Chinese Men'S Wear Market Segmentation Under Strong Women'S Clothing Market

Last month, Yatlas, which was established in 2014, finally ushered in the first brand store in the Plaza.
"Future commuters" is the concept of this store after transformation. In the future, the brand wants to convey a simple and comfortable style and a sense of future technology. "Commuters" have made clear the brand target population, that is, urban males aged 28 to 35 years in a second tier city. They travel to airports and high speed rail stations all the year round, requiring high quality clothing with leisure characteristics. This season, the costumes are different from other brands of the group, which are simple and refreshing. The decorations and decorations in the shop echo: the standard building materials, such as corrugated aluminum panels, ordinary white tiles or concrete, and the raised floor tiles on the ground are suggestive of the pedestrian crosswalk along the street, which guides the consumers to view the shops. Even the dressing room, Yatlas, is also decorated as a high-speed rail seat.
Why did this move come so late? This is an important piece of chess decided by its parent company Mu hang holding group after its listing, replacing the Yatlas image and selling high-end men's clothing. In the future, Yatlas will regroup with the GXG, GXG Jeans, GXG.kids and 2XU of the group in zhe Mu Shang's menswear matrix. The men's clothing company in the L Capital Asia of LVMH, a private company, is ready to lead the process of differentiation in China's men's wear market, but it seems to be a long way off.
In May 27th this year, mosang holdings group was officially listed on the stock exchange. IPO issued 200 million shares worldwide. It is known as "the first retail of new retail men". At the end of August this year, mosang holdings announced the company's interim results in 2019. In the first half of this year, the group achieved an operating income of 1 billion 686 million yuan, an increase of 10.6% over the same period last year, with a net profit of about 88 million 200 thousand yuan, representing a decrease of 17.9% over the same period last year.
When customers enter the major shopping centers of the country, it is easy to see that the women's clothing brand still occupies an important floor. Take the one or two place in the national retail market as an example, the one or two floor of the first phase of the Plaza is full of Louis Vuitton, Gucci, Loewe and other star shops. We know the Chinese women's clothing brand Icicle, Jorya and EP Ya Ying occupy third advantageous positions, while the four layer of Le Fame, OVV one women's wear is sandwiched with single agriculture and other men's wear brands, while the other side of mosang holding Yatlas, EPO group Common Gender is stationed five storefront with entertainment entertainment catering stores. In the strong women's clothing market, the existence of men's clothing in China is still embarrassing.
China's clothing industry is indeed driven by women's clothing. Compared with the history of the international women's clothing market over 100 years, the speed of Chinese women's clothing development is almost "myth". Chinese women's wear started from the "three to one patch" ("incoming processing", "incoming assembly", "sample processing" and "compensation trade") to the road of brand management in the late 80s and early 90s of the last century, but it soon came into being that the independent female consumers such as Baozi and Song Li Si were familiar with the brand, and the differentiation of brands and styles became fine. In addition, with the improvement of women's social status, several forces jointly promoted the development of local fashion women's clothing.
Chinese women's clothing market also gradually produced the "little Shu", "Zhong Shu" and "big Shu". With the increase of women's wear brands, the product selection increased, the market size of women's clothing was also expanding, and from the ladies' dress, there were subcategories of "girls" and "Ladies". As well as OL (Office Lady, professional women's wear), Korean version, punk, leisure sports many styles and attributes, it became a popular search option.
At the same time, look at the rise of Chinese men's clothing, from the birds to the birds and the men's clothing. It was not until the phrase "Hai Lan home" once every year and the dancing posture that swept the north and south of China that "men's Wardrobe" Hai Lan's home made the impression of "casual men's clothing" deeply rooted in the hearts of the people. Today, the market is more and more influenced by the aesthetics of more casual Street costumes. The joint research conducted by BCG and Altagamma Foundation shows that 2/3 of consumers in the world are no longer keen on formal dress as they used to be. The formal dress of mature consumer wardrobe has already been able to meet the needs of formal occasions. The dress style of the younger generation in formal occasions is also gradually fallow, especially in Asia and China.
Peacebird Men Fashion Week "unlimited No Limitation" stage backstage photo source: brand
The transformation of Peacbird can be regarded as a successful case of Chinese men's wear brand to get rid of its old image. The Taiping bird has taken many times to take up the fashion week. It has successfully co operated with several IP, so that Peacebird Men has a new fashion image, which has spawned the concept of "national tide". As a matter of fact, the fashion of Chinese men's wear market has already started, and it also has a market segmentation trend.
In 2007, the GXG menswear operation team was founded, and the first brand store opened in August of the same year. In 2010, GXG set up flagship store. The "double 11" first battle broke through 10 million sales volume, became famous in World War II, and opened up more young GXG Jeans, and broke 487 stores under the line. In the future, GXG's "double 11" broke the record and reached the top of the NO.1. The time for GXG to build flagship store is rising rapidly. At that time, the original sales base of GXG entity business was not huge. GXG's strategy of using over 95% online sales as stock products also solved the conflict problem between online and offline.
