responsible for 28% of the world’s CO2 emissions, this can also be seen as a step in the right direction.

China is also focused on creating a circular economy: it passed a law in 2008 to that effect and has made steady progress over the years, imposing in 2013 a requirement on ten industries, including the textile industry, to become circular. In addition, a report issued in 2020 by the Ellen MacArthur Foundation and others highlights the crucial role that China can play at a global level in terms of using circularity to transform the fashion industry.

In 2019, 85% of adults in China said that they had made changes to their consumer behaviour because of concerns about climate change, compared to a global average of 69%

Chinese brands showed their practice of sustainability has increased as can be seen during China Fashion Week 2021

Sustainability initiative by designers:

Damowang formed recycled PET fabric into clothes, which cause 32% less carbon emission while producing comparing to normal PET fabric; I-La introduced a new collection made from biodegradable natural materials;

Chicco Mao called attention to the catastrophic impact of global warming on coastal ecology through design.

According to the report, although the number of mass-market retailers, who make products from sustainable materials, stays low, it has increased fivefold in the last two years.

Xi Lu likes collecting materials and giving them a new life with design, as the materials themselves become her inspiration. She would transform non-traditional materials such as recycled rubber, plexiglass or heat shrink tubing into textiles.

China Textile Value:

China has a key position in shaping the new green trends in the global fashion market.

The environmental awareness of global among Chinese consumers is growing along with that growth there is an emergence of designers, entrepreneurs and consumers seeking more sustainable, eco-friendly, ethically produced clothing.

Both the supply and demand sides have a great chance for the fashion industry to go green in China.

This led some ethical brands to specifically chose manufacturing in China by providing sustainable and ethical jobs for factory workers

Furthermore, these brands even seek out uniquely skilled craftspeople to serve a more global market.

Ethical brands:

1. NEEMIC is a high fashion brand based in Beijing, seeking to address both ethical and environmental consciousness within their label. Their clothing is made from organic materials, eliminating all artificial products from the agricultural production of fibres. Biodegradable soaps are used to wash materials and all clothing is produced in an ethical environment.

2. The source predominantly is leftover materials from the high-end fashion industry and GOTS certified organic fabrics. NEEM actively facilitates a more sustainable industry as co-founder of the Hong Kong organic textile association and AgraChina, a network to promote organic agriculture in China.

3. Sustainability also has a social dimension. NEEMIC partner with local tailors and emphasise fair conditions for all stakeholders. NEEMIC collaborates with Summerwood, using organic fabrics that are hand-woven by traditional communities in China, preserving old techniques and social structures.

4. NEEMIC acts as a creative platform, fostering both local community and international exchange. Through events and collaborations, it brings together brilliant minds from fashion, video, photography, performance, and other arts.

5. Fake Natoo is differentiating itself from competitors with its production techniques. The company's clothing is made exclusively from up-cycled materials. Fake Natoo creates the clothing using discarded clothes or donated textiles, making this a truly sustainable line as these fibres are given a second life.

6. Fake Natoo is based on a sustainable model of production, but the fashion line creates employment opportunities for migrant women by employing them to create designs and donating 10% of all revenue to migrant women’s cooperatives.

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System
Turkey is a single secular country and the head of the state is the president. Turkey followed the parliamentary cabinet system from the beginning of its founding to 2017, but now it is following the presidential system.

Turkey is geographically important and has formed diplomatic alliances with organizations such as the G20, NATO, EEC, OIC, OECD, World Bank, IMF and the United Nations.

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Turkey’s gross domestic product has been on a decline for the past years and is estimated to hit rock bottom in 2019, with a projected steep upturn afterwards. At the same time, inflation is set to peak at almost 17.5 percent the same year, and unemployment is on the rise. All in all, the figures do not look promising for Turkey, but at least estimations assume a quick recovery. However, this economic development is likely due to the political path the country has chosen in recent years, and it remains to be seen if the forecasts will prove true in the future or if Turkey’s economy needs to brace itself for a further downturn instead

GDP

According to an estimate, Turkey’s annual nominal GDP in 2020 was 649.436 billion dollars, and it’s the 20th world’s highest. Out of which, the country’s per capita earning was 7715 dollars, and it’s 73rd highest. However, Turkey falls under the category of upper-middle-income countries with earn revenue. A slight fall in the country’s GDP is due to the lockdown and pandemic of covid-19.

Inflation rate
-Turkey inflation rate for 2020 was 12.28%, a 2.9% decline from 2019. Turkey inflation rate for 2019 was 15.18%, a 1.16% decline from 2018. Turkey inflation rate for 2018 was 16.33%, a 5.19% increase from 2017. Turkey inflation rate for 2017 was 11.14%, a 3.37% increase from 2016.
- inflation has been held up by the Turkish lira's depreciation, depleted monetary credibility and a burst of demand as the economy emerges from the coronavirus pandemic

Employment rate
-Unemployment in Turkey has increased to its highest level since July last year amid the COVID-19 pandemic, with the young generation being most affected
-Youth unemployment for people aged between 15 and 24 increased to 25.6 percent in the same month, one of the highest in European nations.

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Demography

- more than 83 million people are populating the country
-Turkey is home to 1.08% of the total population of the world. --The official language of the country is Turkish, while some people also speak Kurdish.
-the average life of men and women is 72 and 79 years old.
-Islam is the largest religion in Turkey
-99.9% of the population being initially registered by the state as Muslim,
-remaining 0.1% are Christians or adherents of other officially recognised religions like Judaism.

Optimistic Potential

-Turkey is in between East and West, and it has a unique mixed culture influenced by both civilizations.
- People are amicable and open minded, which leads the country has a multicultural society.
-However, Europe is dealing with the issue of decreasing population and increased aging people.
-The country has enormous growth potential because of its young people.
-The international investors would find a plethora of talent in the country.

Fashion
Turkey is quickly becoming a global center of modest fashion
-women who dress modestly, often for religious reasons
Modern Turkish Fashion
-Western lifestyles and traditional ways of life coexist. Females are wearing short dresses, maxi style dresses, shorts, miniskirts, skirts, and many different types of trousers. ... Stripes, prints, florals, and polka dots are all over the fashions and Turkish women love color, ruffles, and shine.
-depends on which side of Turkey. In coastal areas, most people favour western style dress, whereas inland people tend to dress a bit more conservatively.  In big cities, you will see people wearing everything from jeans and t-shirts to the full Islamic burqa.

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- Online mobile banking, software, computers, mobile networking, fixed broadband, and e-commerce are among the top growing industries.

- This is due to  heavy investment of the government in Technology.

- Turkish factories have long been investing in new technologies.

-  Turkish manufacturers have been able to use 3D sampling systems to increase production speeds.

- “Before, making a few changes to a sample would mean going back to the beginning of the production process, but 3D sampling means it only takes a few minutes to make any adjustments.” Kaya is also managing director of Turkish supplier TYH Tekstil, which switched its production facilities to more sustainable renewable energy from solar panels in 2020.

- Turkey has a vision of becoming one of the top 10 technologically advanced countries in the world by 2023.
- Aims to make 80 percent of the population computer literate.

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- Legal strength’s in Turkeys is the comprehensive legal structure they have.

- The judicial system is made up of general courts which deal with domestic cases, heavy penal courts which deal with more serious case, military courts which will deal with the military cases.

- The Constitutional Court which is the highest level of courts that will deal with many different cases which is essential in the Turkish government such as war crimes.

- This proves that the Turkish government are strict on the law and will enforce the law if need be and it will allow the company to have a fair trial if any form of disruption were to come up such as trade union issues that would cause the company any serious problems.

- Legal advantage in Turkey would be the robust framework for the business entities, as the company who are looking to invest into Turkey will not need to go through a very long and lengthy business registration process as there is a freedom to start, operate and close a business by the Turkish regulatory environment.

- It takes about 3 weeks to set up a company in Turkey. The procedure takes longer in the case of a branch office.

- This works with the fashion industry as it changes rapidly and requires businesses to adapt if business is brought to Turkey.

- The dress code laws in Turkey are not as strict but being modest is always preferable as it is a Muslim country. With that being said, there aren't any uproars over provocative wear

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One of Turkey's environmental strengths is its rich biodiversity. Turkey has a diverse natural resource base and ranks ninth in European countries.

They have a variety of wild species, as well as wheat, lentils, chickpeas, pears, apple, chestnut and pistachios.

New industrial development and economic growth have presented many environmental problems to Turkey such as degradation of nature, scarcity of water, deforestation, climate change, marine pollution, and air pollution. Today, government in Turkey realizes this environmental issues so they are planning to lower the pollution rate.

Air pollution is the first problem. Air pollution, which threatens 79 of Turkey's 81 states, is mainly caused by fuel use at home and many cars. Turkey's rapid urbanization and industrialization have led to population growth and more vehicles, causing environmental problems due to smoke.

According to official statistics by Turkey, The number of registered vehicles in Turkey was reported in 20,905,787 units in March 2021. This figure is an increase from February of the same year.

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Turkey Number of Registered Vehicles was reported at 20,905,787 Unit in Mar 2021. This records an increase from the previous number of 20,798,089 Unit for Feb 2021.

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R1. GOVERNMENT & AUTHORITATIVE ORGANISATION PRACTICE

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R1. GOVERNMENT & AUTHORITATIVE ORGANISATION PRACTICE

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Fabric waste

China alone produces 70,000 tons of fashion waste daily, which represents 53% of the world total. The production of polyester is particularly harmful, since it uses petroleum and is not biodegradable

To combat the mass production of polyester, Chinese brand Icicle is producing professional apparel out of natural fibers like wool, silk, linen, and soy. Icicle has caught on quickly and now has over 200 stores, 2000 employees, and reported revenues of RMB$1.6M (USD$254M) per year. This success is a sign that Chinese consumers are becoming more aware of the environmental impact of the fashion industry.

In 2016, the Chinese government released their 13th five-year plan, which strengthened their commitment to improving their environmental impact. By 2020, they plan to produce 4.5 tons of recycled textile to fight the environmental impact of textile production.

Water pollution
In a country where 60% of water sources are considered unfit for human contact, 10% of all industrial wastewater emissions come directly from the fashion industry, with 72 of the toxic chemicals in the water coming from textile dyeing.There are varied processing steps, including de-sizing, bleaching, dyeing or finishing in aqueous solutions and each of course means different water consumption and chemicals wastewater discharge.

Textile mills are also a huge contributor, about one-fifth, to the world’s industrial water pollution, using thousands of toxic chemicals during production, some of which are found to be carcinogenic.

>managing the impacts of their supply chains

In its infancy, the map covers only a few brands with supply chains in China’s clothing manufacturing industry, but the two organizations hope it will inspire other companies to join the effort and volunteer their supplier list as well. Currently, the map covers six apparel and clothing companies: Esprit, Gap Inc., Inditex, New Balance, PUMA, and Target. They also hope brands will be active in responding to their suppliers’ performance via the map.

Overpacking

More than a billion orders were generated during Singles’ Day on November 11 and online vendors are expected to dispatch up to 30 billion deliveries this year, as China continues to lead the world in online shopping.

Chinese delivery companies used 17 million kilometres of packaging tape, 9.9 billion cardboard boxes and 8.3 billion plastic pouches last year, according to State Post Bureau statistics

China’s e-commerce sector gets recycled but that the plastic and styrofoam largely ends up in landfills.

