The western
brands regularly knew bitter failures on their market entry Strategy in China.
These failures often result from a lack of adaptation to expectations and to
local modes of consumption. Return on the example of the American group Of Levi
Strauss and its brand Denizen.
It is on
the occasion of the presentation of the figures of 3 first quarters 2012 that
Of Levi announced the stop of the brand Denizen in Asia. Initially the result
of a market entry in China, the brand then tried to become established on other
high-growth markets, unsuccessfully. Officially pulled by a will to put the
focus on the main brand, this retreat marks a real commercial failure.
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A willingness of enter
China market and on emerging markets
In 2010, Of
Levi who is then already present on the Chinese market (about 620 stores) tries
to position on the segment of bottom of the range. The launch is realized on
the occasion of a big show in Shanghai, openings of dedicated shops are planned
(about twenty first year), a logo is created, and the head office and the offices
of creation of the brand are for the first time the history of the group
outside the American territory, in Hong-Kong. Everything is made to impose the
new brand and not leave it in the shade of her impressive " big American
sister ". The market entry was really exciting in China
At the
level of the group, this failure in the market entry in China of the brand
caused an important backward movement because after years of growth, Levi knew
a decrease of its sale in 3 % volume. Furthermore, the retreat of Denizen meant
the impossibility to develop in a long-lasting way in Asia, and thus to set up
growth drivers on emerging markets, what was the unconfessed objective of the
group. In 2012, its sales volume has still moved back of 13 % in Asia.