According to official figures, in terms of total retail revenue, mosang holdings held about 3.3% of China's fashion men's clothing market in 2018 and ranked second in the country. In terms of online retail revenue, mosang holdings ranked first in China in 2018, with a total retail revenue of about 5.2% and online penetration of 36%.
However, according to the listing application documents submitted by the group, GXG contributed more than 66% of its total revenue in the three fiscal years 2016, 2017 and 2018. GXG has always been the largest source of revenue for the group.
With the establishment of GXG.kids and Yatlas and the authorization of 2XU of Australian sports brand, Mu sang holdings began to differentiate itself from age group to brand category. GXG positioning youth casual wear, the two or three line market accounts for 60% to 70% of the total channel size, and the target consumers are between 18 and 30 years old. GXG Jeans lowered the age of target group on the basis of GXG, and the style was younger. Yatlas began to transform to high-end, positioning high-end high-end leisure category, the main line of a second tier cities, target consumers are 28 to 35 years old urban men, pricing is higher than GXG 15% to 30% or so. But GXG Kids's children's clothing business and 2XU's sports brand business have also opened up more roads for mu Shang holdings.
"We are not satisfied with the data before Yatlas," said Yu Yong, co-founder and CEO of mosang holdings. Before Yatlas's position was fuzzy, the consumption target was not clear, and it really made the group think about GXG again, what kind of brand name matrix did the group need? By further upgrading its brand image, Yatlas is targeting the consumers with minimalist commuter, comfortable and practical design concept and positioning for the group's high-end men's clothing brand. Yu Yong also understands that what Chinese male consumers need now is not only the dignity of "business men's clothing" but also the quality and fashion.
Although women are considered to be a major consumer driving force, the consumption power of male consumers has shown no less than women's momentum in recent years. QuestMobile data show that the median consumption power (above 200 yuan) is slightly higher than that of women. According to Euromonitor data, the luxury brand menswear product lines such as Louis Vuitton and Balenciaga will outperform women's clothing products from 2017 to 2022, with an expected compound annual growth rate of 2%. Last year, Marguerite La Rolland, a fashion and beauty consultant from Europe, said in an interview with BoF: "this is because men pay more attention to their appearance, and the rise of social media and the promotion of dress codes are playing a key role in the globalized system."
In the luxury world, Lu Wei Mun Xuan group has been the first to attack, let Virgil Abloh and Kim Jones respectively control Louis Vuitton and Dior men's wear series, and move towards a younger street style. Of course, the market feedback is obvious. Alessandro Sartori once again joined Ermenegildo Zegna group as art director after five years of separation. The group gave the first time such power to one person. He unified the Z Zegna, Zegna Su Misura, Ermenegildo Zegna three brand lines. Ermenegildo Zegna hopes that Sartori is doing the same group style, giving full play to its characteristics and spreading audiences.
When Chinese men pay more attention to their personal image and have self-consciousness to shop, fashion will gradually replace their dignity. According to QuestMobile data, high consumption men who spend more than 1000 yuan on line spend more interest on casual shoes and clothing and protective products than men.
The potential of men's clothing market also makes the competition of this industry more and more intense. In order to consolidate its supremacy, China's men's wear market, which is the first place in the market for five years in a row, has no more efforts to upgrade its main brand image, so that the public has a brand new recognition of the brand of "once a year". Different from zhe zhe Shang, Hai Lan's home looks at a broader market and develops different sub brands.
Take Hla Jeans as an example, Hai Lan's home hopes that the black whale can play a leading role in young casual men's clothing, and also cooperate with the popular network variety show "wonderful flower" to try to open up the trend market. Its AEX has spotted the category of light business men's clothing, and Heilan Home's main home is also owned by the group's first pure line menswear brand e, which will drag the group's overall target from 25 to 45 years old to 20 to 45 years old. The group has also invested in women's clothing market, overseas expansion and capital expansion. It has invested in Urban Revivo, known as the Chinese version of Zara, and has launched a strong attack on Southeast Asia to open up new markets.
In China, due to the low entry threshold of clothing industry, there are many small businesses and small factories in men's wear market. Compared to women's wear, men's wear industry is more dispersed, and the market share of individual brands is low. Most of the market share is occupied by many small single businesses. The two companies coincidentally ponder over the high-end luxury market of Chinese men's wear. At the same time, the original women's clothing enterprises are also catching up with men's wear market. Mo&Co. parent company EPO group hatched out Common Gender, and Jiangnan cloth dress (JNBY) also had SAMO and other brands to join.
The market share of China's men's wear retail market exceeds that of the United States, while the average per capita level is only 1/5 of that of the United States. There is still much room for men's clothing market. But the single brand is very easy to be constrained by the rapid elimination of the style reasons, whether it can form a multi brand horizontal alliance, and constitute a brand matrix is the top priority, but this is also the time to make a breakdown for the Chinese men's wear market.