>Take reference to Ban the use of NDPB in shopping malls and supermarkets

Related regulation is the 2020 Solid Waste Law introduced by the Standing Committee of the National People’s Congress, which in relation to non-disposable plastic bags and other disposable plastic products, calls for:

a prohibition and restriction on their production, sale and use; and

goods retail sites, e-commerce platform enterprises, express delivery enterprises and food delivery enterprises must report the use and recovery of disposable plastic products such as plastic bags to the relevant departments.

A breach of this can lead to a penalty of between 10,000 to 100,000 yuan.

Key takeaway: The government recognise the pollution generated from fashion industry and enforcing laws on its environment policy, such as fining companies that are using materials/ingredient that are harming the environment.

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- China will face increasingly harsh consequences of climate change in the coming decades, including flooding, droughts, heatwaves, sea-level rise, and stronger storms.
- China's average temperature has risen faster than the global average.
- As China's economic rise of GDP is increasing by 10% of each year which has accelerated its emissions which makes China the largest source of greenhouse gas emissions in recent years.

- China is the largest financier of fossil fuel infrastructure as Chinese civilians owned more than 240 million vehicles.

- China has built or is planning to build hundreds of coal-fired power plants in countries around the world. As more than 60 percent of BRI-specific energy financing has gone toward nonrenewable resources.

-  An estimated forty-three million people in China live on land that could be underwater by the end of the century if the global average temperature rises by 2°C.

- Air pollution contributes to an estimated 1.1 million premature deaths in China annually.

- The poor air quality in northern Chinese cities causes significant health complications, including respiratory, cardiovascular, and cerebrovascular diseases.

What China is doing now?
- They have address to achieve carbon neutrality by 2060, reaching peak carbon dioxide emissions before 2030, having renewable energy sources account for 25 percent of total energy consumption by 2030, reducing carbon intensity, or the amount of carbon emitted per unit of GDP, by more than 65 percent by 2030, installing enough solar and wind power generators to have a combined capacity of 1.2 billion kilowatts by 2030 and, boosting forest coverage by around six billion cubic meters by 2030.

- China is working to launch a national emissions trading scheme, which would force polluters to pay for environmental harm and thus incentivize them to reduce their emissions

- China has used hydropower for years, and it is installing more solar panels and wind power generators as the world’s leading manufacturer of those technologies.

- China has just lately begun actively assisting in the formulation of global responses to climate change. China has avoided making obligations under the UN framework for decades. Chinese officials argued that China should not have to compromise economic progress for environmental preservation, and that developed nations, such as the United States, should bear a greater share of the cost since they are better positioned to do so.

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Environmental Standards in China

China has certain standards that they highlight, such as, environmental quality standards, pollutant discharge or emission standards, basic environmental criteria, criteria for samples, and criteria for methodology.

In 1995, China had promulgated state environmental standards on 364 items. As stipulated in Chinese law, the environmental quality standards and pollutant discharge standards are compulsory standards, and those who violate these compulsory environmental standards must bear the corresponding legal responsibility.

Mentioned equal importance to environmental law enforcement and environmental legislation.

In 2019, China made an analysis of sustainable development strategies.

Energy transition and resource efficiency have proliferated

Concepts promoting sustainability have become intrinsic parts of national policymaking

Green transformation in China was pushed forward by advances in energy-related technologies and smart grid and transportation technologies. For instance, Alibaba is the biggest company to promote green tech.

It also launched the Ant Forest app, which is capable of tracking carbon footprint tracking and had already contributed to 150,000 tons of CO2 savings by February 2017.

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Environmentally Friendly Consumers Emerge

Currently, Chinese government policies and consumer preferences have changed to be eco-friendly, providing U.S. companies with opportunities to sell sustainable products in China. However, many companies often give up making or purchasing eco-friendly products because they tend to cost more to produce.

According to a recent study, Chinese consumers have become interested in environmentally friendly practices and products.

The green buying trend is simply a product that does not have a negative impact on the environment.

1. The Chinese government strives for sustainability.

- It provides various subsidies and tax incentives to consumers who turn old products into new, energy-efficient models, for example, air conditioners, computers, refrigerators, etc.

2. NGOs raise awareness
- The Chinese government has allowed it to act as a watchdog to warn the public about environmental violations.

3. Green choice project
- This project helps raise public awareness of environmental issues.

- Encourage consumers to buy less packaged products and not disposable products.

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China confronted with task of developing the economy & protecting the environment

Included environmental protection within national development strategy, establishing concept of scientific development, & promoting an 'ecological civilization'

In the process of promoting overall modernization program

- made environmental protection its basic national policies - - regarded the realization of sustainable development as an important strategy
- large-scale measures for pollution prevention & control
- ecological environment protection.

China is making great efforts to protect its own environment

- active part in international environmental affairs, to promote international cooperation in the field of environmental protection

Choice of Implementing a Sustainable Development Strategy

- government paid great attention to the environmental issues arising from the country's population growth
- protecting the environment an important aspect of the improvement of the people's living standards and quality of life.
- China implemented series of principles, policies, laws and measures for environmental protection in the 1980s to promote coordination

1. The prevention and control of environmental pollution and ecological destruction and the rational exploitation and utilization of natural resources

2.  Establishing & improving environmental protection organizations under governments, forming a complete environmental control system

3. Accelerating progress in environmental science and technology

4. Environmental publicity and education to enhance the whole nation's awareness of the environment.

5. Promoting international cooperation in the field of environmental protection

Sustainable consumption = economic activity

implanted with social values,  emphasis on personal social responsibility, which is different from the traditional consumption pattern.

Chinese government promote new automotive energy technology from 2015 to 2016

- More than 63% of consumers showed a desire to buy electric cars

- primary intention for consumers to choose electric cars was in order to reduce environmental pollution.

China Chain Store and Franchise Association (CCFA)  with Department of Environment of Renmin University of China, conducted a large survey

More than 70% of Chinese consumers are aware of sustainable consumption.

1. 30.13% of the interviewed consumers fully agreed that personal consumption behaviours are directly related to the environment

2. 40.9% basically agreed

3. 20.20% agreed to some degree

4. 8.82% slightly or completely disagreed

Add: the data / statistic
Key takeaway: Government is encourage towards environmental products with several initiatives and subsidiaries. The responses based on a survey indicated a positive acceptance to practice.

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- The largest and most significant global summit on biodiversity, following up on the UN Convention on Biological Diversity, will take place in Yunnan. Therefore we can expect an increase in awareness.

- We are witnessing collaboration between local authorities, the private sector and civil society in an effort to put the country on the path to a more sustainable future.

https://www.imd.org/research-knowledge/articles/Will-2020-be-the-year-China-takes-the-lead-on-sustainability/

- Tmall data showed that “recycled materials, sustainable-fashion concepts, and vintage candy colors are key to drawing the eye” of shoppers.

- However, when examined more closely, this might suggest that it is the aesthetic of sustainability as a style trend that’s enticing to Chinese shoppers and not the product’s environmental impact.

- Miranda Yuan, a Marketing Executive from Qumin says “Young Chinese consumers care more about the style, the price of clothes, and the brand reputation when it comes to fashion.”

- The demand for discounts in the luxury-clothing sector has led to the creation of sustainable clothing apps that allow consumers to rent clothes. Eg. MSParis

- Consumer research from the Chinese fashion media Luxe.co found that 21% of shoppers don’t know where to find sustainable fashion, and another 19% “do not understand what sustainability means.”

https://jingdaily.com/do-chinese-consumers-care-about-sustainable-fashion/

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Identify a failed fashion brand that tried to penetrate China market, why? (what strategy & which entry mode? Suggestion?)

1. Adaptation difficult for British brand

2013 entered Chinese market while also setting up domestic operations, ASOS did not choose to ship straight from the UK.

2014, the fashion brand struggled with labeling and China post, which reportedly caused issues.

In the early days of ASOS online, Chinese customers had to pay import taxes on the clothes. As soon as the local warehouse was built, the problem vanished but others appeared such as labeling (materials, washing instructions, etc.).

The labeling process were difficult when dealing with hundreds of other brands. The time required to get used to the Chinese regulations was too long for ASOS which reported over £4 million loss in the last financial year (approx. USD $5.3 million).

2. China's wide area of land

ASOS offered only one range of clothing, ignoring the vastness of the country and its different kind of climates and regions.

Summers are dry in some regions and tropical in others.

Winter temperatures from freezing -20°C to mild 10°C.

ASOS needed to widen its offer to have a fighting chance, it never did.

3. Tough E-Commerce landscape

Alibaba dominates over roughly 80% of the Chinese e-commerce market.

Alibaba is truly the Chinese e-commerce titan and its market domination made it harder for ASOS.cn, even though ASOS obviously had a virtual store on Alibaba’s Tmall.

4. ASOS brand name was weak

Millward Brown issued a report in 2016 stating that Chinese consumers nowadays are attracted by domestic brands as much as foreign ones, international brands are failing at keeping up with the pace of rapidly evolving Chinese consumer aspirations.

In the past, foreign meant quality, reliable and trendy. Now the winds have changed, it is up to the brands to learn from ASOS’ failure and really put some more efforts into understanding the Chinese market.

STRATEGY USED: Standardisation
Failed reason: adaptation to logistic (delivery) & legislation (tax) as well as merchandising lack of differentiation.

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- MLB is a modern contemporary fashion brand that combines 150 years of Major League Baseball tradition with modern fashion sense and is established by F&F, Korea's leading fashion company.

- It is pursuing a trendy and casual. Therefore, they are releasing products with hip design.

What's unique about MLB's marketing is that they uses SNS very well. MLB is also using its own SNS channel. They also provide sponsorship to popular celebrities, but they also use influencers, who are famous on social media. Then, influencers and celebrities wear the MLB's clothes and take pictures and post them on social media.

This marketing strategy is being carried out steadily. And these influences are consistently managed by M.L.B. Crew.

They are also doing this marketing in the Chinese market that they are currently targeting.

MLB a street casual brand developed by F&F, entered the Chinese market by participating in Yo Hood, China's largest street fashion brand fair.

Yo Hood is China's largest street fashion brand fair held in 'Yoho' annually by the Chinese street fashion magazine. Celebrities from all over the world, including Nike, Puma, Adidas and Barnes, will participate.

I mentioned it earlier MLBCREW was praised for verifying that the influence of Korean marketing is creating influence not only in China but also in other countries.

influencers who visited the fair showed interest in #MLBCREW activities and expressed their willingness to participate.

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ASOS is a British retailer which they had an experience trying to sell fast fashion to China’s young adult audience – an audience accustomed to paying rock-bottom prices for their clothing. However, they have failed for these reasons:

- As ASOS wasn't considerate of their target consumers which they offered only one range of clothing, ignoring the vastness of the country and its different kinds of climates and regions. In a highly competitive market, ASOS needed to widen its offer to have a fighting chance but it never did.

-They failed to adapt to their consumers' wants and needs.  ASOS would sell clothing in sizes and cuts that didn’t suit the local body type. They were also further criticized for not stocking a wide enough stock range. These mistakes aren't acceptable for the local consumers.

- The Chinese market is being reshaped by e-commerce platforms like Alibaba (Taobao, Tmall, and Tmall Global) and JD.com. Alibaba in China is truly dominating the Chinese e-commerce and its market domination made it harder for ASOS.cn, even though ASOS had a virtual store on Alibaba’s Tmall but it was still no working out for them.

- As mainland Chinese consumers value brand names significantly, ASOS brand name was too weak compared to other international fashion brands which failed to leave a sign in the market.

