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International Management: Chinese Fashion Industry

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Discuss about the International Management for Chinese Fashion Industry.



An Overview of the Company

Knit it limited was started in the 2016 and registered as a limited liability company by a group of three students on their final year of study at La Trobe University. The company is focusing on production, distribution and selling of trendy T-shirts ideal for 15-25 year olds market. The company has four special features that make its T-shirts gain strong traction in the market and these are; fair pricing, quality cotton material used to produce T-shirts, trendy slogans printed on T-shirts and efforts to mitigate environmental effects of carbon released during the production process. We make it a point of letting our clientele know how we’ve been able to conserve environment by neutralizing carbon emission to the environment by tagging our T-shirts with amount of carbon released and how this has been mitigated. This has been our business strategy to win the hearts of our customers. We also know that this market sector likes to have fun, and for this, we have tapped the energy with trendy slogans such as ‘YOLO’ which means you only leave once, and ‘Shake it off’ which is popular with our female clientele. We are thinking of adding another slogan which goes; ‘Shake what your mama gave you’ to appeal more to this market segment. Our major customers are college and University students who purchase the trendy T-shirts for casual wear. Knit it limited has expansion plans in short, medium and long terms in order to increase its revenue bottom line.


International Expansion Justification

 Owing to the success Knit it limited has achieved with its branded T-shirts in the local market, where demand has exceeded supply tenfold, the company has robust plans to close this gap within short term and expand to international market within medium term period, should it get sufficient funding to execute this program. The company has chosen to outsource production to Bangladesh in order have competitive cost of production and in turn competitive market rates internationally. Knit it limited chose to outsource production to Bangladesh because of the cheap germen/textile industry labor in the country. In comparison with China which as minimum wage of about 100-200 USD per month and 48 working hours per week, Bangladesh has an average of 38USD per month and 48 working hours per week. This is one the lowest cost of textile labor in the world. This low cost of labor will in turn result to low cost of production and consequently affordable market rates for our T-shirts in international market. (Islam et al., 2011)

We plan to expand to USA apparel market which is currently the largest apparel market in the world with annual sales of 225 billion USD in the year 2015. With this market and our affordable market rates, Knit it limited strongly predicts that our international sales will be one of the strong sources of revenue within 2 years of launch. In it projected that this industry is likely to grow to about 280 billion USD by the year 2019. (Islam et al., 2011)



Black, S. (2013). The sustainable fashion handbook. New York: Thames & Hudson.

Islam, M., Mahmud, K., Faruk, O. and Billah, M. (2011). Textile Dyeing Industries in Bangladesh for Sustainable Development. International Journal of Environmental Science and Development, pp.428-436.

Zhao, J. (2013). The Chinese fashion industry. Oxford: Berg.

Zhou, H. (2009). A Study on the Fit of Clothes - Focusing on Jackets of Target in USA -. Journal of Korea Design Knowledge, null(10), pp.112-121.


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