Introduction
Today, Belono is one of the most successful pioneer to get into China casual wear market when many of Hong Kong retailers were focus on the local business. By a vision of large potential market in China, Baleno took this valuable opportunity and started allocation of resources to explore the China market and expanded its retailer operation in China from 1992. With the adoption of appropriate strategies and a well-established retail mix, Baleno penetrated into the market quickly and built up its own competitive advantages. Therefore, it is worth to have an in-depth look into the key of success in case of Baleno. In this article, we aim to give you a good understanding of the background of Baleno and the situation of apparel industry in China from 1996 to 2007. Challenges of Baleno and its responding strategies would also be stated. Base on the adopted strategies and its reasons behind, conclusion would be draw by the evaluation of strategies and judge whether it is success or not.
Background of Baleno and the situation of apparel industry in China
Begin with the background of Baleno, it was originated from Italy in 1981. The main business was the operation of apparel retailer stores and mainly served the Hong Kong market. In 1996, Baleno was acquired by a company called Texwinca and established Baleno Holdings Limited as the holding company. The parent company Texwinca is one of the largest companies involved in the production, dyeing and selling of knitted fabric in Asian. Since the fabric production, garment manufacturing, dyeing and bleaching and casual wear retailing were vertically integrated within the group, resulting in lower