China's fashion market
Fashion
Today
The demographics in China are changing and China is growing in various aspects. With over 1.3 billion people living the country, China is potentially the biggest market for clothing. And the population is still increasing very rapidly. Every person of these 1.3 billion is a potential costumer for the fashion industry. But a decade ago China was not very much a fashion consuming country but more a fashion producer for the rest of the world. Nowadays China is one of the most promising markets and a fashion-consuming nation (MovingCities, 2012). A lot of companies are (planning on) opening stores in China. But to make the most of your company, you need to fully understand your costumer, his behavior, motivations, lifestyle and the world they live in.
Their income is one of the aspects that will play a part in peoples purchasing decisions. In China, the annual income per capita is increasing. As given in figure 1, the GDP per capita in 2012 is $6,091.01, four times as high as ten years before, and still rising. That means people have more money to spend.
At the same time, households in middle- and affluent-class in China will increase from 50 million in 2010 to 140 million by 2020, according to Lui et al. (2011). And “fashion is among the top ‘trading-up’ categories for such households” (p. 5). The National Bureau of Statistics of China with the figure below confirms the rise of expenditure on clothing.
The fashion industry in China has tripled in market size over the past decade and still is increasing rapidly. As research by Lui, Zhou, Hsu, Jap, Liao and Lou of the Boston Consulting Group (2011) showed, the industry was worth almost RMB 400 billion at the end of 2010. They expect the market to threefold again over the next decade and reach RMB 1.3 trillion by 2020.
Researchers He, Li and Ling (2013) made an overview (figure 3) of the fashion market as it is today. They divided the market in different apparel categories with each their
Today
The demographics in China are changing and China is growing in various aspects. With over 1.3 billion people living the country, China is potentially the biggest market for clothing. And the population is still increasing very rapidly. Every person of these 1.3 billion is a potential costumer for the fashion industry. But a decade ago China was not very much a fashion consuming country but more a fashion producer for the rest of the world. Nowadays China is one of the most promising markets and a fashion-consuming nation (MovingCities, 2012). A lot of companies are (planning on) opening stores in China. But to make the most of your company, you need to fully understand your costumer, his behavior, motivations, lifestyle and the world they live in.
Their income is one of the aspects that will play a part in peoples purchasing decisions. In China, the annual income per capita is increasing. As given in figure 1, the GDP per capita in 2012 is $6,091.01, four times as high as ten years before, and still rising. That means people have more money to spend.
At the same time, households in middle- and affluent-class in China will increase from 50 million in 2010 to 140 million by 2020, according to Lui et al. (2011). And “fashion is among the top ‘trading-up’ categories for such households” (p. 5). The National Bureau of Statistics of China with the figure below confirms the rise of expenditure on clothing.
The fashion industry in China has tripled in market size over the past decade and still is increasing rapidly. As research by Lui, Zhou, Hsu, Jap, Liao and Lou of the Boston Consulting Group (2011) showed, the industry was worth almost RMB 400 billion at the end of 2010. They expect the market to threefold again over the next decade and reach RMB 1.3 trillion by 2020.
Researchers He, Li and Ling (2013) made an overview (figure 3) of the fashion market as it is today. They divided the market in different apparel categories with each their