[Economic Observation] How domestic apparel brands embrace the new "blue ocean"
Recently, Anta Sports, Xtep International, 361o, and Li Ning successively announced unaudited operating conditions in the first quarter. The retail sales of the four major domestic brands have all achieved double-digit growth... The domestic apparel brand market is ushering in a new "blue ocean".
Among the top 20 apparel brands in the domestic market in 2020, 8 are foreign brands, which together account for 45% of the top 20 apparel brands, and 12 domestic brands account for 55%.
In recent years, domestic brands have continuously improved their product power, brand power and channel power.
While domestic clothing brands are highly sought after, the performance of foreign fast fashion brands in the Chinese market has been eclipsed.
The sister brands Bershka, Pull&Bear and Stradivarius of the Spanish fast fashion brand ZARA will fully withdraw from the offline market this year.
The American apparel group Gap's brand Old Navy has withdrawn from the Chinese market, and the Dutch fast fashion company C&A has sold its Chinese business...
While the market share gap is gradually narrowing, the capital market is also showing the same.
In recent years, Anta has steadily ranked first in the market value of Chinese sports brands and has become the world's third largest sports brand after Nike and Adidas.
Li Ning Group's 2020 financial report shows that its annual revenue rose to 14.457 billion yuan, and its net profit increased by 13.3% to 1.698 billion yuan.
At the same time, other domestic brands also handed over their dazzling transcripts in 2020.
Data show that in the 10 years from 2009 to 2019, the proportion of Chinese brands' attention has increased from 38% to 70%.
Emerging national trend brands are gradually replacing fast fashion in shopping malls.
According to a report by the fashion agency Thredup, 40% of millennials surveyed said they would stop buying fast fashion brand products.
Nowadays, young people's requirements for the style and quality of clothes are gradually increasing. Some high-end fabrics that are both beautiful and comfortable have become standing items in the wardrobe.
In addition, domestic clothing brands have been actively expanding overseas for many years.
According to data from the General Administration of Customs, in the first quarter of this year, the nation’s textile and apparel exports totaled US$65.1 billion, a year-on-year increase of 44%.
Among them, clothing exports were 33.3 billion U.S. dollars, a year-on-year increase of 47.7% (in RMB terms, a year-on-year increase of 37.5%).
my country's modern clothing industry emerged in the 1980s. After nearly 40 years of development, it has formed a complete modern industrial chain with significant industrial cluster effects and deep participation in the global division of labor.
At present, China has formed more than 60 large-scale clothing industry clusters, and the clothing output of the five eastern coastal provinces accounted for more than 70%.
Insiders said that China is one of the few countries in the world with a complete garment industry chain, with everything from cotton, textiles, printing and dyeing, to various accessories, designs, and garments.
However, in the past, my country’s apparel manufacturing companies mostly carried out low-cost replication and focused on overseas brand OEM business. They had little strength in independent R&D design and market management, and it was also difficult to have time-proven brand stories and highly recognizable brands. Sexual and creative design.
However, the development of the apparel industry will bring profound changes to the entire industrial chain.
Chen Dapeng, vice chairman of the China National Textile and Apparel Council and chairman of the China National Garment Association, said that the times are changing, the nature of industry and commerce will not change, and the entrepreneurial spirit, craftsmanship, and dedicated industrial values will not change.
The advancement of technology brings capabilities, not simple opportunities; it brings improvements in product power, service capabilities, and system and organization updates, rather than full-link marketing at the expense of brand value.
my country's apparel enterprises must make great efforts in the core capabilities of the industry, in cultural creativity, lean management, high-end manufacturing, organizational methods, and industrial coordination, to be endurance long-distance runners, and strive to build a world-class group of Chinese apparel brands.
Zhao Jianying