Suggestions to enter China again:

- Understand and value consumers' wants and needs from a fashion brand

- Have greater promotion for the brand name to be more popular

- Fully adapt into e-commerce to have strong internet presence as well

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- Forever 21’s first entered China in 2008. Failed on the first attempt quite fast. Why? How?
- The second attempt started in 2011, and it muddled along for eight years, only to leave again in May 2019.
- They shut down their website and online stores on popular Chinese marketplaces Tmall and JD.com, as well as the remainder of its stores in China.
- At its peak in 2018, Forever 21 had a mere 20 stores.
- Forever 21 failed to understand some of the markets outside of America as it opened more shops in places such as China and London.
- They focus on the expansion of the stores which made it unable to invest in its supply chain.
- Hence, Forever 21 took more time to get fresh styles of clothes to market at a time when fast fashion was really picking up and shoppers were hungry for newness.

-Is it that bad?
- The quality of the product was low, many customers complained that Forever 21’s product offerings didn’t match local preferences.
-The clothing sizes were too big for Chinese body types.
-The clothing items were too revealing to Chinese young women

- The products were perceived to be of poorer quality than peers such as Zara and H&M, but not as cheap as local competitors.
- The stores were messy, with clothing thrown everywhere and difficult-to-navigate store layouts.

- Forever 21 also was burdened by its massive stores that can be as large as a department store, or more than 100,000 square feet.
- The company’s founders, the Changs, wanted to open more locations quickly, and so they ended up buying bigger shops from now-bankrupt retailers such as Sears, Mervyn’s and Borders.

Strategy & Recommendations:

- Chinese consumers have smaller body shapes than Westerners. They prefer to wear dresses, which account for 40% of apparel search terms in China.

- Consider building out an off-line retail presence.  With fashion retail, clothing sizes can vary greatly from brand to brand, and from country to country, so the return rates can be quite high.

- Invest in quality, don’t compete on cost. It is difficult to target the low and middle segments of the market because China is the world’s largest producer of textiles, and competition from local brands is becoming increasingly fierce. Selling low-cost value items is hard because your prices won’t be able to compete with local competitors.

Which entry mode? Direct Investment
What Strategy? Standardisation from previous strategy - mass and cheap
Recommendation? Product Design and Quality & Buying Experience

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The success of the 174-year-old, LVMH-owned Spanish luxury brand Loewe in China proves that it is possible to build a strong and loyal consumer base that transcends age through a forward-facing, firmly content-commerce-based strategy.

Low-key marketing approach
Loewe has expanded its low-key marketing approach to China as it opened a Beijing flagship and a little over two dozen points of sale across the country (24 stockist). Having eschewed the flashy, large-scale promotional efforts that characterised luxury brand debuts in China from 2000 to 2012, Loewe has instead utilized laser-focused marketing bursts that target specific customer segments.

Three factors of marketing approach

through a minimalistic marketing approach in China that hinges on three factors:

- its brand history,
-with a strong heritage of craftsmanship
-a deep design archive that can be leveraged for educational purposes
-and the “cool factor”

Ambassadorship
-success on platforms like TikTok and Douyin,
- K-pop stars carry strong influence among younger millennial and Gen Z consumers.

-Going forward more brands may turn to M-pop stars as brand ambassadors for China to complement K-pop partnerships, but risks remain.

-As Loewe makes a strong global effort to promote its new Goya bag, the choice of Hyuna could help the brand maintain some of the momentum it built up in China this earlier year via its nostalgia-fueled Totoro collection. And depending on HyunA’s ability to drum up interest in Loewe and the new Goya in China, she could be the first of more relatively niche Korean stars to be recruited as global ambassadors.

Netizen Reaction
The campaign post on Loewe’s official WeChat account received over 26,000 views within six hours.
-Instead of simply featuring brand products, the short films take a documentary approach, showcasing the craftsmen’s expertise in their respective fields, which allowed viewers to learn more about China’s intangible cultural heritage. Loewe’s consistent commitment to protecting craftsmanship worldwide continues to impress Chinese consumers.

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OVERSIZED FAUX LEATHER BLAZER IN BUTTER (Acrab Studio via Taobao)

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- Acrab Studio is mainly situated in Taobao/Tmall and they provide various styles like bold oversized blazers, suits, boyfriend jeans, etc. which have been of high demand by the teenager and young adult female demographic in China.

-  The strategy would be Market Penetration Strategy as they catered to the market's needs directly via an e-commerce platform.

- The penetration strategy for this brand is Partnering & Strategic Alliance.

- According to Tmall, one of the leading e-commerce platforms in China, the fashion trends are:

Chinese women are becoming more manly:

Women now tend to buy more suits then men do.

Oversized blazers sales among women have risen 139%.

Baggy clothes are among top 10 search requests among women.

Slouchy boyfriend jeans had an 830% increase in sales.

For crew socks sales it was 489% up.

- With this being said, Acrab Studio's mid-range pricing and various style options resonates well with the Chinese consumer that frequent sites like Taobao.

Oversized Blazer via Acrab Studio:
https://item.taobao.com/item.htm?spm=a230r.1.14.74.24827765acjgGx&id=630658548469&ns=1&abbucket=2#detail

Acrab Studio via Taobao:
https://a-blaze.taobao.com/?spm=2013.1.1000126.3.7cb65506y3ytwr

Fashion in China: Top Marketing Strategies for Brands (2021):

https://marketingtochina.com/fashion-in-china-top-marketing-strategies-for-brands/

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Luxury Resale is China's Next Retail Battleground

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Luxury Resale is China's Next Retail Battleground

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In China, Millennial and Gen Z consumers have shown far less avoidance to secondhand luxury than their elders. Their growing purchasing power and market influence has bolstered a sharp rise in secondhand luxury item sourcing and sales, particularly on online platforms.

There is no one dominant platform in China’s luxury resale market. *

Platforms like The RealReal and Vestiaire Collective are seeing steady growth as more brand-owned efforts and retail partnerships aimed at developing the "circular economy".*

Secondhand goods sales in China reached RMB 1 trillion ($154 billion) in 2020, more than double what they were in 2017, and with changing consumer tastes, sales are expected to continue to rise for the foreseeable future.

In China, 52% of secondhand luxury consumers are between the ages of 29 and 36, indicating that younger consumers are entering the market.*

From consistent and transparent product authentication to consumer resistance and fierce global and local competition, luxury resale platforms, large and small, face major challenges in their fight for dominance.

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How China’s resale market can win consumer trust

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How China’s resale market can win consumer trust

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It's easy to encounter low-quality luxury counterfeits products when there's an involvement of image recognition due to skepticism of its efficacy with more sophisticated fakes.

Image recognition services haven’t been in operation for more than a couple of years in a young resale market like China.

Example: Entrupy, a US-based authentication company that uses machine learning and computer vision. They spent four years researching and accumulating images and actual samples of real and fake luxury products.

Secoo announced the launch of a blockchain-based technology that generates a piece of anti-counterfeiting information for specific products after they have been authenticated by the platform in 2018.

Technology's effectiveness can be affected by the lack of a cross-industry standardized protocol and procedure.

From manufacturers to retailers, it's significant to have collaborative maintenance of the database in the supply chain and it's essential for the blockchain to encourage high levels of trust among users in the platform.

Leading e-commerce platforms have established anti-counterfeiting systems with the aim of involving brands directly such as JD.com and Alibaba.

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Industry rivalry usually takes the form of competing for position using various tactics (example, price competition, advertising battles, product introductions). This rivalry tends to increase in intensity when companies either feel competitive pressure or see an opportunity to improve their position.

In most industries, one company’s competitive moves will have a noticeable impact on the competition, who will then retaliate to counter those efforts.

Companies are mutually dependent, so the pattern of action and reaction may harm all companies and the industry.

Some types of competition (example, price competition) are very unstable and negatively influence industry profitability. Other tactics (example, advertising battles) may positively influence the industry, as they increase demand or enhance product differentiation.

Types of structural factors & affects to industry rival

1. Numerous or equally balanced competitors

Many competitors = some companies believe that they can make competitive moves without being noticed.
Companies are relatively balanced in strength = they are more likely to engage in competitive battles and attack and retaliate as they strive for market leadership.

2. Slow industry growth
In a slow growth market, companies can only grow by capturing market share from each other, which leads to increased competition.

3. High fixed or storage costs
High fixed costs create pressure for all companies to fill capacity, leading to price cut when there is excess capacity. High storage costs push companies to decrease prices to ensure sales.

4. Lack of differentiation or switching costs
When products are recognized as a valuable thing, choice is often determined by price and service, leads to increased competition in price and service.

5. Capacity increased in large increments
When economies of scale require large increases in capacity, it causes disruptions in the industry supply/demand balance, leads to periods of overcapacity and price cutting.

6. Diverse competitors
Companies with diverse strategies, origins, personalities & relationships to parent companies (especially foreign competitors) also have different competitive goals and strategies than “typical” companies within the industry. Their diverse approaches to the market and unique competitive strategies can upset the current situation of doing business.

7. High strategic stakes
Companies with high stakes in achieving success may sacrifice profitability for expansion. They may feel threatened by competitors seeking to reduce their market share.

8. High exit barriers
Economic, strategic and emotional factors can prevent companies from leaving the industry, even when they are earning low / negative returns on investments. Major sources of exit barriers include:

Specialized assets

Fixed costs of exit

Strategic interrelationships

Emotional barriers

Government and social restrictions

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Industry rivalry-or rivalry among existing firms-is one of Porter's five forces used to determine the intensity of competition in an industry. Other factors in this competitive analysis are:

Industry rivalry usually takes the form of jockeying for position using various tactics (for example, price competition, advertising battles, product introductions). This rivalry tends to increase in intensity when companies either feel competitive pressure or see an opportunity to improve their position.

In most industries, one company's competitive moves will have a noticeable impact on the competition, who will then retaliate to counter those efforts. Companies are mutually dependent, so the pattern of action and reaction may harm all companies and the industry.

Some types of competition (for example, price competition) are very unstable and negatively influence industry profitability. Other tactics (for example, advertising battles) may positively influence the industry, as they increase demand or enhance product differentiation.

Structural factors affecting industry rivalry

A number of structural factors can affect industry rivalry:

Numerous or equally balanced competitors

When there are many competitors, some companies believe that they can make competitive moves without being noticed. When companies are relatively balanced in strength, they are more likely to engage in competitive battles and attack and retaliate as they strive for market leadership.

Slow industry growth

In a slow growth market, companies can only grow by capturing market share from each other, which leads to increased competition.

High fixed or storage costs

High fixed costs create pressure for all companies to fill capacity, thus leading to price cutting when there is excess capacity. High storage costs push companies to decrease prices to ensure sales.

Lack of differentiation or switching costs

When products are perceived as commodities, choice is often determined by price and service, which then leads to increased competition in price and service.

Capacity increased in large increments

When economies of scale require large increases in capacity, it causes disruptions in the industry supply/demand balance, which then leads to periods of overcapacity and price cutting.

Diverse competitors

Companies with diverse strategies, origins, personalities and relationships to parent companies (especially foreign competitors) also have different competitive goals and strategies than "typical" companies within the industry. Their diverse approaches to the market and unique competitive strategies can upset the status quo of doing business.

High strategic stakes

Companies with high stakes in achieving success may sacrifice profitability for expansion. Also, companies with high market share may feel threatened by competitors seeking to reduce their market share.

High exit barriers

Economic, strategic and emotional factors can prevent companies from leaving the industry, even when they are earning low or negative returns on investments. Major sources of exit barriers include:

Specialized assets

Fixed costs of exit

Strategic interrelationships

Emotional barriers

Government and social restrictions

References

Porter, M. (1998). Competitive Strategy. New York: Free Press. pp. 17-23.

