The document analyzes China's apparel market in 2011. It finds that domestic Chinese brands dominate the mass market, while established players like Metersbonwe are increasing investments in brand building. Metersbonwe became the most valuable Chinese apparel brand in 2011, worth $1.8 billion. Sportswear and menswear brands are highly represented among the top valuable brands. The apparel industries in Fujian and Zhejiang provinces have particularly strong domestic brands.
TMall: China's Premier Shopping DestinationAdvangent
Owned by Alibaba, Tmall is China’s number 1 B2C e-commerce platform (marketplace) with more than 50% market share.
Tmall.com targets domestic retailers and foreign retailers that already have a Chinese entity. Tmall.hk, or Tmall Global targets foreign companies without any official presence in China and allows them to sell directly to consumers in China.
This presentation is based on an official document provided Alibaba.
1) The worldwide personal luxury goods market grew 2% in 2013, marking a slowdown from previous years of double-digit growth and the first moderation since the 2009 financial crisis.
2) Euro fluctuations negatively impacted 2013 market performance despite real growth outpacing 2012, and the Japanese yen devaluation drove over half the difference between real and nominal growth.
3) Online luxury continues to grow rapidly at around 10% annually, with accessories having the highest online penetration and the US dominating the online luxury market.
This report analyzes China's textile fabric industry in 2011, focusing on key segments including cotton, wool, silk, hemp and chemical fibers. It highlights the largest companies in each segment and notes that while prices rose in 2010 for raw materials, the output and sales of fabrics were balanced. The industry continues to have strong potential for growth due to increasing demand for downstream textile products.
The leather shoes market in China exceeded RMB 150 billion in 2009, growing more than 10% year-over-year. There were over 1,000 foreign enterprises in the leather shoes industry, accounting for over 30% of large enterprises and over 55% of total industry profit. Large enterprises in the leather shoes industry achieved over RMB 200 billion in sales revenue in 2009, producing over 315 million pairs of leather footwear, a 2% decline from the previous year. The industry saw over 3,500 large enterprises, an increase from the previous year.
The leather shoes market in China exceeded RMB 150 billion in 2009, growing more than 10% year-over-year. There were over 1,000 foreign enterprises in the industry, accounting for over 30% of large enterprises and over 55% of total industry profit. Large enterprises achieved over RMB 200 billion in sales in 2009, producing over 315 million pairs of leather footwear, a 2% decline from the previous year. The industry saw over 3,500 large enterprises, an increase from the prior year.
The document summarizes opportunities and challenges facing the textile industry in developing countries based on a presentation given by Dr. H.L. Vijayakumar. It notes rising market opportunities for developing countries as production shifts from Western countries to Asia. However, it also lists challenges such as currency stability, economic slowdowns, price fluctuations, and infrastructure issues. The document concludes that while opportunities exist, volatility in the global economy and rising costs pose major threats that countries must address to capitalize on opportunities in the textile industry.
This document summarizes and analyzes the garment industry in Vietnam. It discusses how the industry was previously divided between export-oriented suppliers focused on international markets and domestic-oriented suppliers focused on the local market. However, this distinction is fading as larger export suppliers have started pursuing the growing domestic market as well. The key challenge the industry now faces is rising wages, as other sectors have emerged and garment work is no longer the most attractive option for many workers. Suppliers must upgrade their processes, products, and functions to be able to pay higher wages and retain employees. The domestic market represents an opportunity for upgrading and value addition.
TMall: China's Premier Shopping DestinationAdvangent
Owned by Alibaba, Tmall is China’s number 1 B2C e-commerce platform (marketplace) with more than 50% market share.
Tmall.com targets domestic retailers and foreign retailers that already have a Chinese entity. Tmall.hk, or Tmall Global targets foreign companies without any official presence in China and allows them to sell directly to consumers in China.
This presentation is based on an official document provided Alibaba.
1) The worldwide personal luxury goods market grew 2% in 2013, marking a slowdown from previous years of double-digit growth and the first moderation since the 2009 financial crisis.
2) Euro fluctuations negatively impacted 2013 market performance despite real growth outpacing 2012, and the Japanese yen devaluation drove over half the difference between real and nominal growth.
3) Online luxury continues to grow rapidly at around 10% annually, with accessories having the highest online penetration and the US dominating the online luxury market.
This report analyzes China's textile fabric industry in 2011, focusing on key segments including cotton, wool, silk, hemp and chemical fibers. It highlights the largest companies in each segment and notes that while prices rose in 2010 for raw materials, the output and sales of fabrics were balanced. The industry continues to have strong potential for growth due to increasing demand for downstream textile products.
The leather shoes market in China exceeded RMB 150 billion in 2009, growing more than 10% year-over-year. There were over 1,000 foreign enterprises in the leather shoes industry, accounting for over 30% of large enterprises and over 55% of total industry profit. Large enterprises in the leather shoes industry achieved over RMB 200 billion in sales revenue in 2009, producing over 315 million pairs of leather footwear, a 2% decline from the previous year. The industry saw over 3,500 large enterprises, an increase from the previous year.
The leather shoes market in China exceeded RMB 150 billion in 2009, growing more than 10% year-over-year. There were over 1,000 foreign enterprises in the industry, accounting for over 30% of large enterprises and over 55% of total industry profit. Large enterprises achieved over RMB 200 billion in sales in 2009, producing over 315 million pairs of leather footwear, a 2% decline from the previous year. The industry saw over 3,500 large enterprises, an increase from the prior year.
The document summarizes opportunities and challenges facing the textile industry in developing countries based on a presentation given by Dr. H.L. Vijayakumar. It notes rising market opportunities for developing countries as production shifts from Western countries to Asia. However, it also lists challenges such as currency stability, economic slowdowns, price fluctuations, and infrastructure issues. The document concludes that while opportunities exist, volatility in the global economy and rising costs pose major threats that countries must address to capitalize on opportunities in the textile industry.
This document summarizes and analyzes the garment industry in Vietnam. It discusses how the industry was previously divided between export-oriented suppliers focused on international markets and domestic-oriented suppliers focused on the local market. However, this distinction is fading as larger export suppliers have started pursuing the growing domestic market as well. The key challenge the industry now faces is rising wages, as other sectors have emerged and garment work is no longer the most attractive option for many workers. Suppliers must upgrade their processes, products, and functions to be able to pay higher wages and retain employees. The domestic market represents an opportunity for upgrading and value addition.
The Textiles in China industry profile is an essential resource for top-level data and analysis covering the Textiles industry. It includes data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information. Scope * Contains an executive summary and data on value, volume and/or segmentation* Provides textual analysis of Textiles in China's recent performance and future prospects* Incorporates in-depth five forces competitive environment analysis and scorecards * Includes a five-year forecast of Textiles in China* The leading companies are profiled with supporting key financial metrics * Supported by the key macroeconomic and demographic data affecting the market Highlights * Detailed information is included on market size, measured by value and/or volume * Five forces scorecards provide an accessible yet in depth view of the market's competitive landscapeWhy you should buy this report * Spot future trends and developments * Inform your business decisions * Add weight to presentations and marketing materials * Save time carrying out entry-level researchMarket DefinitionThe textiles market includes yarns, fabrics, non-apparel, and apparel finished products. The value of each segment is for consumption, defined as domestic production plus imports minus exports, all valued at manufacturer prices. The yarns segment covers yarns for sewing, weaving, knitting, etc, made of cotton, wool, artificial, synthetic, or other fibers, but does not include the production of the fibers before spinning, fabrics covers woven, non-woven, and knitted fabrics (including knitted products such as sweaters). Apparel covers all other clothing except leather and footwear. Non-apparel products include technical, household, and other made-up non-clothing products. All currency conversions use constant average 2009 exchange rates.For the purposes of this report, Asia-Pacific comprises Australia, China, India, Japan, Singapore, South Korea, and Taiwan.
