Discussion: Six Major Trends Of Garment Development In The Next Ten Years

In the past ten years, China

The market size of the industry has increased by two times, reaching nearly 400 billion yuan by the end of 2010.

We expect that China's clothing market will grow two times in the next ten years, reaching 1 trillion and 300 billion yuan in 2020.

However, this does not mean that all garment enterprises can benefit from this growth trend.

In order to gain share in the new round of growth, enterprises need to adjust their strategies according to their own reality and emerging consumption trends.

Through interviews with more than 5000 consumers aged 14 to 45 in different regions and tier cities, we found six key trends that will determine the future direction of the clothing market.

Trend 1: the clothing consumption of the younger generation will increase.

Clothing consumption has just started to increase among people aged twenty or thirty.

At present, the consumption of this group is 18% higher than that of the city.

This "post-80" group is not as bitter as their parents. Many of them have a better job in a foreign company or a local company. These factors turn into a strong optimism.

The momentum of clothing consumption will continue to rise in the post-80s generation, and will be further enhanced through a younger, more proficient fashion group such as the "post-90s".

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Consumption accounts for a large proportion.

With the gradual increase of clothing consumption in the next ten years, the proportion of consumer groups will further tilt towards women.

So far, the consumption expenditure of Chinese men and women on clothing has tended to be close: Men's clothing currently accounts for 46% of the total clothing consumption of urban consumers aged 14 to 45, while women's clothing accounts for 54%.

With the increase of women's income, women's clothing consumption level is more significant than that of the same income men.

Nevertheless, clothing consumption of small city consumers (four to seven tier cities) is still at the initial stage of development. Men's annual clothing consumption is slightly higher than that of women, and 54% of clothing purchases are contributed by male consumers.

Trend three: more high consumption groups will come from smaller cities.

In the next ten years, many high consumption groups will live in inland or smaller cities.

In 2010, smaller cities constituted about 50% of the clothing market.

By 2020, 2/3's middle class and wealthy consumers will live in four to seven tier cities, and will occupy 60% of the overall growth of the clothing 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 price clothing 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 have found will be different in smaller cities and larger cities. Enterprises must adjust their practices accordingly, with a view to achieving success in smaller markets that have not yet been fully covered.

Leisure occasions and activities increased.

Ten years ago, alternative entertainment and social occasions were limited.

People living in provincial capitals may occasionally go out to eat or sing Cara OK, but in most cases, school, work and family constitute the whole life.

Today, the experience of the typical consumer is expanding significantly. The choice of clothing for consumers reflects the appropriate fit for different occasions.

The concept.

To this end, the consumer's wardrobe is expanding.

With the increasing number of occasions, people increasingly need clothes suitable for this new way of life.

Chinese consumers will continue to try to dress differently for different occasions.

All this means that enterprises will have the opportunity to shape consumer behavior and preferences.

Leading enterprises will be the winners of the market by promoting and selling products that can meet the needs of specific occasions.

Trend five: consumers defined by emotional space.

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.

Young consumers today say more that they get emotional satisfaction through clothing.

Enterprises can no longer rely solely on the status of well-known brands. Consumers are looking for brands that can resonate deeper with them. Clothing products must be able to affect consumers' emotional chords.

We observed four major emotional spaces in male and female consumers (see Figure 1 below). Enterprises need to understand these needs to locate their brand products accordingly.

The vertical dimension of emotional space is guided by success: one is career achievement, social status and self perfection, the other is relaxing, relaxing and enjoying life.

It is important that 60%. 70% of Chinese consumers are inclined to pursue success.

Because of the great upward mobility of Chinese society, people recognize the idea of continuous progress and personal development.

It is worth noting that in view of the fact that women spend more on clothing than men, "successful women" will become a particularly important consumer group.

This tendency is more significant in big cities.

In smaller cities, the pace of life is slower and the cost of living is lower. Consumers can either save more or spend more on leisure and entertainment.

They do not feel strongly about their career and social status, so they are more inclined to enjoy life.

The horizontal dimension of emotional space is fashion oriented, one end is "fashionable beauty" and the other is "elegant classic".

Our research shows that women prefer to express themselves through dressing, while men prefer to integrate into social groups, and prefer casual and low-key attire.

Enterprises must take into account the emotional needs of consumers and the essence of their brands, and position themselves in the larger emotional space.

Trend six: new distribution channels and retail formats.

Enterprises must consider the geographical scope and the city level when deciding whether to use appropriate distribution channels to enter and expand the market.

Consumers in small cities are not as diverse as consumers in big cities, and department stores and single brand stores will still be most popular among them.

Because smaller cities are often chosen by the oldest department stores, the more mature modern department stores can create a pleasant shopping experience and continue to be a weekend resort for these urban consumers.

Even in larger cities, department stores are still strong competitors.

At present, more than 35% of clothing sales come from department stores.

Besides, the brands entering department stores still have considerable competitiveness.

A floor manager told us: "the new brand has only three months to prove itself."