The Council of Fashion Designers of America (CFDA) has signed its first Chinese partnership with Shangpin.com, China's leading online retailer.
Shangpin.com is China's first online retailer to sell in-season contemporary and designer brands at full price. Although online retailers have been doing this for years in the West, this is a new e-commerce model in China. Shangpin.com is the first and preferred shopping destination for consumers looking for the newest trends online.
David Zhao, CEO of Shangpin.com says, "We are thrilled to be partnering with the CFDA to assist the designers in developing new business in China. We look forward to sharing our insights on the Chinese market with the members of CFDA. China is a challenging market to enter, with limited distributors to cover such a large geographical area.
“This is why e-commerce in China, much more than in the West, is the most effective distribution and marketing platform for designers who want to reach across China into many regions where traditional brick and mortar stores do not exist. Shangpin currently sells into more than 400 cities across China, or 80% of the country, and we have the 'pulse' of the evolving Chinese fashionista consumer.
"The fashion industry is still emerging in China, and we hope to also bring the CFDA to China as a benchmark and inspiration to China's Fashion Industry."
Steven Kolb, CEO of CFDA says, "We are excited to introduce Shangpin to our members and look forward to opening new paths for our designers into China. These are exciting times and we are looking forward to supporting the overall growth of American Fashion into China."
As part of the agreement, Shangpin will support CFDA designers to develop their business in China in various marketing and PR programs to promote American designers in the Chinese media and to its affluent customer base. (Shangpin has one of the highest online averages for sales in China [RMB 2,500], with strategic partnerships with several leading Chinese banks and more than 3 million VIP customers). China's 300-million-strong middle class is projected to reach 700 million, or over 50% of the population, in the next 20 years. These are the target consumers for fashion and lifestyle.
M. Claire Chung, Vice President of Global Business Development of Shangpin.com said, "Many of the American brands are true lifestyle brands; from ready-to-wear, accessories, fashion jewelry and home, for a total offer in aspirational lifestyle with affordable luxury prices. We believe in the long term growth of US brands in China."
There has been a large growth in the number of Chinese luxury and fashion consumers, which has attracted many brands to enter the new market. According to iResearch, transactions of online luxury shopping in Mainland China was 6.36 billion CNY in 2010, then went up to 10.73 billion CNY in 2011, and is predicted to reach 37.24 billion CNY by 2015.
Chinese women, similar to the women of the United States, are becoming more independent in both the economic and psychological sense. They have their own careers, lives, dreams and aspirations. Their fashion taste is evolving as they have started experimenting with their own styles and identities.
Shangpin works with CFDA designers such as Diane Von Furstenberg, Milly by Michelle Smith, Stewart Weitzman, and plans to work with more US brands in the future.
