On biz failures in China : Jing daily

In the Jing Daily article that I am reposting here, Glyn Atwal gives a few solid reasons why many fashion businesses fail in China. Underestimating local competition, lack of speed, lack of newness, not understanding local consumers, and bypassing the need to develop locally appropriate strategies.

Although the points he makes are valid, to me his argumentation does not go far enough. For me, it comes down to a refusal or inability by global brands to fundamentally compromise their global approach.

Global brands think global. To really succeed in China that is simply NOT possible.

China requires a complete retool. A full rethink of how business is done. The market is so different that existing (global) strategies, even those adapted to better fit China, are never good enough.

Global efficiencies? Forget about them. Your China business can create its own efficiencies, once you do well enough.

Global marketing. Forget that too. China’s digital market can teach your home-grown strategies a thing or two.

Global product? Some of it works, but most of it never will.

Investment risk? Rethink it. China is risky. Sure. But NOT taking the risk to go all-in, is the wrong choice also, given the size of the price.

Staff and Talent remuneration. Redesign it. Your global program will not cut it.

Many brands talk “China for China”. But ask yourself, which brands REALLY do? The few however that have understood it, are remarkably successful!