French label takes a crack at robing China's 'Little Emperors'<\/p>\n
By Lew Siew Ying<\/p>\n
SHANGHAI (AFP): French label Naf Naf entered the Chinese
\nchildren's wear market Friday, hoping it will turn a profit in
\ntwo years as Chinese get used to the idea of splurging on their
\nsingle children.<\/p>\n
The Naf Naf range was launched at Shanghai Orient Shopping
\nCenter, one of three department stores in Shanghai which have
\nprovided rent-free space in return for a 30-percent-cut on sales.<\/p>\n
Groupe Albert, the manufacturer, is supplying the clothes on a
\nconsignment basis while Logical is picking up the custom duties
\ntab of 500,000 yuan (US$60,240) a year to give the brand a chance
\nof survival in a price sensitive market.<\/p>\n
Attitudes are changing but adults still balk at spending as
\nmuch on children's clothes as they do on their own, although
\nproviding for the needs of their so-called \"Little Emperors\" top
\nChinese parents' list of priorities.<\/p>\n
China's strict birth control policies limit most couples to
\njust one child.<\/p>\n
\"It will take two years to popularize the brand. At the same
\ntime, the city is developing so we will not lag behind,\" said
\nChen Jinqiu, representative of Logical, the French trading firm
\nbringing in the label.<\/p>\n
\"For a Chinese family, 80 percent of the disposable income
\nafter deducting for housing and food is spent on children. But
\nbuying something that costs as much as an adult's clothes is
\nstill too much for Chinese consumers,\" Chen said.<\/p>\n
She said Logical would lose money initially on Naf Naf clothes
\nand would have to subsidize the line with its profitable range of
\nscarves and with profits from contract manufacturing of
\nundergarments.<\/p>\n
\"It is a difficult market. It will take a lot to conquer the
\nmarket, perhaps five or 10 years, so we have to start immediately
\nand not waste time, \" said Patrick Sarrazin, the company's chief
\nrepresentative.<\/p>\n
Chen said that although the market was small presently, there
\nwas a growing segment of local managers who easily made 15,000
\nyuan a month, who can afford to dress up their children.<\/p>\n
\"There is a trend to compare with what other people's children
\nare wearing,\" said Xu Wanhua, manager of the shopping center's
\nchildren department.<\/p>\n
Chicken<\/p>\n
Several foreign labels, including Walt Disney and a locally-
\nmanufactured Elle range, have entered the nascent market to
\nposition themselves to reap the benefits of a \"hatch quick\"
\nsyndrome that has gripped Chinese parents.<\/p>\n
\"It's just like in a modern hatchery where chickens are
\nhatched super fast. Chinese parents feed their children with
\nnutritious food, dress them up and make them learn many things so
\nthat they can become dragons,\" Xu said.<\/p>\n
\"They are willing to spend on expensive educational aids and
\ntoys. Even if they have financial difficulties they will spend on
\nchildren. They may forego a big screen television set to buy a
\npiano for music lessons,\" she said.<\/p>\n
China's one-child policy has put pressure on parents to ensure
\nthat their children are given all help -- physical as well as
\npsychological -- to enable them to get ahead in life.<\/p>\n
Jerry Hadd of the U.S. polling company Gallup Organization's
\nBeijing office said that within the next two to three years there
\nwould be a concerted effort to cultivate children as future
\nconsumers and to capitalize on the one-child policy.<\/p>",
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"sponsor": "Okusi Associates",
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