Entry To The Chinese Watch Market: A Case Study of About Vintage

Signe Kirkegaard Petersen & Christian Hedegaard Nielsen

Student thesis: Master thesis

Abstract

The thesis provides an analysis and an evaluation of the business potential for the Danish watch brand About Vintage, on the markets in Shanghai and Beijing, China. The thesis focuses on, which strategic initiatives About Vintage should implement, if they are to succeed on the Chinese watch market. The aim of the thesis is to analyze About Vintage as well as the Chinese watch market and About Vintage, in order to provide recommendations for which strategy to pursue, which segments to target, which channels to sell through, and how they should promote the watches and themselves when entering the designated markets. The analyses of the thesis are based on qualitative interviews with key staff from About Vintage as well as of a Danish watch industry expert, along with market reports and articles which combined provides a holistic view on the Chinese watch market and About Vintage. Collected data illustrate that, the economy of the consumers, in the metropoles, is improving which is reflected particularly in the mid price segment of the watch market. The analysis furthermore exhibits that the competition within the watch industry in China is very fierce across all price segments. The competitive position of a firm is based on investments in marketing and brand developing activities. The analysis concludes that four different consumer segments that are relevant to About Vintage exist. These segments differ in regards to income, age and consumer patterns. About Vintage has designed their watches in a classic design, where additional watch straps can substitute the original straps and can be bought separately. The exchangeable straps are in compliance with the Chinese consumers’ wish for self-expression, which suggests sound conditions for a successful market fit. This thesis concludes, that the valuable sustainable competitive advantage in About Vintage is the partners and founders of the brand - Sebastian Skov and Thomas Andersen. The unique story of the founders of the brand is mediated through storytelling on social media and in magazine articles, which is a strong sales point as the story is well phrased. The story transforms About Vintage from a watch brand and into a product with personal relations. Therefore, the consumer obtains a total brand experience, consisting of a brand, a product and the people behind it. Based on the findings from the analyses, it is recommended that About Vintage shall compete in the mid price segment of the watch market. It is furthermore recommended that About Vintage pursue a differentiation focus strategy, in which the company target the Affluent and Mainstream post-80’s and post-90’s consumers of Shanghai and Beijing. To differentiate the brand from the primary competitors, as well as to best capture the chosen segments, it is recommended that About Vintage sell their products exclusively through their own online- and pop-up stores. The recommended segments should be targeted through social media and magazine articles, which is found to be the most appealing and effective way of mediating the story of Sebastian Skov and Thomas Andersen. Key opinion leaders should furthermore be utilized to influence the chosen segments and to increase brand awareness

EducationsMA in International Business Communication (Intercultural Marketing), (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2018
Number of pages130