Clothing Brands International Strategy Research

China plays an extremely important role in world apparel manufacture. Statistics indicate that China ranks the top one regarding textile and garment manufacture and exportation. In sharp contrast to the status, China rarely has its own world renowned brands. Through industrial analysis, we found that China relies solely on low cost and scale production while not on brand. Chinese apparel enterprises execute licensed manufacturing for leading brands, charging processing fees in percentage of sales price. However, the fierce competition of apparel industry propels world brands to further lower their costs, therefore the profit margin left for local firms is smaller and smaller. Meanwhile, some less-developed countries tend to replace mainland China as new processing bases. While many local firms concentrate too much on licensed manufacturing , neglecting the development of their own brands. To make it worse, the violent attacks of world brands bane local brands after China's entry of WTO. Which way will Chinese apparel brands step on? Holding this question, the author read Michael E. Porter's theories of competitive advantage and competitive strategy, David A. Aaker's brand equity theory, as well as latest discussion on brand theory and subjects on fashion industry. These theory and topics do contribute a lot in guiding the globalization of local apparel brands, which can use previous experiences of other countries for reference. Nevertheless, not all western theories customize and provide explicit advice to local firms. On this ground, the thesis raises six hypotheses and reaches conclusions through plenty of case analysis and theoretical demonstration. First, lack of competitive strategy is the key point of the Chinese apparel makers' backward state. Many local firms without explicit strategy focus on short-term interests and can hardly gain competitive advantage and excessive profits. Given the current situation of our target firms, the most appropriate strategy is the focused differentiation one. Second, building global brands is an important approach to eliminate laggard, for brand is a valuable strategic asset and the major source of competitive advantage, bringing high returns consecutively. The author divides local apparel firms into three categories and analyses them one by one. Third, perceived quality is the basic element of brand equity. The author distinguishes perceived quality from real quality and points out its effects on ROI. Following that, the author analyses the current situation and handicaps of local brands according to the six aspects of quality specification. Fourth, special brand association springs from positioning, while the later relies on brand personality. The author quotes plenty of cases to illustrate how to position effectively. Fifth, marketing mixes should serve positioning. The author provides concrete advice on how to build strong brand through 4Ps. Sixth, brand extension contributes to brand awareness by the leverage effect. The author explores a realistic operation here which may enhance brand equity and should be cautiously used.