Apparel brands are facing a variety of challenges in China, with companies like VF Corp, Nike and Giordano adopting varying strategies to drive future growth.
VF Corp, the manufacturer of Lee Jeans, The North Face, an outdoor range, and Timberland boots believes sales will rise by 23% in China this year to $460m timberland 6 inch boots. It still, however, frequently runs deals.
"The broader environment is promotional, so you have to join in or you lose share Timberland boots," Aidan O'Meara, president of the firm's Asian-Pacific operations, told the Wall Street Journal.
Nike, the US giant Timberland boots, also revealed that orders received in most recent reporting quarter had fallen by 6% year on year Timberland Fur Boots, reflecting a wider obstacle which many players are seeking to overcome.
"Our main area of focus now is China, where we continue to manage down inventories on our books and in the market," said Donald Blair, its chief financial officer. "We'll continue to leverage our brand strength, deliver product assortments more sharply focused for Chinese consumers and transform our distribution network."
On its part, Giordano, a casual wear chain with over 1,300 outlets in China, logged a 4% sales decline in the opening six months of the year, and recently waited six months before buying new stock.
In response, it is increasingly tailoring ads for regions and cities. "We're not looking at major upturn, due to economic conditions in China," said Dominic Irwin, its CFO. "Everyone's sales are down."
Further reflecting this trend, Vipshop, a discounter selling clothes from domestic and foreign firms, works with over 3,000 brands, a 58% lift on 2011, as the amount of unsold inventory multiplies.
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