* With the support from China Electronic Commerce Association, China Center for Information Industry Development, subsidiary of Ministry of Industry and Information Technology of the People’s Republic of China, “China‘s economy and informatization” Magazine and LetYo (来优) Group Buying Search (Referred as “LetYo" in later part) jointly completed the writing of this report with professional reviews by related industry experts.
This document discusses emerging retail trends in India. It notes that tier 2 cities and towns are seeing increased disposable incomes and spending on consumer goods. Retailers are introducing stores like supermarkets and hypermarkets in these areas. Mall development is also growing in smaller cities and towns. Additionally, as social integration increases, retail chains may be able to expand across India, adapting to various local cultures. The future will see models tailored for urban and rural markets.
Chamber of commerce retail strategy and market analysis presentationDavid Kelley, MBA
This document provides a retail market analysis and strategic positioning strategy for the Windsor Chamber of Commerce. It finds that Windsor has experienced rapid population growth and has wealthier households than the county overall. While retail sales peaked in 2006, the town captures more outside spending than it loses. The analysis recommends attracting a specialty grocery store to downtown and ensuring new development integrates with the existing area. Next steps include continuing economic development projects and a targeted business recruitment campaign.
The garment industry is economically important for Bangladesh and one of its most emerging sectors. It has experienced phenomenal growth over the past 15 years, growing from exporting $1 million in 1978 to $8 billion in 2006. Currently, the garment industry employs over 4 million people, mostly women from rural areas, and contributes around 80% of Bangladesh's total exports. While the industry has brought significant economic benefits, it also faces problems like low wages, poor working conditions, and an inability to upgrade product quality. Overall, the garment industry remains vital to Bangladesh's economy but continued challenges threaten its long term prospects.
The document analyzes the global and Chinese viscose fiber industry. It highlights that China's output of viscose fiber accounts for over 50% of the world's total. It also notes that the bamboo viscose fiber market is experiencing rapid growth in China due to abundant raw material sources and the high performance of bamboo fiber products. Major Chinese viscose fiber companies, such as Zhejiang Fulida and Shandong Helon, are expanding their capacities of differentiated fiber types including bamboo viscose fiber.
• Special contributions by the biggest players in the market including Tencent, Baidu, Toutiao (Bytendence), NetEase Ads, 360 Total Security, Xiaomi & MOMO – all of which offered their best practices for success.
• Comprehensive China specific data – mostly from Chinese sources you won’t find through a standard Google search
• Tips for success by several non-Chinese advertisers who entered China and share their insights
• Actionable one-pagers summarizing the top media players’ offering, in English
Creator: Selina Mai
This is my first ever Marketing Proposal for Za cosmetic brand in Marketing course in Minghsin University of Science and Technology
China mobile internet trends bruno bensaid @ momo belfast oct 25 2010Bruno Bensaid
Bruno Bensaid gave a presentation on mobile internet trends and the business environment in China. He discussed key facts about China's internet and mobile markets including rapid growth in users. Mobile commerce is predicted to increase 300% in 2010. The investment environment has more funds than deals, with VC focused on later stages. Go-to-market for mobile apps and games requires working with a service provider or content provider due to regulatory hurdles.
This document discusses global e-commerce trends and cross-border opportunities. It provides statistics on the growth of e-commerce in various countries and regions. The UK e-commerce market has grown significantly in recent years and now accounts for 18% of total UK retail sales. Globally, e-commerce sales are expected to double to $1.125 trillion by 2012. Emerging markets like Brazil, Russia, India and China are leading growth. Cross-border shopping is also increasing, with up to 50% of consumers in some countries making online purchases from other countries. The document identifies opportunities for cross-border sales but also barriers to overcome like language, customer tastes, delivery and payment issues.
Yarn, fiber and thread manufacturing global market report 2018lakshmipraneethganti
Asia Pacific was the largest region in the yarn, fiber and thread manufacturing market in 2017, accounting for around 74% market share.
Read Report
https://www.thebusinessresearchcompany.com/report/yarn-fiber-and-thread-manufacturing-global-market-report-2018
This document provides an overview of the B2C cross-border e-commerce market in China, with a focus on food imports from Finland. It discusses key trends such as rapid growth of e-commerce and cross-border sales. The typical online shopper is described as female, aged 20-35, urban. Demand for imported food is growing due to concerns over food safety in China. Major e-commerce platforms like Tmall Global and JD Worldwide facilitate cross-border sales.
Indian domestic apparel retail market report Sep2015Ashish Dhir
The document summarizes the growth prospects of India's domestic retail market for textiles and apparel. It projects that the total Indian textile and apparel industry will reach $200 billion by 2020, up from $101 billion in 2013, driven by 10.25% annual growth in both exports and domestic demand. Domestically, the market is expected to reach $120 billion by 2020, with the home textiles segment growing at 6.5% annually to $5.7 billion and technical textiles expanding 9.4% per year to $23 billion. Key growth factors for the domestic market include rising incomes, urbanization, and fashion consciousness.
E-commerce has significantly increased food consumption in rural China through two channels. First, it reduces the cost of living, increasing disposable income that is partly spent on food. Second, it expands choices of food items available, especially non-perishables. Data shows rural household food expenditure grew more than other items with greater e-commerce. However, the biggest impact was on poor households and food for young children, as online access has reduced breastfeeding and increased formula purchases among the poor. While e-commerce has boosted rural consumption, the nutritional effects on children in poor areas requires further study.
The document summarizes India-China relations over the past 61 years since establishing diplomatic relations in 1950. It discusses the establishment of relations by Nehru and Zhou Enlai, deterioration during a 1962 border war, and reestablishment in 1976. Trade has grown significantly in recent decades, with China becoming one of India's largest trading partners. However, issues like border disputes, China's close ties with Pakistan, and potential economic and military rivalry continue to create loopholes in the relationship. GDP growth rates have increased for both countries over the past decade, with China's currently higher at 9.5% compared to India's 7.7%.
HOW ATHLEISURE WILL SHAPE THE FUTURE OF APPAREL?Sunil Patel
The document discusses how athleisure will shape the future of apparel. It summarizes the growth of the global athleisure market, which was estimated to be $160 billion in 2017 and is forecast to reach $303 billion by 2023. It also discusses the financial performance of prominent athleisure brands like Nike, Adidas, Under Armour and Lululemon. Major suppliers to the athleisure industry are located in Asia, particularly China and Vietnam. The target market for athleisure includes North America, Europe, Asia Pacific, Latin America and the Middle East. The document outlines some prominent export-import trends and tariff barriers for different countries. It concludes by stating that athleisure will continue
Retail apocolypse and pension fund culpabilitythomas paulson
1) The retail apocalypse was caused by a combination of factors including adverse demographics, income bifurcation, student loan debt, supply-demand imbalance from overexpansion by retailers, more efficient business models like Amazon, and changes in consumer behavior toward e-commerce and mobile shopping.
2) E-commerce growth was significantly underappreciated as statistics undercounted sales on marketplaces and overcounted the retail sector by including categories like auto sales. This led to retailers being unprepared for the large shift to online shopping.
3) Private equity ownership of retailers exacerbated problems as high debt levels limited their ability to adapt to changes and led to market share losses and bankruptcies for some retailers.
Home Textile Trends - Cotton IncorporatedChris Schultz
This document discusses trends in the home textiles market. It provides insights into market growth projections by region through 2030. It also examines changes in retail channels and the rise of e-commerce. Key trends covered include digital disruption of shopping habits, the influence of millennial homeowners, and growth in urban areas. The document concludes by suggesting several product possibilities like realizing essentials, truthful threads, performance technologies, and innovative constructions to meet consumer needs.
