Frenchy Yummy, Implantation of Retail Shop in China

Résumé du document

Frenchy Yummy is a well-known French company specialized in the ready-to-wear industry for children. The company targets essentially middle class category mums, by offering wide clothes collections dedicated especially for children aged between 0 and 12. In France, the company met with success and has entered into its growing phase. The brand has already become an internationalization process but is not yet implanted in China. Frenchy Yummy was founded in 1999 by Christel Vizioli who had followed fashion studies at the famous French Stylist School ESMOD PARIS. At the beginning, the company focused on the creation of dress for women. The clothes were well-manufactured with top-quality materials which aroused the enthusiasm of luxury clothes buyers, especially the Japanese. In 2003, the strategic orientation of the company changed, it began to create products dedicated for babies, which gave birth to the brand 'Frenchy Yummy'. Frenchy because the clothes are exclusively made in France; Yummy because the materials used are luxurious such as hackle cotton or Swarovski crystals. The brand offers expensive fashion clothes for 0-10 years old children.

Extraits

[...] At the beginning, the company was focused on the creation of dress for women. The clothes was well-manufactured with top-quality materials what has aroused the enthusiasm of luxury clothes buyers, especially the Japanese. In 2003, the strategic orientation of the company changes; Cristel Vizioly becomes a mum and begins to create a products line dedicated for babies who gave birth to the brand “Frenchy Yummy”. Frenchy because he clothes are exclusively made in France; Yummy because the materials used are luxurious such hackle cotton or Swarovski crystals. [...]

[...] The inflation rate grows dangerously since 3 years. Average income is decreasing, what could reduce the buying power of customer if the middle class is concerned. The market is highly competitive, and the segment where Frenchy Yummy wants to compete is particularly difficult. The communist regime could be unstable. Retail sales have grown of during the nine first 2009 year. Clothing market has risen of to reach 40 billion. The gap between rural and urban population is reducing. The new legislation is favorable for the development of franchises. [...]

[...] Frenchy Yummy for Chinese toddler). But these collections must be exceptional. The promotion: As mentioned many times before, the stores will be implanted in large cities. Just the fact to be present in these town is a kind of promotion because investment to be there is huge. However, the implantation phase could be sustained by a street marketing campaign. In the vicinity of the shop, some hostesses could be hire to distribute some gifts to children walking with their mum. [...]

[...] In this country, the “one-child policy” creates “little emperor” who are spoiled by their parents. There is so a strong potential regarding this market on which Frenchy Yummy is specialized. - Political and legislation environment China is governed by the president Hu Jintao, and the current regime is strongly communist. However, the government encourages the expenditure of Chinese by making easier the implantation of foreign retail outlets. Since May 1st 2007, a new regulation16 regarding the franchise has been set up by the China's State Council. [...]

[...] Even if market differences are important, Frenchy Yummy must differentiate from its competitors. Procedures and policies must be the same as in France and marketing activities must be managed by the French department. The following 4 P's explain this way of thinking. The price: As it is the case in France, the price level must be quite high regarding the competition. Even if the quality is as high as its main competitor Catimini and Dada&Co, the company must define its price positioning from the beginning of its implantation. [...]