Fashion IP may hold the key when it comes to the survival of brands

While many established global and domestic brands are facing challenges such as a lack of inspiration, loyal customers moving away and growing operating costs, Paul Fang believes that the integration of fashion and entertainment intellectual property cannot only invigorate the brands but also help them grow robustly.

Fang, the founder and CEO of China's fashion, lifestyle and entertainment company Suntchi, which has an official partnership with the Council of Fashion Designers of America and New York Fashion Week, says that there are many opportunities available in China's fan economy and internet celebrity economy, besides growing consumer wealth and demand for more personalized items.

Suntchi, which was founded in 2008 and has offices in Shanghai, Tokyo and New York, focuses mainly on fashion brand management, global fashion and entertainment IP integration, global fashion and lifestyle events.

Speaking about the new trends, Fang, who first entered the fashion industry in 1999 and has seen China's retailing market firsthand as a strategy adviser and senior brand expert in various fashion companies, says: "The main drivers behind these phenomena is China's ongoing consumption upgrades, especially in the service, retail and hightech sectors; as well as millennials (those born in the 1980s and 1990s), who have already become the country's major spending power."

Besides, he says that this transformation will lead to a variety of needs, resulting in a series of consumer chain reactions and innovative upgrades, as well as the birth of new brands that are more responsive to the needs of consumers.

"In the meantime, recreational consumption will also become a strong growth driver because consumers' psychology is undergoing changes, and their demand for lifestyle and quality are no longer the same as in the past.

"Therefore, tailor-made IP integration can be an effective way to enhance a brand's earning ability, creativity and sustainability."

Meanwhile, eager to promote this new business model, Suntchi entered into a five-year strategic partnership with CFDA, the governing body of the American fashion industry which was founded in 1962 with a membership comprising more than 500 of America's foremost womenswear, menswear, jewelry, and accessory designers.

In 2017, CFDA launched a fashion exchange-an independent IP resource platform which gathers IPs from industries in the fashion, entertainment and fine arts sectors.

Fang also says that this partnership is a result of the rise of the Chinese economy, and was made only after an extensive evaluation process.

It took two years for both sides to seal the deal. And its cooperation with the CFDA also includes matters related to design, brands, supply chain, retail and capital.

Giving details about the deal, Fang says: "We understand that the cultures in China and the US are different, and that we are dealing with two different peoples."

Fang says that while he agrees that the collaborations will create different results for each side, he is trying to figure out the balance between the two cultures and understanding the disparities.

So far, the company has been working closely with more than 60 brands in the United States, Europe and Asia including Skechers, Tmall.com, as well as and over 100 international and domestic celebrities and artists.

Suntchi manages its clients' through its Super IP plus platform that cuts through the clutter comes with numerous entertainment options and technology upgrades.

And as it is the largest platform for IP authorization and commercialization in China's fashion and entertainment industry, the company has been deploying resources into building e-commerce platforms since 2017.

For Fang, the combination of the fashion and the entertainment industries is more lucrative than traditional business models as the integration can generate a new industry altogether.

Fang has an almost instinctive sense of where the future is heading, when he says: "The millennial generation pays for what they 'like' instead of 'want' and a great amount of their 'likes' are generated from what they see and hear on the mobile screens produced by the entertainment industry."

Also aware that Chinese millennials' preferences are shifting from expensive products to unique and personal items, Zhang Lan, a marketing professor at Beijing Technology and Business University, shares Fang's opinion, saying: "They like dressing differently and traveling, care about their individuality and have different pursuits to match their lifestyle.

"To woo them, many brands have been advised to bring iconic fashion such as denim, street styles and premium sporty brands to them," she adds.