A soft home goods company wanted to sell its products in China and needed to identify the best entry strategy for the market.
What began with a single blanket more than twenty years ago has turned this company into the largest designer, producer, importer, and marketer of premium quality blankets, throws, and soft home goods in the United States. The company now supplies top retailers around the globe.
The company was considering a major strategic move to sell its products in the China market. It was looking for a thorough understanding of the market and the competitiveness of bedding products in China, particularly fleece products. The company wanted to identify the best strategy for entry prior to making a final decision.
Tompkins International's Role
Tompkins conducted an in-depth study, utilizing primary and secondary research on the China bedding market (e.g., channels, materials, pricing, competitive landscape). The research included a comprehensive commercial and consumer study on fleece as a material, as well as consumers’ perceptions of fleece as a bedding material. The feasibility of entering China on a wholesale, retail, and/or joint venture basis were all explored.
- Significant barriers to market entry and product acceptance were identified, including a lack of acceptance by Chinese consumers for fleece material.
- While a large bedding industry was discovered in China, significant obstacles were present for a foreign brand with little name recognition entering and succeeding as a wholesaler or retailer.
- The company’s best strategy for entry was to establish a complete line of home décor items to sell wholesale or to establish its own home décor lifestyle stores.