Western High Street Fashion Competition In China Or By Local Chain Stores

　　 Hangzhou Michel U's favorite brand is Louis Weedon and Gucci, but because of the limited budget, she likes to buy Zara, H&M and other Western brands that are emerging in China. Luxury brands have been selling well in China, and low priced European and American high street fashion (that is, fashion clothes that just appeared on the red carpet will soon be on the counter - editor's note) is betting that China's fashionable youth can help them withstand the impact of their domestic weak economy.

Compared with the luxury brands that have made the first move, high street brands will encounter more intense competition from local chains. Because many brands are expanding rapidly in China, they will compete with each other for customers. In addition, fickle Chinese consumers are unlikely to favour all brands. As the Chinese economy is likely to experience the lowest growth rate in 13 years this year, they will be more picky.

Many brands have ambitious China plans and others enter the Chinese market for the first time this year. Lei Xiaoshan, founder of China market research group, said that some of the replicas of T could be produced quickly. High street fashion Retailers are most likely to succeed, but some brands are hard to win the favor of Chinese because they have fallen into a middle-class impression trap, which is expensive for local market but hard to show wearer identity.

"The middle class in China is either buying expensive or buying cheap goods, and any commodity between them is in a difficult position," he said. "This is why I am not optimistic about some high street brands that are very middle class. You want to show your middle class identity by buying our clothes, but all the Chinese I know don't think so. The Chinese middle class who interviewed us thought they were getting rich because everyone knew a farmer who was poor and 15 years ago and now drives a BMW. "

For some Chinese businessmen, brand building is also facing challenges. Foreign brands, which occupy the largest market share in China, have not become household names. First time Hong Kong Zhang Jin, a shopping lady, has never heard of foreign brands such as H&M and Zara, though she comes from Beijing, a foreign brand.

Although western brands are flocking in, local brands are still expanding their market share in China. "I think a better understanding of the local brands of consumers will still have a place in the market," said Asma Kunde, a retail analyst at Rui information consulting. Lei Xiaoshan believes that in the next 5 to 10 years, when the social and economic status of the Chinese middle class is more stable, the mid-range brands will be increasingly accepted, because then people will realize that "not everyone can become a millionaire".