The Textiles in China industry profile is an essential resource for top-level data and analysis covering the Textiles industry. It includes data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information. Scope * Contains an executive summary and data on value, volume and/or segmentation* Provides textual analysis of Textiles in China's recent performance and future prospects* Incorporates in-depth five forces competitive environment analysis and scorecards * Includes a five-year forecast of Textiles in China* The leading companies are profiled with supporting key financial metrics * Supported by the key macroeconomic and demographic data affecting the market Highlights * Detailed information is included on market size, measured by value and/or volume * Five forces scorecards provide an accessible yet in depth view of the market's competitive landscapeWhy you should buy this report * Spot future trends and developments * Inform your business decisions * Add weight to presentations and marketing materials * Save time carrying out entry-level researchMarket DefinitionThe textiles market includes yarns, fabrics, non-apparel, and apparel finished products. The value of each segment is for consumption, defined as domestic production plus imports minus exports, all valued at manufacturer prices. The yarns segment covers yarns for sewing, weaving, knitting, etc, made of cotton, wool, artificial, synthetic, or other fibers, but does not include the production of the fibers before spinning, fabrics covers woven, non-woven, and knitted fabrics (including knitted products such as sweaters). Apparel covers all other clothing except leather and footwear. Non-apparel products include technical, household, and other made-up non-clothing products. All currency conversions use constant average 2009 exchange rates.For the purposes of this report, Asia-Pacific comprises Australia, China, India, Japan, Singapore, South Korea, and Taiwan.
* With the support from China Electronic Commerce Association, China Center for Information Industry Development, subsidiary of Ministry of Industry and Information Technology of the People’s Republic of China, “China‘s economy and informatization” Magazine and LetYo (来优) Group Buying Search (Referred as “LetYo" in later part) jointly completed the writing of this report with professional reviews by related industry experts.
This document discusses emerging retail trends in India. It notes that tier 2 cities and towns are seeing increased disposable incomes and spending on consumer goods. Retailers are introducing stores like supermarkets and hypermarkets in these areas. Mall development is also growing in smaller cities and towns. Additionally, as social integration increases, retail chains may be able to expand across India, adapting to various local cultures. The future will see models tailored for urban and rural markets.
Chamber of commerce retail strategy and market analysis presentationDavid Kelley, MBA
This document provides a retail market analysis and strategic positioning strategy for the Windsor Chamber of Commerce. It finds that Windsor has experienced rapid population growth and has wealthier households than the county overall. While retail sales peaked in 2006, the town captures more outside spending than it loses. The analysis recommends attracting a specialty grocery store to downtown and ensuring new development integrates with the existing area. Next steps include continuing economic development projects and a targeted business recruitment campaign.
The garment industry is economically important for Bangladesh and one of its most emerging sectors. It has experienced phenomenal growth over the past 15 years, growing from exporting $1 million in 1978 to $8 billion in 2006. Currently, the garment industry employs over 4 million people, mostly women from rural areas, and contributes around 80% of Bangladesh's total exports. While the industry has brought significant economic benefits, it also faces problems like low wages, poor working conditions, and an inability to upgrade product quality. Overall, the garment industry remains vital to Bangladesh's economy but continued challenges threaten its long term prospects.
The document analyzes the global and Chinese viscose fiber industry. It highlights that China's output of viscose fiber accounts for over 50% of the world's total. It also notes that the bamboo viscose fiber market is experiencing rapid growth in China due to abundant raw material sources and the high performance of bamboo fiber products. Major Chinese viscose fiber companies, such as Zhejiang Fulida and Shandong Helon, are expanding their capacities of differentiated fiber types including bamboo viscose fiber.
• Special contributions by the biggest players in the market including Tencent, Baidu, Toutiao (Bytendence), NetEase Ads, 360 Total Security, Xiaomi & MOMO – all of which offered their best practices for success.
• Comprehensive China specific data – mostly from Chinese sources you won’t find through a standard Google search
• Tips for success by several non-Chinese advertisers who entered China and share their insights
• Actionable one-pagers summarizing the top media players’ offering, in English
Creator: Selina Mai
This is my first ever Marketing Proposal for Za cosmetic brand in Marketing course in Minghsin University of Science and Technology
China mobile internet trends bruno bensaid @ momo belfast oct 25 2010Bruno Bensaid
Bruno Bensaid gave a presentation on mobile internet trends and the business environment in China. He discussed key facts about China's internet and mobile markets including rapid growth in users. Mobile commerce is predicted to increase 300% in 2010. The investment environment has more funds than deals, with VC focused on later stages. Go-to-market for mobile apps and games requires working with a service provider or content provider due to regulatory hurdles.
This document discusses global e-commerce trends and cross-border opportunities. It provides statistics on the growth of e-commerce in various countries and regions. The UK e-commerce market has grown significantly in recent years and now accounts for 18% of total UK retail sales. Globally, e-commerce sales are expected to double to $1.125 trillion by 2012. Emerging markets like Brazil, Russia, India and China are leading growth. Cross-border shopping is also increasing, with up to 50% of consumers in some countries making online purchases from other countries. The document identifies opportunities for cross-border sales but also barriers to overcome like language, customer tastes, delivery and payment issues.
Yarn, fiber and thread manufacturing global market report 2018lakshmipraneethganti
Asia Pacific was the largest region in the yarn, fiber and thread manufacturing market in 2017, accounting for around 74% market share.
Read Report
https://www.thebusinessresearchcompany.com/report/yarn-fiber-and-thread-manufacturing-global-market-report-2018
This document provides an overview of the B2C cross-border e-commerce market in China, with a focus on food imports from Finland. It discusses key trends such as rapid growth of e-commerce and cross-border sales. The typical online shopper is described as female, aged 20-35, urban. Demand for imported food is growing due to concerns over food safety in China. Major e-commerce platforms like Tmall Global and JD Worldwide facilitate cross-border sales.
Indian domestic apparel retail market report Sep2015Ashish Dhir
The document summarizes the growth prospects of India's domestic retail market for textiles and apparel. It projects that the total Indian textile and apparel industry will reach $200 billion by 2020, up from $101 billion in 2013, driven by 10.25% annual growth in both exports and domestic demand. Domestically, the market is expected to reach $120 billion by 2020, with the home textiles segment growing at 6.5% annually to $5.7 billion and technical textiles expanding 9.4% per year to $23 billion. Key growth factors for the domestic market include rising incomes, urbanization, and fashion consciousness.
E-commerce has significantly increased food consumption in rural China through two channels. First, it reduces the cost of living, increasing disposable income that is partly spent on food. Second, it expands choices of food items available, especially non-perishables. Data shows rural household food expenditure grew more than other items with greater e-commerce. However, the biggest impact was on poor households and food for young children, as online access has reduced breastfeeding and increased formula purchases among the poor. While e-commerce has boosted rural consumption, the nutritional effects on children in poor areas requires further study.
The document summarizes India-China relations over the past 61 years since establishing diplomatic relations in 1950. It discusses the establishment of relations by Nehru and Zhou Enlai, deterioration during a 1962 border war, and reestablishment in 1976. Trade has grown significantly in recent decades, with China becoming one of India's largest trading partners. However, issues like border disputes, China's close ties with Pakistan, and potential economic and military rivalry continue to create loopholes in the relationship. GDP growth rates have increased for both countries over the past decade, with China's currently higher at 9.5% compared to India's 7.7%.
