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    Market Analysis: China'S Clothing Consumption Market Development Strategy

    2011/11/16 16:05:00 46

    China'S Clothing Market Development Strategy

    China is a big exporter of clothing. According to the statistics of the General Administration of customs, in 2010, the export volume of domestic textile and garment industry exceeded 200 billion US dollars, increasing by more than 20%.


    At the same time, China is also a big consumer of clothing. China's sustained growth in per capita income is the biggest driving force to support the huge demand in the apparel market.


    The growth rate of clothing consumption demand of Chinese residents is even faster than that of per capita income and GDP growth.

    According to the National Bureau of statistics, from 2003 to 2009, the per capita consumption of Chinese urban households for clothing has increased from 593.99 yuan to 1224.08 yuan, with a compound annual growth rate of 12.8%.


    After the baptism of the financial crisis in 2008, the competitiveness of China's garment industry has been greatly improved, and the industry has gradually become larger and branding. In addition, with the continuous improvement of the purchasing power of Chinese residents, more and more enterprises are turning their development strategy to the deep domestic market.


    In recent years, the rising cost of clothing enterprises is reflected in many aspects: on the one hand, the emergence of "labor shortage" and the rise of wage and welfare have led to the rise of labor costs; on the other hand, the rise in the price of commercial rents and the increase in pport prices have caused the increase in the business cost of clothing enterprises; meanwhile, the rise in the price of resources such as water and electricity has led to the rise in manufacturing costs; besides, under the credit tightening policy, the financing costs of garment enterprises have also risen a lot.


    In order to ease the upward pressure on costs, clothing companies began to substantially increase product sales prices.


    Many garment enterprises have adopted the business mode of "production outsourcing + Direct stores and franchisees", which also determines that such enterprises must have strong R & D design capabilities and marketing channel construction and management capabilities.


    In addition, garment enterprises should balance the speed and the benefit in the process of building marketing channels.


    Too fast channel construction may also lead to tight chain of funds. It is necessary to improve management capabilities, enhance profitability of single stores, and strengthen resource replication capability.


     
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    In September, Sales Of Clothing In Ten Major Shopping Malls In Shanghai Increased By 45.2%.

    According to the Shanghai clothing industry association network regular statistical report, in September 2011, ten major shopping malls in Shanghai were selling 893 thousand categories of clothing items (set), an increase of 81 thousand pieces (set), an increase of 10% compared with last month, a decrease of 21.6% over the same period last year.

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