SWOT analysis of Chinese textile and apparel brands in the Russian market

2017-11-14

In the early 2000s, due to the large influx of Chinese clothing into Russia and the existence of a seller's market with high demand, some unscrupulous merchants imported many inferior products into Russia. This led to a significant decline in the reputation of Chinese-made goods among Russian consumers. Some Russian shopping malls even displayed signs saying, 'No Chinese goods available, please shop with confidence.'

Learning from past mistakes, starting in 2001, a group of honest and quality-focused Chinese clothing companies began to establish themselves in Russia and Eastern Europe. Through their relentless efforts, they gradually restored the lost credibility and face of Chinese people in this region. With their commitment to product quality and integrity, they have once again opened the arms of our great neighbor, Russia, to 'made in China.'

Therefore, in several core cities of Russia, we now see two Chinese brands entering trade centers and shopping malls. These Chinese clothing companies, which regard quality and integrity as vital, are working together with local agents to create retail outlets across Russia and Eastern Europe. They are beginning to showcase Chinese clothing brands and are enhancing the status of these brands abroad with their persistent and strong brand awareness.

Chinese down jackets and cotton jackets are the most significant products in the clothing trade with Russia due to the unique cold climate characteristics of the region, where autumn and winter last nearly eight months. Through comprehensive market research in Russia, we compared various marketing elements of mainstream local brands of down jackets and cotton jackets, and then conducted a SWOT analysis of leading Chinese clothing enterprises entering Russia against these strong local brands.

Brand 1 Brand 2

Brand 3 Brand

Brand 5 Highest sales SAVAGE FiNN FLARE MEXX Baon TOM FARR Most diverse categories FiNN FLARE SAVAGE MEXX Baon TOM FARR Best display area MEXX SAVAGE FiNN FLARE TOM FARR Baon Highest distribution rate FiNN FLARE MEXX SAVAGE TOM FARR Baon Best reputation SAVAGE MEXX FiNN FLARE Baon TOM FARR Best terminal advertising SAVAGE FiNN FLARE MEXX TOM FARR Baon Best promotional activities TOM FARR SAVAGE MEXX FiNN FLARE Baon From the above analysis, it is clear that SAVAGE and FINN FLARE are strong competitors that our Chinese clothing enterprises need to focus on.

II. SWOT Analysis of Leading Chinese Clothing Enterprises Entering Russia Based on the overseas terminal construction situation of several Chinese clothing brands and the domestic supply chain conditions including R&D, design, production, and marketing, we have conducted the following SWOT analysis:

In this great country of Russia, we coexist with risks and opportunities. As long as we clearly understand ourselves, recognize the market, identify all competitors, and gain an in-depth understanding of them, we have every hope of securing a place.

Although our Chinese clothing initially entered the market at low prices, it may take several years to fully change people's perception of 'cheap goods' made in China. The next few years may be a period for us to compete while maintaining a low profile. However, once we achieve a certain number of retail outlets and successfully execute promotional activities and brand promotions across regional markets, the era showcasing the brilliance of Chinese brands will not be far away.

We have reason to believe that with the continuous enhancement of China's national strength and international status, as long as Chinese clothing brands maintain their passion for creativity, unwavering fighting spirit, and commitment to quality integrity, it is entirely possible for several international brands like ESPRIT or Zara to emerge within ten years.

Mr. Fang Qifeng - Economist, Senior Logistics Expert, Visiting Lecturer at Tsinghua University. He has served as Senior Brand Manager at Xinhua News Agency's China Advertising Corporation, General Manager at Beijing Special Post Advertising Company, Planning Director for Asia-Pacific at an American pharmaceutical holding company, Global Brand Manager at Tian Shi Group, Brand Head at Dongfuda (China) Investment Company. He was also Market Manager at Dongshang Clothing Co., Ltd.; Mr. Fang focuses on corporate brand building, strategic planning, diversified development with specialized operations, and has extensive practical experience in integrating logistics strategies, cosmetics chain operations, and brand operations in the Russian and Eastern European clothing markets.