The Competition Between Local Underwear Brands And International Brands In The High-End Market Is Heating Up.

In China Luxury goods Market downturn, high-end Underwear Sales growth has been strong. brand Competition with international brands in the high-end market is also heating up.

It is reported that the American underwear giant Victoria "s Secret" (Vitoria secret, for short) will open the first Chinese store (formerly the stores in China and Hongkong only sell accessories). Italy luxury lingerie brand La Perla and the German lingerie brand Ttiumph (Triumph) will also open stores and expand beyond the mega cities. According to the data, the size of China's underwear market doubled to 18 billion US dollars in five years.

Chinese consumer preferences are becoming more mature and women's purchasing power is stronger. President Xi Jinping's anti flaunt consumption has also promoted the diversification of consumption - from luxury handbags and accessories to sports and ath-leisure (sports and leisure) equipment and underwear.

La Perla Asia CEO Chiara Scaglia said, "luxury is not about showing off after buying, but in buying goods that make you feel comfortable."

It is estimated that the retail value of China's women's underwear market is expected to reach US $25 billion by next year - about two times that of the United States, and this figure will increase to $33 billion by 2020.

Chinese companies such as Aimer, Maniform, Ordifen and Ordifen have also launched products with better quality and targeting high-end consumers. "This means that the competition between foreign brands and local brands is not only about the quality of products, but also the creativity," said Matthew Crabbe, director of Mintel.

At present, China's high-end underwear market is still highly dispersed, and no company has a market share of more than 3%. In view of the gloomy global outlook, international brands view China as a key development goal to help boost overall sales.

La Perla, which has a unit price of around 2000 yuan, has 8 stores in China. It plans to set up new stores in Chengdu and Chongqing in the year. The brand also plans to add a men's clothing store in Beijing. "Their views on underwear have changed," Chiara Scaglia said. At first, people were puzzled why they spent thousands of dollars on an underwear that no one else could see.

This year, it will open a 20 thousand square foot (1860 square meter) flagship store in downtown Shanghai, the former tenant of the store is Louis Vuitton. "It will proclaim our entry into China in an effective way, which is the beginning of a great business for us," said Martin Waters, President of L Brands, the virgin parent company.

Ttiumph, which has 1000 stores in China, plans to enter 5 new cities this year and increase to 11 cities next year.

Focusing on the mass market, the Cosmo Lady, a listed company priced at 50 yuan, bought Taiwan's high-end underwear brand Ordifen 92 million yuan last year, announcing its entry into the luxury underwear market. "We want to enter the high-end market step by step," said CFO Lam Peter assistant.

A 22 year old Shandong student said he would spend at most 1500 yuan on underwear every year. He did not think Chinese brands were very different from foreign brands. She said, "if I can buy a domestic brand, I will buy it, but if I really like the style of the international brand, I will buy the latter."

The international brand says it will not launch a special commodity for the Chinese market. But La Perla pointed out that the sales of the red and pale pink are much higher than those in Europe or the United States, and the Chinese super model Liu Wen has also been used as spokesperson.

Underwear brands in Japan and South Korea are also becoming more popular in China. Yin Huijuan, 23, spends 800 yuan on underwear every three months. She says she prefers Japanese brands such as Wacoal (Wacoal) and Narue. She said: "I think the style of foreign countries is more elaborate and diversified. These two points are short boards of domestic brands."

Consumers are vigilant and competitive online sales.

Even the booming underwear market has many problems.

Last year, the sales of mass market in urban beauty with 8600 stores grew strongly. But this year it issued a profit warning for the first half of the year, and pointed out that China's economic slowdown and consumers' more cautious and competitive online sales had a negative impact on them.

Embry Form, whose underwear brand has been listed in Hongkong, Embry Holdings, which has been listed in the city of Hongkong, said that the retail sales of the group fell by nearly 5% from June to June due to more intense competition and a depressed economic environment.

In addition to the negative factors mentioned above, lingerie departments still have strong attractions, such as urban beauty and other underwear companies, Eugene Mak said. He predicts that the underwear market will enter the consolidation stage at some point. "This is a very young market, but it will become very chaotic in the near future."