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Industry Rivalry & Competition | Porter's Five Forces

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Industry rivalry-or rivalry among existing firms-is one of Porter's five forces used to determine the intensity of competition in an industry. Other factors in this competitive analysis are: Industry rivalry usually takes the form of jockeying for position using various tactics (for example, price competition, advertising battles, product introductions).

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This force analyzes how much power and control a company’s supplier (also known as the market of inputs) has over the potential to raise its prices or to reduce the quality of purchased goods or services, which in turn would lower an industry’s profitability potential. The concentration of suppliers and the availability of substitute suppliers are important factors in determining supplier power. The fewer there are, the more power they have. Businesses are in a better position when there is a multitude of suppliers. Sources of supplier power also include the switching costs of companies in the industry, the presence of available substitutes, the strength of their distribution channels, and the uniqueness or level of differentiation in the product or service the supplier is delivering.

The number of sellers/brands that being featured will affect our commission ratio toward them.

Each marketplace has its own commission structure from simple to very complicated, and there’s no certain rate that ensures your success.

In the service marketplace, 20% seems to be preferred. However, for a new platform, the most important goal is to get as many users to your site as possible, so 20% might sound a bit high and not attractive compared to other competitors.

In a platform where a commission is utilized as the main model, listing fee, freemium, or lead fee models are often used as well.

The more brands/sellers we collaborate with, the individual bargaining power for each seller will be limited.

However, due to other competitors, sellers might be attracted to other platforms that meet their requirements, e.g. policy and pricing changes

Postal and delivery services, as well as shipping carries, will also affect in bargaining power

Search engines hold significant leverage as they indirectly affects traffic on the platform

https://www.adchina.io/2021/05/05/top-chinese-search-engines

/http://www.china.org.cn/top10/2015-06/01/content_35692016_3.htm

https://www.chinadiscovery.com/travel-guide/postal-service.html

https://sourcing.hktdc.com/?utm_source=sem&utm_medium=google_sem&utm_campaign=RS_CNSupplier_ROW_EN&utm_term=2&utm_content=2020105_18&WT.mc_id=1851739&gclid=Cj0KCQjwnJaKBhDgARIsAHmvz6cnR0E401A-GFVUZ9MRUY3ZYTsEfJf53hFpylYLOGafi8BpwNq6pDkaAkMYEALw_wcB&gclsrc=aw.ds

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The availability of a product that the consumer can acquire instead of the industry's product is based on Porter's danger of substitutes definition. A replacement product is a product from another sector that provides consumers with similar advantages as the product produced by the industry's businesses. When competitors or firms outside the sector provide more appealing and/or lower-cost items, there is a significant risk of replacement. After then, buyers have the option of making a performance/price trade-off. Switching costs are also a consideration. If it's high, there's a low risk of replacement.

High Threats of Substitutes:
- Substitute product is less expensive than the industry product;

- Consumer switching costs are minimal

- Substitute product quality is similar to or better than that of the industry product

- Substitute performance is equal to or better than that of the industry product

Low Threats of Substitutes:
- Switching costs for consumers are expensive.

- Consumer switching costs are significant;

- Substitute product is more expensive than industrial product

- The quality of substitute products is lower than that of industrial products.

- The performance of substitutes is inferior to that of industrial products.

- There is no alternative product available.

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Definition: The bargaining power of buyers, one of the forces in Porter's Five Forces
industry Analysis framework, refers to the pressure that buyers can put on businesses to get them to provide higher quality products, better customer service, and/or lower prices.

Reasons why Bargaining Power of buyers high?
- There are fewer buyers compared to suppliers
- The switching costs of the buyer are low
- The buyer purchases products in bulk (High volume)
- The buyer can get similar product/services from other suppliers
- Product is not differentiated.

Reasons why Bargaining Power of buyers low?
- The switching costs of the buyer are high
- Product is heavily differentiated
- The buyer is unable to get similar product/services from other suppliers
- There are many buyers compared to suppliers.

Alibaba's Bargaining Power of buyers
- Buyers of Alibaba products are individual customers and companies around the world. Due to Alibaba's low prices, a variety of products and strong distribution networks, most buyers have no choice to switch. if you switch, you have to buy it at a higher price. There is no conversion cost, but it will be difficult to find a huge online market of Alibaba, which is more difficult for buyers to influence the market due to the large number of buyers in Alibaba. Recently, however, professional online marketplaces have begun to emerge, which have succeeded in focusing on specific sectors and securing market share. This can be a choice for buyers. Therefore, the buyer's bargaining power is moderate for Alibaba.

https://www.porteranalysis.com/porters-five-forces-analysis-of-alibaba/
https://www.theseus.fi/bitstream/handle/10024/103215/pang_jie.pdf?sequence=1

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Alibaba was found in 1999 by Ma Yun and overall operates five e-commerce companies which manage different functions of the trading process. It is e-commerce or an e-auction platform based in Hangzhou with specialties in global trading. The website is available both in Chinese and English. Alibaba focuses on business-to-business sales connecting international buyers with Chinese businesses. There is a third version of the website as well that is for the Japanese customers in Japanese. Alibaba's sources of income include advertisements and membership charges of the selling companies. Buyers do not need to get a membership (Julia, 2010).

Following is a detailed Porter Five Forces Model Analysis of Alibaba

Competitive Rivalry - High

Competitive rivalry is a very strong force that can push a company to change its strategy and remake its decisions. Alibaba faces severe competition from its rivals. They include a variety of online sites within and outside China. E.g. amazon.com and eBay both are its competitors. Even within many nations, it faces competitions such as Daraz.pk, Yayvo.com in Pakistan. The success of these other alternate markets has led to the loss of profits for Alibaba over the years. However, a variety of products offered and connecting buyers directly with manufacturers give Alibaba a competitive advantage as no other platform provides this facility. Also, the rates offered by Alibaba are less than the competitors. A drawback is the lack of trust many customers have on Chinese products that put Alibaba in a tough spot. Therefore, the competitive rivalry is high for Alibaba.

Threat of New Entrants - Low

Setting up a smaller and more focused e-commerce is not difficult in China. However, setting up an online market as large as Alibaba requires initial large investments and strong distribution channels worldwide. Also getting manufacturers to register themselves with you for a fee requires their trust. Online stores require advanced technologies to be installed to be up and running all the time and support a large number of online users simultaneously. Long time high profits and establishment in the market have earned Alibaba a strong reputation. Another aspect is that a new entrant will not be able to achieve the economies of scale that the existing players are at making their operating costs higher and profit slower (Kudasov, 2015). Thus, the threat of new entrants is low for Alibaba.

Bargaining Power of Suppliers - Low

The suppliers of Alibaba are in fact the manufacturers that are members of its selling pages. For every category of products, there are a large number of suppliers available to Alibaba. Due to its strong reputation, suppliers are required to pay a membership fee to have their products listed on the website. There are always new suppliers from China that are willing to register with Alibaba at any given time. Therefore, any supplier that attempts to increase the market rate will not be successful as Alibaba will easily be able to bring in more suppliers that are willing to sell at market rates. There is no switching cost for suppliers for Alibaba. Overall, the bargaining power of suppliers against Alibaba is low.

Bargaining Power of Buyers - Medium

The buyers of products from Alibaba are both individual customers as well as businesses across the globe. Due to the low prices, wide variety, and a strong distribution network that Alibaba offers, most buyers do not have a choice to switch to. They will have to buy at higher prices if they switch. Although there is no switching cost but a huge online market of the scale of Alibaba will be tough for them to find. The number of buyers is very large for Alibaba, making it tougher for the buyers to be able to influence the market. But recently, specialized online marketplaces have started emerging that are focusing on particular segments and being successful in grabbing market share. These can be the choices for the buyers. Thus, the bargaining power of buyers is medium against Alibaba.

Threat of Substitutes - High

There are a number of substitutes for Alibaba. The largest being the physical retail stores that are offering low price goods. Secondly, a number of suppliers of China are now directly shipping to customers. Suppliers are also selling through social websites. Many companies have also set up their own retail websites offering the same prices as Alibaba, saving the supplier the membership costs (Zheng, 2015). Thus, the threat of substitution is high for Alibaba.

References

Julia, K.P., 2010. Feasibility Study and Business Plan. [Online] Available at: http://www.51lunwen.org/UploadFile/org201009101017406801/alibaba.com.pdf [Accessed 19 June 2017].
Kudasov, A., 2015. Alibaba Global Strategy. [Online] Available at: https://www.slideshare.net/akudasov/alibaba-global-strategy [Accessed 19 June 2017].
Zheng, J., 2015. Porter's Five Force analysis on Alibaba. [Online] Available at: https://mgmt7160jz.wordpress.com/2015/02/10/porters-five-force-analysis-on-alibaba/ [Accessed 19 June 2017].

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Porter's Five Forces Analysis of Alibaba|Porter Analysis

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Alibaba was found in 1999 by Ma Yun and overall operates five e-commerce companies which manage different functions of the trading process. It is e-commerce or an e-auction platform based in Hangzhou with specialties in global trading. The website is available both in Chinese and English.

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Threats of new entrants refer to when new competitors pose threats to existing players within the industry. They are the ones that really shape the competitive landscape of an industry and that helps determine the attractiveness of an industry.

Micheal Porter from Harvard University has developed a framework.

The threat of new entrants exerts a significant influence on the ability of current companies to generate a profit. The competitive position of a company will always be at risk when new companies break into the market offering similar products and services.

Despite that newer companies still face a few obstacles along the way such as,

Brand Loyalty: This mainly happens when the target audience does not fully trust your company, its products, services until they have been a satisfied customer at least 2-3 times.

Cost Disadvantages: Newer companies can't afford to afford to offer their products or services at a lower cost unlike older, established companies.

Supplier and Distribution Channel Accessibility: Some older and established companies have exclusive rights with certain suppliers and distribution channels.

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Overview of e-commerce market in china (Brenda)

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Overview of e-commerce market in china (Brenda)

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The current state of e-commerce in China

China has the most mobile users in the world and more e-commerce activity than any other country in the world. In 2017, Chinese consumers spent more than $750bn online – more than the UK & US combined.

2021 new payment systems make significant players operating in new roles. 98% of urban Chinese consumers already use their digital wallet for daily purchases.

In June 2020, retail e-commerce spend in China for 2019 was said to increase 27.3% to $1.935 trillion – making up 36.6% of total retail sales. Emarket company forecasted Chinese retail e-commerce sales to maintain its strong growth through to the end of its forecast in 2023.

Alibaba Group

China’s most universally-known e-commerce giant, Alibaba Group. The company initially started by offering trading and lifestyle services, is responsible for 55.9% of China’s retail e-commerce sales in 2019.

In 2008, the Group launched its Singles’ Day marketing plan, in conjunction with the nation’s holiday of the same name, via its business-to-consumer online retailer Tmall. The Single’s Day shopping event included discounts from retailers and incentives such as red packer coupons.

The Singles’ Day was later rebranded as the ‘11.11 Global Shopping Festival,’ expanding into a large-scale retail event. In 2016, the festival hosted a ‘See Now Buy Now’ fashion show, which enabled consumers to shop runway looks in real-time with one click of their smartphone. Augmented reality shopping and 360-degree virtual reality panorama were introduced a year later to bring interaction to the consumers shopping at home.

Alibaba Group owns online payment system Alipay – which controls around half of China’s online payment market.

