The Chinese fashion and luxury market has experienced a meteoric rise in recent years. So much so that the Chinese luxury market is the most active in the world. Setting up a French company in China has never seemed as attractive as it does today.
Why set up a French company in China?
The most obvious advantage of setting up a French company in China is its increased growth. Indeed, despite the various global crises, China has always managed to stay on course, thanks to its various government plans.
In China, everything can change very quickly. So benefiting from this expansion can be a real boon for a French company.
In fact, Gucci, Yves Saint Laurent and Louis Vuitton all opened stores in Shanghai several years ago. These stores have all enjoyed dazzling success. In recent years, a strong middle class has emerged in the Middle Kingdom. These young Chinese, with their strong purchasing power, can spend lavishly on luxury brands.
Furthermore, setting up a French company in China is very attractive in terms of production costs. Real estate, transport and labor costs are far more attractive than in Europe.
Investing in digital fashion and luxury goods also seems a good opportunity to seize when setting up in China. In the image of Pradawhich has signed a partnership with JD.com, a leader in the Chinese fashion market.
China visa: how to enter the Chinese market?
A quick and efficient way to establish a presence in China is to open a representative office. This involves setting up a head office for a fashion brand in China. From then on, any French company can open a low-cost branch in the country within a month, to test its place on the Chinese market.
This solution enables you to carry out market research on site, target your clientele and build up a network. Beware, however, of the limitations of a representative office. As a foreign company, you won't be able to make sales, or hire staff directly.
Consequently, opening a representative office is an interesting opportunity if you want to meet market players directly on site, and take the temperature of the fashion and luxury sector in China.
In any case, to set up a business in China, you'll need to find a trusted local partner. He or she will guide you through all the steps involved in setting up your business in the country. From administrative formalities to the search for premises, having a Chinese contact is essential for setting up your brand.
Would you like to become a player in a fast-growing market? Discover the different fashion courses at ISAL Paris to become a key fashion player.
