Latest Duty Regulations in China

Duty regulations are changeable in China. As the cross-border ecommerce is becoming more and more popular, the Chinese government also tries to catch up with this trend.

As we all know, there are several types of cross border ecommerce. The first one is sales though a global website, the second one is sales through bonded warehouse and the third is sales through a Chinese website.

In the first two cases, if the imported packages by mail for personal use have a total value of RMB1, 000 or less, or the package only contains 1 article with the exceeding RMB1,000, China Customs uses an “assessed value” approach to impose customs duties.chinacustom

There are 4 ranks of customs duty rates (i.e. 10%, 20%,30% and 50%). And articles having a customs duty payable of RMB 50 or less can be imported free to duty (Personal Parcel Exemption), unless the articles belong to “20 commodities prohibited from duty exemption”, such as camera and TV. There is no VAT for this type of cross border ecommerce.

On the other hand, if the imported package by mail having a total value exceeding RMB 1,000(except for only 1 product contained),it should be regarded as a “general goods”, rather than as an article for personal use purpose. Duty and VAT are payable based on the commercial value of imported goods. The duty rates are based on the HS codes of the imported goods.

Starting June 1, imported goods such as skincare products, cosmetics, sneakers, diapers, and other daily use products will become less expensive as tariffs will be reduced by almost two-thirds in some cases.

Revised taxes on imported goods include: a 7-10 percent tariff on Western clothing goods, down from 14-23 percent; a 12 percent tariff on footwear, down from 22-24 percent; a 2 percent tariff on cosmetics, down from 5 percent; a 2 percent tariff on skin care products, down from 6.5 percent; and a 2 percent tariff on diapers, down from 7.5 percent.

The Ministry of Finance explained the temporary adjustments are intended to stabilize economic growth and stimulate domestic consumption.

New Consumer Rights Law for Goods Return in China

According to a revised “Consumer Rights Law in China”, online shoppers can now return the goods unconditionally for refunds within seven days of purchase but they have to shoulder logistics cost.

It also lists products not suitable for unconditional returns and refunds, such as digital products sold via downloads, audio-visual goods with the packaging removed, bespoke products, fresh and perishable goods, magazines, newspapers and software.

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Consumers can seek compensation from online trading platforms if the platforms fail to provide contact details for vendors using their networks. After compensating consumers, the platforms are entitled to claim compensation from the vendors.

Each coin has two sides. As to the cons of ecommerce, the brand needs to establish delivery mechanism, set up goods return option and build customer confidence in the market. Especially Chinese consumers are used to the return policy. According to PwC, Total Retail Survey(2015), Chinese consumers concern more about online purchase returns available in-store(74%) than global range(67%). So if you want to expand your market into China through online channels, it’s necessary to have a returns point in mainland China. Also because of this new policy, the rate of turns increases a lot.

So get prepared before you enter China through ecommerce channels.  iQubator is willing to help any international brands to get familiar with Chinese market and consumers and provide customized services according to your own business plan and strategy.

Fashion Hub in China

sfwChina has a fashion market which is full of opportunities.

The Chinese fashion industry is set to become the world’s second largest fashion market by 2020 and will account for an estimated 30% of the global fashion market’s growth over the next five years.

It makes a major contribution to the Chinese economy and the fashion market is a US$90 billion industry. The annual growth rate of fashion & textile industry was 12.5% in 2007 and as the foremost city in Asia, Shanghai acts as an international hub for trade, finance, transport, and fashion. It is the reigning fashion capital of Asia, ranking 10th worldwide, above both Tokyo and Hong Kong [Mode Shanghai 2010].

 

Shanghai’s contemporary fashion design and our impressions of its Fashion Weeksfw2

With more and more young designers and models, Shanghai Fashion Week was originally aiming to build up an international professional platform, to attract top design talents from all over the world. It is held twice every year in Shanghai, one in April and one in October. Shanghai Fashion Week also serves as a platform for designers that are aiming at the Chinese market and it acts as an indirect sales channel since it attracts many buyers during the event. The iQubator team attended some of the shows during this past season of SHFW and there were some really unique and breath-taking designs.