JD.com

Fortune Global 500 company Jingdong (JD.com) has continued to grow within China’s e-commerce market with its multiple retail acquisitions, retail tech & supply chain innovations. And for 2019, it is responsible for 16.7% of China’s retail e-commerce sales

2021, the company partnered with Prada Group to open an authorised flagship store on its platform, introduced a new supply chain innovation initiative as part of its Retail as a Service strategy and is using artificial intelligence (AI) driven retail solutions to enhance health technology company Philips’ flagship store performance.

This boundless retail concept would see the merging of content commerce, social commerce and AI, to produce shopping experiences that would seamlessly join the online and offline. JD.com also believes that the retail of the future is all about continuing the retailer-to-customer relationship after purchase and that the sector will see innovative collaborations between retailers and brands.

https://ecommercegermany.com/blog/a-brief-overview-of-chinas-e-commerce-in-2021

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Competition between Chinese e-commerce giants is growing more and more. This year's new payment systems will make things even more interesting as we'll see significant players operating in new roles. The case is so interesting that 98% of urban Chinese consumers already use their digital wallet for daily purchases, and most consumers don't carry cash anymore.

Below you can find some essential information from the report about China e-commerce and digital marketing q2 2021. Please read the full report for more details and statistics as it brings you the latest insights to help brands and companies ace marketing in China for quarter 2 of 2021!

New retail is blossoming

Revenue in the e-commerce market is projected to reach USD 1,260,539 m in 2021.

They are far exceeding that of significant players in The US and Japan.

Online consumption is growing at a rapid rate, but Chinese consumers require trustworthy and accessible shopping destinations. Marketplaces provide verified brand stores that give consumers a one-stop-shop. Brands need to be involved in such marketplaces for exposure and legitimacy.

In post-Covid-19 China, users start spending more time on e-commerce. Pinduoduo is experiencing the most consistent growth in the monthly app use time.

The exciting thing is about fresh food ecommerce growth and distribution. Covid-19 accelerated the new grocery e-commerce industry with nearly 370% growth on WeChat compared to the last year. Lockdowns, social isolation, a rapid rise in general health concerns, and an already blossoming delivery economy have culminated in favour of the industry.

Another curious thing is about live streaming by platforms. Live streaming continues to support the growth of e-commerce in China as the conversion rate from live streams to sales increases yearly. Below you can see sales data of major live e-commerce platforms in China. 2021 will be another year of rapid growth in live streaming and video e-commerce.

China's Internet giants

China's internet giants like Alibaba, JD.com, Pinduoduo and Kuaishou are the winners as they harness significant network effects, billions of active users and financial leverage.

Alibaba

Alibaba started with the goal of becoming an online directory for China's manufacturers and sellers and has since expanded its product range significantly. Two Alibaba market segments include Taobao, which is more general and allows consumers to search for any product they want quickly. At the same time, TMall caters more towards premium and high-end product consumers.

Alibaba announced its 2020 December earnings highlighting strong revenue growth of 37% YoY and EBITA growth of 22% YoY while Tmall's GMV increased by 19% YoY. Yet, throughout this quarter and the rest of the year, Tmall will have to focus on defending its market share and ramping up GMV due to increased pressure from Pinduoduo's organic growth as well as market regulators' actions to create a more balanced and non-exclusive e-commerce environment, specifically between Alibaba and JD.

Tmall's key measures to address this are new brand onboarding, brand incubation, continued emphasis on content marketing, livestreaming, KOCs, expansion of luxury channels, and focusing on the grocery category and local purchases.

What's more, Alibaba continues to grow its business in all aspects.

JD.com

JD.com is the largest competitor to Alibaba, positioning itself as a retail firm (opposed to a marketplace) with a market dominance on electronic goods. Its end-to-end logistics approach makes it easier for JD.com to verify suppliers/distributors and maintain control over goods sold, while a quarter of its inventory is sold through its platform. Below is an overview of the 2020 full year.

JD is focused on using its supply chain advantage to stay ahead of the curve and deliver an experience that far exceeds expectations, whether that means ensuring a vast selection of products, providing a new venture or service, or influencing the creation of new products.

Like Alibaba JD continues to grow its business - JD has continued to increase numbers of stores throughout China, planning to open the third E-Space store in Xi'an this 2021.

Pinduoduo

Pinduoduo is a recommendation based third-party platform. Aggregating demand through team purchases socially connects demand products to corresponding potential customers to avoid searching and scrolling through product options. The platform invests heavily into IP infringement minimisation as a priority to maintain trust with and between customers and users and associated brands/store. The regularity of the deals and the frequently purchased items involved mean that customers are more likely to return to the Pinduoduo platform.

Pinduoduo is the #1 group buying platform in China and the top agricultural, farm to table platform. These are two key areas where Alibaba and JD are playing catch up. If Alibaba, JD or another platform gains significant market share from them in the next year, it could spell big trouble for the social commerce pioneer.

Kuaishou

Kuaishou is one of China's most popular short-video sharing and livestreaming social e-commerce platforms. Key opinion leaders (KOLs) control intense fan loyalty and trust, making Kuaishou an excellent promoter platform driving traffic to online stores. Recent decisions to massively increase investment by Kuaishou in livestreaming infrastructure and capabilities indicates its increasing success - especially seen during the current maintain COVID-19 pandemic.

Kuaishou will continue to focus on optimising its traffic allocation. The platform will also allocate more user traffic, through an internal bidding system, toward mid-level MCN-backed KOLs and merchant livestreaming instead of top KOLs.

To sum up

Chinese's market is dynamically changing, and you can see it thanks to numerous statistics. Businesses appreciate the importance of brand experience, and they are now reevaluating their strategies to find growth in China. Alibaba excels, but its competition isn't far behind. Stay up to date with Chinese's e-commerce and see how the situation changes!

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A brief overview of China's e-commerce in 2021 - E-commerce Germany News

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Competition between Chinese e-commerce giants is growing more and more. This year's new payment systems will make things even more interesting as we'll see significant players operating in new roles. The case is so interesting that 98% of urban Chinese consumers already use their digital wallet for daily purchases, and most consumers don't carry cash [...]

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Overview of e-commerce market in china retail (JiaYi)

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Overview of e-commerce market in china retail (JiaYi)

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China has been leading the world Ecommerce Sales Share in retail for several years. In today success of China's ecommerce, it has been placed in a position unmatched by other countries. Although obvious results of decline sales percentage occurs in China brick-and-mortar industry due to the pandemic, but it did not stop China's momentum on accelerating its ecommerce sales. On the contrary, the pandemic has buttressed ecommerce sales during the peak of the pandemic and the period where economy is fully reopened. Given how the pandemic increased ecommerce participation across most of the rest of the world last year, it's not illogical to assume that other countries may soon follow China's lead.

Many idiosyncratic characteristics has shaped China's overall ecommerce success of today that was rooted during the 2000s and the early 2010s which included revolutionary of Alibaba to the successful brand JD.com, innovative digital payments systems, an inconvenient, non-customer-centric, and often confrontational in-person shopping culture, nearly limitless supply of low-cost delivery service and smartphone-driven mcommerce culture. Although the model of labour costs in delivery system and in-person shopping experience has changed in recent years but it played an important role on embracing the ecommerce. Besides, with the affordability and inovation of mobile phones today, the convenient of mobile phones also shape consumer buying habits in ecommerce.

Besides, through apps like Wechat Mini program, Pinduoduo that also drives ecommerce growth with features like live-streaming that able to connecting merchants and consumers in a more entertainment of buisness.

The foundations of China’s ecommerce story can be traced to handful of storylines from the 2000s and early 2010s:

1.    The emergence of Alibaba, the revolutionary, ubiquitous, easy-to-use Chinese ecommerce platform, gave consumers affordable and reliable access to almost everything imaginable, and swift delivery for just about anything.

Not long after, JD.com emulated Alibaba’s successful formula, providing another massive and easy option for new shoppers.

2.    Innovative digital payments systems, like Alibaba’s Alipay and Tencent’s WeChat Pay, were years ahead of their Western competitors in terms of accessibility, ease of use, and the speed in which they became embedded into online (and brick-and-mortar) checkout options.

3.    An inconvenient, non-customer-centric, and often confrontational in-person shopping culture helped motivate shoppers to embrace the straightforward reliability of ecommerce, particularly the ease it offered for making returns and securing refunds.

4.    A nearly limitless supply of low-cost delivery services, provided by China’s millions of migrant laborers, enabled companies like Alibaba and JD.com to provide same-day delivery anywhere in the country for just pennies—a very attractive benefit for uncertain first-time buyers.

A smartphone-driven mcommerce culture existed right from the start, thanks to China’s stage of economic development, and the fact that most shoppers skipped the PC era and joined the internet age directly via mobile devices.

Apps anf features that drive the ecommerce growth

·       WeChat Mini Programs.
-Mini Programs allow all manner of businesses to better leverage WeChat’s user base and have proven to be extremely popular among both merchants and consumers. As soon as WeChat implemented its Mini Programs option, China’s social commerce boom truly began. According to various media reports, well over $200 billion in ecommerce transacted via these programs last year, all of which counts as social commerce.

·       Pinduoduo.
- Pinduoduo unlocked China’s rural ecommerce participation more effectively than any other platform—in terms of both buying and selling—and became the world’s fourth-largest ecommerce company almost overnight. Pinduoduo’s value proposition remains almost entirely unique, even on a global scale.

·       Livestreaming “live commerce.” Uniting each of the previous entries, as well as legacy giants like Alibaba’s Taobao, JD.com, and newer up-and-coming competitors from the entertainment side like Douyin (the China version of TikTok) and Kuaishou, is the hot new trend of promoting ecommerce live via digital video. Live commerce is almost by definition a social media activity, but in first instance the traditionally nonsocial Alibaba properties led the way on livestreaming commerce. Eventually, however, everyone else jumped on the bandwagon, and the organically video-centric platforms like Douyin have an obvious edge going forward.

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Competition of Chinese e-commerce market (Hayden)

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Competition of Chinese e-commerce market (Hayden)

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China, the world's second-largest e-commerce market, has the world's largest technology-savvy population. The Chinese Internet and e-commerce environment, which currently has hundreds of millions of users, is now one of the most advanced environments in the world. China's e-commerce market is one of the fiercest competitions in the world because it is sophisticated.

Since COVID-19, the growth of e-commerce platforms has been on the rise. By selling on the e-commerce platform, it is estimated that companies can increase sales by 20%. This is essential not only for businesses but also for the national economy. Both Chinese and foreign companies are competing because China is constantly evolving and attracting the world's largest companies.

List of the top  platforms for e-commerce in China based on monthly traffic.

1. Taobao - This is a consumer-to-consumer e-commerce platform that allows individuals, retailers and wholesalers to freely register and sell everything directly to buyer. (Estimated traffic per month: 454 million visits)

2. JD.com - JD stands for Jingdong in chinese and is a B2C online retailer. Electronics, home decorations, furnitures, clothing, books and others are provided (Estimated traffic per month: 198.5 million visits)

3. Tmall - It is a leading B2C retail platform that allows several local Chinese and international brands to sell products to consumers online. (Estimated traffic per month: 153 million visits)

4. Alibaba1688 - This is the B2B market that focuses on domestic trade in China. It is a domestic company that focuses on overseas sales.(Estimated traffic per month: 49.8 million visits)

https://marketingtochina.com/guide-ecommerce-china/
https://disfold.com/top-e-commerce-sites-china/

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Attracting every day thousands of entrepreneurs and companies from all four corners of the world, China is one of the most promising markets worldwide. With a population of almost 1.4 billion people, China's rapidly rising wages have contributed to a growth in consumption and an increasing purchasing power. The development of various new technologies-related industries, and China's digitalization greatly contributed to the success of the most lucrative industry in China: E-commerce. So, whether you have a small business or a large-scale company, you might be interested in doing e-commerce in China. This article will go through the basics of China's e-commerce platforms and will give you as well some tips and advice on how to successfully enter the Chinese market.

