industry series21
TRANSCRIPT
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Chinas apparel market, 2012
December 2012Li & Fung Research Centre
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2
I. Market overview p. 3
II. Competitive landscape p.10
III. Latest developments p.17
IV. Snapshots of sub-sector performance p. 31
In this issue:
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I. Market overview
3
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4
*Clothing, shoes, hats and textiles replaced the previous clothing category in the NBS announcement in 1-3Q09
Source: National Bureau of Statistics of China (NBS)
**Enterprises above designated size refer to enterprises with annual sales of 5 million yuan or above and with an employment of
or over 60.
According to the National Bureau of Statistics of China (NBS), the totalretail sales of clothing, shoes, hats and textiles* by enterprises above
designated size** in 2011 rose nominally by 24.2% year-on-year (yoy) to
reach 795.5 billion yuan (Exhibit 1).
The growth in 1-3Q11 was 17.8% yoy, reaching 666.5 billion yuan.
Apparel sales grew by 24.2% yoy in 2011, reaching 795.5
billion yuan
Exhibit 1: Growth in total retail sales of clothing, shoes, hats and textiles* by
enterprises above designated size**, 2007 1-3Q 2012
Year 2007 2008 2009 2010 2011 1-3Q 2012yoy % change 28.7 25.9 18.8 24.8 24.2 17.8
Source: National Bureau of Statistics of China (NBS)
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5
Urban and rural households on average spent 11% and 7.2%
of their annual expenditure on clothing respectively
Exhibit 2: Per capita annual expenditure on clothing* of urban and rural households, 2007-2011
*Clothing here includes garments, clothing materials, footwear,
hats, and other clothing, tailoring and laundering service fees.
Source: National Bureau of Statistics of China (NBS)
The annual per capita disposable income of urban households grew by
8.4% yoy to 21,810 yuan in real terms in 2011. The annual per capita net
income of rural residents reached 6,977 yuan in 2011, posting double digit
yoy growth of 11.4%.
Urban households on average spent 1,674.7 yuan on clothing, accounting
for 11% of their total annual expenditure in 2011; while rural householdsspent 341.1 yuan, which was 7.2% of the total annual expenditure on
clothing in the same year (Exhibit 2).
10.4 10.4 10.510.7
11.0
6.0 6.7 6.6 6.87.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0
200
400
600
800
1,0001,200
1,400
1,600
1,800
2007 2008 2009 2010 2011
%Yuan
Per capita urban annual expenditure on clothing
Per capita rural annual expenditure on clothing
Share of clothing in per capita urban annual expenditure
Share of clothing in per capita rural annual expenditure
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6
Chinese consumers register a noticeable level of self-control in their
apparel purchase habits. The Hong Kong Trade Development Council
(HKTDC)s survey results suggest that 90% of the surveyed respondents*
purchased new clothing for practical reasons such as replacement or
seasonal change; 50% of the respondents attributed their apparel
shopping to promotions or discounts.
Exhibit 3: Motivators for purchasing new clothing, 2011-2012
Many Chinese consumers purchase new clothing for need-
based reasons
0 20 40 60 80 100
For gift purposes
For cloth matching
Influenced by impulsive buying behavior
To pursue fashion/ trend
Influenced by promotions/ discounts
For seasonal change/ replacement
Respondents (%)
Note: The data comes from theHong Kong Trade Development Council (HKTDC) Why Chinese Mainland Consumers in 13 Cities
Buy Their Clothes Research Survey 2012; *the respondents are urban consumers who must have resided in the surveyed cities
(Nanjing, Shanghai, Hangzhou, Harbin, Shenyang, Beijing, Tianjin, Dalian, Wuhan, Chengdu, Chongqing, Guangzhou and Xian) for
at least two years and have purchased garment items of any type in the 12 months prior to the survey. Respondents who are
students must be aged 15-25; for those who are not students must be employees or housewives aged 18-60.Source: Hong Kong Trade Development Council (HKTDC)
Respondents can choose more than one answers
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Department stores and specialty stores are the major
distribution channels for branded apparel
7
Department stores and specialty stores are major distribution channels for branded
apparel in China. Meanwhile, wholesale markets and hypermarkets are popular retailingchannels for lower-priced apparel; many of which are with poor brand recognition or
unbranded.
