On The Development Trend Of Clothing E-Commerce In China

Since the Internet can better satisfy users' personalized needs, the future is personalized.

Clothing and e-commerce seem far away from each other. One is a typical traditional industry, the other is a new industry, but there is a natural conjunction between them.

Clothing is a special commodity with dual consumption experience. It can not only meet the basic consumption needs, but also a way for consumers to express their individuality. The Internet can satisfy the individual needs of consumers.

At the same time, the main customers of many brands are young people and white collar workers. Most of them are Internet users, so e-commerce can directly link products with customers.

Thus it can be seen that the rapid development of clothing e-commerce, the combination of mouse and cement, can be regarded as the proper meaning of the topic.

History and clothing

China's clothing e-commerce can be roughly divided into the following stages.

The first stage is before 2003. China's e-commerce is also in its infancy. Online shopping is still a niche behavior. Clothing is not the mainstream commodity online.

Clothing enterprises are also trying hard to deal with e-commerce. During this period, a number of B2B platform websites, such as Alibaba and China apparel net, have been selected as the priority for clothing enterprises to test water e-commerce.

The second stage is the stage of market cultivation. The period is from 2003 to 2005.

The outbreak of SARS in 2003 is a huge stimulus to online shopping, and the environment of e-commerce is getting warmer. The establishment of Taobao is a milestone in the development of online shopping in China.

Taobao's free shop policy and the launch of Alipay have greatly stimulated the enthusiasm of Chinese online sellers and consumers. Online shopping has entered the C2C leading stage, and nearly one million personal sellers have become the main body of online sales, and clothing has also become the fastest growing commodity in online shopping pactions.

According to the C2C Market Research Report released by China Internet Network Information Center in 2005, clothing had become the largest number of sellers and sellers at that time.

The third stage is from 2006 to 2008. The typical feature is the rise of vertical e-commerce.

Marked by PPG's strong entry into the direct market of men's shirts, a group of vertical e-commerce websites has been blowing up.

For all reasons, PPG eventually collapsed, but the success of the following websites such as Vancl and Martha Maso showed that the failure of PPG was not a failure of the model. The typical performance of this model is fast asset light companies. They generally do not have production departments, but focus on the promotion and influence of products, and quickly occupy the market through large-scale advertising.

The fourth stage is from 2008 to 2010, to carry out e-commerce stage for brand clothing enterprises.

Influenced by the financial crisis, many garment enterprises hope to open up the domestic market through e-commerce, and the development of e-commerce has already had a considerable scale. The traditional brand clothing enterprises are also paying attention to e-commerce channels.

At this stage, many traditional brand clothing enterprises such as Lining and seven wolves began to carry out e-commerce through various forms and achieved good results.

Traditional brand clothing enterprises rely on the third party e-commerce platform, such as Taobao and QQ mall, to test the water business in the way of self shop or authorized store, and try to develop multi-channel e-commerce sales with the official website and other B2C websites.

In November 11, 2010 alone in Taobao's Singles Day activities, the daily turnover of Bo Yang home textiles and JACK&JONES exceeded 20 million. On the same day, another 11 brands broke tens of millions of records, and hundreds of brands sold more than 1 million yuan on that day.

The fifth stage began in 2010, and the typical example is that capital has entered the field of clothing e-commerce.

At the end of 2010, the wheat net successfully landed on the Nasdaq market. Other well-known e-commerce websites such as fan, Hao Le, Le Tao and other websites also received tens of millions of dollars in venture capital investment. Some of the Amoy brands growing up relying on Taobao, such as seven grid, cracked silk and other companies, also won a lot of venture capital investment. On the one hand, they explained that the capital is optimistic about the future of clothing e-commerce. On the other hand, the influx of capital will also have a tremendous impact on the development speed and operation form of clothing e-commerce.

Current situation and clothing

According to the survey data released by CNNIC, by the end of December 2010, the number of Internet users in China reached 457 million, accounting for 34.3% of the total population.

The popularity and deepening of Internet applications have greatly promoted the development of e-commerce, especially online retailing.

According to the results of positive consultation, in 2010, about 185 million of consumers bought 498 billion yuan of goods online, accounting for 3.2% of the total retail sales of social goods in China.

It is estimated that the scale of online shopping in China will reach 890 billion yuan in 2011.

Clothing has become the most popular commodity on the Internet.

According to the consultancy survey, 77.4% of the online shoppers in 2010 bought clothes on the Internet. According to this, consumers of apparel online shopping will reach 140 million, which is far ahead of the number of online consumers in other commodity categories.

The market size of apparel online shopping also surpasses digital / electrical products, becoming the largest commodity category on the Internet.

According to the survey, the market size of clothing online shopping in 2010 was 162 billion yuan, accounting for 32.5% of the total online shopping scale.

It is estimated that the scale of clothing online shopping will reach 320 billion yuan in 2011.

Trends and supply drivers

Judging from the purchase amount, clothing accounts for 31.8% of the total online shopping volume in 30 cities that are consulting and consulting. Compared with the previous year, clothing accounts for 7.3 percentage points of the total net purchase amount.

