BM9718 - Research Methods and Analytics for Business Practice

Assignment Task

Introduction

For more than a period, China has dominated the global garment manufacturing and export market. China's apparel exports soared when the World Trade Organization agreed to eliminate textile quotas at the beginning of the century. In 2018, the largest producers more than 1/2 of the world's textiles and apparel and exported more than 30% of all clothes. However, China's textile business has slowed dramatically, with the goal of creating a sustainable and digital sector (Ma, 2021).

As per McKinsey, China surpassed the United States as the world's largest fashion industry in 2019. Over the last decade, China's fashion sector has flourished and evolved (Chinese Fashion Industry, Fashion Brands in China, Fashion industry in China, 2021). At the moment, it is still growing at an exponential rate. Industries for both high-end and low-end clothes are quickly expanding as a result of increased urbanisation and rising consumer buying power.

Overview of China Clothing Brands

Despite being the world's greatest customer and manufacturer, China's garment sector is still uneven. Several large-scale Chinese garment enterprises have excellent machinery and vast output capacities, but limited advertising and production capabilities. Domestic enterprises must boost their design and marketing skills to deal with the intense rivalry at a period when brand consciousness is developing.

After certain changes, a more distinct and competing garment industry cluster region will emerge. Optimizing resource distribution improves industrial upgrading and creates more favourable survival circumstances. China apparel brands must construct a brand structure, build a brand reputation, develop new technologies, and improve brand culture in order to counter the tremendous attack from abroad businesses (Lu, 2012).

There are various e commerce website available for fashion market. Alibaba, Tencent, and Baidu, among other domestic titans, dominating Chinese e-commerce. Apparel is one of the most popular e-commerce categories in China. The majority of the clothing ordered online comes from Taobao. Online purchasing has been the preferred method of most people due to lower prices and a wider variety of styles. China's technology industry has generated worldwide heavyweights like Huawei and Alibaba, there has yet to be an analogous fashion brand.

A sales promotion is a marketing approach in which a company uses short-term promotions to pique purchase intention, service, or any other offering (Pahwa, 2022). As per the campaign is intended for, sales promotions may be categorised into two categories. Here list of sales promotions methods:

In this study, we will examine the influence of various promotional or marketing methods on increasing sales in the Chinese fashion business. We'll use Alibaba as an example for better understanding.

Why Alibaba?

In China, garments, footwear, and accessories account for over a quarter of e-commerce purchases, and the internet shopping sector is predicted to increase at a 20 percent annual average pace through 2020. According to Goldman Sachs, the online clothing business will reach RMB 2 trillion in size by 2020, with Alibaba accounting for 70% of the sector (BizVibe, 2022). Alibaba holds major sales of the China, so it is best example to understand their methods, strategy, customer behaviour and other marketing approach. Alibaba is a Business - to - business marketplace that connects suppliers and customers. The website's intended audience is always another firm or its workers. Alibaba provides a wholesale marketplace for small purchasers looking to export modest quantities of items quickly. It also provides company management software and Internet infrastructure services to companies all throughout China (Blog, 2022).

Research Aim

The goal of this research paper is to identify various marketing and product penetration strategies, such as brand recognition and marketing initiatives, in order to increase sales in China's fashion accessories industry, which is centred on Alibaba, an online ordering portal that sells a variety of fashion garments, footwear, and accessories. Alibaba's most effective brand marketing techniques are very inventive, visible, and easily imitated by new generation entrepreneurs.

 Research Objectives

• To learn about the psychology of new age fashion customers and their attitudes about buying online.
• To compare and contrast product penetration strategy with current store market strategy with online offerings.
• Understanding and identifying numerous brand promotional tactics and platforms that are appropriate for new age marketing strategies.
• To determine the best branding tactics for improving brand recognition and sales in both established and new consumer markets.
• To discover and comprehend the measured effects of brand promotional activities done across multiple marketing channels in order to grab customers' attention through new age brand promotional activities against old promotional activities.

 Research Scope

• The significance of the new era Promotional strategy
• E- commerce demand is increasing.
• Consumer preferences in the fast evolving fashion business are being shaped by brand and promotional marketing awareness.

Literature Review

Fashion market

In one of the research paper (ZAWADZKA, 2015) it mentioned that the fashion marketing is a continuous activity that impacts corporate and institutional behaviour of firms within a specific setting. Buyers become more conscious of their demands and are no longer mindlessly following provided trends, making fashion marketing strategies more significant than ever before. There are a number of aspects that influence fashion marketing efforts, including customer behaviour—specifically, why they purchase a certain outfit. As a result, market analysis should really be performed to study the data as well as the activity of rivals. Ultimately, to improve sales, a clothing product's reputation, and place on the market, one should modify their fashion marketing mix employing many factors such as price, promotional tools, and distribution methods.

Alibaba promotion strategy

(Team, 2017) suggest Alibaba uses a variety of avenues to market the brand. It promotes using conventional media such as print, radio, and television. It promotes itself using clever catchphrases. Alibaba uses digital media to market its services, which are mostly available online. They've also sponsored international tournaments such as the World Championships. It has also funded Australia-China Corporate Week, among the most rising corporate events. Incentives, rebates, seasonal sales, and cashback rewards for purchase on its ecommerce websites are some of the numerous ways company advertises itself.

The boom in Fashion Industry by various Promotional factors

The Online business shows noticeable increase in China during and post pandemic, which has impactful increased commerce of Alibaba through hints and consistent media ads

The fashion industry in china has been growing consistently with increase in purchasing power (research by GMA, marketing to China, 2019), and among all online portal Alibaba grabs almost more than 62% of online market share, also suggests Alibaba’s identity at every 2nd minute in any of either medium.

Fashion is China’s one of the most lucrative industry, which has got further awareness by Alibaba’s lucrative offers on Fashion articles and has been promoted internationally by Gorilla marketing strategies.

Many international fashion brands wish to enter Chinese fashion industry through online portals and intermediary channels and Alibaba is one most desirable among all due to its wide reach to customers and lucrative offering as a tool of promoting fashion products.

The increasing Use of Digital gadgets:

Use of Mobile phones have been increased from the young age impacting the online purchase by young generation especially fashion articles.

The smartphone penetration is the highest among ages 18- to 24-years old, at a staggering 93 percent, which further leads to purchase online.

The Impacts of pandemic on Online Fashion Industry:

The pandemic and post pandemic scenario have been proven as one of the key factors in increase in online fashion industry as many people have joined online market as sellers or buyers through easy connect of Alibaba’s business association network.

People of china have witnessed the easiness of lucrative offers made by Alibaba

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