Lingerie industry is in astate of intense competition. Fashionable and price friendly lingerie's aresold by the manufacturers while global brands are looking for new markets. Internationalspecialty brands are at their wings; seeking entry into emerging markets forfuture growth. Current global market for lingerie's rose by 2.6% to $29.92billion USD from 2004 to 2007, while clothing prices dropped down by 4%. China, as an emerging market has seen a growth rate of 8.1% during the same time. Fast fashion retailers are now offering fashionable intimate apparels at lower prices and are undertaking hardcore marketing efforts to sustain their brand image in China. On the other hand, China itself is a major exporter of apparels to the global market at competitive prices.
Chinese lingerie market is adynamic sector. Their market structure is composed of many national andinternational brands, and intimate apparels are brought in by many countries; names unknown to the consumer.
The country's lingerie market is a fast moving one, and there is a drastic change during the recent past. The lingerie market is estimated to be of a total value of 2 billion euros, and industry experts predict a further positive increase of 20% every year. The country is the third largest for luxury consumption, and is assumed by the market leaders to catch up with the position of Japan in the next 10 years. China is a key player in fabric industry, having good potential for creation and consumption. Major lingerie players in China have reassessed their market positions, and are now closing the knowledge gap to become 'low cost' producers.
As Chinese lingerie manufacturers eye the global market, rest of the world eyes China. Shanghai is in the forefront of the lingerie boom. Lingerie is progressively becoming one desirable item in the wardrobe of Chinese women. A survey states that an average Chinese woman spends 8% of their fashion budget on lingerie annually. Though 8% appears to be meager, China is populated with 503 million women and the huge numbers are promising. From lavishness, luxury lingerie's have now become a wardrobe necessity. A lingerie industry survey states that Chinese population consists of more than 200 million women in the age limit of using lingerie, the annual consumption would go beyond 600 million pieces, reaching a sales figure of 15 million RMB.
Encompassing promising prospects in the global market, lingerie industries in China are actively seeking opportunities to expand its domestic market overseas. On an average, the country exports around 4 billion pieces of lingerie; annually. They export intimate wears mainly to France, US, Japan, and Europe. Export of Chinese bras rose as high as 10.5 million; i.e., 93% after the EU ended a 40 year quota system. China enjoys a good market in US as a lingerie exporter. Its performance is on a high base capturing 25% of exports to US. Despite the restrictions on US exports to China, the communist giant is expected to become the third largest exporter to US. China, enfolded with continuous enhancement in technology, makes it a cost effective destination for other countries to have their production base offshore. China along with India is projected to increase its global market share by $100 million USD each in the next few years.
The city of Shenzhen is considered as the 'fashion capital' of China. It is a pedestal of domestic and foreign intimate wears, designing, R&D, and manufacturing of lingerie's. The economic benefits acquired and the market size favor Shenzhen and draws continuous attention of the investors. Many popular brands sold in the global market are being exported from the Pearl River Delta, especially Shenzhen. The 'Sun Hing Group' who manufacture 70% of its lingerie accessories in Asia, the 'YKK', a fortune 500 company, and 'Regina Miracle' all have their manufacturing base in Shenzhen. The city has a perfectly formed industry chain starting from design to production, marketing, and sales both at the domestic and export level. A renowned lingerie brand has launched its outlet in Shenzhen especially because of its cluster effect which will enhance brand promotion and boost sales. Two of the popular Chinese lingerie brands come from Shenzhen, and almost 10 internationally reputed lingerie brands have their production base here. Topform, Calvin Klein, Triumph, Regina Miracle, and Victoria's Secret are a few to name. Embry Form, Xusany, Venies, Ordifen etc are a few domestic brands, having their manufacturing facilities in Shenzhen and enjoy a nation wide reputation.
Shantou is another leading manufacturing hub for women's intimate apparel. It has a well established factory management system, and an efficient supply chain. Its port is one of the 20 leading harbors in China, and facilitates convenient shipping to many foreign countries at cheaper rates. Located in the Guangdong province, lingerie exports of Shantou average around $650 million for a year. This treaty port city stands third for outbound shipment of intimate wears from China. There are approximately 1,500 suppliers in this city of which 150 of them export directly. It is also renowned for the manufacture of knitted intimate wears. Associated towns of Gurao, Chendian, Liangying and Xiashan are also leading manufacturing cities. Gurao has more than 440 intimate wear manufacturers. Xiashan and Chendian produce $100 million worth of intimate apparels; annually.
China is a major target of many international brands. Cities like Shanghai and Beijing have an ever increasing demand for branded lingerie's and the trend is slowly spreading ahead to smaller cities as well. Shimmering designer intimate wears in jacquards, brocade velvet, satin, gold thread and trimming, and apparels embellished with precious stones have now entered the market. International brands seeking to establish their product in the Chinese market are drawn to find a local partner to help them to navigate the market, and coordinate with the local workers to manufacture apparels.
To show that their products are different from other cheaper garments, luxury lingerie makers are developing their brands and are following more aggressive methods of marketing. There was a time, when lingerie advertising was banned in China. But ideas once considered decadent are eagerly welcomed later on, and the boom of lingerie industry led to creative advertisement strategies. Manufacturers are reinforcing their brand images by plastering billboards with traffic stopping advertisement displays, and appealing visual displays. An outdoor advertising company in China states that budgets for advertisements of lingerie companies have a steady increase year after year. The main target is the first tier cities like Beijing, Shenzhen, Shanghai, Dalian, Chengdu, and Guangzhou.
Embry Form, one of the renowned lingerie brands in China has been awarded the "2007 Best Selling Lingerie Products in the Industry in China" for the 12th consecutive year. It ranks first in sales volume and market share. 25 international brands including Aubade, Christian Lacroix, Eminence, Cacharel and Janine Robin have newly entered the Chinese market, focusing on its potential and believing that China's market is equally important at France and Italy. 'Triumph International', a Swiss based lingerie manufacturer and marketer currently have 10 stand alone stores and 1,400 counters all over China. With a positive double digit profit figures motivating them, Triumph is planning to open 300 more outlets in major cities in the next 5 years.
The potential market for lingerie is tantalizing in China. With US and EU makers of intimate wears now being eager to sell their products in the Chinese market, lingerie has an enormous consumer market with many genuine opportunities and hidden obstacles. As a major exporter of intimate apparels, China has a rosy future in the global market.
References:
- http://www.china.org.cn
- http://www.chinadaily.com.cn
- http://www.iht.com
- http://textile.2456.com/eng/epub/
- http://www.nytimes.com/
Comments