Caroll's introduction to the Chinese middle market

Résumé du document

Fashion market is a very important market with a turnover of 26 Billion euros. This market is characterized by a steady general turnover over the last 15 years with decreasing average prices. Effectively, prices have decreased contrary to sales. As we are in a consumption society, fashion market has followed the consumer's expectations. Today, a woman prefers buying two cheap tops more than an expensive one. Women are acting like that because of fashion. In the past, a fashion period, a fashion wave lasted five or six years. Today, a fashion period only last few months, that is to say two or three months. This is the reason why consumer is able to buy new clothes every month. Thanks to the average price which has decreased in the past few years and buying clothes every month has become possible. In addition, to attract consumers every month, manufacturers have to be very reactive to meet consumer expectations. In order to propose attractive prices, fashion houses had to reduce their production costs. This motivation drives the manufacturers to become bigger than before, to produce more to decrease the final prices, without decreasing their benefits.

Extraits

[...] Firms which want to introduce their activity in China have to evaluate that the Chinese culture is very different from the French one. May be there are differences between Chinese tastes and French tastes. Maybe the Chinese customer's expectations are different from the European customer's expectations. Furthermore, culture is very important in management too. In addition, firms should take care of the communist institutions which should be dangerous for the development of the activities. Market rules are different from western countries one. [...]

[...] This is a way to be present where competitors are not. In addition, to be present in town centers show that the firm sells delicate products. The second type of sites where Caroll is present is the commercial centers. Effectively, commercial centers are the leaders in dealing clothes all over the France, that's the reason why Caroll has decided to be present there. Caroll is present in commercial centers through two different retail points: through a normal store or through a corner. [...]

[...] Consumer knows that Caroll not only proposes clothes, what is a new reason to enter the Caroll stores. To top it all, Caroll has got a very good development policy. On the Caroll's web site, the brand propose partnerships with private contractors. It's an opportunity for Caroll to grow faster than before. Effectively, Caroll opens itself number of stores each years, and private partners opens too some Caroll stores each year. The private contractor profits from the notoriety of the brands and takes advantage of the firm knowledge and network. [...]

[...] Caroll's introduction into Chinese middle market Introduction Fashion market is a very important market with a turnover of 26 Billion euros. This market is caracterised by a steady general turnover over the last 15 years with decreasing average prices. Effectively, prices have decreased contrary to sales. As we are in a consumption society, fashion market has followed the consumer's expectations. Today, a woman prefers buying two cheap tops more than an expensive one. Women are acting like that because of fashion. [...]

[...] In addition, we have learned that the average product prices have decreased since the fashion period had been reduced. Consumer prefers buying two cheap clothes than only one more expensive, even in the middle market. To face this problem, firms like Caroll have created big structures to decrease production costs, in order to propose low prices in the market. So, Caroll's process is made of an efficient supply chain management with a production unit and 282 stores to sell the goods. This network is very well organised and Caroll is a great success in France. [...]