Door to China Opening Up for U.S. Brands
U.S. brands interested in setting up showrooms in Shanghai now have a vehicle to make that easier.
Los Angeles–based Tradeshow Associates is working with a new program to connect apparel companies to retail franchisers in China. The program, called International Fashion Exchange (IFEX), offers turn-key showrooms for $25,000 a year at the ShanghaiMart. This includes a showroom manager, four matchmaking events a year with Chinese business contacts, marketing support, China-oriented design services and information services to connect with a key group of distributors in the retail industry.
“This is a permanent space for 365 days a year,” said David Pennes, president and chief operating office of Tradeshow Associates. “Going to a trade show for three days costs about $10,000 for expenses. And this is for $25,000.”
The showrooms are not limited to U.S. brands but open to other companies around the world. South Korea already has eight brands signed up, and Japan has four brands.
Tradeshow Associates, which for two years is the exclusive agent for IFEX, works with one-store and multi-unit franchisers as well as master franchisers.
Distribution franchisers will set up a few stores under a brand name and then contract with other sub-franchisees to set up other stores. A master franchiser will negotiate to exclusively distribute and set up stores in a certain region under a brand’s name.
“For example, a master franchiser would come in and want to distribute in the entire Shanghai area,” Pennes explained. “Then the individual brand and the master franchiser would determine the components of that particular arrangement. That could mean they would open up 10 stores the first year and 30 stores the second year and 50 stores the third year.”
All the branded IFEX showrooms will be located on the ShanghaiMart’s 10th floor, which is being redesigned for an Aug. 10 launch date. “The floor will be totally revamped with a grand entrance area and an area for display and different types of facilities to augment the IFEX concept,” Pennes said.
The ShanghaiMart was opened in 2000 and has 12 floors of 2,200 showrooms and another 22 floors of trade offices in the Hongqiao economic-development zone of the city, which has become the business hub of China. New York sourcing show
In addition, Tradeshow Associates is working with Texworld USA to find sourcing exhibitors for Texworld’s new International Apparel Sourcing Show, which debuts July 13–15 at the Jacob K. Javits Convention Center in New York. “We will work with all the trade commissioners from all the major countries—such as China, Pakistan, India, Korea, Hong Kong, Vietnam, Thailand—all the African countries; South American producers, the bulk being in Brazil, Peru and Colombia; all of Central America; Mexico; and Canada,” said Pennes, who used to work as the show director and international sales manager for the large sourcing show, held twice a year at the MAGIC Marketplace in Las Vegas.
Messe Frankfurt USA, which launched Texworld USA as a twice-a-year event for fabric sourcing, is working with CCPIT Tex, the Chinese government group that promotes the country’s textile and garment manufacturers, to bring Chinese apparel companies to the annual sourcing show. The eighth edition of Texworld USA, in January, showcased 139 exhibitors from 14 countries and had 2,468 attendees.
For more information, contact Tradeshow Associates at (805) 241-4030 or visit www.tradeshowassociates.net.