HOW ATHLEISURE WILL SHAPE THE FUTURE OF APPAREL?Sunil Patel
The document discusses how athleisure will shape the future of apparel. It summarizes the growth of the global athleisure market, which was estimated to be $160 billion in 2017 and is forecast to reach $303 billion by 2023. It also discusses the financial performance of prominent athleisure brands like Nike, Adidas, Under Armour and Lululemon. Major suppliers to the athleisure industry are located in Asia, particularly China and Vietnam. The target market for athleisure includes North America, Europe, Asia Pacific, Latin America and the Middle East. The document outlines some prominent export-import trends and tariff barriers for different countries. It concludes by stating that athleisure will continue
Retail apocolypse and pension fund culpabilitythomas paulson
1) The retail apocalypse was caused by a combination of factors including adverse demographics, income bifurcation, student loan debt, supply-demand imbalance from overexpansion by retailers, more efficient business models like Amazon, and changes in consumer behavior toward e-commerce and mobile shopping.
2) E-commerce growth was significantly underappreciated as statistics undercounted sales on marketplaces and overcounted the retail sector by including categories like auto sales. This led to retailers being unprepared for the large shift to online shopping.
3) Private equity ownership of retailers exacerbated problems as high debt levels limited their ability to adapt to changes and led to market share losses and bankruptcies for some retailers.
Home Textile Trends - Cotton IncorporatedChris Schultz
This document discusses trends in the home textiles market. It provides insights into market growth projections by region through 2030. It also examines changes in retail channels and the rise of e-commerce. Key trends covered include digital disruption of shopping habits, the influence of millennial homeowners, and growth in urban areas. The document concludes by suggesting several product possibilities like realizing essentials, truthful threads, performance technologies, and innovative constructions to meet consumer needs.
4. Apparel sales grew by 24.8% yoy in 2010, reaching 587.4
billion yuan
• According to the National Bureau of Statistics of China (NBS), the total
retail sales of clothing, shoes, hats and textiles* by enterprises above
designated size** in 2010 rose nominally by 24.8% year-on-year (yoy) to
reach 587.4 billion yuan (Exhibit 1).
• The growth in 1-3Q11 was 24.8% yoy, reaching 545.0 billion yuan.
Exhibit 1: Growth in total retail sales of clothing, shoes, hats and textiles by
enterprises above designated size*, 2006 – 1-3Q 2011
Year 2006 2007 2008 2009 2010 1-3Q 2011
yoy % change 19.2 28.7 25.9 18.8 24.8 24.8
Source: National Bureau of Statistics of China (NBS)
*“Clothing, shoes, hats and textiles” replaced the previous “clothing” category in the NBS announcement in 1-3Q09
Source: National Bureau of Statistics of China (NBS)
** Enterprises above designated size refer to enterprises with annual sales of 5 million yuan or above and with an employment of
or over 60. 4
5. Urban and rural households on average spent 10.7% and
6.8% of their annual expenditure on clothing respectively
• The annual per capita disposable income of urban households grew by
7.8% yoy to 19,109 yuan in real terms in 2010. The annual net income per
capita of rural residents reached 5,919 yuan in 2010, posting double digit
yoy growth of 10.9% (Exhibit 2).
• Urban households on average spent 1,444.3 yuan on clothing, accounting
for 10.7% of their total annual expenditure in 2010; while rural households
spent 263.4 yuan, which was 6.8% of the total annual expenditure on
clothing in the same year.
Exhibit 2: Per capita annual expenditure on clothing* of urban and rural households, 2006-2010
1600 12.0
1400 10.7
10.4 10.4 10.4 10.5 10.0
1200
1000 8.0
6.6 6.8
Yuan 800 5.9 6.0 %
6.0 6.7
600 4.0
400
200 2.0
0 0.0
2006 2007 2008 2009 2010 *“Clothing” here includes garments, clothing materials,
Per capita urban annual expenditure on clothing
Per capita rural annual expenditure on clothing footwear, hats, and other clothing, tailoring and
Share of clothing in per capita urban annual expenditure laundering service fees.
Source: National Bureau of Statistics of China (NBS) 5
Share of clothing in per capita rural annual expenditure
6. Chinese consumers aged 26-35 spend the most on clothing;
women spend more than men on clothing in general
• Consumers aged 26-35 spend more on clothing compared with other age
groups. Boston Consulting Group’s survey results show that urban
residents aged 31-35 spent the most on clothing, followed by consumers
aged 26-30.
• The survey also indicates that urban women consumers aged 14-45
accounted for 54% of the total consumption on clothing in China.
Exhibit 3: Annual spending on clothing by age and gender, 2010
yuan 4,500
4,000
3,500
3,000
2,500 46% Female
2,000 54% Male
1,500
1,000
500
-
<20 21-25 26-30 31-35 36-40 >40
Age
Note: The data comes from the Boston Consulting Group China Fashion Research Survey 2010; the respondents are urban
consumers aged 14-45. The analysis does not include sleepwear, hosiery, accessories, and children’s wear. 6
Source: Boston Consulting Group
7. Department stores and specialty stores are the major
distribution channels for branded apparel
• Department stores and specialty stores are major distribution channels for branded
apparel in China. Meanwhile, wholesale markets and hypermarkets are popular retailing
channels for lower-priced apparel; many of which are with poor brand recognition or
unbranded.
• Around 37% of the total apparel sales were realized in the department stores; while
clothing & footwear and leisure & personal goods specialist retailers accounted for 38%
of the total in 2010 (Exhibit 4).
Exhibit 4: Sales of Apparel by Distribution Format: %, 2006-2010
% retail value rsp 2005 2006 2007 2008 2009 2010
Grocery retailers 13.7 14.8 15.9 17 17 17.2
Department stores 32.5 33 34 36 36.2 36.9
Clothing & footwear specialist
retailers 23.8 22.9 23.4 25.1 25.7 26.3
Leisure & personal goods
specialist retailers 11.3 11.4 11.5 11.6 11.7 11.7
Other non-grocery retailers 18.5 17.9 15.1 10.1 9.2 7.3
Non-store retailing 0.1 0.1 0.2 0.2 0.2 0.6
Total 100 100 100 100 100 100
7
Source: Euromonitor
8. High-end department stores posted the fastest growth of
31.2% yoy in 2010
• Chinese consumes are generally trading up. According to the China
National Commercial Information Centre (CNCIC), growth of sales of
apparel category in high-end retailing locations such as department stores
and shopping malls was 31.2% yoy, higher than the national average of
21.2% yoy (Exhibit 5).
Exhibit 5: Growth of sales of apparel category in department stores of different
levels, 2010
35 31.2
30
yoy growth (%)
25
18.4 19.2
20
15
10
5
0
Low-end Middle High-end
Source: China National Commercial Information Centre (CNCIC) 8
9. Climbing costs pose challenges to apparel enterprises
• Rising costs of raw materials, labor and rental are posing an increasing challenge to
apparel enterprises.
− China’s cotton price indices were in a downward trend during mid-March to mid-May of 2011,
yet the indices rebounded in mid-August of 2011 and has kept a rising trend since then.
− According to China National Garment Association, labour cost increased for over 20% yoy in
2010.
− Local governments in 18 provinces/municipalities such as Beijing, Shanghai, Guangdong,
Zhejiang, etc. and one special economic zone (i.e. Shenzhen) raised minimum wage levels in
their jurisdictions in 1-3Q11.
• According to the NBS, the clothing price index has been declined for five consecutive
years since 2006. Yet it increased by 1.6% in 1-3Q11 (Exhibit 6). While some branded
apparel companies are able to raise their price tags, many smaller companies continue
to face squeezing margins.
Exhibit 6: Clothing price index, 2006 – 1-3Q 2011 (Same month of preceding year=100)
2006 2007 2008 2009 2010 1-3Q 2011
yoy % change of clothing prices
-0.6 -0.6 -1.5 -2.0 -1.0 1.6
Source: National Bureau of Statistics of China (NBS)
9
11. Domestic apparel enterprises dominate in the mass market
• In China, domestic brands dominate in the mass market, especially in the lower-tier cities and rural
market. They generally have more extensive sales channels than their foreign counterparts.
