Analysis on the Development of China's Garment Retail Industry in 2015

According to the reading: According to 2015, the clothing sales of China's key large-scale retail enterprises showed obvious characteristics of price changes in the trend of slower growth. With the continuous expansion of the middle-class consumer groups, China's apparel brands are actively digesting the inventory while actively responding to the continuous enrichment of the level of consumption, starting from the two aspects of improving product competitiveness and improving marketing channel operating efficiency, and reasonably positioning the brand development path, effective Using capital to create “circle consumption”, increase the research and innovation of fabrics and styles, and omni-channel management has entered a substantive stage, with a higher degree of personalization and diversification of clothing, ensuring that clothing brands are slowing down in the growth and intensely competitive market. , with a unique competitive advantage.

Apparel transaction prices generally declined

In 2015, the national retail sales of major retail enterprises increased by 0.5% year-on-year, a decline of 3 percentage points from the previous year, and the growth rate continued to slow. In 2015, the unit price of apparel merchandise decreased by 3.6% year-on-year, which was the first year-on-year decline in apparel unit prices of key large-scale retail enterprises since 2003. The drop in prices has brought about a significant increase in the sales of clothing. In 2015, the retail sales volume of all types of major retail enterprises in the country increased by 4.3% year-on-year, a significant increase of 5.1 percentage points over the previous year.

Market demand fragmentation trend remains unchanged

In 2015, apparel consumer demand still showed a trend of demand fragmentation and personalization. In 2015, of the 15 apparel categories, the combined market share of the top ten brands of sportswear only slightly increased by 0.1 percentage points over the previous year. The apparel market concentration of other categories was not as high as 2014.

Domestic women's brands show strong market competitiveness

Although domestic women's brands started later than international brands, in recent years, they have demonstrated strong backwardness advantages through imitation, innovation, and expansion. At the same time, local brands have more in-depth research on domestic consumers, and are more suitable for oriental women's figure in layout design. On the selection of fabrics, domestic women's brands have made active innovations and attempts, which is also a brand. Increase a certain degree of competitiveness.

Capital promotes brand building platform ecosystem

In 2015, the integration of the apparel industry and capital is closer, which is mainly reflected in two aspects: First, the production and financing, that is, clothing companies involved in the financial industry, the establishment of banks, involved in the supply chain finance, P2P and other financial sectors; By financing and production, clothing brands will accelerate the pace of integration and transformation through the support of capital and promote the creation of a platform-based ecosystem.

Omni-channel operations have entered a substantive stage

In 2015, the apparel industry became more mature in its omni-channel recognition of channel operations. This business model not only stays at the forefront of passengers and makes gimmicks, but also more importantly is to increase the brand's operating efficiency and enhance the brand image. . This is mainly reflected in the following three aspects: First, more and more Internet brands have accelerated the pace of offline distribution; second, offline best-selling brands have actively competed for online passenger flow; and third, online payments have improved the buying experience.

Urbanization will become an important opportunity for the brand to achieve new growth

During the "12th Five-Year Plan" period, China's urban commercial real estate developed rapidly and the income level of urban residents increased rapidly. The development of local apparel brands is more closely related to the trend of the international trend. The combination of direct sales stores and franchise stores promotes the rapid expansion of the brand. However, the rapid development of commerce makes the number of shops in the first and second tier cities of clothing brands nearly saturated. The phenomenon of “one thousand shops and one store” is also reducing the operating efficiency of brand single stores. Under the expectation that income growth is not optimistic, the growth of clothing expenditures of first- and second-tier cities will also slow down, while the demand level of consumers in rural areas is still relatively low. Therefore, the future apparel brands really need to be excavated. Three-level county market and super market.

The comprehensive release of the second-child policy will release the huge potential of the children's wear market

In October 2015, the Fifth Plenary Session of the 18th CPC Central Committee decided to fully release the second-child policy. At this point, the one-child policy that has been implemented for more than 30 years is officially announced. The release of a comprehensive second-child policy is expected to add 1.5 million newborns each year. The “4+2+1” or “4+2+2” family structure and enhanced consumer awareness of brand awareness will give rise to a new culture in which children will dominate consumption. At the same time, as family incomes continue to increase, the average purchase price of children's wear increases year by year. According to the statistics of the China National Business Information Center, the unit price of children's clothing of major national retail enterprises increased by 19.4% from 2011 to 2015, with an average annual increase of 4.5%.

Emotional consumption will promote physical stores to enhance their value

With the increase of consumer income levels, the consumer goods market that meets basic survival needs is approaching saturation, while spiritual needs and emotional consumption are not well satisfied. On the other hand, even if online shopping has a big impact on the business of entities, in terms of online clothing brands, the problems of limited scale development and shorter brand life are gradually exposed. Therefore, after the Internet clothing brand reaches a certain scale, it will still open up offline channels to solve some of the pain points of online shopping for consumers, especially by building physical stores that can bring consumers unique experiences to enhance the brand image.

Sharing economy will promote sharing of costs and benefits in all sectors of the industry

The shared economy can revitalize the economic surplus on a large scale, thereby stimulating economic efficiency and injecting a powerful new momentum for economic growth. For the apparel industry, the economic surplus and inefficiency are reflected in both supply and demand. The supply refers to a large difference in passenger flow between different categories, brands, and formats, and the flow of customers introduced from service industries such as restaurants and entertainment is not very strong. Good conversion into the flow of customers buying goods. The surplus in terms of demand is reflected in the gradual increase in consumer income, consumers have transitioned from buying basic demand products to buying more goods that are “value”. In this context, the collection shop will become a major trend in the future development of clothing brands. From a horizontal perspective, the company's flagship or agency brands are displayed in the same store, and customer flows are complemented by different brand portfolios to improve the operating efficiency of the weaker categories. From a vertical perspective, the brand will actively optimize the industrial chain, share costs and benefits with various aspects, reduce circulation costs, reduce the rate of increase in prices of goods, and achieve a win-win situation.

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