Textination Newsline

• Foreign companies should adapt their fashion to Chinese needs
• Increasing health awareness strengthens sportwear market

Beijing (GTAI) - The Chinese clothing market is one of the largest in the world and is developing rapidly. From the lower mass volume over the in quality and optic pretty products in a midprice segment to luxury and haute-couture the range of products in the sectors is constantly expanding. In addition to the tendency towards recognized brands an increasing individualization of consumption can be observed. What is needed, what fits well is liked and moreover is somehow "special".

According to the Chinese Statistical Office (NBS), the retail sales of clothing increased in 2016 to more than USD 150 billion (these figures include companies with annual sales of over USD 3 million in their main business). This makes the Chinese clothing market to one of the largest in the world.

The Chinese consumer desires are increasingly demanding, differentiated and personalized. The new possibilities of the Internet, including the booming e-commerce, are changing the purchasing behavior drastically. The level of information has risen significantly, especially as a result of visits abroad. Customers are increasingly aware of prices that have to be paid outside of China. Too high price increases are therefore perceived as discrimination and damage the image of brands.

"The success is not decided by online or offline trading or whether it is a local or international company, but whether the supply meets the demand," Liu Xiaolu, founder of the popular underwear brand Neiwai says.  Essential are the right materials and a quick response to the changing needs of the customers. Finding the right piece online can actually be difficult. A number of hitherto exclusively online offering vendors such as Miss Rhino have recently opened additional conventional stores in order to provide a better advice to customers.   

Fashion must meet Chinese expectations

This makes the sector division representative for the entire Chinese fashion market: the products must be liked and should fit. From the customers' point of view, it is important to find the balance between foreign flair and local characteristics. Not without a reason the 345 yuan (RMB, around 52 $, 1 USD = 6.6442 RMB, as annual average price 2016) for expensive model O2bra "Naja Nina", is one of the bestsellers of the Neiwai brand in Shanghai. It unites Chinese and Western elements: from the outside plain black, decorated inside with erotic motifs from classical Chinese painting.  In general, the underwear sector within the fashion market is considered to be the least saturated and segmented. The Chinese retail trade sold women's underwear at about USD 20.1 billion in 2016. It is estimated to reach USD 25 billion in 2017. For 2020 Euromonitor International predicts sales of USD 33 billion.    

The top ten producers share 13% of the market only. The bulk of this is due to thousands of hardly known companies selling their products at low prices. The prices for a bra range from RMB 50 piece from the Chinese mass producer Cosmo Lady to one hundred times higher Italian brand La Perla. In order to benefit from the more demanding wishes of the Chinese women's world, for example Victoria's Secret from the USA opened its first subsidiary in the People's Republic in Shanghai in March 2017 - a four-storied flagship store.

According to the industry in the long term it hardly will be possible to bring for Western women designed goods to China.  Although in the medium to long term the Chinese ladies statistically seem to become larger and more corpulent, but the purely physical differences will still remain considerable. According to the China Physical Fitness Surveillance Center, women aged 20 to 24 in 2000 were 158.6 cm tall in average, their breast circumference was 82 cm, ten years later they were measured 159 cm respectively still 82 cm. Women of the age of 25 to 29 years measured in 2000 about 158.7 cm / 82.5 cm and in 2010 at 158.2 cm / 83.4 cm. At this background, the companies need not only to develop appropriate fit-sizes. They also have to accept that Chinese women have a more functional or conventional attitude than, for example, women from the USA. This is not least true for swimwear also.

The market for sportswear is growing strongly

According to taobao.com, the largest online platform in the country, more than 21 million bikinis and bathing suits are being sold annually. It is true that every third piece is a bikini, but according to Taobo Chinese women generally prefer to dress more covered than the Western ones. Preference is given to models made with a lot of fabric, looking often much like skirts. Leading are the local companies Hosa, Heatwave and Zoke with prices between RMB 400 and 500. However, many younger Chinese prefer more likely to shop on foreign websites.

Given the strong growth in beach and spa tourism, the demand for swimwear in China will grow at an above-average rate. In general, the sporting goods sector is predicted to get an above-average growth together with increasing health awareness. According to Euromonitor International, sales of sportswear in China are expected to grow to around RMB 281 billion by 2020, of which about RMB 20 to 30 billion will be spent on sports underwear. In total, an estimated value of RMB 170 to 180 billion of sportswear will be sold in the PR China in 2016. The sector is happy and looking forward to a growth of around 10% per annum.