• Exhibits 7 and 8 show the top 10 domestic apparel enterprises by sales revenue and profits in 2010.
Most of these enterprises are from Zhejiang, Jiangsu, Shandong and Shanghai.
Exhibit 7: Top 10 domestic apparel enterprises by sales Exhibit 8: Top 10 domestic apparel enterprises by profits,
revenue, 2010 2010
Ranking Company Headquarter/ Ranking Company Headquarter/
Base Base
1 Youngor Group Co., Ltd 雅戈爾集團股份有 Ningbo 1 Youngor Group Co., Ltd 雅戈爾集團股份 Ningbo
限公司 (Zhejiang) 有限公司 (Zhejiang)
2 Hongdou Group Co., Ltd 紅豆集團有限公 Wuxi 2 Bosideng Co., Ltd 波司登股份有限公司 Suzhou
司 (Jiangsu) (Jiangsu)
3 Heilan Group 海瀾集團有限公司 Wuxi 3 Heilan Group 海瀾集團有限公司 Wuxi (Jiangsu)
(Jiangsu)
4 Bosideng Co., Ltd 波司登股份有限公司 Suzhou 4 Semir Group Co., Ltd. 浙江森馬集團有限 Shanghai
(Jiangsu) 公司
5 ShanShan Enterprise 杉杉投資控股有限公 Shanghai 5 Hongdou Industrial Co., Ltd. 紅豆集團有 Wuxi (Jiangsu)
司 限公司
6 Metersbonwe Group 上海美斯特邦威服飾 Shanghai 6 Metersbonwe Group 上海美斯特邦威服 Shanghai
股份有限公司 飾股份有限公司
7 Qingdao Jifa Group 青島即發集團 Qingdao 7 Luthai Textile Co., Ltd. 魯泰紡織股份有限 Zibo
(Shandong) 公司 (Shandong)
8 Shandong Sinoer Group Co., Ltd. 新郎希 Weifang 8 ShanShan Enterprise 杉杉投資控股有限 Shanghai
努爾集團股份有限公司 (Shandong) 公司
9 Shandong Ruyi Science & Technology Jining 9 Shandong Sinoer Group Co., Ltd. 新郎希 Weifang
Group 山東如意科技集團有限公司 (Shandong) 努爾集團股份有限公司 (Shandong)
10 Semir Group Co., Ltd. 浙江森馬集團有限 Shanghai 10 Shandong Nanshan Textile Garment Co., Longkou
公司 Ltd.山東南山紡織服飾有限公司 (Shandong)
Source: China National Garment Association (CNGA), Li & Fung Research Centre
11
12. Established domestic players spend more resources on
brand-building
Exhibit 9: Most Valuable Apparel Brands in China, 2011
Rank Rank Brand Brand Value % of Product catogory Headquarter
in (billion yuan) Market • Nowadays, more and more domestic
2010 Value players are eager to build brand equity;
1 3 Metersbonwe 11.5 36% Casual wear Shanghai
美特斯邦威 they are willing to put more resources on
2 7 Semir 森馬 11.0 28% Casual Shanghai brand-building.
wear/Children
wear • Metersbonwe (美特斯邦威) became the
3 2 Anta 安踏 8.8 35% Sportswear Xiamen most valuable Chinese apparel brand in
(Fujian)
4 1 Lining 李寧 4.2 37% Sportswear Beijing 2011; its brand value amounted to 11.5
5 5 Bosideng 波司登 3.7 25% Down wear Suzhou billion yuan in 2011.
(Jiangsu)
6 4 Heilan 海瀾之家 3.4 25% Menswear Wuxi
• Youngor, Rcollar, Shanshan, etc. are new
(Jiangsu) entrants in the 2011 ranking.
7 8 Xtep 特步 2.7 28% Sportswear Quanzhou • Most of the brands in the list are
(Fujian)
7 10 Septwolves 2.7 30% Menswear Xiamen specialized in the sportswear and
七匹狼 (Fujian) menswear sector.
9 N/A Youngor 雅戈爾 2.2 30% Menswear Ningbo
(Zhejiang) • Apparel companies in Fujian and Zhejiang
10 9 Peak 匹克 2.1 22% Sportswear Quanzhou are very strong in branding; 6 out of top
(Fujian)
11 N/A Rcollar 红领 1.9 15% Sportswear Qingdao
18 most valuable apparel brands are
(Shandong) based in Fujian while 4 are from Zhejiang.
12 6 361degrees 1.8 22% Sportswear Xiamen
361度 (Fujian)
• Exhibit 9 shows China’s most valuable
12 11 Lilang 利郎 1.8 17% Menswear Quanzhou apparel brands in the Hurun Most
(Fujian) Valuable Chinese Brands 2011 list. The
12 N/A Shanshan 杉杉 1.8 20% Menswear Shanghai
15 N/A Red Dragonfly 1.4 28% Shoes Wenzhou number of apparel brands increased from
红蜻蜓 (Zhejiang) 10 in 2010 to 18 in 2011.
16 N/A Baoxiniao 报喜鸟 1.2 16% Menswear Wenzhou
(Zhejiang)
16 N/A Erdos 鄂尔多斯 1.2 26% Cashmere Inner
Mongolia
16 N/A Aokang 奧康 1.2 18% Leather shoes Wenzhou Source: Hurun Research Institute, 12
(Zhejiang) Li & Fung Research Centre
13. Some well-established foreign players accelerate expansion
plans in China’s apparel market
• In recent years, many foreign apparel brands are keen to have a stronger presence in China.
While some well-established players are seeking to expand in the lower-tier cities, those
which are not yet present in China are working hard to enter the lucrative China market.
• Established players accelerate their expansion in China
− Zara planned to expand to 42 cities in China in 2011.
− Uniqlo targets to open 100 stores in China each year starting from 2011.
− H&M added 12 new stores in China during 1 December 2010 and 31 May 2011, with a total of 59
stores in the country. It expects China to be one of largest expansion markets in 2011.
− In August 2011, International fast fashion brand C&A entered Wuhan of Central China.
• New entrants in China
− Cross Company (可洛絲) from Japan has signed a deal with leading Hong Kong-based fashion
distributor, I.T. Limited to enter the Chinese market. The first store has opened in Shanghai in
September 2011 and the company planned to open 120 stores with sales of 10 billion yuan
within three years. The joint venture will operate the business via franchises, wholesaling as well
as direct stores.
− In 2011, WE from Holland had opened stores in Shanghai, Chongqing, Ningbo, Shenyang. It
also planned to open a flagship store in Shanghai Longemont (上海龍之夢) in 2011.
• Some apparel enterprises see Hong Kong as the springboard for China’s entry
− FOREVER 21 planned to open flagship stores in the prime locations of Hong Kong in 2011;
Abercrombie & Fitch’s sub-brand “Hollister” opened its first Asian flagship store in Hong Kong in
August 2011.
13
14. Foreign brands still dominate luxury apparel market in China
• Foreign players still dominate China’s luxury apparel market. Luxury brands such as
Giorgio Armani, Burberry, Cerruiti 1881 have a stronghold.
• Meanwhile, domestic brands are virtually absent in China’s luxury apparel scene. However,
some domestic players have strived to move up the value ladder and hope to get a place in
the premium market.
− NE·TIGER (東北虎), which claimed itself to be China’s first luxury apparel brand, has set up
studios in the U.S., France, Italy and Russia in the past few years.
− Trands (創世) is another domestic brand that has gained recognition overseas.
