Apparel Wear Platform Mode Competition Intensified, Who Can Win In The 800 Billion Market?

Apparel wear has always been an important commodity category of national consumption. In recent years, the rise of online shopping channels and the development of new retail mode have further promoted the steady growth of the apparel and apparel industry, and the competition in the industry has become more intense.

Consumers' pursuit of high quality goods and cost-effective will give the apparel wearable platform a strong competitive edge under the mode of special sale.

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The "2019 China clothing wear market special research report" published mainly focuses on the industry interpretation, user research and future trend prediction of apparel wear industry.

Online shopping habits to accelerate the development of the apparel and apparel industry, the size of the clothing business market to break 800 billion yuan

In recent years, the rapid development of China's Internet and logistics distribution has made great changes in the sales channels of clothing wear market, and gradually developed from traditional small-scale retail and wholesale business to large retail technology combined with the new retail mode of online, offline and logistics.

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Statistics show that in 2018, the retail value of clothing, shoes, hats, needles and textile products in China was 1 trillion and 370 billion 650 million yuan, and the per capita clothing consumption expenditure of residents reached 1289 yuan, accounting for 6.5% of the total expenditure per capita, while the growth rate of per capita clothing consumption expenditure was 4.1%.

The rapid development of apparel wear industry has benefited from many factors, among which the promotion effect of digitalization and electric business development is most obvious.

For apparel wear industry, streamlined production is the mainstream production mode at this stage. There are problems such as recruitment, cost and efficiency. With the in-depth research and development of garment technology equipment, more and more efficient and humanized clothing equipment has replaced the traditional clothing equipment application, and the production mode tends to be digitalized.

And the new distribution channel and logistics system brought by e-commerce has unparalleled communication and sales advantages in traditional sales channels.

The apparel wear industry combined with the Internet mode also shows strong vitality.

IiMedia Research (Amy consulting) data shows that the proportion of retail sales of 2018 clothing and footwear goods online is 25.9%, the rate of online retail sales for clothing like commodities is 22%, while the size of the clothing market is also increased to 820 billion 550 million yuan, and the market size is expected to exceed 10000 billion yuan in 2019.

Clothing consumption focuses on commodity cost performance, sale mode platform to show competitive strength.

With the continuous improvement of people's income, the pursuit of quality life is becoming more and more important. However, price has also become an important factor in consumption considerations. Therefore, cost-effective products become the main pursuit of consumers under the new consumption background.

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Data show that in 2019, consumers in China's apparel market were most concerned about the quality of goods (44.2%), design (33.8%) and discounts (33%).

In the face of consumers' pursuit of cost performance, all kinds of Internet apparel wearable platforms have begun to tap their own mode advantages to suit the change of consumer demand.

For example, the integrated e-commerce platform should take advantage of popularity and resource advantages to strengthen the efforts to attract all kinds of clothing brands to enter the market, make use of brand clothing to play a competitive role, and wear traditional brands to accelerate the layout of online channels. Apart from setting up a brand official website, they will also rely on e-commerce platforms to attract online traffic, and use their brand reputation to attract consumers with genuine products.

In all kinds of platforms, clothing wear special selling platform is most recognized by consumers in terms of cost performance.

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Data show that the clothing sale platform has the highest price performance recognition ratio, and the price performance recognition of clothing, shoes, bags and other types of products ranks first among all platforms.

Among them, clothing wearing special selling platform for vip.com, announced the return of special sale, showing a good growth momentum.

According to vip.com's first quarter earnings report in 2019, its first quarter revenue was 21 billion 300 million yuan, an increase of 7.3% over the same period, and net profit of 872 million 300 thousand yuan, up 64.7% over the same period last year.

Vip.com has many years of experience in sale mode operation experience. Under the gradual change of consumer demand point, the special sale business mode can effectively reduce the cost and meet the needs of users. On the Internet, it offers a time limited sale channel "only product rush", deep discount channel "last crazy rush", and tries to develop the sale business under the online channel, and achieves good development results.

On the other hand, in 2019, vip.com also took the initiative to reduce the proportion of standard business, focusing on apparel apparel products with high gross margins. In terms of brand support measures, vip.com has a professional brand packaging publicity and visual team to enhance brand attractiveness and expand the brand resources pool.

In addition to the demand side, vip.com also provides support for the development of brand businesses, providing a coherent inventory solution for platform brands, and using clear differentiation platform positioning to help them find the second growth curve outside the traditional mode.

Platform development focuses more on word of mouth and price, and better empowering businesses to help brand value release.

The Internet era has given rise to different types of clothing and wearable business platform, attracting large numbers of merchants to enter, and also breeding Shanzhai fakes and poor quality products. In the face of consumers' attention to the quality of clothing products, the platform's word-of-mouth construction is more important.

AI media consultancy analysts believe that the competition between platforms will focus more on the coverage of high-quality clothing products and brands, and at the same time, we should build an edge in commodity prices to attract consumers.

As consumers' demand for clothing quality is improved, the traditional clothing brands with deeper brand background and stronger strength will regain their initiative in recent years under the impact of Internet brands.

But brand developers need to rely heavily on e-commerce platform for the expansion of online channels, because the development of their own platform is difficult to impact on the existing e-commerce players.

Faced with the lack of online operation experience, brand players also need to better empower merchants.

For the support of platform businesses, it is necessary to extend the whole chain of supply chain and sales from simple preferential support to further release the value of the brand.