However, different from the Fashion Weeks held in Europe, it seems that Shanghai Fashion Week is more focused on Chinese designers. While these Chinese designers get to showcase their new collections and shine under the spotlight, there are many foreign designers based in China that are hoping to bring a flare of the exotic flavour to the local fashion scene.

Fashion Finds in Shanghai

As mentioned in our last post, there are many foreign designers based in China that are hoping to bring a flare of the exotic flavour to the local fashion scene in Shanghai. iQubator wants to give some of these designers the opportunity to reach out to our followers and talk about themselves and their brands and it’s worth taking the time to read what they have said. Meet very interesting and creative designers with us. – This week we had a nice chat with Alexandra Rolfe a British designer with a passion for the 60s, collars and all things vintage. Her and her partner have their own shop which is also her studio space in a lane on Shaanxi Nan Lu, called “Select 18” which is definitely worth visiting. Here you travel back in time to find unique rarities and very special pieces.

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iQubator: When did you start designing your own clothes?

Alexandra: Moving from East London to Hong Kong I soon realized the shopping environment was completely different and I was surrounded by lots of brands and small independent shops which didn’t stock many sizes.  I regularly went back to London to buy vintage clothes to wear in Hong Kong although sometimes I did feel abit out of place! I just couldn’t find clothes that were me.  After many years of travelling in China visiting factories for my job I got a better understanding of production and learnt a lot.  This inspired me to create my own brand for the future.  At week-ends I would take a trip over to Shenzhen where there are some very good tailors and started creating my own designs plus an extra couple of pieces to sell in my boyfriends store in Hong Kong.

iQubator: Did you also study fashion design?

Alexandra: I studied BA Fashion & Textile management, which is the whole fashion business cycle. It starts from design process through to production to merchandising, buying to marketing and in the final year concentrated on management. In my 3rd year we needed to do an industrial placement, which I got at Oasis Stores (http://www.oasis-stores.com/?lng=en&ctry=GB&) I opted for buying and once graduated I returned to the Oasis as Assistant Buyer and worked my way up before moving to Gap (http://www.gap.com ) and later to Hong Kong for a German brand called Colloseum (http://www.colloseum.net )

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iQubator:  Did someone inspire your designs?

Alexandra: Frankly a lot of my inspiration comes from the past, as I love the 60’s I am very influenced by Mary Quant. I love collars or any kind of neck details and so did she. Naturally Twiggy was very iconic during this period too. I love typical shift dresses, the shape is easy and classic.  Alexa Chung Is someone I always feel would wear my designs so well, she has a thing for collars and has a very British aesthetic. In general I like her effortless style.

iQubator: Where would you look for inspirations?

Alexandra: I find old cities inspiring, for example Shanghai is full of art deco references, which I would love to merge the details into future collections. A lot of old things captivate me whether it be a building, tiles or even a book.  There is always elements which fuel new ideas.

iQubator: How do you think your brand fits in the Chinese market?

Alexandra: From what I can see fashion demand is veering towards uniqueness.  My style is niche but this important now. I have great customers who get the look and are experimental and are open to try which is great for me.  My brand is very personal to my style and my journey, it’s authentic and now is the right time to share with Chinese girls.

select182iQubator: What do you have in your closet?

Alexandra: I have only dresses from my collection and lots of special vintage pieces, which I have been hoarding for years, even they don’t fit I can’t throw them away!

 iQubator: Only dresses?

Alexandra: I would say 99% are dresses, the odd skirt and blouse but I rarely wear!

iQubator: Even in winter?

Alexandra: Yes (laughs). Of course coats for winter though!  I haven’t worn Jeans since I was at university and I used to wear ‘Cheap Mondays’ the days of being super skinny!

iQubator: What do you carry with you all the time?

Alexandra: Lipstick. I always have my red lipstick it completes my look.   Apart from that nothing particularly out of the ordinary!

iQubator: So your red lipstick is your favourite piece?

Alexandra: Generally I wear only MAC, I have a new one from them which is called ‘Retro matte’

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iQubator: If you were a colour, what would it be and why?

Alexandra: Probably green.  There are lots of different shades of green, which I like to wear and it works well with white collars.

iQubator: What are your upcoming projects or plans?

