FBI-2019年中国服装市场报告（英文）-2019.6-48页_4mb

China Apparel Market Update 2019 Summary

Core Content

The 2019 China apparel market update highlights the evolving landscape of both local and foreign brands, the impact of economic uncertainty, and the shifting distribution channels. The market showed signs of recovery in 2018 with a 7.8% year-over-year (yoy) growth, but this momentum is expected to slow down in 2019 and 2020 due to macroeconomic challenges.

Main Market Trends

• Market Growth:

  • China’s apparel sales reached 2,077.4 billion yuan in 2018, with the highest yoy growth since 2014.
  • Sales growth is projected to decelerate to 3.5% in 2019 and 3.2% in 2020.

• Sub-Sectors Performance:

  • Womenswear remains the largest sub-sector, with sales growth of 6.3% in 2017 and 7.6% in 2018.
  • Menswear follows as the second largest, with a market share of 27.6% in 2018.
  • Childrenswear has shown strong growth, driven by the two-child policy implemented in 2016.
  • Sportswear leads in growth with a 19.5% yoy increase in 2018, outperforming other sub-sectors.

• Distribution Channels:

  • Store-based retailing is the dominant channel, accounting for 68.1% of total apparel sales in 2018.
  • Internet retailing is the fastest-growing channel, increasing from 12.4% in 2014 to 31.8% in 2018.
  • Department stores have seen a decline in sales due to competition and the rise of e-commerce.

Key Points on Brand Movements

Local Brands

• JNBY:

  • Launched SAMO (designer menswear) in April 2018 with a focus on elegance and simplicity.
  • Launched REVERB (sustainable fashion) in June 2018, emphasizing circular fashion and organic materials.
  • Introduced A Personal Note 73 in February 2019, a new menswear designer brand.
  • Opened LA SU MIN SO LA, a multi-brand store for designer brands, in December 2018.
  • Expanded internationally with stores in Singapore, Malaysia, and Thailand.

• HLA:

  • Launched HLA JEANS and OVV in the Thailand market in April 2019.
  • Opened its first store in Singapore in May 2018 and in Malaysia in July 2017.
  • Adjusted product lines to suit local preferences in Thailand.

• Semir:

  • Opened its first fresh concept store in Shanghai in October 2018.
  • Launched Balabala in Hong Kong in June 2018, aiming to use it as a stepping stone for global expansion.

• Bosideng:

  • Re-launched its flagship store in London in July 2018.
  • Plans to close around 70% to 80% of non-down jacket stores over the next three years.

Foreign Brands

• Bogner:

  • Entered the China market in November 2018 with a flagship store in Zhangjiakou, Hebei Province.
  • Focuses on the skiwear segment, leveraging the 2022 Winter Olympics.

• Kamakura Shirts:

  • Launched its Tmall flagship store in January 2019.
  • Known for high-quality men’s shirts and was among the most searched luxury brands on Tmall.

• Allbirds:

  • Debuted in China in April 2019 with flagship stores in Shanghai and Beijing.
  • Offers sustainable footwear, including the Wool Runner and Wool Lounger.

• Nike:

  • Unveiled its first House of Innovation concept store, "Shanghai 001", in October 2018.
  • The store integrates digital and offline services, featuring personalized product selection and sneaker customization.

• COS (H&M's sister brand):

  • Launched its first global menswear store in Beijing in December 2018.
  • Plans to expand to Xiamen and Guangzhou, and has an online flagship store on Tmall.

• Skechers:

  • Opened its 3,000th store in Shenyang in January 2019, marking a significant milestone.
  • Has the largest number of stores in China (941), followed by the U.S. (472) and India (222).

• Mango:

  • Signed a cooperation agreement with Hangzhou Jingzhe Clothing Co., Ltd. in June 2019.
  • Plans to open 16 physical stores in China by the end of 2019 and launch online stores on major e-commerce platforms.

Brands Exiting the Market

• Nine West:

  • Closed its last Beijing store in September 2018 after shutting down its Tmall flagship store and dissolving its Dongguan headquarters.
  • The brand exited bankruptcy in March 2019 and rebranded as Premier Brands Group.
  • The brand's exit message emphasized future collaborations with new fashion brands.

• New Look:

  • Decided to withdraw from the China market in October 2018, closing all operations.

Key Insights

• The sportswear and childrenswear sectors are showing the most promising growth potential, despite macroeconomic headwinds.
• Internet retailing is rapidly gaining traction and is expected to continue growing faster than traditional retail channels.
• Local brands are diversifying their product lines and expanding both domestically and internationally to enhance brand value and market presence.
• Foreign brands are entering the China market through both physical and online channels, but some are struggling and have exited due to competition and declining profits.