Fashion Is Now "Matthew Effect" &Nbsp; Super 1 Trillion And 300 Billion Market To Be Subdivided.

Tang Qin represents consumers of the new generation of big cities in China. According to the Boston consulting firm's survey of 5000 consumers in different regions and cities in China, 50% of the respondents said that they planned to upgrade their consumption of fashion in 2011, which is 5% and 14% higher than those in 2010 and 2009 respectively.

"The Chinese fashion market has expanded two times over the past ten years and is expected to grow two times in the next ten years."

Lv Huang, partner and managing director of Greater China in Boston consulting company, told the author.

Due to the rise of the rich middle class consumers in China, the size of China's fashion market is expected to increase by two times in the next ten years and exceed 1 trillion and 300 billion yuan.

With the rapid expansion of the market, the retail pattern is constantly changing.

"This is a process of concentration of industries, and advantageous resources and markets will flow to good enterprises."

Legend investment Shanghai office investment manager Wang Yong told the author.

With the help of capital, the entire garment industry has experienced several times of market influx, such as men's wear and sportswear. Nowadays, the next wave of women's fashion is coming.

Like Matthew effect, with the support of capital, the listed garment enterprises will be stronger and bigger quickly and occupy the market advantage in the next 10 years.

New changes in the next 10 years

Although in Qin Qin's wardrobe is filled with H&M and ZARA, "

In the next 10 years, the consumption structure will change. The younger generation of consumers will become the main consumer. Women's fashion consumption will increase greatly. More high consumption groups will come from small and medium-sized cities. At the same time, the functional clothing in the clothing market will be more subdivided.

Lu pointed out that although these fast fashion brands have developed rapidly in China in the past few years, it is worth noting that these fast fashion brands do not have a very large business scale in China. For example, ZARA has about 70 stores in China, about 25 in Benetton, and 5 in Gap. Compared with these brands, these brands have more than 1000 stores in Europe and the United States, and other global or regional popular brands such as J.Crew and AnnTaylor have not yet opened stores in China.

"Although China will become one of the fastest growing apparel emerging markets in the world in the next 10 years, global brands are also interested in China, but are limited by the differences between channels and cultures.

The development of fast fashion brands abroad is relatively slow.

Lv Huang thought, by comparison, it might be surprising to consider the development of the brand that was earlier successful in China, Nike and

Diversification and channel warfare

"Channel is one of the key factors.

The front end looks at raw material procurement and personnel management, the middle end looks at the design, and the rear end looks at the supply chain.

Wang Yong believes that in the current market pformation, we should give special consideration to the diversified mode of combining network sales with traditional sales.

Traditional channels can not be abandoned, even in larger cities, department stores are still strong competitors.

At present, more than 35% of fashion sales are from department stores, and the brands entering department stores still have considerable competitiveness.

A floor manager of a department store pointed out that the new brand has only three months to prove whether it is recognized by the market.

And along with

By 2020, 2/3 of the middle class and affluent consumers will live in four to seven tier cities, and will occupy 60% of the overall growth of the fashion market. For enterprises, this means that the share of interests will be more dispersed.

"Now, in order to achieve 80% coverage in the middle and high priced fashion market, enterprises need to enter 462 cities. By 2020, in order to maintain the same market coverage, enterprises will need to enter 568 cities. More importantly, many of the trends we find will be different in smaller cities and larger cities.

This means that enterprises must adjust their practices accordingly, with a view to achieving success in the smaller market which has not yet been fully covered. "

Lv Huang thinks.

Diversified style has also become the next 10 years of weathervane.

In Lu's view, Hongkong's brand I.T is the best example of diversified development.

In Shanghai and Beijing, I.T's unique stores attract many fashion trends.

Hongkong I.T has proved itself a worthy fashion company through its symbolic, multi brand and multi-level practices.

The company currently has more than 300 stores in Greater China, and brand screening is its strong point.

The company manages more than 300 brands, replacing 50 brands every year, and has four different multi brand store models, such as big and small I.T, aiming at different consumer groups with clear boundaries.

The development of value-added services to enhance the retail experience of shoppers is also noteworthy. The company attaches great importance to staff training.

The goal is to enable employees to have a deep understanding of brand products and services. The company also trains employees to provide customers with single product or portfolio recommendations for customers to try on.

"This service model is very effective in smaller cities.

This is because consumers in small cities have not yet fully cultivated their sense of personal style. After getting advice, customers are more likely to buy.

Lv Huang thinks.

Besides, in the emotional appeal, the strength of the brand will play a decisive role.

More than 10 years ago, consumers were strongly attracted by big brands, but few considered that brands could represent personal identities or reflect a person's outlook on life. By comparison, nowadays twenty or thirty year old young people are more likely to express their emotional satisfaction through fashion.

This is also one of the reasons why luxury brands are now popular in China.

People reveal themselves through brand names.

Related correlation

Women's clothing capital surges

"When the model is formed and chased the brand is the current industry consensus, the competition pattern is the competition of capital strength in the initial stage.

Therefore, successful listing and financing is an important help for a company to gain the leading edge. "

Wang Yong told the author.

In Wang Yong's view, after ten years of development, the continuous convergence of garment enterprises and capital has the trend of band type development, and in every band, there are representative garment enterprises.

For example, the first band before 2007, such as Shanshan and YOUNGOR, represented by men's wear, 2007~2008 clothing industry welcomed the second wave band in the year of 2007~2008, and BELLE, Anta and news birds were represented by footwear enterprises. After the financial crisis, from 2009, sports apparel such as PEAK, mainly functional oriented outdoor clothing, was listed respectively.

From the end of last year to the beginning of this year, a number of e-commerce clothing brands began to list, such as Mcglaughlin, to bring huge opportunities for development of China's garment industry.

"It can be seen that the process of China's concentration in the garment industry is very similar to that of the United States in the early 90s.

Therefore, after the subdivision of sports brand and functional brand concentration, the next wave should belong to women's clothing.

Because China's big ladies and less ladies dress brands are scattered, the industry concentration is not high, and there is a great opportunity to produce a listed company like YOUNGOR.

Wang Yong judged.

In view of the good prospects for women's wear industry, Lenovo invested millions of dollars in La Natsu Bell's domestic dress in the first half of 2010.

Today, the brand is growing at a rate of about 50% a year.

The capital market's sense of smell is always sensitive, as well as Wang Yongchi's judgment of Carlyle. In 2009, he introduced Carlyle Group's 150 million investment, and also made a listing plan.