Around 38% of the total apparel sales were realized in department stores; while clothing
& footwear and leisure & personal goods specialist retailers accounted for around 39%
of the total in 2011 (Exhibit 4).
Source: Euromonitor
Exhibit 4: Sales of Apparel by Distribution Format: %, 2006-2011
% retail value rsp 2006 2007 2008 2009 2010 2011
Grocery retailers 14.8 15.9 17.1 17.1 17.2 17.3
Department stores 33.1 34.1 35.9 36.2 36.9 37.5
Clothing & footwear specialist
retailers 22.8 23.4 25.1 25.6 27.3 27.6
Leisure & personal goods
specialist retailers 11.4 11.5 11.6 11.7 11.7 11.7
Other non-grocery retailers 17.8 15 10.2 9.3 6.1 4.2
Non-store retailing 0.1 0.2 0.2 0.2 0.8 1.7
Total 100 100 100 100 100 100
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8
Consumers are generally cautious with spending. According to the China
National Commercial Information Centre (CNCIC), sales growth of apparel
category in high-end retailing locations such as department stores and
shopping malls was 10% yoy, below the national average of 21.5% yoy in
2011 (Exhibit 5).
Source: China National Commercial Information Centre (CNCIC)
Exhibit 5: Sales growth of apparel category in high-end department stores,
2007-2011
High-end department stores saw weak sales growth in
2011
23.318.3
15.6
21.2
21.5
30.8
16.9
16.1
31.2
10.0
0
5
10
15
20
25
30
35
2007 2008 2009 2010 2011
yoygrowth(%) Overall
High-end
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Climbing costs pose challenges to apparel enterprises
9
Rising costs of raw materials, labor and rental are posing increasing challenges toapparel enterprises.
Chinas cotton price indices were in a downward trend during late March to early July of 2012,
yet the indices rebounded in mid-July of 2012 and has ridden on an ascending trend since
then.
During 1-3Q12, the minimum wage increase was around 13% for most cities, including
Shenzhen, Sichuan, Guangdong and Shanghai. Currently, the minimum wage level is thehighest in Shenzhen, subsequently followed by Shanghai.
According to the NBS, the clothing price index has declined for four consecutive years
since 2007. Yet it increased by 2.1% in 2011 and 3.4% in 1-3Q12 (Exhibit 6). While
some branded apparel companies are able to raise their price tags, many smaller
companies continue to face squeezing margins.
Source: National Bureau of Statistics of China (NBS)
Exhibit 6: Clothing price index, 2007 1-3Q 2012 (Same month of preceding year=100)
2007 2008 2009 2010 2011 1-3Q 2012
yoy % change of clothing prices-0.6 -1.5 -2.0 -1.0 2.1 3.4
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II. Competitive landscape
10
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Domestic apparel enterprises dominate the mass market
11
Ranking Company Headquarter/Base
1 Youngor Group Co., Ltd Ningbo(Zhejiang)
2 Hongdou Group Co., Ltd Wuxi(Jiangsu)
3 Heilan Group Wuxi(Jiangsu)
4 ShanShan Enterprise Shanghai
5 Bosideng Co., Ltd Suzhou(Jiangsu)
6
Jiangsu Sunshine Group Jiangyang(Jiangsu)7 Shandong Ruyi Science & Technology
Group Jining(Shandong)8 Anta (China) Co., Ltd.() Jinjiang
(Fujian)9 Qingdao Jifa Group Qingdao
(Shandong)10 Shandong Sinoer Group Co., Ltd.
Weifang(Shandong)
Exhibit 7: Top 10 domestic apparel enterprises by sales
revenue, 2011
Source: China National Garment Association (CNGA), Li & Fung Research Centre
Ranking Company Headquarter/Base
1 Youngor Group Co., Ltd Ningbo(Zhejiang)
2 Anta (China) Co., Ltd. () Jinjiang(Fujian)
3 Heilan Group Wuxi (Jiangsu)4 Bosideng Co., Ltd Suzhou
(Jiangsu)5 Jiangsu Sunshine Group
Jiangyang(Jiangsu)6 Semir Group Co., Ltd.
Shanghai7 Hongdou Industrial Co., Ltd.
Wuxi (Jiangsu)8 Yenian (Shanghai) Apparel Trading Ltd.
()
Shanghai
9 Luthai Textile Co., Ltd.
Zibo
(Shandong)10 Shandong Sinoer Group Co., Ltd.