Top 5 things to know before entering the Chinese e-commerce market

E-commerce in China: A tough competition

In recent years, being on e-commerce platforms has become a must-have for both Chinese and foreign companies that are ready to invest a lot of money in order to be on the most popular e-commerce platforms such as Tmall or JD.com. In fact, the majority of the Chinese population regularly purchases products online, as it is easier and more convenient.

MARKETING TO CHINA AGENCY

As we can see from this graphic, there were already 782.41 million online shoppers as of 2020. China's digitalization and the daily use of smartphones connected to the internet have greatly contributed to this growth as consumers spend a lot of time on their smartphones.

Following the Covid-19 pandemic, the growth of e-commerce platforms was even more important. It is estimated that by selling on e-commerce platforms, companies can increase by 20% their sales. But e-commerce is not only essential for businesses, but also for the country's economy. In 2019, the added value of e-commerce accounted for more than one-third of China's GDP.

Now, if we look at the projected increase in e-commerce sales worldwide, China is by far the leading country with 862.6 billion dollars as of 2019 and is expected to reach 1,556.2 billion dollars in 2024.

As anywhere else in the world, selling goods on e-commerce platforms is not always as rewardful as expected. Because China is in a constant evolution, attracting the world's biggest companies, there is a tough competition between both Chinese and foreign companies.

It is also worth mentioning that the competition is fierce because of Chinese product's aggressive price and competitiveness. Chinese companies are extremely reactive to their competitors, and are able to find inspiration (or even copy) from other products in order to create their own version of it and sell it cheaper. You will also have to pay attention to your e-reputation and the comments you will receive as your competitors might want to write fake comments about your products or your brand.

Solutions to set yourself appart from the competition

In order to stand out in this industry, you will have to be creative, create unique products, be competitive in terms of price and quality, and most importantly, create brand awareness. You will have to take advantage of the fact that you have a western brand with higher quality products. Moreover, don't forget to analyze the Chinese market and your future competitors. Finding the right partners can be the key to success, so do not hesitate to contact us if you want our experts to help you.

Chinese e-commerce platforms are not for small players

To tell you the truth, China is not an eldorado for every company. If your brand is already well-known in China, it is quite easy to be invited to join Tmall or JD.com.

But on the other hand, it is much harder for small companies to be accepted on Chinese e-commerce platforms (and even impossible in some cases). The majority of foreign companies expanding their activities in China have already at least an online presence in China. (However, this is set to change as more and more platforms are trying to become attractive for all types of brands.)

Why is it hard to make it if my brand does not have awareness in China?

In reality, Chinese consumers are kind of reluctant to buy products from companies that they have never heard of before. So, it is mandatory to sell your products on renowned e-commerce platforms such as Tmall or JD.com, but at the same time, it is almost impossible for small companies to be able to do so because of the strict rules and conditions each platform has. For example, you will be required to have a turnover of millions of dollars, to be established in China (or to pay extra money if not, depending on the platform) as well as to have physical stores.

Chinese e-commerce platforms want to be sure that your business will be lucrative enough, in order for them to get their commission. They also need to be sure that people are going to buy your products. Even though it might seem harsh, it is also good for your company if you are not sure of the success of your products among Chinese consumers. Don't forget that in order to have access to the platform, you will have to pay expensive monthly commissions.

E-commerce platforms want to be sure that your audience will be able to directly look at your products before buying them on their platforms. Chinese consumers will generally compare the price they'll find in-store to the online price. And, as the online price is most of the time cheaper, they will buy it online.

Can I create my own website to sell my products instead of using e-commerce platforms?

Even if you create your Chinese website in order to directly sell your products, it's going to be extremely difficult for you to be profitable. Indeed, as mentioned earlier, Chinese consumers are extremely cautious when it comes to brands that are not established in China. They only trust renowned e-commerce platforms because they know that brands are selected.

NB: Having a website in Chinese however, is a critical step of your success in China. Having a website means you can be visible on the internet, being visible means you are credible.

The difficulty of selling on e-commerce platforms for small and medium businesses

As you understand, it is difficult and almost impossible for small brands to sell their products on e-commerce platforms. And, even if you have a medium business, the commission might be too expensive for you and not lucrative enough.

So, before investing in e-commerce platforms, you should at first promote your brand online, on social media for example. Don't forget to develop your e-reputation, as well as your brand awareness. You can also create your Chinese website in order to be ranked in Baidu (our full article on Baidu SEO).

ROI (Return On Investment)

For many people, the ROI (Return on Investment) is a taboo topic. You might be wondering how much money brands can have thanks to e-commerce and what percentage of brands succeed on e-commerce platforms. According to some Tmall employees, it is estimated that 20% of the brands that are on Tmall make profits, 20% do not make profits but are not losing money either, and 60% are losing money.
How is it possible for 60% of brands to lose money?
They are not competitive enough, not unique enough, too expensive, not enough advertised, lack visibility, etc. If you are not familiar with the subtleties of the Chinese market, it can be hard to plan and adapt your marketing and advertising strategies.

In order to sell your products on Tmall, you will need to pay some fees, pay for your online store, advertise your store, redesign your webpage, etc. Moreover, it is not enough to just spend money on eBranding to gain Chinese consumers' trust. So in order to be profitable, companies need to work in general with 3 specialists: a designer, a web traffic specialist, and someone who will manage all your marketing strategies.

Solutions to optimize you ROI when doing ecommerce in China

You should conduct market research beforehand, in order to plan the budget you will need to have in order to open your store on e-commerce platforms, as well as how much money you will need to make in order to have enough ROI. We have experts in this field, so do not hesitate to contact us for more information.

As you probably already know if you already came to China, Chinese consumers are the best when it comes to bargaining. Even though their purchasing power has increased these last few years, Chinese consumers want to bargain for everything in order to pay as little as possible. And this does not only happen in real life, but also online ! If you want to attract consumers, you might need to give some vouchers and e-coupons to your WeChat followers for example. These promotions and exclusive offers will push them to buy your products.

For instance, the most popular e-commerce platform on which we can find the cheapest products is Taobao. The cheapest your products will be, the more you will be able to sell. Don't forget that Chinese consumers are ready to compare your products with others, even by asking their friends or on Q&A platforms like Zhihu (知乎).

Solution to doing Smart Discount

Be ready to reduce your margin if you want to sell your products in China as well as to give vouchers and e-coupons to your audience, through social media like WeChat for example. Don't forget the special events that are extremely popular in China: Singles' day (11/11), Valentine's day, Golden Week, etc.

Some tips and advice to succeed on Chinese e-commerce platforms

Be active: you need to be active on e-commerce websites as well as on social media. JD and Tmall require businesses to be active, by optimizing and redesigning their online store, managing your ads, optimize your traffic, etc. It is also important to take part in special events (Single's day, Golden Week, Valentine's Day, Christmas, etc) in order to boost your sales and gain visibility.

Be responsive: the majority of Chinese consumers like to ask questions about your brand or your product, so you need to be ready to reply to them. For example, it is important to have a WeChat official account, so that they can discuss with you via the online chat. You also have to encourage them to purchase your products by giving them vouchers or e-coupons.

Be creative: whether it is for advertising or marketing your products, you will need to be creative in order to stand out amongst your competitors. If you want a cost-effective solution, you can start by creating an H5 brochure on WeChat to present your company. There are many ways to create one, however, you can contact us and we'll create a personalized and creative H5 brochure for you.

What are the most popular Chinese e-commerce platforms?

Tmall: China #1 e-commerce platform

Founded in 2008 under the famous Alibaba group, Tmall (天猫), is a subsidiary of the e-commerce website Taobao (淘宝网). Tmall stands out from its competitor's thanks to its strict standards in terms of quality and renown.

Ray-Ban Flagship Store - Tmall

Over the years, Tmall was able to grab the majority of China's e-commerce market shares, establishing itself as the most popular Chinese e-commerce website and becoming the best online gateway for local and international retailers.

Over the years, Tmall's gross merchandise volume increased from 847 billion yuan to 3 202 billion yuan in 2020 (more than 3 times higher)!

JD com: Smart Logistic

Founded in 1998 by Liu Qiangdong in Beijing, JD (which stands for Jingdong 京东) was at beginning only a magneto optical store, which diversified over the years with electronics, computers, mobile phones, etc. In 2004, it opened its online retail platform and quickly became one of the two massive B2C online retailers in China with its competitor the Alibaba-run Tmall. Now, JD.com is partly owned by the giant Tencent, which has 20% of its stake. As of 2021, JD.com has over 470 million active customers.

JD Home Appliance Section

JD.com has set its standards for online shopping through its commitment to quality, authenticity, and the variety of products it offers, covering everything from fresh food and apparel to electronics and cosmetics. Another asset of JD.com is the delivery time, which is in general the same day (or less than 24 hours).

Xiaohongshu: Social eCommerce & life-style

Founded in 2013 by Charlwin Mao and Miranda Qu, Xiaohongshu (小红书) also known as 'The Little Red Book' and 'RED', is a social media and one of the world's largest community e-commerce platforms. Over the years, it has grown to become China's foremost shopping platform in terms of beauty, fashion and luxury products. In 2018,was listed on Forbes' "Top 50 Most Innovative Companies in China 2018" list. As of 2021, Xiaohongshu is boasting over 300 million registered users and 85 million monthly active users. It was also valued at more than USD 3 billion in 2018, and has the support of giants like Alibaba, Tencent, Zhenfund, Genesis Capital, etc.

Lipstick on RED

In the beginning, Xiaohongshu was only a platform on which users were able to review products and share their shopping experiences. However, in order to expand its activities, it has become pretty like a combination of Pinterest and Instagram, with e-commerce features, creating its own cross-border eCommerce platform 'Fulishe' (福利社).

On Xiaohongshu, people are able to post and share product reviews, travel blogs, and lifestyle stories via pictures and short videos. Xiaohongshu is also running RED Mall, a platform on which Chinese consumers are able to purchase international products.

Pinduoduo: The Low-Cost Platform

Pinduoduo 's Website

Founded in 2015, Pinduoduo quickly became the fastest-growing tech company in the world, generating over RMB1.45 trillion gross merchandise value and 643.4 monthly active users as of 2020. If you want to export your fresh products in China, you should definitely choose Pinduoduo, as it is the largest agriculture-focused e-commerce platform in China. It directly connects farmers and distributors with consumers. Pinduoduo has revolutionized e-commerce, becoming a social commerce platform as well as a consumer-to-manufacturer (C2M).

Pinduoduo is the best app for fresh products

On Pinduoduo, consumers can discover and purchase products from a wide range of sellers. What sets Pinduoduo apart is its social aspect, because users can easily share what they have browsed or purchased with their social network. They can also invite them to join teams within 24 hours, in order to benefit from lower prices. Thanks to Pinduoduo, consumers can enjoy a group tariff while receiving the product individually directly at home.

