Two Reasons For VC/PE's Cautious Treatment Of Chinese Children's Clothing Industry

"Clothes, food, shelter and clothes" can be seen first. Clothing industry It plays an important role in the large consumer market. Clothing can also be divided into men's clothing, women's wear and children's clothing according to its crowd oriented. Compared with our casual men's clothes and fast fashion women's market, the development of Chinese children's wear market is lagging behind. But in recent years, with the arrival of the fourth peak of Chinese fertility and the importance of children in family status, the Chinese children's wear market has entered a rapid development period, and is changing from extensive management to refinement and branding, and gradually forming children's clothing industry.

Relevant data show that China Children's wear market It has a market scale of 100 billion yuan and a production scale of 5 billion, with an average annual compound growth rate of 10.09%. It has become one of the fast growing clothing categories. It is estimated that the market of children's wear in China will exceed 200 billion yuan in 2015. In such a big market, from the investment point of view, we find that VC and PE are almost absent. According to incomplete data from the Qing Ke database, there are only 8 investment events in China's children's clothing industry since 2008. Among them, online (i.e., retail outlets are mainly retail outlets) investment enterprises have children's one store and green box. Under the line (mainly shopping entities, such as shopping malls, franchised stores, etc.), enterprises that have invested include water babies, tick, Babu beans and so on.

Only from the clothing enterprises that invested in 2011, Children's wear The financing situation of enterprises is not consistent with its market development. According to the database of Qing Ke database, in 2011, there were 34 investment events in China's textile and garment industry, including 21 investment cases, and the total amount of disclosure was 305 million dollars, with an average investment of 14 million 530 thousand dollars. In the same period, only 3 children's clothing enterprises were invested. The total amount of investment disclosed was only 10 million 100 thousand dollars, with an average investment of 5 million 50 thousand dollars. The situation of loneliness is obvious.

　 According to the analysis of Qing Ke research center, the main reasons for VC/PE's careful treatment of Chinese children's clothing industry are reflected in two aspects.

First of all, children's clothing market is in the early stage of industrialization, and brand awareness is slightly weaker. With the continuous upgrading of China's consumer industry and the evolution of family structure, children's clothing market has begun to approach industrialization. But compared with women's wear and men's wear, Chinese children's wear market brands are scattered, and there is no national leading children's wear brand. According to incomplete statistics, 70% of local children's wear brands are not. This is undoubtedly a big defect for the consumer category with strict quality requirements.

Secondly, children's clothing market is in a mixed battle, and foreign brands are strong enough to enter. At present, there are two main competitors in China's children's wear market. One is the professional children's clothing manufacturers, such as Parker, small pig, JOJO, green box and other enterprises. The other is the peripheral clothing and clothing enterprises, such as Anta, XTEP, seven wolves, Giordano, Metersbonwe, etc. * this part of clothing enterprises have strong ability of raw material organization, clothing production, channel sales and so on, and extend this advantage to children's wear market, and quickly redesign children's wear market through design reengineering. But on the whole, the local children's wear brands are mainly concentrated in the low-end market, and the market for high-end children's clothing is far from enough. This market is mainly entrenched by famous foreign clothing brands, such as Nike, ADI, and Armani, GUCCI, Burberry and other luxury brands. In addition, we see a lot of fast fashion brands, such as ZARA, H&M, UNIQLO, etc., have stepped into the children's clothing market, and have achieved good results.

The industry generally believes that branding is an inevitable trend in the development of China's children's wear market. In this highly competitive market, the survival of the fittest, we expect that the Chinese children's clothing market will be further concentrated in a series of natural elimination and capital operation, and it will show real scale and standardization. From the perspective of children's consumption market growth, children's clothing market will occupy a larger share, which deserves further attention.