• Though, we should admit that these domestic brands have only minimal presence in the
luxury segment. There is still a long way to go for domestic players to rival their foreign
counterparts.
• Pseudo brands is another issue in the luxury apparel sector in China. Some domestic
players have presented themselves as foreign luxury brands, e.g. having brand names in
foreign languages and using foreign models, in order to lure the unsophisticated Chinese
consumers.
• For more information on Luxury apparel market in China, please see our China Distribution
and Trading Newsletter Issue 81 Luxury market in China, 2010:
http://www.lifunggroup.com/eng/knowledge/research/china_dis_issue81.pdf
14
15. Some domestic players embark on overseas expansion
• Recently, more and more domestic apparel enterprises are eager to
expand overseas.
• Some apparel retailers have been making use of the online retailing
channel to enter the overseas markets.
− Metersbonwe launched online stores on eBay US, UK, Germany and Australia in
October 2010.
− In January 2011, some apparel brands such as Moonbasa (夢芭莎), Bossini,
Giordano, etc. cooperated with eBay to explore the overseas online market.
• Besides online channels, some apparel retailers have opened offline
stores in overseas markets.
− JNBY (江南布衣) has expanded overseas since 2005 with the opening of 10
shops in various overseas markets such as Moscow, Tokyo, Singapore, etc. It
opened a new store in New York in 2010.
15
17. (1) Integration of distribution channels is commonly
adopted to enhance operation efficiency
• After years of rapid expansion, distribution channel rationalization is gaining
attention. Retailers begin to focus on boosting store productivity and
enhancing distribution efficiency.
− Li Ning ( 李 寧 ) implemented distribution channel reforms to enhance overall
efficiency. It consolidated a large number of low efficient sub-distributors and lessen
the proportion of sub-distributors operating single stores. A total of 400 low-efficient
sub-distributors are expected to be consolidated by the end of 2011.
− Moreover, Li Ning has opened more factory outlets to clear its excessive
inventories.
17
18. (2) More brands are looking for direct ownership of their
brands
• Some enterprises, especially luxury companies, prefer to retain full control
over the ownership of Chinese operations from franchisors or distributors.
− Bestseller, which owns ONLY, VERO MODA, Jack & Jones, etc., retained control
of shops in Xi’an and Jinan; it also opened more direct-owned stores.
− Burberry bought 50 of its Chinese franchised stores in a deal worth 70 million
pounds in 2010.
− Coach acquired the retail business in Greater China from a Hong Kong-based
distributor ImagineX Group in 2009.
• More brands seek to obtain direct control over the stores in the first-tier
cities while keeping the franchising and distribution models in the lower-tier
cities. This is mainly due to unfamiliarity with the markets of lower-tier
cities, where their local partners may have more expertise to help distribute
efficiently.
18
19. (3) Online apparel retailing becomes an important sales
channel of apparel
• Online retailing* is an increasingly important sales channel in China, especially
among young consumers. According to iResearch estimates, the number of online
shoppers rose from 108 million in end-2009 to 148 million in end-2010, accounting
for 32.4% of China’s Internet population. The transaction value of China’s online
retailing market was up by 75.3% year-on-year (yoy) to reach 461.0 billion yuan in
2010, accounting for 2.98% of the country’s total retail sales.
• According to the iResearch as shown in Exhibit 10, apparel was the most popular
categories sold online in 2010.
Exhibit 10: Most popular categories sold online, 2009-2010
Apparel, footwear and bags
Books/music/movies and videos
Prepaid cards (e.g., top-up cards, etc)
Cosmetics and personal care
IT/digital/communication
Home products
Healthcare food
Maternity and baby care products 2009
Electronic appliances 2010
Toys and gifts
Jewellery
Others
Source: iResearch 0 5 10 15 20 25 30 35 40 45 50 %
* According to iResearch, scale of online retailing market refers to the total transaction value of consumer-to-consumer (C2C) and
business-to-consumer (B2C) online businesses. Scale of C2C online retailing market is calculated by the total value of purchases,
excluding that on the B2C arm of C2C platforms. Scale of B2C online retailing market has excluded payments of travel expense, air
tickets and online bill payment services. 19
20. (3) Online apparel retailing becomes an important sales
channel of apparel (cont’d)
• Developing online retail channels is becoming popular among traditional apparel retailers;
B2C online platforms can be categorized into three major types:
− Pure-clicks apparel retailers (e.g. Vancl 凡客誠品, Mecox Lane 麥考林)
− Multi-channel B2C apparel retailers (e.g. Li Ning, Uniqlo)
− Apparel retailers selling on B2C platforms (e.g. Taobao Mall 淘寶商城, Paipai 拍拍網)
• On the other hand, many C2C individual sellers are expanding fast on Taobao
Marketplace, the largest player in the C2C market. Some of them developed their own
brands and later shifted to sell in B2C Taobao Mall as “Tao-brands” (淘品牌).
− Examples of “Tao-brands” include Ringnor (言若), Milachic (樂米拉), Qiustyle (斯黛歐), etc.
• Venture capital firms are keen to invest in the “Tao-brands”. With sufficient financial
support, the Tao-brands are able to launch shopping websites in other B2C platforms
such as 360 Buy, V+ etc, or build offline storefronts.
− Selected Tao-brands that attracted investments from venture capital firms in 2010 and 2011
include mbaobao (麦包包), Green Box (绿盒子), 7GeGe (七格格), Justyle, Sportica (斯波帝卡).
• That said, many traditional retailers are not very familiar with selling online, posing extra
challenges for them to reach breakeven for their online businesses
− Metersbonwe announced in October 2011 that it will stop operating its own e-commerce platform.
Instead, it will entrust Shanghai Banggo Information Technology (Banggo) to sell its products
online under the domain name Banggo.com. 20
21. (4) Department store operators launch their own private
apparel labels or proprietary brands
• To improve differentiation, some department store operators in
China has begun to develop their own private apparel labels and
proprietary brands, etc.
• Private labels or proprietary brands may also increase profit
margins and strengthen customers’ loyalty.
• Examples of private labels or proprietary brands launched by
selected department store operators include:
− Wangfujing Department Store (王府井百貨) unveiled a new store
brand Fashion Headquarters, or HQ, in Beijing in September 2010
positioned to attract fashion consumers aged 18-35.
− Guangzhou Grandbuy (廣百) launched a new store brand Grandbuy
Fashion (GBF) in G.T. Land Plaza in Guangzhou in December 2010.
− New World Department Store (新世界百貨) launched its menswear
private label of XII in December 2010. It also launched the brand “N
Only” in 2010.
− Intime Department Store(銀泰) launched its brand “Justin Intime” in
2009.
21
22. (5) Apparel enterprises seek to diversify their portfolio; category
expansion and adoption of multi-brand strategy are common
• Some brands seek to diversify their portfolio by category expansion:
− Bosideng, China’s biggest manufacturer of down wear, announced that it
has acquired a 70% stake in a mid-to-high end women’s apparel brand
“Jessie” to diversify and reduce its dependence on winter clothes.
− JNBY, ME&CITY, Yishion (以純), Fairy fair (淑女屋), Xtep (特步), etc
expanded their product category by launching children’s wear.
− Baoxiniao Group, one of the leading menswear companies in China, has
engaged also in the causal and sports businesses. In 2010 and 2011, it
invested in three domestic casual and sports menswear companies, namely
Franistion (名歐服飾), Bilute (比路特) and Yale (雅樂時裝).
• Multi-brands strategy is also commonly adopted by many players to
further expand their product category.
− SWJEANS by Septwolves, FUN by JOE/ONE ( 九 牧 王 ), Five Plus by
Ochirly, Lilanz by Lilang (利郎) etc.
