Senior Citizens In Italy Explore Opportunities And Challenges Of Italy Brand In China Market

During the Milan fashion week in September 25, 2018, the third station of "global fashion innovation and Investment Forum" was held successfully in Milan, Italy in 2018.

The forum has gathered senior executives from Italy fashion industry, luxury and fashion brand executives, representatives of government and industry organizations, and industry veteran. It has thoroughly discussed the development status, opportunities and challenges of Italy's luxury brands in China.

At the forum, two guests, including Attila&Co founder and CEO Andreina Longhi, and ClauDior Pasqualucci, representative of the Italy foreign trade department's foreign direct investment department, were invited to participate in the round table discussion hosted by Ms. Yu Yan, founder of "gorgeous", the opportunities and challenges of Italy brand in the Chinese market.

Attila & Co. is a public relations company born in Milan and serving luxury and fashion brands in Italy and the whole world. Customers include luxury brands such as Valentino, Versace, Gucci, Boucheron, Montblanc and so on, as well as Procter & Gamble, L'OREAL and other beauty makeup groups. Attila&Co. set up Shanghai office in 2003 to deeply participate in the dissemination of customers in China.

In recent years, Attila&Co. has begun to cooperate with Chinese independent designers to help the global promotion of Chinese designer brands.

The Italy trade bureau is a government agency. Claudio has previously worked as a trade commissioner in China and has lived in Shanghai for many years. Her main duties include promoting trade relations between China and Italy, formulating relevant trade agreements, and promoting Italy's export projects.

The two guests have worked closely with the luxury goods industry in Italy, and have rich experience and insight in the Chinese market. In their eyes, Chinese luxury consumers are getting more and more mature. In the first tier city streets, the popularity of people is almost the same as that of big cities in the world. The two are all optimistic about the development opportunities of Italy leather goods and accessories in China, but at the same time, they also point out that "wine is also afraid of deep alley". If brands want to enter China, they need to be right.

Invest actively, especially invest in building a good local team.

The two also believes that there will be more and more excellent brands coming from China to the world in the future.

Yu Yan: the two have deep experience in the fashion business field of Italy and China.

First of all, after witnessing the great changes in the Chinese market in recent years, what changes do you think Chinese consumers have in terms of luxury consumption behavior and attitude towards luxury goods?

Andreina Longhi: fifteen years ago, when I first came to China, my first impression was quite different from that of today.

At that time, I arrived in Beijing and Shanghai. Although the fashion industry in the first tier cities has already begun to take shape, there are not many international brands entering the Chinese market.

But now we come to Shanghai, which is no different from the global fashion capital such as Paris and New York.

The fashion atmosphere of China's first tier cities is very active, such as Chengdu's Taigu, which left a deep impression on me.

The young people there are wearing very avant-garde fashion. At the same time, we can see a large number of international brands choose to open stores there, and we can see almost all brand stores.

Besides, Chinese consumers are keen on overseas tourism, and the process of tourism promotes consumption.

We can see that the number of Chinese tourists now reaches 130 million, of whom 2 million are tourists to Italy.

The purchasing power of these consumers is quite amazing, and plays a vital role in boosting the tourism economy in Italy.

Now I go to China almost every month. Every time I go, I have new discoveries and gains. New brands, ideas, marketing methods and culture, as well as impressive new stores and new buildings, are constantly emerging and evolving.

It makes me feel that living and working in China is much more interesting than in Europe.

For workers who are engaged in the public relations and communications industry, this new change makes people feel the challenge on the one hand and enjoy it on the other.

Claudio Pasqualucci: I have worked and worked in China for four years, and I feel that the biggest change in recent years is the habits of the market and consumers.

My previous work in China is to provide services to Italian company in China to help them better understand the culture, consumption habits and ways of looking at foreigners in the Chinese market, so that Italy enterprises can better integrate into the Chinese market.

China has a vast territory, and it has different ways of dealing with Shanghai people, Beijing people or Xiamen people.

To help China and Italy fashion enterprises and the entire market to achieve smooth and effective communication, this is our direction of efforts.

In addition, over the past few years, Chinese consumers have begun to pursue more individualization and gradually abandon those stereotyped brands.

What I have observed is that such consumption trends are not only related to age, but also to consumers' self-consciousness.

Yu Yan: there are great differences between Chinese consumers' shopping behavior and preferences, and the changes are frequent. Italy enterprises need to constantly update their understanding of Chinese consumers before they can expand this huge market.

In your opinion, what kind of category or brand story can best attract Chinese consumers?

In my submission,

and

There is great potential in category.

Take Italy luxury brand Ferragamo shoes as an example. I often see white collar women wearing similar Ferragamo classic shoes on the streets of Shanghai.

It is not very fashionable in design, but it has always maintained consistent high quality and has been enduring in the fashion industry.

In the "white paper 2018 of China's new generation of fashion consumption" released by "gorgeous China", we see a lot of interesting and meaningful research data.

90 before and after 95, consumers did show great differences.