Weifang(Shandong)
Exhibit 8: Top 10 domestic apparel enterprises by profits,
2011
In China, domestic brands dominate the mass market, especially the lower-tier cities and rural market.
They generally have more extensive sales channels than their foreign counterparts.
Exhibits 7 and 8 show the top 10 domestic apparel enterprises by sales revenue and profits in 2011.
Most of these enterprises are from Jiangsu, Shandong and Shanghai.
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Established domestic players spend more resources on
brand-building
12
Nowadays, more and more domesticplayers are eager to build brand equity;
they are willing to put more resources on
brand-building.
Metersbonwe remained the most valuable
Chinese apparel brand in 2012; its brand
value amounted to 7.8 billion yuan in
2012.
Joeone and Romon are new entrants inthe 2012 ranking.
Most of the brands in the list are
specialized in the menswear and
sportswear sector.
Apparel companies in Fujian and Zhejiang
are very strong in branding; 6 out of the
top 17 most valuable apparel brands are
based in Fujian while 5 are from Zhejiang. Exhibit 9 shows Chinas most valuable
apparel brands in the Hurun Most
Valuable Chinese Brands 2012 list. The
number of apparel brands decreased
from 18 in 2011 to 17 in 2012.
Exhibit 9: Most Valuable Apparel Brands in China, 2012
Source: Hurun Research Institute,
Li & Fung Research Centre
Rank in2012 Rank in2011 Brand Brand Value(billion yuan)
% of
MarketValue
Productcatogory Headquarter
1 1Metersbonwe
7.8 33% Casual wear Shanghai
2 2 Semir 6.2 26%
Casual
wear/Children
wear
Shanghai
3 3 Anta 5.7 35% SportswearXiamen
(Fujian)
4 5 Bosideng 4.1 26% Down wearSuzhou
(Jiangsu)
5 7 Septwolves 3.7 35% Menswear Xiamen(Fujian)
6 NA Joeone 3.3 25% MenswearQuanzhou
(Fujian)
7 6 Heilan 2.7 26% MenswearWuxi
(Jiangsu)
8 4 Lining 2.4 36% Sportswear Beijing
9 9 Youngor 2.0 28% MenswearNingbo
(Zhejiang)
10 15Red Dragonfly
1.8 30% Shoes
Wenzhou
(Zhejiang)
11 7 Xtep 1.7 28% SportswearQuanzhou
(Fujian)
12 NA Romon 1.6 16% MenswearNingbo
(Zhejiang)
13 16 Erdos 1.5 30% CashmereInner
Mongolia
14 12 Lilang 1.4 17% MenswearQuanzhou
(Fujian)
15 16 Baoxiniao 1.3 18% MenswearWenzhou
(Zhejiang)
15 16 Aokang 1.3 25% Leather shoesWenzhou
(Zhejiang)
17 12 361 Degrees 361 1.2 30% Sportswear Xiamen(Fujian)
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Some well-established foreign apparel players accelerate
expansion in China
13
In recent years, many foreign apparel brands are keen to have a stronger presence in China.
While some well-established players are seeking to penetrate into the lower-tier cities, thosewhich are not yet present in China are working hard to enter the lucrative China market.
Below are the expansion plans of selected well-established foreign apparel brands in
China.
Name of apparel brands Expansion plans in China
Zara Opened 29 new stores in China in 2011, with a total of 92
stores in 30 cities by the end of 2011
Uniqlo Proposed to open up to 100 new stores in China each
year starting from 2011
H&M Added 32 new stores in China in 2011, with a total of 78
stores in China by the end of 2011
C&A Opened its third stores in Shengyang in January 2012
and planned to increase the total number of retail stores
in China to 150 by the end of 2015
Gap Aimed to add 20 more new stores in China and Hong
Kong by mid 2013, raising its total number of stores in
China to 45
Marks & Spencer Announced to double its number of retail stores in China
during 2013, adding 8 more new stores in the country.
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Some well-established foreign apparel players accelerate
expansion in China (contd)
14
New entrants are working hard to enter the lucrative China market.
In May 2011, American Eagle Outfitters opened its first store in Shanghai, marking its first
foray into China.
US fashion retailer Forever 21 unveiled its first store in Wangfujing, Beijing in August
2012.
