Branding in China with Latin flair

Latin America is a long way from China, but for Invista Asia marketing director Erasmo Schutzer, it is the cultural similarities between the two regions that have enabled him to position the Lycra brand at a time of immense opportunity in the mainland. With China viewed as one of Lycra's key global markets, Invista's decision to base its regional marketing director in Shanghai is hardly surprising. And, given the fragmentation of the apparel value chain in the mainland, it is here that Schutzer's flair for relationships can reap significant dividends. "I see more similarities than differences in the way we work in China," explains Schutzer, who hails from Brazil. "In both cultures, relationships and networking are very important. My Latin background has helped me to easily adjust to the business culture in Asia." Schutzer was based in Hong Kong between 1993 and 1998, as Asia business director for Invista's Teflon brand, in between stints in the US and Latin America for the company, at which he has spent 17 years. The chance to return to the region to oversee Lycra in China was clearly too good to miss, and Schutzer is keenly aware of the marketing opportunities the country affords. "For any marketing professional, being in China is an incredible opportunity," he points out. "China is going through such a transformation and marketing is such a new science -- there is a very high demand for marketing expertise." Lycra is benefiting from this expertise. China's appeal to the brand is two-fold: first, as its production hub for exports and, second, for its massive domestic market. In global terms, 'stretch' penetration into the market is high, and certainly higher than most other Asian markets. The challenge for Schutzer is to ensure that Lycra does not lose out to the country's generic brands. "Our major challenge is the generic category," says Schutzer, "where consumers or apparel brands buy stretch apparel without the brand. This is a fast-growing category and the key for us is, how do we grow faster?" The solution, says Schutzer, lies in a combination of B2B and B2C marketing, so that Lycra can effectively reach its two target audiences. In China, the former requires much groundwork, to effectively segment the market and define its value proposition. To reach consumers, meanwhile, the brand has opted for a rather more innovative approach -- partnering with Shanghai Media Group to build events such as the 'Lycra*My Show' and the 'In Style Fashion Awards'. Because of Lycra's position as an 'ingredient' brand, Schutzer sees the development of experience marketing as crucial. "When you are an ingredient, consumers really never see or touch the product," he points out. "It means we have to present the brand as an experience -- we cannot do marketing like an FMCG company. For us, it's imperative to use emotions to link to consumers, because we don't have anything consumers can touch." The events have proved popular, and In Style has since rolled out to India and England. It is clear that Schutzer's 14-strong marketing team has hit upon an idea with global resonance, with In Style attracting the likes of actor Ralph Fiennes and supermodel Alek Wek. "We try to approach the consumer in different ways," says Schutzer. "When we do experience marketing, the big event is just a platform for us to create other levels to get access to consumers. (For In Style), the contact points with consumers via PR far exceeds the syndication." The brand also sports an unconventional approach to its agency roster in China, eschewing global players to work with small shops where it can be "a more important client", in Schutzer's words. "In the textile industry, there is no question that most of the production and consumption will be in China," he notes. "It's a great opportunity for any marketing individual."