The store image in the Chinese market: An empirical analysis of the communication of the Italian Style in the furniture sector

Abstract

In the Chinese market, where consumers are less educated about branded products, the store has a significant role in communicating the brand origin and enhancing the brand image. Therefore, the store image is a strategic factor that must be considered by those companies operating in China to develop their brand in such market. The purpose of this thesis is to investigate how Italian brands communicate the country of origin (COO) and the country of brand (COB) by using the store in China through an empirical analysis. The thesis is divided into three chapters. First, a review of the literature related to the role of the store in the Chinese market, the attributes of the store image, the COO/COB effect and omni-channel strategies in retailing is provided. The second chapter aims at investigating the distribution channels used by Italian companies in the Chinese market with a focus on flagship stores and digital stores, given the increasing relevance of e-commerce. Finally, the third chapter deals with two empirical studies, conducted in Shanghai and Nanjing, with the purpose of defying how Italian companies communicate the COO/COB in the Chinese market by using the store. More precisely, the first analysis consists of the examination of several points of sale belonging to the furniture sector by using the mystery shopping research technique. China has become one of the largest furniture markets in the world and many Italian companies are successfully exporting their products in such market. The research is carried out first, by checking the store’s elements (both soft and hard elements), second by observing whether Italy is somehow recalled during the overall shopping experience. The investigation is complemented by the analysis of the digital stores of these brands to verify whether there is an integration between physical points of sale and virtual ones. Then, the second empirical study analyzes the case of Arrex Le Cucine, an Italian kitchen manufacturer which has been operating in the Chinese market since 2002. The following questions are addressed: What are the strategies used by the company for communicating the Italian Style in China through the store? Which channels are used for communicating the COO/COB? Is there an interaction between physical and digital stores? In conclusion, the aim of this thesis is to understand the role of store image in the strategies of Italian firms operating in China and how the Italian style is conveyed in this market through physical and digital stores.