In October 2012, UK fashion brand Karen Millen made its debut in China, opening its first
retail stores in Chaoyang, Beijing.
Meanwhile, Ted Baker from the UK also opened its first retail store in Parkview Green,
Beijing.
Some apparel enterprises see Hong Kong as the springboard forChinas entry
Leading Japanese fashion brand Double Standard Clothing opened its first concept store
in the prime location of Hong Kong in September 2012; the company sees Hong Kong as
a significant platform for gaining access to the China market.
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Foreign players still dominate Chinas luxury apparel market. According to Hurun
Research Institute, French luxury brands Louis Vuitton, Cartier, Hermes and Chanelare the most popular brands among Chinese millionaires, reflecting foreign luxury
brands still have a stronghold in the China market.
Meanwhile, domestic brands are virtually absent in Chinas luxury apparel scene.
However, some domestic players have strived to move up the value ladder and hope
to get a place in the premium market.
NETIGER (), which claimed itself to be Chinas first luxury apparel brand,
has set up studios in the U.S., France, Italy and Russia in the past few years.
Trands () is another domestic brand that has gained recognition overseas.
Having said that, we should admit that these domestic brands only have minimal
presence in the luxury segment. There is still a long way to go for domestic players torival their foreign counterparts.
15
Foreign brands still dominate the luxury apparel market in
China
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Recently, more and more domestic apparel enterprises are eager toexpand overseas.
Some apparel retailers have been making use of the online retailing
channel to enter the overseas markets. Luxury online operator Xiu.com launched a new eBay style website in
partnership with eBay in November 2012. The new website features up to 5,000apparel, shoe, accessories, health and beauty brands currently being sold on
eBay.com.
Besides the online channel, some apparel retailers have opened offline
stores in overseas markets.
In August 2012, Chinese retailer Bosideng opened its first overseas flagshipstore in a prominent location in London. The company has also announced to
open another store in Manhattan, New York.
16
Some domestic players embark on overseas expansion
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III. Latest developments
17
Hi h i i f l
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High inventory remains a concern for many apparel
enterprises
18
Many domestic apparel enterprises are grappling with overstockproblems. As stated by the China National Garment Association
(CNGA), the inventory of many apparel enterprises in China has
gone beyond the warning level; the present stocks in the apparel
market are enough to satisfy the demand in domestic apparel market
for three years even if all domestic apparel makers halt production.
According to China Scope Financial, 90% of the listed apparel
companies reported an increase in their inventory value for 3Q12; of
which the inventory value for Shanghai Metersbonwe Fashion &
Accessories Co. (), Zhejiang Semir Garment
(), Youngor Group Co.() and Jiangsu Hongdou
Industry Co.() all exceeded 1 billion yuan.
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A l t i di i t l ti iti
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In recent years, fast fashion retailers such as Zara, H&M, C&A, Uniqlo, etc., havesuccessfully won Chinese consumers hearts with their fast, trendy and affordable
apparel products. According to the CNGA, by the end of 2011, Zara, H&M, C&A,
Gap and Uniqlo already operated 92, 77, 36, 13 and 113 retail stores in China
respectively.
In 2011, Zara, H&M, C&A, Gap and Uniqlo respectively opened 29, 31, 11, 5, and 43
new stores in China; of which more than 80% of the new stores set up by Zara and
H&M were situated in tier 2 and 3 cities.
Apparel enterprises are expanding into lower tier cities
(contd)
20
Exhibit 10 : Store count of fast fashion brands in China, 2010-2011
0
20
40
60
80
100
120
Zara H&M C&A Gap Uniqlo
Total number of retail stores in2010
Total number of retail stores in2011
E i ti d lt f d l t il fl ki t th
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Thanks to the rising disposable income levels of urban and rural households, the countrys one-
child policy and the increasing number of newborn babies, Chinas consumer expenditure onchildrens wear per household turned solidly higher from 166 yuan in 2006 to 237 yuan in 2011,
ahead by 43% in just five years.
Seeing the promising outlook of the childrens wear market, numbers of existing adult-focused
apparel retailers have flocked to the lucrative segment in recent years with the intention to
consolidate their sales share in apparel as a whole.
Domestic players in mens and womens apparel such as Septwolves (), Metersbonwe () and Semir () have already set in the childrens wear market by offering childrens wear
lines. Sportswear retailers Kappa also introduced a sub-brand Kappa Kids in June 2012, while
361 Degrees (361) has announced plans to open 600 more new stores specializing in
childrens wear in 2012.
