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Foreign Brands to Open Chinese Markets through Chinese Discount Stores

Foreign Brands to Open Chinese Markets through Chinese Discount Stores

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Miaobo international women's fashion brand discount is a brand discount store operated in the mode of outlets. In 15th CHIC held in March in Beijing, Miaobo's booth attracted lots of audiences. Lots of businessmen that were interested in the sales mode negotiated with Miaobo and some brand agents expressed they were to join in. A female customer from Europe was very interested in the discount store. With the help of her interpreter, she asked lots of questions such as how to join in. It's observed that this emerging mode of brand discount is highly concerned by foreign customers. Reporter noticed that customers to Miaobo's booth this year became more and more, and so does the joining-in idea. 

The reason why the sales mode of international brand discount can attract foreign businessmen is it reflects people in international industry pay more attention to Chinese markets and analyze and investigate the consumption level of Chinese markets on one hand, and foreign fashion brands, especially medium-level fashions, are coveting Chinese markets on the other hand. Such huge consumption demands and consumption capacity lure international brands to establish in Chinese high-end markets. For those medium-level fashion manufacturers, they also want to share a piece of cake of Chinese markets. At present, lots of international famous brands such as H&M and ZARA have presented in Chinese markets. Those medium-level manufacturers are sane, which are choosing to cooperate with Chinese discount stores.

Cooperation is Underway

Brand discount stores are called outlets in foreign countries. Outlets were originated in the USA and brand discount stores with various topics have appeared in Chinese Hong Kong, Korea, Japan, the UK, Spain, France, the USA, Greece and Argentina. The sales mode of outlets has been promoted widely in some developed countries in North America, Europe and Japan. The reasons why it lures people lie in accurate positioning, brand concentration and low price. The new retailed mode of brand discount stores is to become a fast developed industry. For brand discount store, also called factory stores, there are three premises: premium brand; out-of-season products and short-in-size products with sufficient supply and fast delivery; and attractive discount. Now more and more consumers pay attention to both brands and price-performance. Brand discount stores can make consumers experience the shopping fun of “famous brand but low price”.

Good Development Prospect But Difficult to Survive

Lots of people are optimistic that international brand discount stores will develop well in China, because consumers in all levels like bargaining and competitive products. The consumer psychology promotes the development of brand discount modes. The biggest competitive strength of international brand discount stores is low price. The discount stores sent their buyers to purchase abroad directly without the link of intermediary merchants and agents, so the purchase cost is lower than before. In addition, accurate positioning is also the main cause to attract consumers. The sales positioning of brand concentration, low price and premium brands for special groups make brand discount stores have a good market prospect.

However, compared with Chinese local low-price competitors, there are lots of difficulties in logistics and sources of goods for the international brand discount stores. How to find stable supply of goods, to cooperate with international brands and to sell products to Chinese consumers have become the blocks that must be overcome by international brand discount stores。


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