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    China'S Demand For Casual Men'S Wear Is Growing.

    2016/6/15 14:27:00 48

    Casual Men'S WearLuxury GoodsLeisure Brands

     Three

    China for

    Casual men's wear

    The demand is increasing, promoting the development of sports and basic brand, but for the luxury men's wear brand, the situation becomes more complicated.

    London, England - last year, China's

    Luxury goods

    The market has shrunk by 2% to 113 billion yuan.

    Who is the culprit? According to Bain&Company's report, sales of men's wear, watches and leather goods are falling.

    For Zegna, Dunhill, HugoBoss and other luxury men's brands, they entered China in 1990s, and this area has become an important part of their business, so this is bad news.

    Last year, Zegna's sales in its most important market, China, fell by 5%, while HugoBoss declined by 2% in the renminbi, which was affected by poor sales of men's clothing. This is the second consecutive year's decline in its performance.

    However, there are still some bright spots in China's men's wear market. According to EU consulting data, the market value in 2015 is RMB 492 billion yuan, which will reach 585 billion yuan in 2020.

    Last year, the casual men's wear market defeated the men's formal dress and opened up new opportunities for some valuable brands and luxury brands.

    "There are very few rules in China that require formal wear," said Lv Wan, director of the Shanghai research team, "even in the workplace, there are only a few companies that have strict rules on the work of formal dress."

    She pointed out: in the past few years,

    Leisure brand

    The market share of eroded brands has eroded, and more and more men began buying relaxed, everyday products, which are suitable for work wear and easy mix up.

    Market tastes are changing, and Uniqlo, Nike (Nike) and Adidas (Adidas) have all been beneficiaries. They are the top brands of all international brands in China.

    Zara's parent company Inditex and H&M group have steadily increased their market share since 2011.

    At the same time, the market share of Armani and HugoBoss has been losing. Now their market share is lower than Inditex and UNIQLO.

    Last year, UNIQLO created the highest growth of brand men's clothing in China. Lv Wan attributed it to its "quality and low price" reputation and "large-scale expansion of new stores".

    In fact, UNIQLO did not have any reservations. As of August 2015, it had 467 stores in Greater China, and its TadashiYanai, FastRetailing's chief executive, plans to open 100 stores a year in China. He said: "when we open to 1000 stores, our goal is 3000 stores."

    He did not set a time frame for this goal, so this may reflect the company's long-term vision rather than its direct strategy.

    Currently, UNIQLO has 1774 stores in the world.

    Adidas is also bullish. Last year, its sales in the group's second largest market, Greater China, exceeded 2 billion euros, and the brand announced that it would open 3000 stores on the basis of 9000 stores in China in the next five years.

    For the formal brand, the situation is getting more complicated.

    For many luxury men's brands, it has been dragged down by the overall slowdown in China's economy, which has also hurt consumers' information, and the government's anti-corruption campaign has also inhibited demand for luxury goods.

    However, some brands are beginning to take measures to deal with the growing demand for leisure men's clothing in China.

    "We have foreseen the market of casual men's clothing and started to act, expanding our brand and product mix to make up for this growth area," said FabrizioCardinali, chief executive of AlfredDunhill, the British menswear brand.

    Cardinali called China a "challenging market".

    But he also says Dunhill has grown in China's top stores.

    As Chinese consumers are gradually losing their conspicuous consumption and increasingly seeking experiential consumption, the brand has opened a more specific shop in Shanghai, the Dunhill home, which conceals a Dunhill store, customized service and private dining space for customers. At the same time, the brand also adds more leisure style products to its motorbike and golf history.

    Zegna, a luxury menswear brand in Italy, has more than 70 stores in China. It also hopes to tap the growing leisure men's market, offer semi custom sportswear, and a slightly cheaper product such as sneakers to attract middle class consumers.

    At the same time, HugoBoss still put the strategy of Chinese men's clothing on formal clothes and tailored suits.

    According to the company's disclosure data, "the sales share of this category in Asia is much lower than that in other regions".

    Its 2015 annual report also points out the potential of China's luxury sportswear.

    However, the German company has just promoted its chief financial officer, MarkLanger, chief executive officer last month. He will close 20 of the 145 stores in China and issue an early warning that his weak demand in China and the United States will reduce the company's profits this year.

    Although Chinese men, especially young consumers, have paid more attention to their appearance and product quality than ever before, but according to Euro consulting, by 2020, the annual growth rate of their men's clothing market will slow to 4% as the Chinese clothing market continues to mature.

    Lv Wan pointed out that the rapid development of e-commerce will bring downward pressure on unit prices and hinder the sales value of the entire men's wear market.

    China's economic plight is also likely to crack down on consumer confidence and damage the sales of high-end and mass market brands.

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