Alexandra: At the moment I am shaping up my brand and will launch a new name soon.  I came to Shanghai with the first priority to set up the store and this became the platform to sell my collections and understand Chinese customer.  We have been here almost two years now, I have learnt a lot and now ready to take my brand to the next level. I plan to develop as an independant lifestyle brand

iQubator: Are you more focused on having physical stores or online shops?

Alexandra: Online is naturally important here but I would also like physical stores as I want customers to understand the brand from walking into our stores and build an emotional connection

iQubator: Was it hard for you to find this store in the beginning?

Alexandra:  Before we physically settled we did a few pop ups, the last one before we found this space was in XTD which we did for 3 months and was great exposure.  Here a friend introduced us to this location.  We were toying with should we set up on the street front or a lane house.  As this is a really great space we took it and decided we have to work a lot harder on the marketing side.  Its still very central and even we are in the lane, it’s a beautiful lane, which attracts a lot of people and tourists.

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iQubator: Do you have more Chinese customers than foreign customers?

Alexandra: 80% is Chinese, we have a lot from different parts of China also many Taiwanese and Hong Kong

iQubator: So do you manufacture in China?

Alexandra:  Yes only China – I have some good connnections from my previous job, which I co-operate with and a tailor locally to help with small quantities.

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iQubator:  How is your average pricing?

Alexandra: Prices range from 600 – 2000 for wool coats

iQubator: Do you have some peak seasons, where you do sell more than usually?

Alexandra: I generally find A/W very good and as soon as the sun comes out summer dresses are snapped up

iQubator: Where do you usually advertise?

Alexandra:  Now we have our official WeChat account, this is the biggest channel for advertising.  Word of mouth is also very good and magazines

 

We thank Alexandra for sharing her story with us.

 

Modern style at MODE Shanghai

Shanghai Fashion Week added a new layer of style and chicness to the whole city, and the MODE exhibition going on downtown at the same time just served to take things up a notch.

The MODE Shanghai website claims the exhibition to be “an international fashion trade show in Shanghai… represent[ing] a marketing and communication platform for global fashion brands and designers from woman’s wear, men’s wear, casual wear and fashion accessories.”  That description is far from sufficient to capture the talent and creativity we felt there.IMG_1637

 

This year, the show was hosted in a beautiful venue on Julu Road in downtown Shanghai near the Jing’an Area. iQubator’s staff headed to the exhibition on a bright but chilly day during a brief lull in the fashion week happenings.DSCN0555

The show itself is a combination of fashion and style and on top of that, innovation; Innovation not only in the form of design but also technology, serving to improve the viewers’ experience of the show room. Alter Style had a whole clique of mannequins showcasing different designers’ works, each wearing a helmet. Though there are no (apparent) safety issues in the showroom, each mannequin’s helmet serves a purpose. Each helmet has a QR code that if scanned with your phone will direct you to the social media of that particular designer. All that’s left is to follow them on Weibo and Wechat.

 

Notice the overall asthetic of the showroom, more grunge than glamour with graffiti sprayed across the walls. We loved the edgy feel Kavelaars artwork gave the space and were pleased to find the artist’s social media handles also displayed. It is showrooms like this that join art and technology with fashion that we are always eager to visit.

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Innovation is expressed through designs as well. After all, that’s what this show is all about. Each season, designers explore different trends with colors and different cuts, but recently, new fabric choices have come into play. Many designers have incorporated this aspect of innovation into their collections this season.

 

 

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Take, for instance, this 3D printed holographic hoodie in the Both showroom.

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If you’re bored we can play some craps with my heels.

There were not only clothing and shoes at the show, but also many unique accessories we would love to spice up our outfits with. For example, this set of eyelash inspired accessories designed by Mirit Weinstock.

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It’s been a hectic couple weeks for the iQubator team with Shanghai Fashion Week, brilliant trade shows like MODE on exhibition, and of course serving our clients above all. We absolutely loved every second of it because we love what we do! Stay tuned for next blog about our experiences at this years of Shanghai Fashion Week!

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MICAM Shanghai 2015–New venue,New start

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2Last week in Shanghai, the word “fashion” was trending hotter than ever. From March 18th to 20th, MICAM was held in the new Hongqiao National Exhibition and Convention Center in Shanghai. It ran concurrently with Intertextile Shanghai and CHIC. MICAM is a leading international footwear fair, and it is held every year in both Milan, Italy and Shanghai, China. It provides an ideal platform for all professionals from shoes and fashion industries to showcase their products and network with one another.