22
Source: ME & CITY, JNBY, Yishion, Fairy Fair Company websites
23. (6) Lower-tier cities are the major battlefields for apparel
enterprises
• Competition in the first-tier cities has become more fierce; to avoid
toe-to-toe competition in big cities, many domestic and foreign
enterprises are now targeting the lower-tier cities. Moreover,
nowadays, people in the lower-tier cities are getting wealthier and
having stronger buyer power.
• Hence, for many apparel players, the lower-tier cities are their
major battlefields.
− For example, XTEP sees Hunan, Sichuan, Shandong and Anhui
provinces as its main growth engine.
− Adidas plans to expand sales channel coverage to 1,400 cities by
opening 2,500 retail shops in middle and small cities in the next few
years.
23
24. (7) Apparel enterprises were active in IPO activities
• Riding the wave of growing investors’ interests in China’s consumption-
related themes, many apparel enterprises in China have sought public
listings in recent years.
• Examples of domestic apparel enterprises sought public listings include:
− ZuoAn (左岸服飾) was listed on New York Stock Exchange in February 2011.
− Semir (森馬服飾) was listed on the SME board of Shenzhen Stock Exchange
in March 2011.
− Lancy (朗姿股份) was listed on Shenzhen Stock Exchange in August 2011.
24
25. (8) Enhancing competitiveness – strategies to cope with
climbing costs
• As mentioned before, cost pressure for apparel enterprises is high and
many enterprises are adopting various measures to control their costs.
For example:
• Source from various bases outside of China
− Due to the surging production costs in China, more companies tend to
adopt the “China-plus-one” strategy and adjust the proportion of sourcing
among different sourcing bases. Metersbonwe, for instance, stated that
around 10% of its products in Spring/Summer 2012 collection would be
sourced outside of China.
• Pass escalating costs to consumers by raising product price
− Li Ning would raise price tags of apparel and footwear by 17.9% and
7.8% respectively in 4Q 2011.
− Anta, Xtep, Peak and 361 Degrees intend to increase product prices in
order to retain profit margins.
25
26. (9) Enhancing competitiveness – investing in R&D and
focusing on product excellence
• In order to win consumers and stand out in the competitive apparel
industry in China, companies are investing more in product
development.
• For example:
• Bosideng introduced the new “Autumn Down Apparel” series in
September 2011 to satisfy market demands towards light-
weighted and slim down apparel products.
26
27. (10) Enhancing competitiveness – offering personal
tailoring services
• Personal tailoring service is getting more popular in high-end menswear sector.
Foreign brands which have a long history providing tailoring service in the overseas
market such as Zegna, Gieves & Hawkes and Hugo Boss, are also providing
tailoring service in the China market.
• In recent years, domestic apparel companies has gradually tapped into the tailoring
market. For example, Baoxiniao Group launched its high-end brand “CARL BONO”
with tailoring service; the price range of the products is between 6,800 to 180,000
yuan.
• Recently, personal tailoring service is extended to areas such as ladies’ wear and
inner wear. For example, Lancy (朗姿) and Aimer (愛慕) have also introduced made-
to-measure tailoring series for their customers.
27
Source: Gieves & Hawkes
28. (11) Enhancing competitiveness – spending resources on
marketing and branding
• To enhance competitiveness and to win consumers, apparel companies are now
spending more resources on marketing and branding.
• Event sponsorship is a popular marketing strategy adopted by apparel companies
to extend media coverage
− 361 Degrees became the global partner of the 26th Summer Universiade 2011 held in
Shenzhen.
− Li Ning has become the sponsor for the Singapore Open in June 2011
Source:361 Degrees Source: Singapore Open 2011 website
• Digital marketing is also widely used by marketers to promote/market their
products. Nowadays, it is common for enterprises to make use of SNS websites
and microblogs to spread their promotion message.
− Metersbonwe used its microblog (Sina’s weibo, http://weibo.com/mtsbw) to launch its
marketing campaigns and communicate with consumers. 28
29. (11) Enhancing competitiveness – spending resources on
marketing and branding (cont’d)
• Organizing social events to celebrate special occasions is another way to enhance
the communication of brand image with consumers.
− In April 2011, JNBY (江南布衣) held a special event - “Naturally Creating The Future”- to
celebrate its first anniversary of JNBY shop in Hangzhou MIXC. Consumers can
participate in the event and get souvenirs.
• Companies build flagship stores to enhance brand image
− ME&CITY, part of Metersbonwe Group, opened a flagship store in Wuhan of Central China
in January 2011.
− Fast fashion retailers, including ZARA, H&M, UR, C&A and Uniqlo build up brand image
by establishing flagship stores in China’s fashion hub, Shanghai.
Source: The Fashion Shop
29
Source: The Fashion Shop
30. (12) Product safely is still a major concern
• Product safety is still a major issue in China. In August 2011, Guangzhou Industrial
and Commercial Bureau conducted random sample checks of casual wear and
found that 32% of the samples failed the checks.
• As Chinese consumers become more discerning, product safety is expected to
gain more attention in the near future.
Source: China Quality News, www.cqn.com.cn
30
31. (13) Going green is also gaining more attention
• As consumers’ awareness on environment protection climbs, “going green” is
grasping the attention of apparel companies.
− ZuoAn has put a great deal of effort in carrying out R&D for environmental-
friendly fabrics; it has also been very proactive in launching green initiatives.
For example, the company has launched a number of energy-efficient stores
which save around 65% of its energy consumption; it has also participated in
many events to promote the message of “protecting the environment”.
Source: Apparel brands, www.fzpp.com
31
33. Background
• The China National Commercial Information Centre (CNCIC)
conducts monthly survey to around 200 major department stores* in
China to study the performance of different cosmetics sub-sectors.
• In this newsletter, performance of the following product sectors is
examined:
• Menswear (men’s suits and men’s shirts),
• Ladies’ wear
• Children’s wear
• Casual wear (jackets, T-shirts, denim wear)
• Sportswear
• Ladies’ underwear
*Note: It is noteworthy that the CNCIC data covers sales in major department stores only.
Retailers of other formats such as specialty stores are growing in popularity. The actual overall
market share of apparel brands may deviate from the CNCIC data. 33
34. Growth in apparel sales volume in major department stores
in 2010 outpaced 2009
• As shown in Exhibit 11, growth in apparel sales volume in major department
stores in 2010 was 10.2% yoy, increased from 7.4% in 2009.
• Market share of ladies wear was still the largest in 2010 and 1H11.
• Growth of men’s suit was the fastest in 2010, achieving 13.1% yoy; it was
followed by ladies’ wear, which posted a growth rate of 12.1% yoy.
Exhibit 11: Retail sales volume of various apparel categories in major department
stores, 2009-1H 2010
1H11 2010 2009
Million pieces yoy % growth Million pieces yoy % growth Million pieces yoy % growth
Overall 236.5 5.3 455.1 10.2 432.3 7.4
Ladies’ wear 69.2 9.2 131.0 12.1 121.3 8.2
Knitted underwear 29.6 2.6 57.1 6.5 58.8 4.6
Children’s wear 17.4 3.7 32.3 7.3 31.4 9.6
Woolen wear 12.7 -4.6 23.5 -4.1 25.8 5.6
T-shirts 7.1 2.1 14.1 -2.4 14.7 5.4
Thermal clothing 4.7 0.5 9.7 -3.6 10.3 -8.4
Trousers 5.7 -3.0 11.1 1.4 11.1 -2.6
Men’s suit 6.1 9.1 11.8 13.1 10.7 11.4
Men’s shirt 5.5 7.1 9.8 1.5 10.3 1.5
Jackets 3.6 3.6 7.1 8.4 6.5 2.9
Denim wear 2.9 17.0 5.0 4.8 4.8 3.8
Leather wear 0.6 -13.6 1.0 2.1 0.9 6.4
Source: China National Commercial Information Centre (CNCIC)
34
35. Ladies’ wear was the major contributor to total apparel sales
• Ladies’ wear was the major contributor to total apparel sales, accounting for 28.8% of
the total sales volume in 2010, following by knitted underwear of 12.5% and children’s
wear of 7.1%. In 1H11, volume sales share of ladies’ wear reached 29.3%, followed
by knitted underwear of 12.5% and children’s wear of 7.4%. Exhibit 12 demonstrates
the share of sales volume of different sub-sectors.
