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    How Do Local Brands In The Growing Clothing Market Occupy Highlands?

    2019/1/23 10:44:00 47

    Clothing MarketLocal Brand

    For China's clothing and apparel consumer market, it has always been the highland that many garment enterprises and brands want to occupy.

    In January 21st, the National Bureau of statistics released the general situation of the national economy in 2018. Data show that in 2018, the per capita consumption expenditure of the whole country was 19853 yuan, an increase of 8.4% over the previous year, a real increase of 6.2% after deducting the price factor.

    In 2018, the per capita clothing consumption expenditure of the whole country was 1289 yuan, an increase of 4.1% over the previous year, accounting for 6.5% of the per capita consumption expenditure.

    In 2018, the per capita disposable income of the national population was 28228 yuan, up by 8.7% over the previous year.

    According to the data, China's per capita disposable income continues to grow, and people's clothing consumption expenditure also grows.

    Along with the continuous development of China's economic development and social openness, China has gradually become one of the largest apparel consumer markets in the world, and China's clothing consumption is in a good growth trend.

    According to the data, clothing retail sales in 2018 were 150 million yuan, up 7% over the same period last year, and the most expensive annual clothing consumption was between 1000 and 3000 yuan.

    The overall consumption of clothing and apparel continued to grow.

    Burberry, Givenchy, LV, Bottega Veneta, Gucci and other luxury brands, such as GAP, Zara, H&M, UNIQLO and other fast fashion brands, such as Nike, Adidas, Cage, Andrew, Vans and other sports brands, are constantly increasing their strength to the Chinese market. China is still one of the most important targets of international brands, whether online or offline.

    According to data from the customer research institute, in 2018, about 89% of luxury brands tried the Internet for stores, and by the end of 2018, more than 400 outlets of more than 90 first-line brands were stationed in the luxury third party VIP customer service platform.

    In addition to international brands entering and occupying China's clothing consumer market, local brands also gradually expand their efforts.

    Constantly opening new stores, launching new product lines, and strengthening online layout are all powerful means for local brands to enhance their market share. In addition, the new generation of consumers is also the core object that local brands want to seize.

    The women's clothing brand, which continues to develop across borders, continues to value the expansion of China's domestic market.

    A few days ago, the group announced that it would adjust the investment quota of the Beijing subsidiary of the long run Asia Asset Management Co., Ltd. (short: long), increasing its equity to 76%, making it easier to further expand and improve the clothing business, and to spread the tentacles to Hongkong and Korea.

    In the first half of 2018, Langer and Tencent reached a strategic cooperation to jointly explore and create a new business model of "smart retailing". In addition, Langer and red core reached the cooperation agreement on mobile information platform construction to enhance the operational efficiency of mobile business and optimize the allocation of resources, and further enhance the fashion, adjust the youth, improve the layout of the channel, deepen the business of women's clothing, and fully realize the "Pan fashion industry internet ecosystem strategy" to the younger generation of consumers.

    In order to catch the young consumers and the national tide brand Taiping bird, in the past time, Taiping bird has narrowed the distance from the young consumers by various means. With Disney, Coca Cola, loksla, PEPSI, Hei Cha and other joint names, cross-border cooperation has brought a certain amount of traffic and exposure to the consumers, enhanced the viscosity of the consumers, and enhanced the market competitiveness of the brand.

    According to the third quarter financial report, Taiping bird realized business income of 4 billion 888 million yuan, an increase of 13.14% over the same period last year, and net profit attributable to parent company increased by 69% over the same period last year. In the first half of 2018, Taiping bird's business income was 3 billion 100 million, an increase of 12.41% over the same period last year, and gradually went out of the "store loss" state.

    Compared to the strategy of young bird and Langer, Vigna S, who has successfully entered the club of 3 billion yuan, has made a new way to enter the field of high-end casual wear.

    Vigna S's main brand has always been troubled by the negative growth of revenue and net profit, and the reversal of performance has been achieved after the desperate purchase of high-end brand Teenie Weenie.

    Vigna S acquired Teenie Weenie, entered the market of children's wear and men's wear, and increased the age coverage rate of women's clothing customer groups, successfully expanded the market share of the brand, and entered a multi brand operation, forming a diversified three-dimensional layout.

    Vigna S released the 2018 performance forecast shows that business revenue is expected to achieve 3 billion 82 million yuan, an increase of 20.21% over the same period, net profit attributable to 274 million yuan, an increase of 44.28% over the same period last year.

    Through the online and offline layout and multi brand operation, Wien Nash has found a new growth point and achieved "bend overtaking", which has a place in the Chinese clothing market.

    Compared with fans economy, acquisition cross-border, new retail, some brands value the development potential of China's men's wear market, and have launched men's wear product line to enhance overall business revenue.

    Jiangnan Buyi in April 2018 launched the men's clothing designer clothing brand SAMO, the target group to professional men, through the diversification of brand portfolio diversification business; and MO&Co. parent company EPO values the trend of consciousness of young consumers, launched the "rock and roll style" menswear brand Common Gender, to explore the clothing commonality and essence, covering a wider range of consumers.

    The constant influx of new competitors undoubtedly brings great pressure to traditional men's wear brands, forcing local traditional men's wear brands to make changes.

    Hai Lan's home is the first to make new explorations. After the new generation of Zhou Lichen came to power, he took the lead in younger development, replaced Lin as the new spokesperson, upgraded the fashion of the products, and actively arranged the channel of e-commerce, and continued to move closer to the young people.

    According to the latest data, Hai Lan's family income reached 13 billion yuan in the first three quarters of 2018, an increase of 4.53% over the same period last year, and the net profit attributable to the listed parent company was 2 billion 630 million yuan, an increase of 4.66% over the same period last year.

    In the face of a new round of upgrading of the consumer market, men's wear brands have changed their business models.

    YOUNGOR announced that it would return to the main garment industry and rebuild its brand advantage. Giorgio Armani's designer and Taiwanese Gong Naijie should be the design director and strengthen the design style; Busen's new development strategy of "fashion industry new retail + new chain fusion" should be formulated, upgrading the brand and expanding the category, boosting the pformation and upgrading of the garment industry; the seven wolves promoted the brand influence by using the word of mouth marketing and the KOL belt effect, and invited the new generation of new star Han Yu to be the new spokesperson, and launched the brand "WOLF TOTEM Wolf Totem" suitable for the younger group to realize the trump card of the brand.

    In the new consumer market, the traditional brands of China continue to destroy their traditional business models, images and products, so as to cope with the new generation of small emerging brands accelerated due to declining brand loyalty and growing demand for novelty, shaping new influence, resisting competition pressure from international brands, and wishing to have a strong voice in their own base camp clothing market.

    The development of the domestic apparel industry is constantly under pressure from outside. The domestic brands should recognize the current market situation and make high-quality strategies to win the new generation of consumers.

    Author: Qin Jin Mei

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