As per a report titled “The China Apparel Market: Indigo is the new blue” by OC&C Strategy Consultants, Japanese fast fashion brand Uniqlo has emerged as the favourite among Chinese consumers.
More than 2,000 respondents from various cities of China were interviewed for the survey conducted during March to April period this year.
The latest revelation in the report exposes the threat looming over domestic apparel brands in China. Apart from Uniqlo, other international players such as Adidas and Jack & Jones are also amongst the top five favourite brands in China.
The emergence of these global brands in China is adversely impacting the sales of domestic leaders like Heilan Home. Moreover, the market share of Chinese brands has come down from 64 per cent in 2011 to 54 per cent in 2016.
The report reasons that ‘better quality’ offered by global fashion brands attracted the Chinese consumers (34 per cent). ‘Better product design’ is also a key reason for the respondents (33 per cent) to opt for these international brands over local.
On the other hand, poor design and insufficient options from local Chinese brands have also made them vulnerable in the market. Additionally, less competitive marketing strategy has hit the domestic brands badly.
People from the low-income group (only) opt for Chinese brands in view of “Value for money” (40 per cent) and “Chinese elements” (39 per cent).
The report further claims that Chinese fashion retailers overuse repetitive price promotions to clear inventory, which lessens their brand value and gives an upper hand to foreign brands like Uniqlo and Adidas.
The apparel market in China currently stands at around US $ 300 billion, the biggest in the world.