Via Condotti Entry Strategy For China

Given the continuous growth of the luxury industry in China, which has become a USD40billion "El Dorado", it is unsurprising that an increasing number of Western companies are considering a Chinese market entry. This thesis aims to be a tool for those companies looking to expand their international presence, by suggesting a focus not only on the financial proposition, but also the strategy and marketing considerations in order to arrive at a successful conclusion. Italian producers benefit from a quantifiable "added value" with Chinese consumers, thanks to their association with fashionable design and quality. In arguing that Via Condotti, an Italian fashion retail franchise, should enter the Chinese market using an adaptation strategy with a JV alliance, the thesis delivers a blue print for similar European fashion firms considering expansion into Asia. This thesis also demonstrates how launching the brand in "Second Tier" Chinese cities can help fashion brands achieve differentiation and brand recognition by avoiding the fierce competition in those cities which have become the overcrowded epicenters of Sino-European luxury.