 

 

 

 

 

 

 

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During this year’s MICAM Shanghai 2015, iQubator Fashion represented British Footwear Association. BFA has been committed to promoting British talent and skills within the footwear industry for over a century. It currently represents over 100 key footwear companies that employ over 9000 people. This time during MICAM in Shanghai, iQubator teamed up with BFA and represented four brands: Base London, French Sole, Morena Morena, and Estate.

 

 

 

 

 

 

 

 

IMG_1787The day before the exhibition started, iQubator arrived at the exhibition center and helped setting up for three brands. Next day all the empty booths from previous day were all decorated with these brilliant designs and came alive. During the exhibition, there were visitors from all over the world. Many Chinese locals came to check out the designs.

 

 

 

 

 

 

 

 

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Most of the brands at the MICAM exhibition are from Europe, and these brands’ designs not only are highly influenced by its original European style, but also have a shot of Asian flavor to them. These brands carefully selected the styles that they bring across the globe to showcase to Chinese consumers, and the exhibition itself had a great turnout. The crowd that visited included consumers, designers, distributors, agencies and more. There were over 100,000 people attending the event including visitors and exhibitors. The large number just goes to show how China, and Shanghai is becoming the next fashion hub of the world.

 

 

 

 

 

 

 

 

 

 

 

 

 

9iQubator got to meet many brilliant designers from not only Europe but also across Asia, including many Chinese local designers. In the CHIC fair, there were several fashion shows going on. The audiences got to witness the designs come to life first hand, and many were extremely impressed. The interactive fashion shows generated even more buzz for the exhibition. iQubator staff was busy taking notes, but didn’t forget to capture some photographs. For more photos from the exhibition, head to our Facebook page to check them out: https://www.facebook.com/iQubator?ref=aymt_homepage_panel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Harmonizing Colors at SpinExpo 2015

IMG_7274As the weather in Shanghai warms up we review the past few months and wish it would have been as colorful as the trends for the upcoming spring and summer 2016. We visited the SpinExpo which is held from March 9th to March 11th and got some impressions what is ahead of us – and it’s very promising. The SpinExpo mainly presents knitwear and yarns but we also discovered some astounding designs by knitwear designers from all over the world.

Especially eye-catching were the designs by the MA fashion knitwear design graduates from Nottingham Trent University in the UK. Futuristic and unique, these designers did not neglect attention to the minutest detail in their pioneering styles.

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Friendships. Conscience. Senses. Experiences.

This year’s SpinExpo presented the themes for the upcoming spring summer 2016.

Friendships explore the colors associated with interacting groups of friends and families, focusing on the ideas of warmth, generosity and love.” – Spinexplore.com

If we were asked to express the warmth we have for our friends and families through color, these would definitely be on our list. While exhibiting warmth, familiarity, comfort and generosity, these colors don’t play it safe. The vibrant hues remind us that around friends and family you can always be yourself; a little bit crazy.

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Conscience highlights the increasing awareness of the environment, from our forests to our seas with strong emphasis on conserving precious resources” – Spinexplore.com

These knits and yarns focuses our awareness on our surroundings and Mother Nature. Perfectly presented with aquatic blues and fresh, lively greens, they are a reminder of eye catching tropical birds and and sweet, ripe fruit.

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Senses delves into the colors and feelings associated with travel, exploring new cultures and habitats for a holistic experience of enjoying our surroundings.” – Spinexplore.com

These colors reminded us that spring is finally arriving and awakens our senses. We were presented with great browns and sandy colors along with nudes and rich burnt siennas and berry tones.

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Experiences creates a new focus on the new worlds we are discovering through technology and science and how it begins to affect all corners of our world.”– Spinexplore.com

From weaving techniques to newly engineered yarns, incredible innovation could be found at every booth. We especially took a shine to the luminescent  Angelina Fiber used by Meadowbrook Inventions from the USA. Silky smooth, sparkling metallic yarn woven in countless ways into the knitwear blends had stars in our eyes.

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iQubator had a great time peaking at the trends in knitwear and yarns at SpinExpo along with the innovations present in the industry. From the unique and excellent knitwear we saw we expect great things from spring 2016!

