Most foreign brands target first tier cities in China, thinking that demand in lower tier cities is unable to support their stores. The case describes how Xtep, a Chinese sportswear brand, succeeded in building a strong position in second and third tier cities by tapping into youth's need for...

Fuelled by impressive economic growth in recent years, consumers' demand for clothing in China had been increasing. Expenditure on clothing of urban households rose from 374.19 billion yuan in 2004 to 509.29 billion yuan in 2006 (an increase of 36.1%), and for rural households, this increased...