Economic realignment: From made in China to made for China

Date

2016

Authors

Richards, Lorna E.

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Publisher

Bachelor of Commerce Best Business Research Papers

Abstract

This report discusses the made in China to made for China phenomenon and how the Vancouver born company, Lululemon Athletica, could leverage this trend. The report begins with a summary of the economic reform movement in China and how this movement increased the inflow of Foreign Direct Investment, specifically manufacturing firms, into the Chinese market. Further discussion of the Chinese economy, from 1978 to the present day is included and how the Chinese economy evolved away from exports into one focused on domestic consumption. This trend, the discontinuation of goods produced in China, and the up rise of products sold to Chinese consumers is referred to as the made in China to made for China phenomenon. Various forces that increased consumption habits in China are evaluated, such as government incentives, higher disposable incomes and urbanization. Next, the report focuses on the specific consumption trends that could be leveraged by Lululemon Athletica. These trends include the rising interest in the health and fitness sector and the increased purchasing power of female consumers. Lululemon’s current presence in Hong Kong is evaluated and how this puts them in a favourable position to enter Mainland China and cater to the rising demand for fashionable fitness apparel. The report evaluates three areas the brand may be able to capitalize on in China, including e-commerce, the luxury market and services. Lastly, three unique challenges the company may face in China are discussed and include sustainability, imitation and brand imaging.

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Citation

Richards, L. E. (2016). Economic realignment: From made in China to made for China. Bachelor of Commerce Best Business Research Papers, 9, 93–104.