The growth of the scale of clothing online shopping has benefited from the large-scale "touches" of traditional brand clothing enterprises. They have opened flagship stores to sell direct brand clothing on the e-commerce platform represented by Taobao mall, thus greatly stimulating the development of clothing e-commerce.

The rising proportion of clothing is affected by the two factors of demand and supply.

From the perspective of demand, with the formation of consumer habits of online shopping, more choices will be made to buy clothes online.

And more brand touches will give consumers more choices, which will also promote the growth of online shopping. This is also an important reason for the rapid growth of apparel products online shopping.

At the same time, the growth of online shopping scale will increase the attraction of Internet channels, and will encourage more enterprises and funds to devote themselves to online sales. In 2010, the large-scale entry of venture capital into clothing e-commerce has a great relationship with this, and the entry of capital will definitely add new propellants to the development of online shopping.

It can be predicted that clothing online shopping will maintain a rapid growth trend.

Opportunity and independent B2C rise

Taobao is the largest online shopping platform in China.

Taobao's huge lead has a lot to do with its launch of the payment guarantee service (later upgraded to Alipay), which solves the problem of lack of mature social credit system in China's online shopping environment, making consumers dare to shop online.

It can be said that Taobao has trained most of China's online shopping consumers, Taobao has also grown to China's largest online shopping platform.

With the accumulation of consumers' online shopping experience, familiarity and trust in online shopping have begun to dare to try shopping on other websites. This is an opportunity for B2C website outside Taobao.

As Taobao is a standardized platform, unable to meet the personalized needs of some clothing business providers, coupled with the consideration of risk diversification, clothing business enterprises have launched multi-channel online sales, and began to build an independent B2C platform, which will be a typical trend of clothing business.

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Women's clothing is dominant.

Taobao occupies 84.6% of all clothing online shopping, and has a strong representation of the entire apparel online shopping market.

Next, we will analyze the structure of the apparel online shopping market based on the statistical data of Taobao's clothing paction.

The main body of clothing consumption is women, so is clothing online shopping.

According to the statistics of Taobao data cube, in 2010, women's clothing sales volume in clothing online shopping was much higher than men's wear. Women's clothing accounted for 39.8% of the total volume of clothing online shopping, and men's clothing was only 14.8%.

Women's shoes also outperform men's shoes. Footwear (men's shoes, women's shoes and sports shoes) account for 19.8% of the total amount of clothing purchased online.

From the year-on-year growth rate, the highest growth rate of men's shoes is 186.3%, and the annual growth rates of women's wear, men's wear and men's shoes are all above 140%.

The growth rate of children's wear / maternity dress and underwear / household wear is over 100%, and the growth rate of sports shoes and sportswear is relatively slow.

Summary. Characteristics and trends of clothing E-commerce

2010 is a year of rapid development of clothing e-commerce, showing some new characteristics.

First, the traditional brand clothing enterprises have accelerated the pace of e-commerce. At present, there are more than 5000 traditional clothing enterprises on Taobao, which are carrying out online direct selling through different forms, and enterprises are still trying different e-business models to realize the operation of multi platform online. At the same time, they are seeking more ways to solve the conflict of interests between online and offline channels. The traditional brand enterprises will become an irreversible trend.

Two, e-commerce platforms are making efforts to fashion e-commerce.

The three party e-commerce platforms such as Taobao mall and QQ mall have promoted the promotion of clothing as a key industry, while the Jingdong mall, which is dominated by digital home appliances, and Dangdang, a Book dominated network, are also starting to make efforts to buy clothing online.

All customers originally sold their own brand clothes, but also launched V+ mall in 2010 to sell other brands of clothing.

Because clothing is the largest number of online purchases, the highest sales of goods, e-commerce website to introduce clothing on the one hand, can provide new impetus for growth, on the other hand, it can also produce synergy with the original sales of goods, through product diversification to achieve economies of scope.

The three is capital's favor to clothing e-commerce.

In October 26, 2010, Mcglaughlin, a Chinese clothing and e-commerce enterprise, formally launched the paction on Nasdaq, marking the successful debut of China's first B2C e-commerce enterprise, and Mcglaughlin jumped to "China B2C first stock".

Other clothing e-commerce websites have also been favored by venture capital. If fans get $one hundred million in financing, the dream bazaar won 20 million dollars and 60 million dollars in two years' financing in just one year.

In addition, some of the brand names established by individual sellers based on Taobao, such as the seven grid, the broken silk and so on, have also been sought after by the capital.

The entry of capital will have a tremendous impact on the way of apparel e-commerce. Venture capital attaches great importance to the development speed. The Internet mode of operation with high investment and rapid development will be injected into these websites.

Clothing e-commerce will keep developing at a high speed in the future, but as the market competition intensifies, it will develop towards fine and precise management.

E-commerce channels will be more diversified, traditional clothing enterprises will use a variety of channels to develop e-commerce, self built official website will be adopted by more clothing enterprises.

As the Internet can better satisfy users' personalized needs, the future clothing e-commerce will be more developed for personalized customization and specific market segments.