“Stuff” by Jasmine at K11 Pop-Up

Shanghai is becoming the fashion hub of Asia. As the biggest city in China, Shanghai never lacks talents local or otherwise. Every corner you turn, chances are high you will meet someone with a unique story; someone to amaze you. That’s just how we felt when we met Canadian jewelry designer Jasmine.jas shop

We found her pop-up store on the basement floor of the famous art mall K11 in Shanghai. You can’t miss it, as the layout of the store and beautiful displays lure you right in. There Jasmine sat wearing a fierce red feather headpiece. It was a vintage French piece, like the others in the shop being sold by a friend.

She stood up to introduce herself, a small and delicate woman that soon exhibits a huge amount of energy. In a pair of burgundy shiny leather knee high boots and a vintage blue velvet dress paired with a pair of dark green tights, something about her outfit makes you want to get to know the owner of this unique look.iqnjas

Jasmine has lived in Shanghai for more than ten years, and she started selling her designs at this pop up shop in December. Among the vintage hats from France and the USA and ornamental preserved flowers, Jasmine and her daughter Nicole sell her handmade and one-of-a-kind pieces. We sat on the chaise lounge while she described her studio in Shanghai, a collective where every artist contributes materials and they all share ownership. Jasmine contributes gemstones and has become a de facto dealer only sourcing directly from mines she acquires each type of gem from the best region. Born and raised in Vancouver, Canada, she is of Vietnamese and Malaysian origin. Even though she grew up and was educated in a western environment, you can still see the Asian culture influence in her designs. She quickly flips from Russian, to Chinese to English with her daughter and begs off when we asked her how her Russian is. Clearly a multifaceted woman, we asked how she started making jewelry. Working with projects where she can control the process from start to finish is something important to her about jewelry design. “It’s a way to get all this in my head out.” She said to me. Her pieces are each completely unique as the stones she uses are left mostly natural.

After chatting with us, she patiently showed us most of her designs in the store. We were in awe of the craftsmanship and all her designs carry a personality. In the times of fast fashion, we are always looking for something unique to stand out from the rest, and Jasmine’s jewelries are exactly that. If you are in the neighborhood, don’t forget to check out her shop. There’s no better time than now to discover some new styles.

jasmineTo contact Jasmine send her an email at bellevillebellevie@gmail.com or give her a call at 135 2460 8707

Approaches to Fashion by 3 Generations of Chinese Women

In trying to understand why Chinese women make the fashion choices they do (from body-con mini dresses that let a little butt cheek hang out to colorful and bold printed pajama sets in public), we may find the answers the recent past. The experiences of Chinese women in just the last 60 years have been dramatically varied and have manifested in different styles of dress considering where in this timeline a woman was born.

Women of Revolution

After decades of foreign aggression and civil war, in 1949 Mao ZeDong and the communist party assumed control in China. The years following were characterized by reconstruction and reform, ultimately culminating in the Great Proletarian Cultural Revolution. For ten years from 1966 to 1976, the Communist party politicized every aspect of life in China and anything considered bourgeois or counter revolutionary was repressed. The Red Guards were instructed to attack all elements of old China; customs, habits, culture and thinking.prt_670x560_1392190392

Inevitably, fashion was affected; contemporary fashions were touted as too “foreign” and bourgeois while traditional clothing was considered too feudal. Any concern with physical appearance was deemed bourgeois. Thus, the adopted outfits were simple and plebeian. The common styles were those replicating the ultimate supporters of the Communist state; workers, soldiers and peasants. The uniforms were of cotton cloth in different shades to signify one’s function in society; green for the army, gray for civilians and blue for workers and peasants. Traditional femininity was deemed bourgeois as women were expected to crop their hair short and refrain from adorning themselves with any color, jewelry, or flowers.

While this history has strongly influenced Chinese designers, it is apparent too in the purchasing habits of women who experienced this era. In their late 30’s or older, these women grew up in a China very different from today. Strict uniformity of dress gave women little choice for self-expression in their clothing. In their purchasing habits now, they look for comfortable fashions and avoid taking risks. They reject frivolity, preferring formal dresses in jacquard fabrics. If they belong to the upper class, they may opt for Japanese style minimalism, loose forms, distinctive cuts and intense color and buy from brands like ZucZug and Exception. These women choose clothing to be distinctive while maintaining their sense of Communist frugality.

