Overview Of China fashion enterprise


The Chinese economy maintains its dynamic overall performance, averaging around 10% boom for the last five years. As obstacles to entry decrease, more businesses consider their access to China. This is to seize some percentage of the returns generated via China’s 1.3 billion clients.


This news collection is meant to offer fashion stores planning to enter China for the first time an overview of the Chinese fashion industry. The reports also act as a short update for corporations who have entered China as they touch on the sector, tendencies, brands to be had, wholesale and retail pricing, type of garb slicing preferred, client conduct, and up-to-date policies. A key venture when entering China is the exceptional areas in China. Consumer behavior and alternatives for meals, style, and lifestyle vary dramatically in these areas. For instance, outlets must anticipate that merchandise or fashion styles promoted in Shanghai may also be famous in Xiamen, southern China.

China’s economic system grew by 10.2% in 2005 and 10.7% in 2006, making it the fastest-developing most important economy in the world. With the banks’ aid (Quarterly Bank reports), GDP could drop to eight in China in 2007. (Goldman Sachs), In our opinion, however, the GDP charge may be higher due to elevated manufacturing and consumption. In 2006, China’s urban dwelling expenditures were elevated at a higher cost than GDP, each countrywide and provincial. Despite the robust increase, inflation stays slight, with monthly inflation averaging 1.3% 12 months on year from January to September 2006. The annual rise in consumer costs is forecasted to reach 1.8% in early 2007. This is because higher land expenses would affect production charges. Increased funding might, in flip, feed inflationary pressures.

The authorities’ tolerance of greater Yuan volatility and better GDP has triggered expectations of change rate reform, resulting in quicker currency appreciation. The effect might be that overseas clothing manufacturers would locate their charges more effectively and widely within the Chinese marketplace.

Retail Industry in China

Increasing earnings in China and Government efforts to encourage customer expenditure have resulted in rising domestic consumption. Statistics show that general retail sales of client goods multiplied by 12.5% to RMB 6,718 billion in 2005. However, it dropped barely to approximately RMB 6 four hundred billion (US$770b) in 2006. One of the factors is the import quota imposed with the US and European Union aid in 2006 (O&L). However, with the boom in earnings and home intake, it’s miles anticipated that the growing Price of retail income may be maintained at about 10% within the next five years (O&L projection & Goldman Sachs Global Investment Report)


China’s apparel market has been developing at 7% and is now a USD40 billion enterprise. Department stores account for approximately forty of the marketplace. This consists of stores like Parkson, Shanghai Bailian, and overseas brands like Wal-Mart. Clothing manufacturers bought in those department stores include worldwide brands like Hugo Boss and local brands like Li Ning, Borne, and Joe One. Franchise chains and neighborhood men’s or women’s clothing retailers in China account for the other 60%.

Profit Margins for retail chains in China are excessive. Due to the decrease in China’s product prices, profit margins through those Clothing manufacturers can be as high as 50.5% for manufacturers like Giordano (2005) and Ports(70.Four% in 2005). Shanghai, Beijing, and Guangzhou are the towns that impact fashion in China. Also, locals and tourists tour Guangzhou, Shanghai, and Shenzhen for foremost fashion brands at cheaper charges. For production, there are one-of-a-kind uniqueness areas. For example, Ningbo is more famous for producing bags, even as Guangdong, specifically Guangzhou, is well-known for apparel.

The Different Regions in China

Due to China’s geographical enormity and the massive variation of monetary improvement among cities, marketplace potential differs from city to town. According to capita, the desk beneath indicates the disparity in GDP, wherein the wealth is placed in the coastal cities. Municipalities are labeled into degrees based on population, consistent with per capita GDP; Shanghai, Beijing, and Guangzhou are tier 1 cities. Report 3 explores in detail the variations in the Chinese fashion industry.

The retail marketplace is starting to attain adulthood in Tier 1 cities like Shanghai. Thus, the need to appropriately target unique client companies is much greater in these regions. As a result, outlets are increasing in second and 0.33-tier towns like Chengdu, Nanping, and Tianjin. Major Brands like Jean West have now long passed to secondary and 0.33-tiered cities. The splendor of these secondary regions is better because of the migration from the geographical area to the nearby towns, increasing the size of the second one and 0.33 tier urban retail market. This could be elaborated on in the next reviews.

Consumer Attitudes towards Brands

Consumers are highly logo aware, and you possibly can have enough money that merchandise is visible as a status image. Luxury brands like LV Christian Dior are often trendy when purchasing clothing and cosmetics. For many segments, especially more youthful consumers, widely known foreign brands are still seen as superior and as a standing symbol. Brands made in the US and Europe are more surprisingly valued than those from Australia or other Asian countries like Singapore and Taiwan. Due to the high prices, there also are quite a few high-end counterfeit apparel and shoe brands in China.

Attitudes toward domestic manufacturers have modified as stated that owned corporations had been privatized and produced more satisfactory products. Brands like Borne, Li Ning, and Hong Guo are trendy regionally. Hong Kong manufacturers like Giordano are famous even though the market percentage has recently recen reduced. Pride in the country’s accomplishments has resulted in many purchasers preferring neighborhood brands, all identical. These will also be elaborated on in the next reports.

Consumer Attitudes were closer to Price.


Although Chinese purchasers are PrPrice-sensitive, the current survey indicates that consumers are increasingly more involved in exceptional customer support, particularly about clothing. Accordingly, these factors have to be emphasized in advertising and promotional material.