Boom in Clothing and Footwear Retailing in China: Ken Research
Clothing
and footwear is projected to grow at a CAGR of 23.93 and 26.92% respectively
over the next five years in online spending.
China
is the leading importer of footwear products.
Ken Research recently announced its latest
publication titled “Clothing & Footwear Retailing in China-Market
Summary & Forecasts” which discusses detailed analysis of
clothing and footwear retailing, leading players, distribution channels and
consumer trends and the report sheds light on how the existing players can use
this information to capture major share in the market. Additionally, major
trends, Challenges and opportunities have also been covered, describing the
market penetration and future potential of each product segment.
In
both the sectors; Clothing and footwear, no firm can dominate the market
because the market is fragmented. Now a day’s competition is at its peak. There
are so many retailers and also the online retailing has cut the shares of
existing retailers. Online retailing is capturing the maximum market share.
Economic growth of the nation leads to increase in disposable income of the
Chinese, thereby increase in retail demand and also the changing lifestyles is
the reason behind increase in retail demand.
Clothing
market in China has bright future. This market is labor intensive and China has
the advantage of cheap labor. Huge production is taking place and the clothing
sector is creating huge employment opportunities adding to the growth of the
country. Today’s generation is very particular about their clothing style and
in addition to domestic brands; they demand for international brands too and
spends major part of their earning in this sector. In china, per capita
clothing consumption is projected to grow at a
CAGR of 9.2% over the next five years.
China
used to be an exporter of the footwear products but now the consumption base
has widened and it captures the largest share of ‘the U.S’ imports. China had a
share of 68.6% of ‘the U.S’ footwear imports in 2013 which is expected to increase up to 71% by
2018.Manufactures in other countries produce by keeping in mind the demands of
the Chinese consumers because it is the leading importer. Chinese economy is in
transition phase from manufacturing driven economy to consumption driven
economy especially in footwear sector. Footwear market in China is dominated by
women followed by men’s footwear and Kid’s footwear. There are various
distribution channels to meet the growing demands of the large consumer base
which involves online retailing, retailers, Malls, Supermarkets and
hypermarkets.
Footwear
enterprises achieved sales revenue of USD109.5 billion in 2014 and China
produced 14.2 billion pair of foot wears. Leather shoes were in high demand and
contributed 65% to the total sales revenue. Clothing production is more or less
same in the last year.
From
the business point of view, these two sectors seem lucrative but there are some
challenges which every businessman has to face. The rising factor costs are a
very big challenge in this price competitive market. To capture the large share
of the market, manufacturers need to keep the price of their product as low as
possible as if competitor’s price is lower than his price then he will lose all
his market share. High cost of imported raw material is also adding fuel to the
prices of the products. Also, the government’s concern towards environment and
maintaining quality standards is increasing the cost of manufacturers.
Follow the link to access the table of
content:
Related Reports:
The UK Accessories Market 2016-2021
Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
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