Multinational luxury brands D&G, Armani and Burberry all launched childrenswear series in China
in 2011 following Diors successful rollout of its Baby Dior series in the country in April 2010.
Existing adult-focused apparel retailers are flocking to the
childrens wear market
21
Online platform becomes an important sales channel for
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22
With the unprecedented growth of Internet users and online buyers in China, online
retailing is certainly an important sales channel for apparel. According to iResearch,the transaction value of Chinas online retailing market was 766.6 billion yuan in
2011, of which online apparel sales accounted for 26.7%, suggesting apparel was
still among the major categories sold online.
As shown in Exhibit 10, online apparel sales kept turning higher from 15 billion yuan
in 2007 to 204.9 billion yuan in 2011, which accounted for 14.3% of Chinas total
apparel sales.Exhibit 10: Growth of Online Apparel Sales, 2007-2011
Source: iResearch, WIND, SWS Research
According to iResearch, scale of online retailing market refers to the total transaction value of consumer-to-consumer (C2C) and
business-to-consumer (B2C) online businesses. Scale of C2C online retailing market is calculated by the total value of purchases,
excluding that on the B2C arm of C2C platforms. Scale of B2C online retailing market has excluded payments of travel expense, air
tickets and online bill payment services.
Online platform becomes an important sales channel for
apparel players
15 32.5 64162 204.9
800
1,0001,100
1,2551,437
1.9% 3.3%
5.8%
12.9%
14.3%
0
2
46
8
10
12
14
16
0
200
400600
800
1,000
1,200
1,400
1,600
2007 2008 2009 2010 2011
%
yuen(bn) Online apparel sales (bn)
Total apparel sales (bn)
Percentage of online apparel sales(%)
Online platform becomes an important sales channel for
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Developing online retail channel is becoming popular among traditional apparel retailers;
B2C online platforms can be categorized into three major types: Pure-clicks apparel retailers (e.g. Vancl, Mecox Lane, Moonbasa)
Multi-channel B2C apparel retailers (e.g LOVO, Banggo , Luthai)
Apparel retailers selling on B2C platforms (e.g. Joeone, Peace Bird, Shishangqiyi
)
On the other hand, many C2C individual sellers are expanding fast on Taobao
Marketplace, the largest player in the C2C market. Some of them developed their own
brands and later shifted to sell in B2C Tmall () as Tao-brands (). Examples ofTao-brands include Hstyle (), Liebo (), Inman (), Justyle, Eptison
() , Mr Zero () etc.
Venture capital firms are keen to invest in the Tao-brands. With sufficient financial
support, the Tao-brands are able to launch shopping websites in other B2C platforms
such as 360 Buy, V+ etc, or build offline storefronts. Selected Tao-brands that attracted investments from venture capital firms in 2011 include Liebo
(), Hstyle (), Sportica (),etc.
23
Online platform becomes an important sales channel for
apparel players (contd)
Increasing number of department store operators launch
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24
To improve differentiation, some department store operators in
China has begun to develop their own private apparel labels andproprietary brands, etc.
Private labels or proprietary brands may also increase profit
margins and strengthen customers loyalty.
Recent examples of private labels or proprietary brands
launched by selected department store operators include:
Intime Department Store () launched another proprietary brandMangano in West Lake Intime Department Store in September 2012
after successfully introducing Justin Intime in 2009.
Meanwhile, Tee Mall () also unveiled its private label Teem
Quality , primarily selling womens woolen sweaters .
Increasing number of department store operators launch
their own private apparel labels or proprietary brands
Apparel enterprises seek to diversify their portfolio; category
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Apparel enterprises seek to diversify their portfolio; category
expansion and adoption of multi-brand strategy are common
25
Some brands seek to diversify their portfolio by carrying out category expansion:
Red Dragonfly ( ), which used to produce leather shoes, starts manufacturing
clothes recently. Red Dragonfly Fashion Group unveiled its mens wear collection for the
first time in the 2012 China International Fashion Week, suggesting the acceleration of the
"one brand with multiple products" development strategy by the Group.
