The Future Development Trend Of China'S Clothing Market

China's per capita spending on clothing and footwear in 2014

In 2014, the expenditure on clothing and shoes per capita amounted to US $250.8.

Despite rapid growth, China's per capita spending on clothing and footwear is still lagging behind that of developed countries and regions.

In 2014, the per capita clothing and footwear expenses of the United States, Japan, the European Union, Singapore and South Korea were $1156.4, $1089.2, $1002.9, $671 and $593 respectively.

It is expected that China's clothing and footwear market will have huge growth potential.

China's clothing market by city classification

Grade by city

Every city

Expenditure varies from city to city level in China.

The per capita clothing expenditure of the first tier cities reached RMB 2061.9 yuan in 2015, which was far higher than that of the other three cities.

In 2015, the average of the first tier cities

The expenditure is 1.5 times, 2.4 times and 4 times that of second tier cities, three line cities and four line cities.

In 2015, the per capita clothing expenses of second tier cities, three line cities and four line cities were RMB 1395.8 yuan, RMB 849.4 yuan and RMB 516.9 yuan respectively.

The following table describes China from 2011 to 2015.

The growth of the market is mainly driven by the growth of first tier, second tier and three tier cities, and this trend is expected to continue in the period from 2016 to 2020.

Note appended:

First tier cities refer to Beijing, Shanghai, Guangzhou and Shenzhen.

Second tier cities refer to Tianjin, Chongqing and provincial capital cities (except Guangzhou) and some prefecture level cities such as Qingdao, Foshan, Dalian, Ningbo, Suzhou, Wuxi, Xiamen, Xiamen and Xiamen;

The three line cities refer to all other prefecture level cities outside the first tier and second tier cities.

The four line city is defined as all other cities in the mainland of China.

Overview of Chinese women, men's and children's clothing market

Women's wear

China

The retail market has increased from 411 billion 700 million yuan in 2011 to 732 billion 400 million yuan in 2015, with a compound annual growth rate of 15.5%.

Rising disposable income and rapid urbanization are the main drivers of rapid growth.

Looking ahead, anticipation of China

The retail sales of the market will reach RMB 13996 billion in 2020, and will grow at a compound annual growth rate of about 13.8% since 2015.

From 2011 to 2015,

The average consumption rose from RMB 730.1 yuan to RMB 1261.8 yuan, with a compound annual growth rate of 14.7%.

It is expected that the average consumption of women's clothing will further increase, reaching 2368.7 yuan in 2020.

Men's wear

From 2011 to 2015, China

The market expanded rapidly from RMB 302 billion 100 million yuan to RMB 525 billion 500 million yuan, and increased by more than RMB 200 billion yuan in just four years.

During the forecast period from 2015 to 2020, China is expected to

The market will maintain steady growth at a compound annual growth rate of 13.3%.

It is predicted that the retail sales of China's men's clothing market will reach RMB 979 billion 300 million in 2020.

The average consumption of men's clothing increased from 521.5 yuan in 2011 to 882.4 yuan in 2015, with a compound annual growth rate of 14.1%.

Driven by rising disposable income and rising purchasing power in China's growing middle class,

Average consumption will increase further and will reach RMB 1615.6 in 2020.

Children's wear

China

The size of the market increased from sales of 82 billion 700 million yuan in 2011 to 157 billion 100 million yuan in 2015, with a compound annual growth rate of 17.4%. This shows that the market is developing vigorously and has potential in the future.

From 2011 to 2015, the average per capita expenditure of children's clothing increased from 367.4 yuan in 2011 to 678.6 yuan in 2015, with a compound annual growth rate of 16.6%.

In view of high-end and mid end

The strong trend of brand development is expected that the average per capita clothing expenditure of Chinese children will increase more rapidly in the short term.

The implementation of the two child policy is expected to be China.

The driving factors of sustained market development.

Therefore, the average clothing expenditure of newborn babies is expected to increase, especially in the richer families in the more developed cities.

Market size and forecast of Chinese designer fashion market

Designer brand fashion products generally have strong designer characteristics and symbolic style, easy to be recognized.

These characteristics make designer brand.

Division and China's clothing market

Brand, fast fashion and commercial brand are different.

on

In terms of brand, consumers usually focus on design, style and unique shopping experience, so they are less sensitive to price.

China

The brand fashion market expanded rapidly from 11 billion 100 million yuan in 2011 to 28 billion 200 million yuan in 2015, with a compound annual growth rate of 26.2%.

In the future, brand awareness will be improved and more important.

It is expected that the market will maintain a high growth rate at a compound annual growth rate of 26.6% from 2015 to 2020.

Main trends, driving factors and success factors of Chinese designer fashion market

Designer brand

The company adopts multi brand strategy.

Nowadays, consumers' preferences for fashion and design are quite diversified.

Therefore, more and more companies adopt multi brand strategy to fully grasp business opportunities and provide products that attract different consumer preferences.

Designer brand can extend the design capability and integration resources in the value chain to the related fields of fashion life, such as home furnishings, home textiles, clothing and accessories, which can help build a virtuous cycle and customer ecosystem.

Online sales channels continue to expand and strengthen brand strategies through social media and the Internet.

Compared with traditional physical retail stores, online stores generally provide wider product selection, convenient product delivery and more favorable prices.

In view of the popularity of mobile devices, more and more consumers spend more time browsing online clothing information and reading fashion reviews.

It is expected to constitute China's total.

A larger proportion of retail sales.

Therefore, more

The brand is increasing its investment to strengthen its brand strategy through social media and the Internet.

In addition, smart phones are becoming more and more popular, which may push apparel companies to further strengthen their online platforms.

Pursue highly differentiated products to demonstrate individuality.

