China - L2: A Think Tank for Digital Innovation

Digital IQ Index:ChinaWant to know more about your brand’s ranking?CONTACT USK E Y F I N D I N G SRETAIL FOOTPRINT VERSUS SOCIAL BUZZBrick and Mortar ≠ Brand EquityA close look at the 28 fashion brands in the study suggests thatdramatic retail expansion may not offer the brand equity bumpbrands have experienced in other markets. A comparison of theretail footprint (number of stores and geographic reach) againstthe number of user-generated comments on social networkingsites RenRen, Qzone, and YouKu (proxy for brand awareness)demonstrates no correlation.Brands like Hugo Boss, Ferragamo, and Ermenegildo Zegnahave pursued aggressive retail expansion strategies, includingbuilding stores outside of Tier 1 cities, but generate limitedbuzz online. Meanwhile brands like Chanel, Givenchy, and YvesSaint Laurent have a limited retail presence on the Chinesemainland but generate substantial fan discussion on popularsocial networking sites.SNS Buzz(RenRen, Qzone, YouKu)Chinese Retail Footprint© L2 2010 L2ThinkTank.com 19