Report on the development of China's clothing consumption market in 2019-2020 years

(reduced version)

China National Business Information Center

In 2019, consumption upgrading and structural adjustment remain the main theme of the clothing consumption market. The upgrading of consumption is reflected in the fact that the consumption quality of clothing continues to improve, the function and fashion of clothes are more integrated, the cultural characteristics of clothing become more and more distinct, and the emotional value of clothing is recognized by the market. Structural adjustment is reflected in the following: online channels have become the key force to drive the growth of the sinking market. Clothing with high performance price ratio and high brand strength is blooming in the first tier cities, and the market temperature of sportswear, children's clothing and down garments continues to increase.

First, clothing consumption continues to upgrade to the direction of refinement and upgrading.

On the 2019 years, the consumption of unit clothing increased positively, but the growth rate dropped to a certain extent compared with that of 2018. In 2019, the retail sales of clothing products limited to 977 billion 810 million yuan, a cumulative increase of 2.6%, the growth rate slowed down 5.9 percentage points compared to 2018, and lower than the same period in the same period, the average retail sales per unit growth level of 1.1 percentage points (Figure 1).

Figure 1:2010-2019 growth rate of retail sales of clothing commodities above quota (%) (source: National Bureau of Statistics)

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Clothing consumer price inflation continued to rise. Despite the slowdown in the growth of clothing consumption on the upper limit, the consumption quality of the entire clothing market is escalating, while clothing consumer prices continue to rise moderately, and the increase has been slightly improved for two consecutive years. In 2019, clothing consumer prices rose by 1.8%, a 0.4 percentage point increase over 2018 and 0.5 percentage points higher than that in 2017 (Figure 2).

Figure 2:2010-2019 clothing consumer price increase (%) (source: National Bureau of Statistics)

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Two, retail sales of major retail enterprises dominated by department stores are declining.

The retail sales of clothing increased negatively, and the retail sales of children's wear were relatively good. In 2019, under the combined influence of the slow growth of the overall clothing market, the pressure of channel diversion and the internal structural adjustment of the department store, the retail sales of major large retail enterprises in 2019 decreased by 3.3% compared with the same period last year, and the growth rate slowed down by 4.2 percentage points over 2018. Since 2016, the clothing consumption of the major retail enterprises in China has experienced a negative growth again (Fig. 3).

Figure 3:2010-2019 growth of clothing sales volume of major large scale retail enterprises in China (source: China National Business Information Center) ?

The unit price of clothing decreased year by year, and sales fell narrowed. In 2019, the unit price of clothing for major retail enterprises in the whole country dropped from the previous year, with a total decrease of 1.6%. At the same time, the higher price base and more business promotion this year are the main reasons for the fall of clothing prices in large retail enterprises. 　　

Men's wear and women's clothing sales price is less than the same period, children's clothing sales unit price increase fell. Men's clothing prices have dropped sharply, and sales growth has shifted from negative to positive. Women's clothing sales and prices have declined compared with 2018. Sales of children's clothing decreased by 2.6 percentage points compared with 2018.

Sportswear sales growth continued to accelerate. On the one hand, under the environment of high public health consciousness, sportswear has entered the rising cycle of the industry; on the other hand, after years of market competition, the sports brand has improved professionalism and fashion, the market structure is relatively stable, and the head brand has entered the period of bonus harvest. "Double phase superposition" promotes the consumption of sportswear to achieve rapid growth.

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Three, the influence of online shopping channels on the clothing market is increasing year by year.

The contribution rate of online shopping channels to the growth of consumer goods market is more than 40%. In 2019, online retail sales of physical commodities accounted for 20.7% of the consumer goods market, an increase of 2.3 percentage points over 2018, and a 45.6% contribution to the growth of the consumer goods market, exceeding 40% over the past two years (Figure 4).

Figure 4:2015-2019 growth of online retail of physical commodities (source: National Bureau of Statistics)

Double eleven siphon effect is obvious. The siphon effect of double eleven pairs of commodity retail is more and more obvious. On 2019 double eleven, the sales volume of the whole network reached 410 billion 100 million yuan, an increase of 30.5% over the same period last year, and the growth rate was 6.7 percentage points higher than that of last year (Figure 5).

Figure 5:2014-2019 double eleven total network sales and growth (data source: star map data)

First, macroeconomic growth is shifting smoothly, and clothing consumption growth is slowing down.

In 2019, China's fixed assets investment increased by 5.1%, the growth rate dropped 14 percentage points compared with 2013, M2 (broad money supply) increased by 8.7%, the growth rate dropped 4.9 percentage points compared with 2013, the total retail sales of social consumer goods grew 8%, and the growth rate dropped 5.2 percentage points compared with 2013. GDP (GDP) grew by 6.1%, and its growth rate was only 1.7 percentage points slower than that in 2013, indicating that the quality of China's economic growth is constantly improving (Figure 6).

