Caroll has been created in 1963. The company is a subsidiary of the Vivarte Group since 1988. That French company operates in the ready-to-wear sector, and proposes a large range of products. Caroll's success comes from the quality of its products, as a consequence its know-how and its style. Caroll is an international company with more than 270 outlets around the world (10 countries). The group expended itself thanks to a franchise network both in France and in Switzerland, and has many shops around the world in Europe, in the North of Africa and in Japan. In order to growth continually, realize scale economies and so find other new potential, western companies look at Asian markets and more precisely emerging markets with a strong growth potential and sufficient income levels.
Some European companies already entered Chinese market such as Zara in 2006 and H&M in March 2007. The middle class is more and more sensitive to fashionable brands.
China confirmed its large potential because a lot of luxury French company already introduced themselves. Moreover, Chinese middle class represents 23% of the population: In other words, such a considerable potential consumers could be a huge opportunity for the company..
They may represent 70% of the population in 2025.
How Caroll can enter the growing ‘middle market' in China? Which marketing strategy the group must implement?
[...] How to communicate among Chinese middle class? Advertising campaigns have to integrate Confucianism and Taoist values, such as social achievement, familial values, discretion Rebel image communication isn't a good strategy of identification in China. Rational reassurance and emotional relevance toward all consumers and different cultures targeted. Morality codes are very important facing Chinese consumers. A communication campaign which doesn't respect traditional cultures can't be successful. Moreover, the seduction must not be too much active. The 7P's model is more complex than the four usual categories: The Process: characterized by the interaction with the customer reception, council, opening hours, after sales service etc). [...]
[...] Foreign companies use to realize high margins per product in China. The average Most of local factories propose low quality/ low price products with low quality. Caroll has to differentiate its product regarding to the others brands. As a consequence, the price has to reflect the quality. (High price/high quality) To implement a high price policy, the company targets the upper market and after to conquer the middle market because the revenue of this market are growing. To conclude, Caroll should target the middle and the upper class. [...]
[...] We can thus analyse the position of Caroll and its competitors within the Chinese market. The Boston box : Boston matrix of Caroll's stores: Marketing Strategy How does the Chinese context affect each element of the marketing mix? The best way to answer this question would be according to the 4 P's theory Product There are two main strategies. For the first one, the product doesn't need any change to be sold on each market. Only language (communication) and packaging differ. [...]
[...] The designer incarnates the trend, the vogue. However, it is necessary to determine the quantity of pieces required for the collection, bargain prices of textile fabric with suppliers, check the conformity of prototypes and manage provision. At each step corresponds to a job speciality: floorwalker, buyer, supplier, designer etc The main expectations of consumers can be resumed in some words: personal embellishment, a symbolic value and distinctive codes appropriated to this middle class. This middle class looks for brands with strong identity, readable and educational, because consumers are still novice, although both 15-24 years old and more than 35 years old people already have experience in the act of purchase: they compel innovative products without defect, not only in term of design. [...]
[...] http://www.aujourdhuilachine.com/article.asp?IdArticle=1200 Concerning Caroll, we can find four major competitors Zara is present in the country since 2006 with 1 store in Beijing and 3 in Shanghai. Zara might be a direct competitor of Caroll. H&M is present in China since June 2007 with 3 shops in Shanghai. It could be a considerable competitor for Caroll because H&M positions it on cheap / low quality products. Etam is present in China since 1997. The company owns 2300 stores. She is well established in China. Cache-Cache has 60 outlets in the country and. [...]
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