The fashion and luxury goods market in China has experienced rapid growth in recent years. So much so that the Chinese luxury goods market is now the most active in the world. Setting up a French business in China has never seemed as attractive as it does today.
Why set up your French business in China?
The most obvious advantage of setting up a French company in China remains its increased growth. Indeed, despite various global crises, China has always managed to stay on course, thanks to its various government plans.
In China, everything can change very quickly. Therefore, 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 boutiques have all been hugely successful. The reason for this is that a very strong middle class has emerged in recent years in China. These young Chinese people, with their high purchasing power, can spend freely on major luxury brands.
Furthermore, setting up a French company in China seems very attractive in terms of production costs. Indeed, real estate, transportation, and labor costs are much more attractive than in Europe.
Investing in digital fashion and luxury goods also seems to be a good opportunity to seize in order to establish a presence in China. Like Prada, which has signed a partnership agreement with JD.com, a leader in the Chinese fashion market.
China visa: how to enter the Chinese market?
A quick and effective solution for establishing a presence in China is to open a representative office. This process involves creating a parent company for your fashion brand in China. From then on, any French company can open a branch in the country within a month and at low cost, to test its position in the Chinese market.
This solution allows you to conduct market research on site, target your customer base, and build a network. However, it is important to note that representative offices have their limitations. As a foreign company, you will not be able to make sales or hire staff directly.
Consequently, opening a representative office is an attractive opportunity if you want to meet market players directly on the ground and gauge the mood of the fashion and luxury sector in China.
In any case, to set up your business in China, you will need to find a trusted local partner. They will guide you through all the steps involved in establishing your business in the country. From administrative procedures to finding premises, having a Chinese contact is therefore essential for establishing your brand.
Would you also like to become a player in a rapidly expanding market? Discover the various fashion courses at ISAL Paris to become a key player in the fashion industry.