For the new generation of consumers, the traditional fashions are not as important as they used to be. They have their own fashion view and attitude. For them, fashion is a kind of personal label.

The pursuit of fashion is more like a process of knowledge accumulation. It is a matter of learning how to mix the single products with different prices so that the whole set looks more harmonious and beautiful.

For this reason, we hope to invite more talented Italy stylists to come to China to meet with consumers, and teach a how to match different products from different series, such as using a brand new series of single products to match consumers' old jeans and so on. This is very interesting.

Claudio Pasqualucci: the opening of the Chinese market is very strong, and the potential of shoes and accessories is huge.

We see that fashion brands rely on social media to build strong influence among young consumer groups.

This is the focus that Italy fashion enterprises need to pay attention to, focusing on the change of Chinese young consumers' shopping habits and preferences to enhance their shopping experience.

For example, under the influence of China's e-commerce giant Taobao and Jingdong, Chinese young consumers use less cash consumption.

We need to understand their habits to promote the development of online business of Italy's luxury brands and seize these opportunities.

Yu Yan: many Italy fashion luxury brands, including relatively young brands, have rich historical, cultural and technological heritage connotation. These connotations can easily be understood by Europeans in the same cultural background. But in the Chinese market, how do Italy brands convey these delicate brand cultures?

Andreina Longhi: I think young consumers are not very concerned about the past history and heritage of brands, they are more concerned about the brand's present.

Take Italy luxury brand Marni guerrilla store Marni Market, for example, this is a good way to attract consumers.

This offline experience can not be replaced by online shopping.

I think this is the best way for Italy brand to tell the brand story in Chinese market.

For the previous generation of consumers, the story of inheritance is a good story, but it does not apply to all consumers.

Many young consumers value their experience and personal feelings.

For example, a luxury brand guerrilla activity for only a week can enable them to get in touch with special products that they are temporarily unable to purchase.

I suggest that my clients do some special activities like this to attract Chinese consumers.

If the brand of Italy wants to enter China, it needs to make active investment in the Chinese market, especially investing in the establishment of an excellent local team.

Claudio Pasqualucci: cultural exchanges between Italy and China have a long history, and cultural exchanges and cooperation between them are based on mutual appreciation and equality. There is no such thing as deliberately changing the cultural aspects of products in order to show good consumers.

A group of highly talented Chinese designers have strong potential for overseas development, and their cooperation with the Italy fabric factory has been very successful. They have established a reputation around the world with Chinese design combined with the globally recognized Italy quality.

Yu Yan: when Italy enterprises are ready to enter the Chinese market, they usually face the question of "independent development or finding a partner?"

If we find a partner, can we establish a long-term trust relationship? If it is an independent development, can it afford the uncertain trial and error cost?

Claudio Pasqualucci: the answer is obvious. If you want to succeed in the Chinese market, you need to have a good partner in the area to help you fully understand the market environment in China.

I think it is difficult to enter the Chinese market independently.

There are many successful cases, but there are many cases that have tried to enter China but failed. It is not enough to rely solely on the high quality of products.

Effective understanding and communication is the key to success in the Chinese market.

Yu Yan: according to my observation, many excellent Italy brands have not yet entered the Chinese market.

From your point of view, what is the most important direction for Italy fashion companies to enter the Chinese market?

Claudio Pasqualucci: aside from the top Italy luxury fashion brands, only a small number of small and medium-sized Italy fashion companies have been successful in the Chinese market.

It is far from enough for Italy brand to get results only in China. It needs supply chain and excellent management team to fully understand how the company develops in China.

I can take my company as an example.

It's not easy for me to start business in China. I need to find some partners.

There are many things to learn in the Chinese market. No one will teach you how to do it. Marketing and communication are very abstract things.

At first, I tried to open an office in Beijing, looking at it from different perspectives.

I have made many mistakes in the process of learning to listen to the market, but eventually set up an office in Shanghai in 2003.

If you want to succeed in the Chinese market, it is necessary to win the support of your local partners. You need a good lawyer, a person who is proficient in Chinese market rules to give guidance.

Claudio Pasqualucci: the biggest inspiration for the Chinese market is that the Chinese market has provided a good opportunity for those who are willing to try and get the chance to succeed again. This provides a good opportunity for young people.

Many small and beautiful brands in Italy, though small in scale, have gained a niche share in the Chinese market by virtue of their unique product positioning.

It is very diverse. There are not only famous brands or very popular brands, but also market opportunities for distinctive niche brands.

Yu Yan: if Italy's fashion and luxury enterprises want to succeed in the Chinese market, they should pay special attention to improving their learning ability and efficiency.

We should conduct a full investigation of the rapidly changing market environment and consumer preferences, be good at finding opportunities that others do not find, and be smart enough to find trusted partners and cut into the market efficiently.

Although some Italy brands are very small, they will get their recognition and welcome the explosive growth opportunities they dare not imagine in other parts of the world, so long as they meet the continuous consumption habits and lifestyles of Chinese consumers.