The Distribution Channels for Foreign-brand Apparel in China: Structure, Government’s Role, and Problems

The Chinese market is attractive to foreign-brand apparel manufacturers who have increasing access to the market as China’s economy has undergone a major transformation from a centrally planned to a market economy and has experienced continued growth. Because of China’s current economic transition and its status as a developing country, the channels for distributing foreign-brand apparel products to Chinese retailers presents special obstacles that foreigners may not anticipate. We detail the distribution channels for foreign-brand apparel in the Chinese market and identify problems in the channels. Because the Chinese government intervenes in the distribution channels in China, the role of the government in apparel distribution channels was also investigated. In-depth interviews were conducted with nine apparel retailers, three government officials, and one foreign-trade agent. Additionally, we surveyed 150 Beijing retailers who sell foreign-brand apparel. Contributions to the research on markets in less developed countries are addressed and implications for U.S. apparel manufacturers are presented.