Domestic sportswear brands Kappa, Li Ning (), Anta (), 361 Degrees (361) and
casual wear brands Septwolves (), Metersbonwe (), Semir (), etc. have
expanded their product category by introducing childrens wear. Fuguiniao () , which used to produce mens and womens footwear, recently sets in
the wedding suit market by launching its Chinas first brand of wedding suits in Xiamen
following its introduction of sportswear brand AnyWalk in 2010.
Multi-brands strategy is also commonly adopted by many players to further expand their product
category:
- Selected examples include Baby2 and Dr. Frog by Boshiwa(); Balabala ()by Semir; ME&CITY, Tagline, MooMoo by Metersbonwe; SWKIDS by Septwolves; CHILARO
and Ferrante by Raidy Boer () etc.
Companies invest heavily in R&D and focus on product
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26
In order to win consumers and stand out in the competitive apparel
industry in China, companies are investing more in product
development.
For example:
Fuguiniao (), which set in the wedding suit market in 2012,
has made more investment into the R&D of wedding suits and
devoted more attention to the details of cuff, collar, hem and
placket, indicating its emphasis on wedding suits and its
determination to conquer consumers mind with high-quality
products.
Companies invest heavily in R&D and focus on product
excellence
M k ti d b di i i i t
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Marketing and branding are gaining importance
27
To enhance competitiveness and to win consumers, apparel companies are now
spending more resources on marketing and branding.
Event sponsorship is a popular marketing strategy adopted by apparel companies
to extend media coverage. Anta () designed the Champion Dragon Outfit for the Chinese Sports Delegation
(CSD) of the London Olympics 2012.
361 Degrees has become the sponsor for Haiyang 2012 Asian Beach Games.
Micro-film marketing is also used by marketers to promote/market their products.
Nowadays, apparel enterprises also make use of micro-films to spread their
promotion message. Semir () produced a micro file YourMoment My Moment (http://www.semir.com/#/szl )
starring Korean Artist Li Min Ho () to attract young consumers and establish its brandimage.
Source: AntaSource: 361 Degrees
M k ti d b di i i i t ( td)
http://www.semir.com/http://www.semir.com/http://www.semir.com/http://www.semir.com/http://www.semir.com/http://www.semir.com/http://www.semir.com/http://www.semir.com/ -
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28
Participating in charitable activities to help the needy in society is another way toenhance the communication of brand image with consumers In January 2012, Aokang () made a donation of 10 million yuan to Wenzhou Charity
Federation to provide financial aids for impoverished students all over China. The
company has been helping impoverished students in China under a program known as
LoverRelay Plan since 2007.
Companies build flagship stores to enhance brand image Hangzhou MWML Fashion () opened a flagship store in Zhengzhou in January
2012 to promote its overall image and brand effect in the Henan market.
Meanwhile, La Nouvelle Famille (), a leading brand in the home wear industry,also set up its lifestyle flagship store in Hangzhou Tower Shopping City.
Marketing and branding are gaining importance (contd)
Product safely is still a major concern
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Product safely is still a major concern
29
Product safety is still a major issue in China. In July 2012, the GeneralAdministration of Quality supervision, Inspection and Quarantine of China (AQSIQ)
conducted random sample checks on childrens wear and found that 13% of the
samples failed the checks and of which, 5 types ofchildrens wear were found to
contain cancer-causing substances.
As Chinese consumers become more discerning, product safety is expected to
gain more attention in the near future.
Source: China Quality News, www.cqn.com.cn
Going green is also gaining more attention
http://www.cqn.com.cn/http://www.cqn.com.cn/ -
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Going green is also gaining more attention
30
As consumers awareness on environment protection climbs, going green isgrasping the attention of apparel companies.
Saint Angelo () has put a great deal of effort in carrying out R&D for
eco-friendly laundry services. The company has strived to minimize pollution
done to the environment by adopting different eco-friendly washing techiques
and reducing the use of chemical detergents in laundry processes.
Source: Clean Me, www.cleanme.us/eco-friendly-
cleaning-tips/
http://www.cleanme.us/eco-friendly-cleaning-tips/http://www.cleanme.us/eco-friendly-cleaning-tips/http://www.cleanme.us/eco-friendly-cleaning-tips/http://www.cleanme.us/eco-friendly-cleaning-tips/http://www.cleanme.us/eco-friendly-cleaning-tips/http://www.cleanme.us/eco-friendly-cleaning-tips/http://www.cleanme.us/eco-friendly-cleaning-tips/http://www.cleanme.us/eco-friendly-cleaning-tips/http://www.cleanme.us/eco-friendly-cleaning-tips/ -
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IV. Snapshots of sub-sector
performance
Background
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32
Background
The China National Commercial Information Centre (CNCIC)conducts monthly survey to around 200 major department stores* in
China to study the performance of different cosmetics sub-sectors.
