5 things to know to export to China
Looking to export to China? That's good, its consumers love La French Touch! This market, which may seem difficult to access due to its geographical and cultural remoteness, represents real opportunities for French brands. You will surely need these five pieces of information before packing your bags in the biggest market in the world.
The French Touch is 5% of French wealth but also issues of international influence, soft power and competitiveness. Several companies carry its banner beyond the borders and even as far as China. The country, indeed fond of French brands, has already welcomed several names such as Diptyque, Zadig&Voltaire, or even ba&sh. With Matthieu Rochette Schneider, architect and general manager of centdegrés China and Southeast Asia, these brands share their experience and the keys to success in this area, which presents as many opportunities as it does challenges.
1. Being part of the French Touch, a strong argument on the Chinese market
China's vision of France is a plus for French brands. Elegance is the key word when talking about La French Touch, or “fàshì” (法式). The image linked to the chic Parisienne remains very firmly rooted: " Paris continues to inspire Chinese consumers, who see our brands arrive with their know-how, their quality, their heritage. These values are very well perceived there “, explains Fabienne Mauny, executive director of Diptyque. A vision that can prove to be a pressure since it requires living up to La French Touch and the imagination that surrounds it.
If France is already well represented by the major fashion and luxury brands, the smallest companies should not be intimidated by it. " Only China has a market of this size on Earth. I find that the size of the company is not the problem. There are very small SMEs in the regions whose passion, history and embodiment of their brand allow them to develop in China », illustrates Matthieu Rochette Schneider, whose centdegrés China and Southeast Asia company supports companies in this area.
2. Localize your product and brand to meet China's expectations
Being part of La French Touch is good. Being so while meeting local codes is even better! This is one of the main challenges faced by French brands targeting the Chinese market. " We must be attentive to the colors that are fashionable, which are not necessarily the same as in France. On ready-to-wear and shoes, the morphology of Asians is also different from that of Europeans », explains Astrid Dang, Senior Project Manager Greater China at Zadig&Voltaire. For its part, the ba&sh brand, which has been established in China for 5 years and distributed in forty direct sales outlets, offers products designed specifically for the Chinese market. " These products represent a large part of our sales in the area “says Zephyr Liu, CEO Asia of the company. From the outset, the brand surrounded itself with local partners who helped it better understand the habits of Chinese consumers. For its Asia director, this is one of the key points of success in this country: " We then built our team locally to have real market expertise, and we communicate regularly with the head office in France. ". This is the strategy adopted by Diptyque, whose local team enables the company to better understand the area, adapt to it and succeed there.
Matthieu Rochette Schneider also encourages companies to devote time to discovering Chinese culture. " To avoid pitfalls, you need to build up an appetite for China. Once a week, for example, set aside three hours to read about China, its trends, what's happening there... The uncertain becomes less so, it encourages a healthier curiosity and it prevents fantasizing about any new information. ". From design to distribution, we must think about keeping our French Touch banner while thinking Chinese.
3. Social networks to “touch the hearts of the Chinese”
It's difficult to discuss China without mentioning its social media. In a country where Facebook, Twitter, and Instagram are inaccessible, the focus is on WeChat, Douyin (the Chinese version of TikTok), and Little Red Book. These platforms are essential for reaching consumers. " Brand awareness is crucial for winning over the Chinese. Communication shouldn't be overlooked and must be highly localized ," explains Astrid Dang of Zadig & Voltaire. Like many others, the brand has partnered with local celebrities such as singer Wang Feifei to generate interest.
Influencers have a great power of persuasion, especially during “live-shopping” sessions, a video format broadcast live via platforms such as Taobao Live, launched by the giant Alibaba. They try the products there, present them to the public who, once seduced, can buy them directly without leaving their viewing. This form of sale has become a key to e-commerce in China, which even the big luxury brands have taken over.
4. China, a country where the virtual attracts
Live shopping is a testament to this: the Chinese are avid online shoppers and consumers. Digitalization is therefore crucial for any company looking to expand in the region. " In China, almost everyone owns a smartphone. You don't turn on a computer to shop ," explains Astrid Dang. " The digital ecosystem is completely different; you have to learn everything, and it's important to do so with teams on the ground, with whom you need to communicate daily to understand the challenges and the customers so you can speak to them in the most appropriate way possible ," adds Fabienne Mauny of Diptyque.
In China, too, the metaverse and NFTs are generating buzz. Dior, for example, created a virtual avatar of its Chinese muse, actress Jing Tian. Other brands are organizing NFT lotteries, which are particularly popular with Generation Z and Millennials, who represent the majority of consumers and are closely monitored by companies due to their purchasing power.
5. Covid brings new trends
As in many other countries, lockdowns brought with them new habits, primarily a return to self-reflection and a focus on well-being. Fabienne Mauny and her Diptyque perfumes perfectly illustrate this. " Some told us it was too soon, that perfume didn't appeal to Chinese consumers at that time, that the overall perfume market was very small within the total beauty market, and I'm not even talking about niche perfumes ." And for good reason: the Chinese were still wearing very little perfume when the company arrived in China in 2014. The market, then considered minuscule, nevertheless experienced real growth with the arrival of Covid, with a newfound interest in perfume among the population. A gamble, initially risky, thus transformed into a real opportunity. " The Chinese are fast learners and quick learners; this interest in perfume, which wasn't at all obvious 10 years ago, is definitely there today." "We are increasingly captivating people with perfumes for themselves and for the home ."
In summary, entrepreneurs who have experience in China emphasize the need for a clear vision of long-term objectives and the ability to prioritize budgetary priorities. " China is both a sprint and a marathon ," concludes Matthieu Rochette Schneider.
To learn more, watch the replay of the Dare to Go to China webinar!
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