Standardization and adaptation of Italian companies in the Chinese market: The case of Diesel between a global strategy and local capsule collections

Abstract

The purpose of this thesis is to discuss the marketing strategies of Italian companies in the Chinese market, by focusing on the aspects of standardization versus adaptation of the firm Diesel. Even if it is a famous global brand, the dimension of culture constitutes a big challenge for a company that wants to sell its products or services abroad. To advertise products, attract foreign customers and develop a retail system, firms have to face the local market’s characteristics. For this reason, a deep awareness of the culture is at the basis for the development of an efficient market strategy, especially when approaching very distant countries like China. Chinese consumers are attracted by the Western lifestyle that they try to emulate, but on the other hand, they are very attached to their traditional values. Furthermore, when a company wants to expand in China, it has to consider the different types of Chinese consumers based on the city-tier classification. In the first chapter, after an introduction to cross-cultural marketing in the globalized era, the main Marketing theories about the dimension of culture and the resulting decisions of using standardization or adaptation are described. Then the profile of the “Dragon Country” is presented, focusing on its demographic aspects, traditions, social-cultural values, as well as the predisposition of Chinese consumer towards luxurious products. In the second chapter, “Made in Italy in China”, the most diffused Italian sectors and their related areas of provenience in China are reported. Then, the possible marketing strategies adopted by Italian companies in China are analysed; in particular, whether firms exploit their global brand image and sell a standardized product or they adapt the product to the country they want to sell. In the final chapter, the Diesel case study is presented. Diesel is an Italian multinational company operating in the young fashion sector of denim clothing that adopted an initial standardization strategy for its business in China. In recent years they changed their strategy towards a more local approach for product and communication aspects, in fact. Some events as examples of Diesel’s local strategy in China are presented: Diesel Express Shanghai in 2016, DieselwithFoscarini participation at Salone del Mobile Milano-Shanghai in 2016 and the presentation of Chris Lee capsule collection in 2017 which represents a new era not only for the Diesel relationship with China but for the whole Diesel business.