In this newsletter, performance of the following product sectors is
examined: Menswear(mens suits and mens shirts),
Ladies wear
Childrens wear
Casual wear (jackets, T-shirts, denim wear)
Sportswear Ladies underwear
*Note: It is noteworthy that the CNCIC data covers sales in major department stores only.
Retailers of other formats such as specialty stores are growing in popularity. The actual overall
market share of apparel brands may deviate from the CNCIC data.
Growth in apparel sales volume in major department stores
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33Source: China National Commercial Information Centre (CNCIC)
As shown in Exhibit 11, growth in apparel sales volume in major department
stores in 2011 was 4.4% yoy, falling from 10.2% in 2010.
Market share ofladies wear was still the largest in 2011 and 1H12.
Growth of mens suit was the fastest in 2011, achieving 9.7% yoy; it was
followed by denim wear, which posted a growth rate of 8.4% yoy.
Exhibit 11: Retail sales volume of various apparel categories in major departmentstores, 2010-1H 2012
1H12 2011 2010
Million pieces yoy % growth Million pieces yoy % growth Million pieces yoy % growth
Overall 249.1 -0.1 458.2 4.4 455.1 10.2
Ladies wear 71.3 2.4 136.8 6.5 131.0 12.1
Knitted underwear 30.0 1.5 57.6 0.8 57.1 6.5
Childrens wear 17.6 2.3 33.1 3.4 32.3 7.3
Woolen wear 11.0 -13.3 23.4 -2.8 23.5 -4.1
T-shirts 6.5 0.1 13.6 0.3 14.1 -2.4Thermal clothing 4.2 -5.1 10.1 -2.1 9.7 -3.6
Trousers 5.5 -2.8 10.7 -3.6 11.1 1.4
Mens suit 6.6 5.0 13.2 9.7 11.8 13.1
Mens shirt 5.2 -4.0 10.2 7.1 9.8 1.5
Jackets 3.4 -5.2 8.2 3.6 7.1 8.4
Denim wear 2.5 -6.6 5.3 8.4 5.0 4.8
Leather wear 0.5 -0.1 1.1 -6.5 1.0 2.1
pp j p
declined in 2011
Ladies wear was the major contributor to total apparel sales
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34
Source: China National Commercial Information Centre (CNCIC)
1H12 2011 2010 2009 2008 2007
Ladies wear 28.6 29.9 28.8 28.1 28.5 28.3Knitted underwear 12.0 12.6 12.5 13.6 15.4 16.8
Childrens wear 7.1 7.2 7.1 7.3 7.5 7.6
Casual wear 5.0 5.9 5.8 6.0 6.5 7.3
of which: T-shirts 2.6 3.0 3.1 3.4 3.6 4.2
Jackets 1.4 1.8 1.6 1.5 1.7 1.9
Denim wear 1.0 1.2 1.1 1.1 1.2 1.2
Woolen wear 4.4 5.1 5.2 6.0 5.8 6.6
Menswear 4.7 5.1 4.8 4.9 5.2 5.6
of which: Mens shirt 2.1 2.2 2.2 2.4 2.7 3.1Mens suit 2.6 2.9 2.6 2.5 2.5 2.6
Thermal clothing 1.7 2.2 2.1 2.4 3.3 3.9
Trousers 2.2 2.3 2.4 2.6 3.0 3.4
Leather wear 0.2 0.2 0.2 0.2 0.2 0.2
Others 34.0 29.4 31.1 29.1 24.7 20.2
Total 100 100 100 100 100 100 .0
Ladies wear was the major contributor to total apparel sales, accounting for 29.9% of
the total sales volume in 2011, followed by knitted underwear of 12.6% and childrenswear of 7.2%. In 1H12, sales share ofladies wear reached 28.6%, followed by knitted
underwear of 12% and childrens wear of 7.1%. Exhibit 12 demonstrates the share of
sales volume of different sub-sectors.
