The Clothing Market Will Exceed 630 Billion In 2010 -- Analysis Of The Consumption Characteristics Of Chinese Residents

China's vast areas, large urban and rural differences, uneven income levels, different regions, different levels of income residents show different consumption characteristics, such as: different urban residents clothing consumption demand is not equal, some two or three line cities even more than the first tier cities; 25~29 years old, 35~45 years old crowd has the strongest consumer demand and so on.

Compared to the development process of textile and apparel industry in the United States, Britain, Japan and China, there will be roughly the following stages: large scale production of manufacturing enterprises, production shifting, shrinking manufacturing industry, retailer dominance, and retailers' participation in market competition with service and rapid response. China has already been in the second stage, and it also indicates that China's clothing industry will soon enter the next golden ten years. Therefore, the size of the clothing market demand and the characteristics of residents' consumption also have certain reference value for enterprises to establish competitive advantages.

The report on the analysis of the consumption characteristics of Chinese residents' clothing released by Huatai United Securities shows that in 2009, the total retail sales of clothing (above Designated Size Enterprises) amounted to 326 billion 430 million yuan, accounting for about 70% of the total retail sales of textile and clothing commodities, and the growth rate in the past five years was over 20%. If the ratio of per capita income and per capita clothing consumption expenditure (total income) is calculated, the total capacity of the clothing market in 2010 will be about about 630000000000 yuan, while the conservative estimate is that the expansion rate of the whole garment market will be around 10.5% in 2015.

At the same time, the report also analyzes the different characteristics of clothing consumption in urban areas, different regions and different income levels.

Overall improvement of China's residents' income

The proportion of urban and rural population is approaching 1:1

As can be seen clearly from the chart below, the income level of Chinese residents has been improved in the past 4 years, and the income structure has also undergone great changes. Among urban residents, the number of residents earning less than 30 thousand yuan is on a downward trend. The number of residents earning 40 thousand ~10 yuan is the fastest, followed by 100 thousand yuan or more. Among rural residents, the number of residents earning less than 4000 yuan has become less and less. Nearly 40% of rural residents earn more than 5000 yuan. At the same time, the ratio of urban to rural population has also changed considerably, approaching 1:1.

Structural change of urban residents' income distribution

(proportion of population at different income levels to total population)

The change of rural residents' income distribution structure

(proportion of population at different income levels to total population)

The overall improvement of income level and the increase of urbanization rate will bring about the improvement of consumption power and the change of consumption concept. In recent years, Chinese residents are more concerned about brand clothing.

Consumption desire of urban residents is strong.

Low income people also need to pay attention to

Because of the great differences between rural and urban living environment, social security system and consumption environment, the consumption demand of rural residents in clothing is significantly lower than that of urban residents. Even in the rural areas, the absolute income of the high income group is the same as that of the urban middle income group, but the expenditure on clothing is obviously smaller than that of the middle income group.

Therefore, if more rural residents are involved in town life, their spending on clothing is likely to increase significantly, and this potential is much larger than that of urban residents. Therefore, it can be envisaged that the government will speed up the process of urbanization through various policies, and if the effect is obvious, it will play a huge role in stimulating consumption.

The proportion of per capita disposable income and clothing expenditure of urban and rural residents in China

As can be seen from the above picture, the idea that "the more rich people consume more clothing" is not in line with the actual situation. On the contrary, the income of the residents with relatively low income is relatively high in proportion to their income, and the residents with relatively high incomes are relatively low, and this ratio will not be reduced or expanded indefinitely, which proves the general consumer goods attributes of clothing. For people with lower income levels, clothing is more closely related to non essentials; clothing is closer to necessities for people with a higher income level.

Two or three line cities have potential

35~45 year old consumer demand strongest

The income level of residents in some cities is not high, but their clothing consumption accounts for a higher proportion of income, even higher than that of high income Beijing, Shanghai, Shenzhen and other places. In these areas, such as Inner Mongolia, Xinjiang, Henan, Shanxi, Ningxia and northeast provinces, some two or three line urban residents are more willing to spend more money from their limited income on clothing consumption. As a result, there may be potential consumption potential in these areas.

The population aged 0~19 and above is defined as the saving population. The 20~50 year old group is defined as the consumption population. Based on the age structure data released by the Census Bureau and the clothing consumption data of urban and rural residents, the clothing consumption demand of each age group is calculated. It is found that people aged 25~29 and 35~45 have the strongest clothing consumption demand.

Comparison of clothing consumption demand of different age groups (2007)

Taking the 2007 data as an example, the consumption demand of clothing for the whole country is about about 500000000000 Yuan, of which nearly 30% of the 35~45 years old people contribute, and the per capita consumption demand of the age group is above 600 yuan / year, which is significantly higher than the average 405 yuan / year level. Although the clothing demand of 25~29 years old people only accounts for about 7.6% of the total demand, the per capita consumption demand is also close to the high level of 500 yuan / year, which shows a strong desire to buy. From this point of view, the market of 25~29 years old and 35~45 years old is bound to become the most important area and the most competitive area.

The above consumption characteristics show that the income structure of our residents has changed significantly. More and more "rich people" and more and more urban population have laid a good material foundation for the expansion of clothing demand and the upgrading of consumption. From the consumption desire of residents, the business opportunities of the two or three tier cities may be more than those of the first tier cities, especially the residents' consumption potential of Inner Mongolia, Xinjiang, Henan, Shanxi, Ningxia and northeast provinces. People aged 25~29 and 35~45 have the strongest consumer demand, and are still competing for the target market.