Overview

FASHION E FAR EAST

ROUND TABLE:
“PROFIT DOES MATTER”

All the challenges that fashion brands will have to face in order to remain competitive on the Chinese market. This is the central theme of the round table entitled “Profit does matter”, moderated by Flavio Sciuccati – Partner of the Global Fashion Unit of The European House – Ambrosetti, which took place in Shanghai on January 20.

Round Table: “Profit does matter”

Challenges to remain competitive on the Chinese market

In recent years, the turbulence of the markets, the hyper competition and the disruptive role of the new technologies are increasing the complexity of the business environment in fashion industry.

China is viewed as an opportunity, but there is still a long way to go before they can put themselves forward with a sound, competitive proposal and model.

What is more the Chinese market is going through a very particular period:

  • The economic crisis is curbing consumers’ confidence and their propensity to buy.
  • Excess production capacity is having an impact on availability of stocks.
  • Specific trend sectors (e.g. fast fashion, e-commerce, the growth of a network of factory outlets) are radically changing the traditional operating cycle;
  • travel retail is contributing to a shift in the competitive landscape from a local to a global scale;
  • Consumers are changing their value system and looking for a more sophisticated segmentation of the market.

This has resulted in a strong pressure on margins, to which companies must react by translating their branding strategy in operational terms, through:

  • The structure of a product, redefining its stylistic identity in line with the destination markets and optimizing the merchandising range and structure.
  • The distributions channels, aiming at an omnichannel approach, which includes a fine balance between the different distribution options.
  • The operations, making the development of the collections, the industrialization, the management of the supply chain and the organizational development increasingly more integrated.

These and the other challenges that fashion brands will have to face in order to remain competitive on the Chinese market were discussed during the round table entitled “Profit does matter”, moderated by Flavio Sciucciati – Partner of the Global Fashion Unit of the The European House – Ambrosetti. This exclusive event was held at the Klee Club in Shanghai on January 20 and was reserved for around ten top managers from leading fashion brands, with contributions from Diesel, Zegna and Giorgio Armani.


Flyer of roundtable meeting

You might also be interested in:

Why Italian Luxury Companies Are Still Betting on China
James Tarmy – The Business of Fashion – January 20, 2016


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