Women of Reform

Women of the reform are products of China’s one child policy, the family planning initiative enacted in 1980 used to control the population. While they did not endure the same hardships as their parents, growing up in a time of economic reform and open door policy, they faced their own adversities. They are a transitional generation.

The Chinese tradition that the son will care for aging parents coupled with traditional Confucian views of female inferiority created a distinct environment for women born in this time. Since the one child policy was put in place there has been an increased disdain for female infants, abortion, neglect, abandonment and infanticide. These girls were a disappointment to their families as a female but as the only child they were still spoiled and pampered. This lead to a generation of women who feel inadequate and inferior while at once feel entitled to special treatment. They are often considered materialistic and egotistic, and are psychologically more inclined to heavy consumer spending.

These women grew up through steady economic growth and public spending on education, thus they were educated according to rigorous standards but in a context of optimism, consumerism and entrepreneurship. They feel loyal to their families but still do not neglect their own ambition which increases their shopping spending. This segment desires visibility and clothing that adapts to a multifaceted and demanding lifestyle.

This segment is known for their ‘cute’ style, to some extent a reaction to their mother’s colorless and gender neutral fashion heritage. Further, with pressure to marry before their 27th birthday many women adopt the sweet, quiet and young look to defer the marriage deadline. However, their style is also quickly evolving, finding influence from many directions including Korean fast fashion and European styles once considered boring and flat. Importance of detail design and material quality is growing while their appetite for logos is fading as brands have been over exposed. It is anticipated that this segment will increasingly demand quality and simplicity.

Women of Weibo

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This generation is rejecting the overly “cute” aesthetic of previous generations, opting instead for sporty high-street looks. These women have more individualistic and liberal values that have translated into more selective and anti-mainstream shopping habits. The newly popular XQX (Xiao Qing Xin) style translates to “small and fresh”. Originating in indie pop music, XQX is an entire subculture fostering self-expression and simplicity. Still cute and girly to a Western eye, their style favors the polka dots and A-line skirts without the sequins and embroidery of previous generations.

These women are more connected internationally than any before them. Though still young, they are defining themselves quickly as most young women throughout the world are – social media. The majority of Western social media cannot be accessed in China but they are not missed; with 600 million social media users in China similar platforms have been developed, like Weibo, QQ, and WeChat. Young Chinese women look online to find interesting content, advice and recommendations from friends and opinion leaders on social media.

With Western social media inaccessible for mainland Chinese, these women are limited in their exposure to emerging designers. They demand creative design and well-crafted products. They are more likely to take risks in their fashion choices and are attracted to the foreignness of international brands.

There is no doubt that each woman in China is different and unique, but some inclinations transcend segmentation. Like pajamas in public, foreign made and quality products are poised to find success with Chinese women of any age.

Client Highlight: NPS Shoes

NPS Shoes is an independent, family-run business manufacturing hand-made Goodyear-welted footwear in the county of Northamptonshire, England.

Established in 1881, they have a proud and distinguished heritage in footwear manufacturing. Today they specialize in manufacturing both men’s and lady’s Goodyear Welted boots and shoes 100% Made In England. These are produced on behalf of brands and wholesalers alongside their own brands: Solovair Classic, Heritage and Country.

In 1881, five men banded together to form a co-operative in the village of Wollaston called the Northamptonshire Productive Society (NPS) Shoes Ltd. Luck was with them from the outset as they managed to secure an order for army boots from the Government, an order which would sustain them for the first year. As industrialization spread through England during the late nineteenth Century, demand domestically and abroad for high-quality boots steadily increased. Accordingly, NPS enjoyed rapid growth. NPS moved into private family ownership in 2006 but has continued to maintain its independence and high-quality standards which have secured a reputation with retailers and discerning customers as a premium product.

NPS continue to remain true to their ideals, combining over 130 years of tradition, the latest technology and materials, in order to produce high quality footwear. To maintain this undisputed quality, the products will always be Made in England from start to finish.

For more information, please visit their main website at www.nps-solovair.co.uk or contact them in either English or Chinese: sales@nps-solovair.co.uk

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