As consumers participate in more social and business activities, high-quality and fashionable clothing is becoming more and more popular.

Chinese consumers are increasingly mature, hoping to express their status and status through fashion.

With strong innovation ability,

Brand can provide very unique differentiated products, so the popularity of the past few years has greatly increased.

Strong design capability.

Strong design capability is the core spirit of designer fashion companies and is essential to make their products stand out from competitors' products.

With this ability,

Branded fashion companies can continuously provide innovative products, earn higher price premiums, earn higher gross margins in the long run, and expand to areas outside the clothing segment to reach a wider customer base.

Strategies to actively interact, maintain and enhance customer loyalty through multiple customer platforms and VIP customers.

In view of the fact that the designer's brand is mainly aimed at the younger generation of customers who express their individuality and culture through clothing, most customers have high loyalty to the brand, low sensitivity to the price and strong purchasing power.

Providing VIP membership programs to these customers generally includes timely new product promotion, customer behavior research and incentives to provide more discount.

Maintaining and expanding core customers will sustain the company's long-term natural growth.

Entry threshold of Chinese designer fashion market

Experienced designer team

Designer

The company relies heavily on top designers to manage and supervise the overall operation of the company.

Its team is deeply involved in almost all aspects of business operations to ensure consistency of business processes.

This unique business operation mode needs years of experience, talent recruitment and internal cooperation to achieve.

Established high-end sales channels.

In view of the fact that most designer brands are targeted at consumers with high purchasing power, it is necessary to establish high-end sales channels to attract and retain customers.

The new market entrants need to invest a lot of money and negotiate through a lengthy process to win the channel.

Brand establishment.

Once the market position is established,

Brand has obvious advantages in brand recognition, customer loyalty, higher gross margin and channel control in department stores or shopping centers.

The new entrants in the brand fashion market may be more difficult to attract customers from famous brands, which is more difficult for men's clothing division because of the high loyalty of male customers to brands.

Consumer survey on brand recognition

China

The fashion market is relatively fragmented. In 2015, the ten largest market participants accounted for 43.2% of the market share in terms of retail sales.

Among them, Jiangnan Buyi group was the designer brand in 2015.

Company (

Regarded as an independent branch, it does not include the designer's brand fashion industry, and achieves the highest retail sales and 9.6% market share.

Note 1: retail sales refer to the sale of retail goods to end customers at the actual selling price.

Our retail sales amount is (I) self shop revenue plus VAT.

(II) deducting the estimated price discount from the dealer's income plus VAT at wholesale price (any wholesale discount provided to the distributor);

And (III) the total income from the online platform plus VAT.

Note 2: brands are ranked according to the number of WeChat users.

However, if the number of WeChat users in different companies is the same, the average number of headlines is ranked.

Case: the competitive advantage of JNBY in terms of CIC report, CIC surveyed 734 consumers. The results showed that consumers linked the brand image of JNBY to the following characteristics:

Distinctive features, simple fashion design, comfortable fabric and high brand recognition.

In the market survey of the brand recognition of the designer, 32.8% of the customers first mentioned JNBY as the representative brand of women's wear designer.

JNBY was awarded 71.8% of the survey participants.

The number of brands mentioned is still number one.

Of the surveyed consumers, 33.5% considered JNBY to be the most distinctive and identifiable brand with the identification of clothing products.

Of the surveyed consumers, 34.3% had purchased JNBY for at least two times in the past two years.

JNBY is listed as the most frequently purchased consumer.

Brand accounted for 25.7% of respondents' choice.

Overview of China's clothing accessories market

China

The total retail sales in the accessories industry increased from 434 billion 100 million yuan in 2011 to 701 billion 200 million yuan in 2015, with a compound annual growth rate of 12.7%.

Driven by the increasing awareness of brand awareness, consumer demand for clothing accessories is becoming more sophisticated, which can promote China.

The development of accessories industry.

Therefore, it is expected that the total retail sales of China's clothing accessories market will reach 12878 billion yuan in 2020, and the compound annual growth rate from 2015 to 2020 will be 13%.

Overview of home textiles market in China

The total retail sales of China's home textiles market increased from 791 billion 500 million yuan in 2011 to 11550 yuan in 2015, and the compound annual growth rate from 2011 to 2015 was 9.9%.

The largest household textiles division in 2015 was decorative textiles, followed by bedding and bathroom textiles, accounting for 64%, 15.5% and 20.5% of the market respectively.

Compared with developed countries, China's per capita household consumption

Expenditure is low.

Driven by the improvement of living standards, the home textiles market is expected to grow further in the future.

It is expected that China's per capita household textile expenditure will reach RMB 1337.3 yuan in 2020, and the compound annual growth rate from 2015 to 2020 will be 10.2%.

Expected home use in China

The retail sales value of the market will further increase to RMB 19162 yuan in 2020, and the compound annual growth rate from 2015 to 2020 will be 10.7%.

Raw materials and labor costs in China's clothing market

The main raw materials for manufacturing clothing products include

and

Fully stretched wire, and any cost fluctuation can directly affect it.

The company's cost structure and product pricing.

According to CIC, the price of cotton decreased from 23716 yuan per ton in 2011 to 13895 yuan per ton in 2015, mainly because the cost of cotton fell from 2011 to 2015.

Similarly, the price of full stretch yarn decreased from 13400 yuan per ton in 2011 to 6551.1 yuan per ton in 2015, mainly due to the fall in crude oil prices during the period.

According to CIC, the average wage of urban workers employed by China's wholesale and retail trade grew steadily, from 40654 yuan per year in 2011 to 55838 yuan per year in 2014.

It is predicted that this growth will continue, and the average wage in 2015 is expected to reach RMB 61980.2 per annum.