It is also important to know that Pinduoduo is very low cost for both consumers and merchants, thanks to its policy of "no commission". In fact, you will just have to pay a 0.6% service fee to the payment function supplier. Now you might wonder how does Pinduoduo makes profits? Pinduoduo mainly monetizes through advertising, with 90% of its revenues that is coming from online marketing services. This explains why Pinduoduo really revolutionized e-commerce platforms, with an innovative marketing strategy, and its low-cost system and fast process.

Moreover, another assets of Pinduoduo is that you can directly advertise and promote your products on the app. For example, you can use live-streaming to explain the benefits of your products. You can also hire KOLs in order to attract a wide audience.

Douyin Flagship Store

With more than 600 million daily active users in China as of 2021, Douyin, known as Tik Tok in other parts of the world, is one of the most lucrative and promising apps in China. In March 2021, Douyin launched its flagship stores, available for brand accounts on its platform, marking a major step into e-commerce. Until now, Douyin was just a way to promote new products and popular items to consumers through short videos and live-streaming. Moreover, it was also possible for companies to send vouchers to their followers and add links to e-commerce platforms such as JD.com and Taobao. However, the novelty of these flagship stores is all about marketing.

Li-ning Flagship Store on Douyin

Brands are now able to create their own flagship store directly on Douyin, which will allow them to increase their conversion rate. This feature also includes the possibility to create campaign banners, send vouchers and recommendations, but also offline store information. Consumers are then able to claim these vouchers, which can be used both online and offline. Since the launch of this new service, more than 220 brands (Huawei, Winona, Peacebird, and Perfect Diary) have already introduced their flagship stores, including international brands. The purpose of Douyin is to reach the 1 trillion yuan at the end of the year, in order to be amongst the top e-commerce players in the Chinese market.

How to succeed on Chinese e-commerce platforms? eReputation

IN A CONNECTED COUNTRY YOU NEED DIGITAL MARKETING SOLUTIONS

Baidu SEO & SEM for visibility & credibility

To succeed in China, you will need to increase your visibility. How? You can start by focusing on the most popular search engine in China: Baidu (百度). As a matter of fact, more than 70% of online research is conducted through Baidu. After creating your Chinese website, you will have to focus on Baidu to increase your visibility and e-reputation.

Baidu Brand Zone - Dior

To develop your visibility on Baidu, you can use different marketing solutions such as:

Pay Per Click (PPC)

Search Engine Marketing (SEM)

Search Engine Optimization (SEO): you will need to create qualitative content, shareable information, use keywords to increase your online presence on Baidu, etc.

Due to China's digitalization, China's way of advertising and promoting products shifted to social media. Chinese users are very active on social media platforms and are used to comment, share their purchasing experience as well as give purchasing advice.

WeChat 微信: China's most used social media

With more than 1.2 million monthly active users, WeChat is the most popular app in China. Even though it was at first a messaging app, the app released under the giant Tencent in 2011 quickly became a vast ecosystem of services. Nowadays, WeChat is a must-have for every citizen and businesses as it became a new player in the e-commerce industry.

Wechat post -mini program - Bonus Ice cream

One key point for successfully promoting your brand through WeChat is to create an Official Account. Don't worry, if your brand is still not present in China, we will help you find and reach your target audience by improving your brand awareness as well as creating your WeChat official account. Then, to successfully promote your brand, we can launch campaigns to create buzz, as well as to create an H5 brochure in order to promote your brand.

Weibo 微博: The place to be commercial

As one of the most popular social media app in China with more than 550 million monthly active users (2020 Q4 + 85 million YOY). 94% of its user base uses the mobile app. Weibo has is an open social media, and just like Twitter, is one of the most efficient platforms to create the buzz and gain visibility. Contrary to Wechat, which is private, Weibo is open to advertising and its users are as well. That is the place to advertise and engage in a commercial way with your followers.

Debeers - Weibo

The social media platform attracted more than 150 000 companies wanting to develop their e-reputation. Brands have to create a Weibo Official Account to improve their presence in China by attracting followers.

It is estimated that more than 62% of Weibo users follow at least one brand on Weibo.
Our favorite Weibo marketing tools are:

Weibo Paid Ads

Weibo Influencers

Weibo Lucky draw & lottery

Weibo #hashtag

KOLs in order to promote your brand

In China, one of the best ways to promote your brand and your product is to collaborate with KOLs (Key Opinion Leaders). They act like influencers are able to sell hundreds (or millions) of products in a short amount of time. If you want to hire a KOL, do not hesitate to contact us as we have a list of KOLs.

KOL Lu Min Tang on Xiaohongshu

Branding is one of the most important aspects in order to conquer the Chinese market, even for pure e-commerce players. Most Chinese consumers want to buy a product because of its brand. Thus, they want to buy premium and reputable brands.

E-reputation to increase your sales

In China, brand reputation is the key to success. You have to do everything you can to always have a good image. If you lose your reputation, you will lose everything.

You need to make sure that you get good comments for your brand on forums, social media and other websites. Chinese consumers only trust brands that have good comments and recommendations from friends or family and on media platforms.

Data by Hootsuite

If we look at the main sources of new brand discovery, word-of-mouth is the most effective way to get new clients. It is even more powerful than search engines and brand websites.

Encourage conversation about your brand to develop the traffic, good comments and recommendations.

If you want to successfully manage your brand image in China, you can contact us and we'll take care of everything.

Contact us to get started on China's e-commerce platforms

It is clear that China has become the market to conquer for brands that want to expand their activities worldwide. However, as you probably already know, the Chinese market is completely different from what you might be accustomed to. In order to successfully enter this competitive market, you will need experts who fully understand the subtleties of China.

GMA is a digital marketing agency based in Shanghai, with experts all around the world. Depending on your needs and the scope of work, we will adapt our marketing strategy in order for you to get the most out of e-commerce in China.

SEO experts

Our focus is to promote your business with your target closely in mind. After all my explanations, you understand that the key to sell online is to have a good image and to be reputable. We'll use digital tools including: Baidu SEO and SEM, E-PR, Media Buying (DSP) & Community Management. Then, we'll manage the campaign and assure its optimization & success.

As of 2021, we have worked with more than 800 western brands

Lead generation professionals

To be effective in your lead generation, you need to develop a good e-reputation. Online advertising & quality contents will help you to develop your e-reputation.

We are lead generation experts and we apply the solutions we offer to companies to our agency. Thanks to this solutions we get an average of 350 leads per month (March 2018).

Experts in Digital Solutions

Website Creation, Development & Auditing

Baidu Search Engine Optimization

Social Media Marketing (WeChat & Weibo)

Reputation Management & Community Development.

Public Relations & Exposure in Chinese E-Media.

Analytics, monthly reports & analysis from our team of experts.

We are an ROI-focused agency. The solution is to attract and also re-target the most qualified traffic in order to increase conversion rates, which can be effective for E-Commerce in China.

Some of our eCommerce case studies

WeWOOD is a watch brand that manufacturers wooden watches. The brand was developed in 2009 in Italy.

The company plants a tree for every watch sold. As of December 2013, the company has planted 250,000 trees in America and other countries where the watch is sold.

WECHAT

WECHAT STORE

WEIBO: Events on social medias / Account managing.

E-REPUTATION: 4 posts on different platforms / 8 PR on top fashion platforms in China.

LittleRedBook: A new store opened in littleredbook platform.

RESULTS AFTER ONE MONTH

WECHAT
4136 followers, 6430 views.
Increased 705 followers in one month.

WECHAT STORE
11 watches sold.

WEIBO
total 222579 views, 436 shares/forwards.
528 comments and 334 likes.
Increased 1360 followers in one month.

NANO JAPAN was created in Japan in 2006. Having developed an impressive range of best-selling beauty & health products in Japan, NANO JAPAN has decided to sale their products in China.

Weibo: content display

WeChat: content display

E-Reputation: content display

JD: e-shop + ads

Weibo
increased 1100 new followers and got more interactions than in the past.

WeChat
gained a number of new followers and views. Plus, by carefully selecting topics and weekly updates, we've accumulated a lot of marketing content.

JD
Buyers Campaign.
JD store artwork (thumbnail pics modification).
Paid search.
Special Promotion.

The eCommerce in China is a huge market, with 86billion dollars for the crossborder, and Chinese ECommerce size was more than 1.9 trillion Dollars in 2016. Many opportunities are available on the market, a lot of Companies are making a lot of money, but 50% of them are not successful and you have to be aware of that. Work with specialists of eCommerce in China is the key to the success.

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The Complete Guide for E-Commerce in China

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Attracting every day thousands of entrepreneurs and companies from all four corners of the world, China is one of the most promising markets worldwide. With a population of almost 1.4 billion people, China's rapidly rising wages have contributed to a growth in consumption and an increasing purchasing power.

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Overview of China's resale market (Surya)

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Overview of China's resale market (Surya)

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According to a pre-pandemic study by Beijing-based China Center for Internet Economy Research, total sales of secondhand goods in China reached RMB 1 trillion ($154 billion) in 2020 which is twice as much as in 2017.

Consumer tastes are changing and with that sales are predicted to have a continuous growth in the future and Yuya Yamauchi, the chairman and CEO of the Japanese luxury resale chain Brand Off, himself has said that China is a goldmine when it comes to the resale market’s potential.

Despite reaching a staggering RMB 17.3 billion ($2.7 billion) in 2020, doubling from the previous year, that only represents 5% of the overall luxury market in China. With that being said, the main target market that has a knack for purchasing second-hand luxury goods are in between ages 29 to 36 and they make up 52% of the second-hand luxury market but according to an October 2020 report by China’s University of International Business and Economics and luxury resale platform Isheyipai, China still makes up a really small percentage in the luxury market (5%) as compared to Japan (28%) & The United States of America (36%).

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Emerging sector in china ; second hand e-commerce (Xin)

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Emerging sector in china ; second hand e-commerce (Xin)

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- The fast development of second-hand luxury sales online platforms in recent years has aided in the market's rise, comparable to that of The RealReal Inc in the United States and Vestiaire Collective in Europe.

- Traditional Chinese customers have shied away from secondhand products, but this has shifted in the last decade or two, owing to the rise of younger, more environmentally aware consumers seeking inexpensive high-end goods.

- According to a research issued by the University of International Business and Economics in June 2020, China's second-hand luxury industry accounts for just 5% of the luxury market, but it may reach 20% to 30% in certain developed nations.

- Market analysts predict that in five years, China will surpass Japan in terms of the size of its second-hand luxury goods market.

- Idle Fish, or Xianyu, is an Alibaba-owned second-hand mobile marketplace. It was founded in 2014 and has grown to become one of the largest online marketplaces for used items, ranging from home appliances to cosmetics.

- Zhuanzhuan is a prominent second-hand e-marketplace that was founded by 58.com in 2015. Individuals and companies may sell pre-owned products to users through the site. ZhuanZhuan not only obtains pre-owned products from consumers to improve the user experience, but they also examine mobile phones for quality.

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Differentiation Focus : Niche advantages

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Differentiation Focus : Niche advantages

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Focused differentiation strategy offers unique features that fulfill the demands of a narrow market

Low-cost strategy, narrow markets are defined

Some firms using a focused differentiation strategy concentrate their efforts on a particular sales channel, such as selling over the Internet only.

Others target particular demographic groups.

The need to satisfy the desires of a narrow market = the pursuit of uniqueness is often taken to the “next level” by firms using a focused differentiation strategy.

Opportunity

Luxury resell market is growing x4 times faster than the primary luxury market, at 12% per year vs 3 %.

Online resellers are driving the growth of the pre-owned market well beyond brick and mortar stores.