Exhibit 12: Share of sales volume of different product sectors, 2003-1H 2011 (%)
1H11 2010 2009 2008 2007 2006 2005 2004 2003
Ladies’ wear 29.3 28.8 28.1 28.5 28.3 28.9 28.6 26.6 25.9
Knitted underwear 12.5 12.5 13.6 15.4 16.8 16.3 16.6 18.6 20.5
Children’s wear 7.4 7.1 7.3 7.5 7.6 7.7 8.0 8.1 8.0
Casual wear 5.7 5.8 6.0 6.5 7.3 7.5 7.4 8.4 7.8
of which: T-shirts 3.0 3.1 3.4 3.6 4.2 4.2 3.7 4.1 3.8
Jackets 1.5 1.6 1.5 1.7 1.9 1.9 2.0 2.2 2.1
Denim wear 1.2 1.1 1.1 1.2 1.2 1.5 1.7 2.1 1.9
Woolen wear 5.4 5.2 6.0 5.8 6.6 7.1 6.9 7.2 7.9
Menswear 4.9 4.8 4.9 5.2 5.6 5.2 5.8 6.6 7.0
of which: Men’s shirt 2.3 2.2 2.4 2.7 3.1 2.9 3.1 3.5 4.0
Men’s suit 2.6 2.6 2.5 2.5 2.6 2.3 2.7 3.1 3.0
Thermal clothing 2.0 2.1 2.4 3.3 3.9 4.2 4.3 3.6 3.8
Trousers 2.4 2.4 2.6 3.0 3.4 3.6 3.5 3.6 4.1
Leather wear 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Others 30.2 31.1 29.1 24.7 20.2 19.3 18.7 17.1 14.8
Total 100 100 100 100 100 .0 100 100 100 100
Source: China National Commercial Information Centre (CNCIC)
35
36. Market concentration of most sub-sectors is generally low
• Most of the sub-sectors are highly fragmented, the top 10 players in the sub-
sectors such as jackets and T-shirts accounted for less than half of the total
market share in 2010. Exhibit 13 shows the market share of the top brands of
selected sub-sectors.
• However, the maternity wear and sportswear market are very concentrated; the
top 10 players in the maternity wear sub-sector accounted for more than 95% of
the market share in 2010, while the sportswear sub-sector accounted for 85% of
the market share.
Exhibit 13: Market share of top 10 brands of selected sectors, 2009 & 2010
120.0
100.0
80.0
% 60.0
40.0
20.0 2009
0.0 2010
Source: China National Commercial Information Centre (CNCIC)
36
37. Performance of selective product sectors
• Exhibits 14-15 show the performance of the top 5 players in selected sub-sectors,
including menswear (men’s suit, men’s shirt), ladies’ wear, children’s wear, casual
wear (jackets, T-shirts, denim wear), sportswear, ladies’ underwear and maternity
wear.
Exhibit 14: Men’s suits - share of total sales value, Exhibit 15: Men’s shirts - share of total sales
2009 & 2010 value, 2009 & 2010
15.0 14.1 14.0 13.2
12.5
12.0
10.0 8.2 8.0
10.0 7.2
8.0 6.4
% 4.7 5.3
6.0 4.3 4.2 4.0
% 4.0
5.0 3.5 3.1 3.6 3.1 3.1 2.9 2.5 2.6 2.0
0.0
0.0 Youngor 雅 Qinman 琴 Rouse 洛茲 Pierre Goldlion 金
Youngor 雅 Firs 杉杉 Romon 羅 Goldlion 金 Playboy 花 戈爾 曼 Cardin 皮 利來
戈爾 蒙 利來 花公子 爾卡丹
2009 2010
2009 2010
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
37
38. Performance of selective product sectors (cont’d)
Exhibit 16: Ladies’ wear - share of total sales Exhibit 17: Children’s wear - share of total sales
value, 2009 & 2010 value, 2009 & 2010
7.0 6.5 6.1
10.0 9.1 9.3 8.2 8.2 5.9
5.5 5.5 5.5
8.0
6.0 5.0 5.3 5.1
5.0 4.6
5.5
6.0 4.6 4.0
% %
4.0 2.8 2.8 2.6 2.4 3.0
2.0 2.0
0.0 1.0
0.0
ONLY VERO MODA Girdear 哥弟 Ochirly 歐時 Shengyuzhu
力 聲雨竹 adidas 阿迪 Paclantic 派 NIKE 耐克 Dadida 嗒 Yaduo 雅多
達斯 克蘭帝 嘀嗒
2009 2010
2009 2010
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
38
39. Performance of selective product sectors (cont’d)
Exhibit 18: T-shirt - share of total sales value, 2009 Exhibit 19: Denim wear - Men’s suits: share of total
& 2010 sales value, 2009 & 2010
6.0 14.0
4.7 5.0 15.0
11.8
5.0 4.1 3.8 11.4
4.0 9.6 10.1
3.1 2.8 2.9 10.0 7.6 7.5 7.3
% 3.0 2.4 % 5.8 4.9
2.0 1.5 5.0
1.0 N/A
0.0 0.0
Montagut Goldlion 金 LACOSTE 鱷 Jeanswest JOE|ONE 九 Levi's LEE Kipone 旗 Boton 波 Braxton
夢特嬌 利來 魚 真維斯 牧王 牌王 頓 霸獅騰
2009 2010 2009 2010
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
39
40. Performance of selective product sectors (cont’d)
Exhibit 20: Jackets - share of total sales value, Exhibit 21: Sportswear - share of total sales
2009 & 2010 value, 2009 & 2010
3.3 40.0
3.5 3.1 3.0 33.4
2.7 2.8 35.0 30.7
3.0 2.6 2.3 27.2 27.3
2.5 2.3 2.3 2.1 30.0
2.0 25.0
% % 20.0
1.5
1.0 15.0 10.6 8.8 9.1 8.1
0.5 10.0 3.9
0.0 5.0 N/A
JOE|ONE Septwolves Jack & "Jin Ba" 勁 Montagut 0.0
九牧王 七匹狼 Jones 傑克 霸 夢特嬌 Nike 耐克 adidas 阿 Li Ning 李 Kappa 背靠 NIKE360 耐
瓊斯 迪達斯 寧 背 克360度
2009 2010 2009 2010
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
40
41. Performance of selective product sectors (cont’d)
Exhibit 22: Ladies’ underwear - share of total sales Exhibit 23: Maternity wear - share of total sales
value, 2009 & 2010 value, 2009 & 2010
35.0 32.7
16.0 15.1
13.7 30.0 27.5
14.0 12.6 12.2 25.3
10.9 10.7 25.0 20.9
12.0 10.3 10.2
9.5 20.0 16.7
10.0 %
15.0
% 8.0 9.0 8.8 9.9
6.0 5.0 10.0 6.2
3.5
4.0 5.0
2.0 0.0
0.0 O.C.T. Hui bao 惠 Tianxiang Sunlight Amery 孕
mami 十 葆 添香 Baby 今生 美
Aimer 愛慕 Gujin 古今 Embryform Triumph 黛 Maniform
月媽咪 寶貝
安莉芳 安芬 曼妮芬
2009 2010
2009 2010
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
41