The Chinese Fashion Market is Really Big, difficult to put a Figure, but it’s the biggest in quantity, and in Value. You should know that it is the most dynamic with a 10% increase per year.
Why is the Chinese Fashion Market so interesting for Small Brands?
The living conditions of the middle-class in China have been improved. Now consumers have become highly brand conscious and the possession of luxury products is seen as a status symbol. ”Conspicuous consumption’’ means having the need to buy goods, not because you need it but to show off to others, and this phenomenon occurs not only in Chinese culture but also in Western culture.
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The Power of Branding in China
According to a recent study conducted by Boston Consulting Group (a consulting company), mainland China is the sixth in the world for the expenses on luxury goods ranked by countries. In 2010 it was a USD$ 17.7 billion market where Louis Vuitton, Chanel, and Gucci are the most desired luxury brands. However, in recent years they are losing favor among Chinese consumers while the so-called fast fashion companies H&M, Zara, Uniqlo, etc are still popular amongst the young generation in China. You can also see in China, a market for niche Brands in Premium Fashion.
China is the largest Fashion Market in the world
The report by McKinsey & Company and the Business of Fashion (BoF) says that in 2019 China is set to overtake the U.S. as the world’s largest fashion market for the first time. However, Joann Cheng, Chairman of Fosun Fashion Group & Lanvin, expresses her belief that the trade war will have minimal effect on China’s business. “I don’t think that the fashion industry is the area that will be hit by trade wars. China is still a large economy with very strong internal consumption power,” explains an expert.
The Chinese consumers’ fashion market is huge as domestic luxury brands are presented here just as foreign brands. A reason why the Chinese love to wear foreign luxury brands is that they are convinced that its quality is better.
The Luxury of Optimism
The report by McKinsey & Company and BoF reveals that the premium and luxury fashion sector demonstrates overall stability – the rich stay rich and are getting richer. In Asia specifically, 51 percent of executives surveyed believe the fashion sector will “become better” in 2019, with a further 19 percent believing it will “stay the same.” Meanwhile talking about North America’s market, 64 percent of executives believe the industry will “become worse,” suggesting America is more cautious of impending trade war tariffs.
China’s role in the global fashion market is quickly evolving. “China is no longer simply the factory to the world. It is the world’s fastest-growing consumer market, accounting for more than 18 percent of all final goods consumed.”
For luxury, this means more of what’s being made in China is now being sold domestically, and Chinese consumers are becoming increasingly sophisticated. Despite the rise of the international fast-fashion market, the industry, in general, is still very fragmented in China, so there is still plenty of opportunities for new brands to meet the growing demand for trendy fast fashion. Marketing is the key to success in China
How to Market Small Brands in China?
- Social media: WeChat is the Top App
- Weibo is a good Awareness Social Media with Native Ads
- PR: leverage online Media to get more exposure
- Word of Mouth, maximize Forums, and KOL to Get more Credibility
- E-Commerce: little Red book is the cost-effective platform to sell in China
- Tmall is quite expensive but good for medium and large Brands with big ambition
- Some Specialist E-Commerce websites can be the First Step
Do you want to know the pricing and the details of these Solutions?
Contact us, we are a Cost-Effective agency, and can help you to perform in China.