Exhibit 12: Share of sales volume of different product sectors, 2007-1H 2012 (%)
Ladies wear was the major contributor to total apparel sales
Market concentration of most sub-sectors is generally low
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Market concentration of most sub sectors is generally low
35
Most of the sub-sectors are highly fragmented, the top 10 players in the sub-
sectors such as jackets and T-shirts accounted for less than half of the totalmarket share in 2011. Exhibit 13 shows the market share of the top brands of
selected sub-sectors.
However, the maternity wear and sportswear market remain highly concentrated;
the top 10 players in the maternity wear sub-sector accounted for more than 93%
of the market share in 2011, while the sportswear sub-sector accounted for 82% of
the market share.
Source: China National Commercial Information Centre (CNCIC)
Exhibit 13: Market share of top 10 brands of selected sectors, 2010 & 2011
0.0
20.0
40.0
60.0
80.0
100.0
120.0
%
2010
2011
Performance of selected product sectors
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Performance of selected product sectors
36
Exhibit 14: Mens suits - share of total sales value,
2010 & 2011
Exhibit 15: Mens shirts - share of total sales
value, 2010 & 2011
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
Exhibits 14-23 show the performance of the top 5 players in selected sub-sectors,
including menswear(mens suit and mens shirt), ladies wear, childrens wear, casualwear (jackets, T-shirts and denim wear), sportswear, ladies underwear and maternity
wear.
12.5
2.4 2.93.1 2.6
13.4
3.5 3.5 2.9 2.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.016.0
Youngor
SaintAngelo
Goldlion
Romon
Jonone
%
2010 2011
13.2
4.2 4.7 4.3 4.0
13.2
4.8 4.5 4.2 3.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Youngor
PierreCardin
Qinman
Rouse
Goldlion
%
2010 2011
Performance of selected product sectors (contd)
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37
Exhibit 16: Ladies wear - share of total sales
value, 2010 & 2011
Exhibit 17: Childrens wear- share of total sales
value, 2010 & 2011
Performance of selected product sectors (cont d)
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
8.29.3
5.5
2.82.2
10.99.9
5.8
3.0 2.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
VEROMODA
ONLY Girdear
Ochirly
Marisfrolg
%
2010 2011
5.5
3.9
5.15.5
3.8
5.95.5
4.4 4.2 4.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Paclantic
Balabala
Dadida
adidas
Souhait
%
2010 2011
Performance of selected product sectors (contd)
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38
Exhibit 18: T-shirt - share of total sales value, 2010
& 2011
Exhibit 19: Denim wear - Mens suits: share of total
sales value, 2010 & 2011
p ( )
Source: China National Commercial Information Centre (CNCIC)Source: China National Commercial Information Centre (CNCIC)
5.0
3.8
N/A
2.42.9
4.54.0
2.52.1 2.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Montagut
Goldlion
Playboy
JOE|ONE
Jeanswest
%
2010 2011
7.5
11.8
7.1
11.410.110.6
9.0
7.0 7.1 6.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Boton Levi's Weipeng
LEE Kipone
%
2010 2011
Performance of selected product sectors (contd)
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39
Exhibit 20: Jackets - share of total sales value,
2010 & 2011
Exhibit 21: Sportswear - share of total sales
value, 2010 & 2011
p ( )
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
3.3
N/A
2.8
2.32.0
2.7 2.7 2.62.4
2.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
JOE|ONE
Polo SantaBarbara
Septwolves
"Jin Ba"
Goldlion
%
2010 2011
30.727.3
8.8 8.1
3.9
29.027.0
8.05.6 4.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Nike adidas
Li Ning
Kappa
NIKE360360
%
2010 2011
Performance of selected product sectors (contd)
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40
Exhibit 22: Ladies underwear - share of total sales
value, 2010 & 2011
Exhibit 23: Maternity wear - share of total sales
value, 2010 & 2011
p ( )
Source: China National Commercial Information Centre (CNCIC) Source: China National Commercial Information Centre (CNCIC)
12.6
10.210.9 10.7 10.3
11.9
10.5 10.4 10.49.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Aimer Maniform
GujinEmbryform
Triumph
%
2010 2011
32.7
16.7
20.9
6.2
N/A
31.9
20.2
11.8
7.5 7.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
O.C.T.mami
Tianxiang
Hui bao
AmeryKenlavonne
2010 2011
For more information
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