Circular economy is a driver of the luxury resale growth, fueled, in part, by younger affluent generations & their desire.

Popularity of limited capsule collections & fashion drops to increase luxury short supply & fueling a large secondhand market of new or nearly new items.

The durable and timeless nature of luxury goods makes them a good fit for the resale market.

Solution

Brands have an interest in making sure that their premium goods are always displayed thoughtfully.

Resell market is an opportunity for luxury brands to support long term sustainable goals.

First-time buyers of luxury goods who can sell their used items on the secondhand market are more likely to buy another first-hand good.

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Market

The focused market:

tech or internet-savvy consumers

sustainability conscious

affordable secondhand luxury products which sell in a good condition

Millennial and Gen Z shoppers are flocking to secondhand luxury thanks to their commitment to sustainability and reducing their carbon footprints

Also, there's a trend for collecting hard-to-find archive pieces by top designers and brands, and the desire to own pieces that others might not be able to easily get their hands on.

The consumers' demographic and background checks play important roles in buying resale luxury items, such as monthly income and payment terms.

Most resale consumers are the ones who experience both buying the new and used items in stores.

Blockchain:

Blockchain is enabling large scale reliable tracking and authentification

Authentication is one of the important focus in resale luxury goods because there's quite a number counterfeiting and fake products that were also marketed in China.

The luxury resale model is built on trust and transparency, the ability of online luxury resellers to properly authenticate luxury goods every single time is critical.

The resale market is indeed no stranger to counterfeiting. It is becoming harder for luxury brands and secondhand retailers to be counterfeit-proof.

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Sustainability impact, cost-conscious and values
-Cost-conscious shopping aside, Chinese consumers these days are increasingly focused on sustainability, and that is driving the secondhand goods market as well.
-A Mintel survey showed that more than half of urban Chinese consumers buy or rent second-hand products because it is good for the environment.
-Among a trendsetting subset of that group – well-educated, sophisticated shoppers –  the percentage climbs to 63 per cent and trumps affordability as the top reason to participate in recommerce.
-the “recycling-and-reward” steps will also be additional consumer-engagement points that brands can leverage to increase boost loyalty.
-Also, we will likely see more brands open official stores on recommerce platforms, making recycling part of the usual shopping journey. The chance to shop vintage styles could increase brand loyalty.
For example, brands could offer pre-owned jeans on recommerce platforms while accepting trade-ins from customers, offering another way to maintain connection beyond the initial sale of new items.

Target group reference (market research)
Chinese millennials, in particular, are emphasising rational consumption and sustainability in their shopping habits.
-According to survey data from Sootoo Institute, which researches the internet sector in China, 50 per cent of recommerce-platform users in China are under the age of 24, while 34 per cent are between 25 and 30.
-More than 60 per cent of the total 200 million users on Alibaba Group’s recommerce platform, Idle Fish (or Xianyu in Mandarin), the largest such platform in China, were born after 1990.

https://insideretail.asia/2019/05/22/chinese-consumers-embrace-shopping-for-pre-owned-products-online/

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More and more mainlanders are using apps and websites to shop for pre-owned products.

The popularity of shopping for pre-owned products online is on the rise in China, a trend being driven by a new consumer focus on sustainability and the rise of "recommerce" super apps, which integrate all possible functions related to shopping for secondhand goods.

China has a nascent but fast-growing secondhand market, according to the China Center for Internet Economy Research, a Beijing-based research think tank, which estimates the size of the market at RMB 500 billion (US$71.1 billion) in 2017. It predicts that number will double by 2020. And monthly active users on recommerce platforms in China grew 46.4 per cent last year, almost double the growth rate of the users in the overall e-commerce sector, according to US research firm Nielsen reported.

Despite those big numbers, China's recommerce boom is only beginning. Compared to mature recommerce markets in the west, where secondhand markets (including used cars) sometimes account for as much as 10 per cent of GDP, China's second-hand market was about 0.6 per cent of GDP in 2017.

Some factors unique to China are behind its potential to close the gap: Firstly, the purchase of pre-owned items was once a taboo - because it was seen as a sign of financial struggle and was, therefore, a source of social shame. Now, it is considered smart shopping. Secondly, improved standards of living are a recent phenomenon in China. They're just decades old, following in line with the country's "reform and opening" since 1979. But as the ability for Chinese consumers to accumulate more climbs with their spending power, the market for secondhand goods grows as well.

Sustainability is the new black

Cost-conscious shopping aside, Chinese consumers these days are increasingly focused on sustainability, and that is driving the secondhand goods market as well. A Mintel survey showed that more than half of urban Chinese consumers buy or rent second-hand products because it is good for the environment. Among a trendsetting subset of that group - well-educated, sophisticated shoppers - the percentage climbs to 63 per cent and trumps affordability as the top reason to participate in recommerce.

Chinese millennials, in particular, are emphasising rational consumption and sustainability in their shopping habits. According to survey data from Sootoo Institute, which researches the internet sector in China, 50 per cent of recommerce-platform users in China are under the age of 24, while 34 per cent are between 25 and 30. More than 60 per cent of the total 200 million users on Alibaba Group's recommerce platform, Idle Fish (or Xianyu in Mandarin), the largest such platform in China, were born after 1990.
Super apps and 'Fish Ponds'

Perhaps it is not surprising, then, that recommerce platforms such as Idle Fish have built-in features to encourage and reward sustainability. Idle Fish has partnered with Alibaba affiliate company Ant Financial to offer users access to its sustainability mini-program, "Ant Forest," which is featured on Ant Financial's mobile-payments platform Alipay. Users can redeem points awarded by Ant Forest for recycling to have trees planted by Ant Financial in China. The total recycling activity on Idle Fish last year translated into the planting of about 230,000 trees.

Recommerce in China is unique also for the way in which Chinese consumers shop for pre-owned items. Super apps, such as Taobao and Tmall, are the preferred online destinations for commerce because they offer channels for all kinds of shopping. The same goes for Idle Fish, which allows users to buy, rent, give away or even donate their unwanted things in every conceivable product category. For consumers in the US to do the same, they would need to separately use the Rent the Runway, eBay, ThredUp, Goodwill and Facebook (marketplace) apps.

Then there's the community and entertainment aspects of the recommerce shopping experience in China. While secondhand shopping in the west is typically a transaction-driven experience, in China, it is a social one. For example, Idle Fish's "Fish Ponds" are micro-communities within the app that group users by common hobbies, such as fishing, photography or fitness. Within each "pond," users exchange information about their hobby and post used items for sale. Besides the pond, there is even a separate channel for celebrities, where they sell their personal items to followers. This is particularly popular for luxury shoppers, who trust the authenticity of items owned by celebrities and aspire to follow their fashion tastes.

Brands should not overlook the opportunity to capture loyal customers in this new generation of environmentally conscious consumers in China. Some, such as Swedish fast-fashion brand H&M, are already doing just that. H&M has partnered with Idle Fish to give shoppers credit to spend on its Tmall flagship store for each bag of used clothing or textiles they give back to the brand for recycling or repurposing.

In the future, the "recycling-and-reward" steps will also be additional consumer-engagement points that brands can leverage to increase boost loyalty. Also, we will likely see more brands open official stores on recommerce platforms, making recycling part of the usual shopping journey. The chance to shop vintage styles could increase brand loyalty. For example, brands could offer pre-owned jeans on recommerce platforms while accepting trade-ins from customers, offering another way to maintain connection beyond the initial sale of new items.

Original reporting by Jing Wang of the Alibaba-funded news site.

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Chinese consumers embrace shopping for pre-owned products online - Inside Retail

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More and more mainlanders are using apps and websites to shop for pre-owned products. The popularity of shopping for pre-owned products online is on the rise in China, a trend being driven by a new consumer focus on sustainability and the rise of "recommerce" super apps, which integrate all possible functions related to shopping for secondhand goods.

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It is a strategy for companies to generate profits by selling products to new markets. Expand sales areas and diversify customer base. If it is difficult for companies to develop new products when sales in the existing market decline, they must secure new markets to continue to sell existing products. Companies that already dominate the domestic market can enter overseas markets to create new demand for existing products, and in general, market development means strategies for entering overseas market.

eBay can improve business growth by introducing existing products into new markets using this strategies.

1. R&D - It should be made to identify possible new markets and consumer sectors for products, and  should be placed on identifying and understanding various market culture trends and consumer behavior.

2. eBay should grow its business through international expansion. By doing this, ebay can access a wider variety of consumers and increase its market share. if eBay process it, they should analyze PESTLE, Porter's 5 Forces and SWOT analysis.

3. eBay should educate consumers about product in new markets. This education helps consumers understand products. Through this, they can better understand consumption patterns.

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The firm uses its products in the current market as part of a market penetration strategy. In other words, a market penetration strategy aims to expand a company's market share. The market penetration strategy can be carried out in a variety of methods, including:

- Lowering costs in order to attract more consumers

- Efforts to promote and distribute the product are being increased.

- Purchasing a rival in the same industry

Market penetration is eBay's primary intense growth strategy. The corporation maintains commercial growth through this aggressive approach by expanding the amount of individuals who trade through its global e-commerce platform. The firm, for example, increases in terms of increased revenues and scope of operations by growing the number of customers who purchase products on the online marketplace. Such expansion contributes to the company's overall size. The company improves its online auction services and related operations, enhancing the strengths of it.

In subsidiaries like Kijiji and StubHub, strategic objectives and management practices are aligned. As a cost leader, one of eBay's strategy objectives based on market penetration is to improve technical efficiency in order to compete with companies like Alibaba and Walmart (Walmart Marketplace). The cost leadership generic approach gives the firm a competitive edge, allowing it to use a market penetration heavy strategy to expand the company's client base.

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Modifications to existing products :

Fine Things can feature product cleaning & restoring services as an added incentive before selling second-hand luxury goods to the public.

The Luxury Authenticator team can provide a tutorial on how to spot differences between a counterfeit and authentic product for top luxury labels.

This helps build trust amongst our consumers which is a very important thing in the China market and this can help boost sales and popularity of this concept.

Detailed Insights Into Customer Needs

Perform customer analysis by encouraging customers to answer surveys which they would then be awarded discount codes.

Something as simple as a poll on social media sites would show how our consumers actually react to certain brands, colours, exclusivity in product, product style/range etc.

This helps us to peak their curiosity by sourcing for products the majority are seeking for which would lead us to happy customers.

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It is a strategy to develop new products or services, sell them to new customers, and pioneer new markets. Among the four types of strategies, Diversification is innovative but risk is high.

Vertical diversification - it is to introduce to products to its existing product line.
Horizontal diversification - it is development and launch of new products that are not related to existing products.
Diversification towards a new business - eBay can diversify into large companies by participating in completely different business.

One of the ways eBay can explore the growth of large companies entering new business is merge and acquisitions. these can diversify new markets and new customer group with products and services that are completely new and unrelated to existing products

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In summary, this should create the potential for higher prices or lower quality of purchased goods or services. It is to turn and will reduce the profitability potential of the industry. Other than that, pressuring a buyer can exert on businesses to offer better products, better customer service, and/or lower prices. The company`s competitive position will always be at risk when new companies offering similar products and services enter the market.

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Market research summary's, the discovery of China as one of the most mobile users in the world and has more e-commerce activities than any other country in the world. Chinese internet and e-commerce environment, which currently has hundreds of millions of users, is currently one of the most advanced environments in the world. Traditional Chinese customers died from used goods, but they moved in the last decade or two, thanks to the younger age, more environmentally friendly consumers seeking inexpensive products.