Two Or Three Line City: The Next Profit Space Of Clothing Brand

Beijing, Shanghai, Guangzhou and other domestic first tier cities mature consumer market, is the brand of many brands want to occupy the "geomancy treasure land."

But now this situation is changing. The market of the first tier cities is becoming saturated. More and more brands are starting to compete in the two or three line cities to seize market opportunities and expand their development space.

The "reverse" of the market makes the brand have to readjust its own development strategy.

Is this because the competition among brands is too intense?

What kind of market is the two or three line city?

Is it suitable for the development of every clothing brand?

With this doubt, our reporter interviewed a wide range of leading brands of clothing entrepreneurs, industry analysts and relevant local associations.

The next spring of clothing brand development?

In the future, branding will continue to focus on the most competitive markets such as Beijing and Shanghai, but at the same time, it will also consider more room for development.

With the rise of two or three tier cities with the ability to consume and facilitate pportation, it seems that the clothing brand "camping" here is a good choice.

The market of the first tier cities in China is almost saturated, and the two or three line city market has become a new growth point of the garment industry. This is almost an indisputable fact.

On the face of it, the full competition in the clothing industry has made the "fighting" among the brands among the first tier cities tragic.

Therefore, many people think that the brand "war" two or three line city is a must.

In this regard, Xia Hua, President of the Yiwen group, believes that the simple development of the brand to the two or three tier cities is a one-sided business competition.

In her view, in recent years, with the development of economy and the acceleration of urbanization, the emergence of new pportation tools such as high-speed rail and light rail has made the connection between cities and even towns and villages more closely, and it is possible for residents to concentrate on the two or three tier cities.

Xia Hua also believes that the expansion of business is another important reason leading to the two or three line market.

At present, the commercial competition in Beijing, Shanghai and Guangzhou is very fierce. The high price of commercial real estate has led to the high cost of brand operation.

If the profit margins and value-added products of a clothing brand are not high enough, it will be difficult to make profits in the first tier cities.

In this sense, Li Zhixian, a senior analyst at the textile and garment board of Guotai Junan Securities Research Institute, believes that some clothing Brand Company will build one or two stores in the first tier cities. Such shops are just image shops, that is, they do not expect it to make money, but to advertise the brand.

Li Zhixian said: "for such a brand, making money or relying on the two or three line cities, that is, the amount of running."

Li Zhixian also said that in recent years, the income of middle and low income consumers in second and third tier cities increased rapidly, and this situation will continue in the next few years.

"The next national policy adjustment, including encouraging consumption, especially narrowing the gap in income distribution, will bring about a rapid increase in the proportion of low-income people's income.

Therefore, in the next few years, the consumption of the two or three tier cities will increase rapidly, and even some of the developed rural areas will be possible.

In addition, expanding domestic demand has greatly promoted the entry of clothing brands into the two or three tier cities, stimulating consumption among the middle and low income groups.

Under the request of "promoting pformation, expanding domestic demand and adjusting structure", the policies have been implemented in depth. Especially, the support of the state for the development of agriculture and rural areas in China will surely arouse the market potential of rural and small towns and bring new development space to the brand.

Chen Guoqiang, deputy director of the Institute of industrial economics of China Garment Association, said in an interview with reporters that China's two or three tier cities and rural markets will gradually expand as a result of the country's policy of encouraging consumption.

At the same time, due to the continuous improvement of the living standard of the domestic residents, especially in the central and western regions, the consumption demand of the residents is accelerating. This provides a direct impetus for the clothing brands to enter the two or three line cities.

According to Chen Guoqiang analysis, today's consumers combine the functionality of clothes with their individual needs.

"Before a piece of clothing for consumers, may be worn on any occasion; now sportswear, outdoor clothing, home furnishing and so on a variety of market segmentation is obvious.

And everyone faces different kinds of clothing, their personalized needs are different.

One of the reflections in the market is more brands to the two or three tier cities. "

Chen Guoqiang said.

Special attention should be paid to the fact that clothing brands enter the two or three tier cities, and it is also a manifestation of enterprises' more conscious use of new channels, new products and new models to develop the market.

For example, the development of the Internet of things has made use of radio frequency identification devices, infrared sensors, global positioning system and other information sensing devices to connect items to the Internet for information exchange and communication, promoting the development of modern logistics and distribution system, and providing a good technical means for clothing brands to enter the two or three tier cities.

There is also a compelled fact that the pressure of life in big cities such as Beijing, Shanghai and Guangzhou has gradually increased. Some young people who are struggling for survival are more and more inclined to escape from the metropolis and look for entrepreneurship and job opportunities in the more livable two or three tier cities.

It also reserved the space for brand development in the two or three tier cities in the future.