New Fashion Cities
New Fashion Cities
Fashion is
expanding fast to the new cities all around the world. In order to target these areas of growth,
luxury brands must adjust strategies to include cities that may not yet be on
their radar to ensure that they have a presence as new markets begin to
flourish. It is better to have a disciplined approach to target in priority
cities that matter most.
“It is
hard for a brand entering a new emerging market to do everything at once,” said
Sophie Marchessou, associate partner at the apparel, fashion & luxury
group at New York.
There are new fashion cities coming developing in countries like South
Korea, Indonesia, Mexico, Turkey, Iran, Egypt, the Philippines, Nigeria,
Pakistan, Bangladesh and Vietnam. With 60 percent of the world’s population
living within these countries, fashion brands now have opportunities for growth
outside the traditional established markets.
Fashion brands must extend their
retail footprint within the developing smaller cities where growth potential is
high. The 100 highest-growing cities such as Pune in India, Harbin in China and
Luanda in Angola, will grow significantly in comparison to megacities such
as Shanghai and Moscow.
Growth in fashion cities is already apparent in luxury sectors such as
fashion, spirits and beauty. Research suggests that luxury women’s wear will
grow from less than 10 percent a decade ago to 32 percent in 2025, while
high-end beauty products will double to represent 47 percent.
The fashion
industry and designers need to understand local market demographics, fashion brands
entering a new city location must have a handle on local culture,
especially in the beauty sector. For beauty marketers targeting consumers in new
fashion cities, it is essential to understand the grooming habits and preferred
personal care products in that city.
Five main
touch points should be tackled before a fashion brand selects to enter a new
city market. These include identifying the right go-to-market model per
location, determining the need for local customization, ensuring standards in
global customer service, gauging the need for organizational alterations and
how to allocate resources.
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