Figure 6:2013-2019 GDP, fixed asset investment, M2 and consumer goods market growth (data source: National Bureau of Statistics)

China's per capita consumption of clothing and clothing showed a slight increase. In 2019, China's per capita clothing consumption expenditure was 1138 yuan, an increase of 3.8% over the same period last year, an increase of 0.3 percentage points over the same period in 2018. This is consistent with the slowdown in the apparel market (Fig. 7).

Figure 7:2013-2019 annual per capita consumption of clothing and consumption (source: National Bureau of Statistics)

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Two. The growth of disposable income of rural low-income and urban high-income groups is faster.

In the past two years, there are many discussions on the "consumption demotion", "consumption upgrading" and "consumption stratification" in the market, behind which are different income groups' interpretation of their consumption phenomena. Therefore, in the current consumer goods market, we can see the phenomenon of co-existence of different logical business models (Fig. 8).

Figure 8:2014-2018 growth rate of disposable income of five equal points for urban residents (data source: National Bureau of Statistics)

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Three, service consumption occupies half of the consumption of residents.

In 2019, the proportion of the per capita service consumption expenditure of the whole country accounted for 45.9% of the total per capita consumption expenditure of the whole country, which was 1.7 percentage points higher than that of the previous year, and the consumption of services almost occupied half of the residents' consumption. This means that service has become the key driver to expand the consumption of residents, and the service industry has become the leading force to promote economic growth.

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Four, technological progress drives new experience and new needs.

The rapid iteration of information technology, such as Internet and big data, not only changes the management mode of enterprises, but also has a great impact on people's consumption behavior. First, improve consumption efficiency. Second, enhance the consumption experience. Third, enrich the contents of consumption. Fourth, raise the consumption expectation.

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Five, cultural self-confidence promotes consumption.

Cultural self-confidence is the essence of self-confidence in China. From a commercial point of view, over a long period of time, the market has been overly advocating Western business culture. But today, with the continuous improvement of China's comprehensive national strength and world influence, the quality, creativity and cost-effective of domestic products are being recognized by more and more young consumers.

First tier cities consumers pay attention to high cost performance and high brand strength.

Compared with other cities, the clothing market structure of the first tier cities is relatively stable. People buy clothes more rational and more purposeful.

Two or three line and below urban clothing online shopping users grow rapidly

The Internet can transmit the fashion and fashion information of the first tier cities to the three or four tier cities faster, and express delivery can make more commodities and more brands penetrate into the sunken market faster, and satisfy the local consumers' demand for famous clothing brands.

Three, function and fashion more perfect integration.

Today, clothing products need to attract their attention through bright spots. The highlights of clothing products mainly include the extreme functions and fashion sense consistent with brand positioning. 　　　　　

Four, clothing with distinctive cultural characteristics is favored.

The new generation of consumers grew up in the era of deepening opening up. The exchange and mutual learning of world civilization make people's values and consumption outlook richer and more diverse.

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Five, consumers are more concerned about the emotional value of brands.

Besides the quality, fashion, function, price and channel of clothing products, emotion is gradually becoming a key factor affecting consumers' purchase of clothing.

First, the clothing consumption market will maintain high quality growth.

The new crown pneumonia outbreak in 2020 will inevitably cause short-term and negative effects on the clothing consumption market. But there are always opportunities in the plight. On the one hand, this year is the year of building a well-off society in an all-round way and ending the "13th Five-Year plan". The state will continue to adhere to the general keynote of steady progress. This will give the clothing market a healthy boost to normal growth. On the other hand, clothing consumption is an important starting point for expanding consumption and a powerful guarantee for the sustained and prosperous development of small and micro retail enterprises. It is an important manifestation of China's consumption towards quality, branding and upgrading. Therefore, in the long run, the clothing consumer market will maintain high quality growth.

Two, local clothing brands will focus on enhancing the value of social attributes.

At present, many local clothing brands are defining niche consumption through personalization and diversification. In the future, more brands will dare to develop the public recognized value of social attributes, and the recognition of Chinese clothing brands in the world will be greatly improved.

Three, the external environment will become a major factor affecting clothing consumption.

In the information age, people's consumption concept is affected by the external environment. The main purpose of clothing consumption has shifted from simply meeting physical needs to meeting spiritual needs. The main marketing strategy of clothing brand will move from shop to store and change consumer's cognition of clothing products.

Four, modern information technology will promote the continuous optimization of personalized customization business.

Driven by modern information technology, such as big data and 5G, intelligent manufacturing and other application technologies will become more mature. Personalized customization business will be constantly optimized to meet the public's inner needs to express themselves and pursue individuality.

Five, clothing consumption will return to green fashion.

Fashion comes from nature and will eventually return to nature. With the progress of the times, people pay more attention to corporate social responsibility and environmental awareness. Consumers pay more attention to the environmental benefits of clothing products.