The Textile Industry to the City of Shanghai - Assignment Example

5. Market Audit Changes that are occurring for multinational businesses are providing new opportunities and structures for those that are involved in manufacturing. The textile industry that is beginning to grow in China, specifically in Shanghai, is one of the areas that are beginning to demand more from an international market. After 1962, China was known to go through a cultural revolution. The main change with this began with alterations in the organizational structure that was based on a cellular economy. Individual businesses and enterprises began to find their way into the Chinese economy. As this continued, it broke down the units that were used for the manufacturing process and allowed new businesses to come in. The result was openness in the economy for multinational businesses and new levels of self – expression that were included in the Chinese culture (Donnithorne, 605, 2002). The trends in Shanghai have continued with this with different approaches to culture through statements related to culture, prestige and social status. Examining the launch of Gini and Jony, Indian kids wear manufacturer, can provide further insight into the trends and market that the manufacturer can expand into with the Chinese market. 5.1 Fashion Apparel Market Gini and Jony is one of the top brands in India for children’s wear and continues to provide new trends in the textile industry. Currently, the textile manufacturer provides several different brands of clothing, all which are designed from trends that are a part of kid’s fashion. Some brands include the Happy Style, Jeans, summer clothing and baby wear. There are also international brands that have affiliate agreements with Gini and Jony and are offered in different store locations, including the United Colors of Benetton, Levis and Puma. The main focus of the store is to offer the top ten brands within one location for children. From the several brands that are offered, is the store names of “Freedom Fashion,” which is designed to provide new looks and trends that children can enjoy. All of the textiles that are offered through the company are designed with fashion statements first, specifically for children. Coordinated outfits, seasonal trends and looks that are unique to Gini and Jony are at the basis of the store and the manufacturing that is used for children’s wear (Gini and Jony, http://www.giniandjony.com/, 2010). The focus of Gini and Jony has currently led to new alternatives for expansion throughout India as well as in other areas of the globe. The company is currently planning on extending the services offered for children’s clothes by the end of the year and has been approved by the Securities and Exchange Board of India for expansion outside of India. The revenue that is currently being made through the company comprises of growth at 40% annually. This is combined with 12 major stores and 250 outlets, with the desire to build 110 more outlets by the end of the year. The expansion that is expected by this company will not only provide with continuous growth and revenue, but is also expected to change the number of trends and fashion that is offered in different regions of the world (Fibre2Fashion, http://www.fibre2fashion.com/news/company-news/gini-and-jony/newsdetails.aspx?news_id=82234, 2010). A potential place for growth for the kids wear is in Shanghai, China, where new outlets and expansion options can offer children with different forms of wear. 5.2 Shanghai Consumer Market The current trends that are in Shanghai are offering more opportunities for Gini and Jony to launch for the first time. The current status in Shanghai has led many to a global outlook on the newest trends that are available. The global outreach has created a stigma known as being fashion forward. International fashion shows, trades in textiles and expansion from multinational corporations are all a part of the growing trends that are within the region (Chen et al, 154, 2006). For children, there are two qualities that are setting the trends and setting the status of being fashion forward. The first is the quality of the clothing, such as how well the brand is made. The second trend is to have style that makes a statement which is fashion forward. Brand names, new styles and a global perspective are all attributes that are currently a part of children’s clothing. At the same time, children’s wear has a stronger emphasis from the family, as most income levels can offer children brand names and styles because of the one family rule. For children, this has set new trends that are based on finding style and brand fits (Li, Yang, 93, 2005). 5.2 Shanghai as a Fashion Hub The current fashion trends and styles that are based on quality and new styles are further being initiated through the growth that is currently being initiated in Shanghai. The city is now being looked at as a central area for international development and is continuing to expand with the available alternatives for those living in the region. One of the growing trends is the initiation of shopping centers and a boom in retail concepts. While other regions of the world have stopped using the malls and larger outlet stores, China is now beginning to use these as a main trend for shopping and retail demands. Competition from different cities, including Shanghai, Beijing, Guangzhou and Shenzhen are currently growing in development. The initiation of shopping centers is leading to cities showing that they are the most developed by having more stores and international outlets for retail. The newer developments are one that is providing opportunities for retailers; however, the initiation of shopping centers is also limited by the knowledge included in the development of the stores (Wang et al, 20, 2006). For Gini and Jony, this presents several new opportunities for expansion with the new trends for status and fashions that are centered on the idea of the new and fashion conscious. The shopping centers that are continuing to grow in Shanghai and other regions are targeting the fashion conscious and those that are interested in new trends. Specifically, there is a focus on providing different types of clothing and newer styles to the younger generations. The older generations, which were under the post – Mao era in China, are known to keep the trends closer to the older fashions in China. Specifically, the Chinese fashion and design is known to hold traditions and a specific expression that is a part of the generational concept of fashion. Within these older generations, there is also a fashion hierarchy, specifically with Chinese styles that are represented by those who have wealth, as well as those that are interested in finding more practical solutions as a part of the lower class. National self – consciousness within the trends of wealth and as a part of the Chinese heritage are leading many of the older generations to continue to rely on the older types of clothing and Chinese styles for the desired trends (Finnane, 587, 2005). It is the newer generations that are providing an emergence outside of tradition and into a global and contemporary outlook of fashion and clothing. Youth and children are more interested in the international catwalks, all which have emerged in Shanghai in the last 20 years. More importantly, these younger generations have a different perspective on the representation of Chinese fashion. Rather than carry a perspective of holding to tradition and the nationalist Chinese culture, most of the youth are more interested in the expansion into an international economy. While many continue to keep some of the fashions from the cultural heritage, most interchange this with finding the best quality and fashion trends to make a statement of being new and belonging to an international community (Xiang – Ji, 6, 2008). To meet this perspective, youth are focused on finding international brands that reflect this trend (Jun et al, 2, 2004). 