Localization Key to Success in China

March 20th, 2008 by Allison

The WSJ reports that the latest battle in the global sneaker wars is figuring out what a “Chinese” style looks like.

In efforts to woo China’s consumers, Nike Inc., the country’s market leader in sportswear, and Adidas AG are both aggressively promoting apparel and shoes with designs incorporating Chinese elements — a departure from the mostly Western-influenced styles they have marketed in the past.

Witness the Nike Air Jordan 1 XQ China Edition (right), launched last summer, which features dragon-inspired patterns, red-silk accents and Chinese characters. Last month, they also introduced a line commemorating the 1984 Olympics, the first time the country took part under Communist rule. This is a dramatic departure from previous years when the company pushed American individualism and U.S. sports stars, turning Michael Jordan into a hero among Chinese youth.

Now the sportswear makers are counting on Chinese youth wanting to see their own country and sports stars shine on the world stage. “Chinese customers are very receptive to different styles,” says Nike China spokeswoman Ginger Zhu. “But products with Chinese cultural inspirations have been applauded.”

“Used on sports clothes and sneakers, elements such as clouds, dragons, fans and bright colors evoke tradition and allow young Chinese to express their identity,” says Mark Colin-Thome, director of the Adidas Creation Center, which was set up in Shanghai three years ago. More recently, the company paid $80 million to outfit China’s medal winners for the podium. A design contest for this effort resulted in many design submission that took into account very ancient Chinese art and culture.

Web companies entering China are finding they need to take the same localized approach. According to a BusinessWeek article last year, MySpace entered the Chinese market last Spring and by November it began hosting the site locally. “Those little, subtle things, if you don’t get right—people are not going to like your site,” said Travis Katz of International MySpace.com. “When we localize our sites, we see a huge surge in growth.”

Whether it’s sites or shoes, appealing to local sensibilities, minding cultural nuance, and tapping into an emerging national pride is critical in China. As scores of foreign companies try to capture this booming market, it would be wise for them to keep this in mind.

Tags: Asia · Fashion & Retail · Marketing & Branding