5.4 Distribution The current trends that are set in Shanghai are offering the perfect opportunity for Gini and Jony to launch in the country. The emerging trends of shopping centers that are focused on the newer generations and the acceptance of international styles are one of the alternatives that are providing the company with easy emergence into the community. This is combined with the growing trends that are a part of youth and children clothing, which is based on the idea of finding fashion forward brands and international styles that set an expression outside of the traditional cultures. Since Gini and Jony have branches of clothing styles that are based on emerging international trends, this will provide new opportunities to expand and be accepted as a major style within China and Shanghai. 5.5 Retail Pricing in China For Gini and Jony to branch into Shanghai, there is the need to look at retail pricing and potential profit that can reach this market. From the years of 2000-2003, China went through a deflation of products in the industry. However, by 2004, prices began to rise by an average of 1.3% per year, and continue to increase throughout various industries. In smaller cities, the pricing for fashion is lower by an average of 20%. However, in Shanghai, an average pair of jeans will sell for $117, as opposed to the US price of $50. Higher costs of attire are also in the industry and are continuing to cause a rise in the average spending amount in the area (Chinability, 2010). 5.6 Competition The main competition that is facing Gini and Jony with the expansion of children’s clothing into the region comes from the emergence of the super centers for shopping and the growth of international trends. Other multinational companies are beginning to move into the region as well, such as Gap for Kids. At the same time, there are still local competitors that many of the children recognize and will wear because of the recognized style and quality. For Gini and Jony to compete with these two areas, there will need to be recognition of the latest styles in both Western wear trends as well as from the cultural affiliations with the older trends that are available for children (Plunkett, 2010). 6. Critical Reflection While writing this paper, I found that there were different levels and dimensions that could be approached to finding the trends and auditing the marketing within Shanghai. The levels that were incorporated consisted of the past history of China, which involved political and national affiliations, consciousness of consumers and the accepted culture of the past. This was combined with an understanding of how China was changing and the newer generational attitudes toward the idea of being an international city and accepting the trends that were available. The marketing audit, from these perspectives, was also an analysis of the changing culture and the way that China was moving into becoming an international city. The dimensions that explored the culture and the trends were then seen in the emerging changes and growth of Shanghai. There were several different journalistic papers that pointed to the growth of Shanghai not only as an international city because of the changing culture, but also with the emergence of new architecture and growth. The shopping centers was one of the examples that expressed the new Shanghai and the changes that were beginning to be made in the past 20 years in the city. Exploring the way that the city was changing and relating this to the ideas of marketing was able to provide a different level of insight into the opportunities within the city, as well as the weaknesses that could potentially threaten the emergence of the company into Shanghai. The last area that was of interest when writing this paper was relating the textile industry to the city of Shanghai. To relate both of these, there had to be an understanding first of the culture, changes and international trends that were associated with the city. However, finding a deeper meaning and understanding of how these trends related specifically to the textile industry and the movement of children’s clothing into the area took a different type of analysis of these trends. Being able to combine these two factors was able to show how a marketing audit works on different levels and how each of the factors in a culture also relates to one specific industry. My ability to do this was able to help me grow in my skills and understanding of a marketing audit and how this related to different factors when looking at a specific company. References Chen, Xiaopeng, Wai Man Au, Kejing Li. (2006). Consumption of Children’s Wear in a Big City in Central China. Journal of Fashion Marketing and Management (8), (2). Chinability. (2010). China’s Retail Price Index, 1977 – 2010. Retrieved from: http://www.chinability.com/Prices.htm. Donnithorne, Audrey. (2002). China’s Cellular Economy: Some Economic Trends Since the Cultural Revolution. The China Quarterly (52). Fibre2Fashion. (2010). Gini and Jony on Expansion Spree. Retrieved from: http://www.fibre2fashion.com/news/company-news/gini-and-jony/newsdetails.aspx?news_id=82234. Finnane, Antonia. (2005). China on the Catwalk: Between Economic Success and Nationalist Anxiety. The China Quarterly (183). Gini and Jony. (2010). About Gini and Jony. Retrieved from: http://www.giniandjony.com/. Jun, Li, Zhang xue Feng, Feng Xiao. (2004). Study on Young Adult Female Consumer in Shanghai and Apparel Brand Merchandising. Journal of Donngua University Natural Science (04). Li, Min, Yixiong Yang. (2005). Study on Attributes Affecting Consumer’s Buying Behavior of Children’s Wear in Shanghai. Clothing Research Journal (3), (2). Plunkett. (2010). Apparel, Textiles and Fashion Industry. Retrieved from: http://www.plunkettresearch.com/Industries/ApparelTextilesFashions/tabid/149/Default.aspx. Wang, Shugang, Yongchang Zhang, Yuanfei Wang. (2006). Opportunities and Challenges of Shopping Centre Development in China: a Case Study of Shanghai. Journal of Shopping Center Research (13), (1). Xiang – Ji, Wu. (2008). Research on Fabric Fashion Information and Designer’s Strategy. Shanghai Textile Science and Technology (06). Read More