Local, foreign brands pull it off, as low-end clothing embraces fashion, innovation

Cooldowns in northern and western China have boosted sales of low-end clothing, with top Chinese brands competing with international brands for quality and innovation in the mid- and high-end categories.

According to the National Climate Center, temperatures between December and March next year in many areas of northern and western China are forecast to be lower than the same period last year. There are more rounds of extreme cold weather in southern China this winter as well than last season last year.

This has heated up the market for low-top clothing, with the younger generation’s growing interest in outdoor activities further driving sales. According to the China National Apparel Association, China’s apparel market was estimated at 156.2 billion yuan ($22.35 billion) in 2021 and is estimated to reach 162.2 billion yuan this year. Its average annual growth rate between 2016 and 2021 was 12.7 percent, higher than that of the overall apparel market.

Huaon.com, a research unit, said in its report on China’s down jacket market prospects between 2019 and 2025 that the penetration rate of the down jacket segment in China is less than 10 percent, much lower than 70 percent in Japan and 35 percent in the European and American markets, suggesting more market potential in the coming years.

Meanwhile, the new national standard for undergarments came into effect in April. This included measures to optimize production and quality to make the industry more integrated with the international market.

Under the new standard, lower quality products will not be allowed to enter the market, facilitating the better development of large or medium-sized established brands, in terms of design, skills, technology and marketing.

Lu Mei, deputy secretary-general of the garment sector of the Federation of Industry and Commerce in Jiangsu Province, said the new standard has led to a shake-up of the garment industry. “Those small and medium-sized enterprises that produce lower-quality clothing will not survive because of the higher costs of feathers and better fabrics,” Lu said.

Major domestic underwear players have benefited from both the new standard and growing demand. During this year’s Double 11 shopping festival on Tmall in November, Bosideng International Holdings Ltd, a major domestic clothing manufacturer, topped the list with sales exceeding 100 million yuan in the first 10 minutes of sales.

According to Mktindex, Bosideng ranked first in the Tmall women’s clothing category, earning sales of 60.7 million yuan and an average transaction value of 1,540 yuan during the shopping festival.

In the first six months to September 30 of the fiscal year, Bosideng Group generated revenue of 6.18 billion yuan, up 14.1 percent year-on-year, with profit rising 15 percent to about 734.3 million yuan. During the period, the revenue of its clothing business segment, including the Bosideng brand, rose 10.2 percent year-on-year to about 3.86 billion yuan.

International brands have continued to dominate the mid- and high-end sectors of the market. The Winter Olympics earlier this year brought Lululemon Athletica Inc.’s apparel to consumers in China. During the opening ceremony, the Canadian delegation entered the stadium wearing the brand.

Vivi Sun, a marketing executive in Beijing, bought Lululemon jackets immediately after watching the opening ceremony and has since become a regular visitor to Lululemon stores in Beijing.

The brand has become a phenomenon,” said Sun. “It used to be popular among my friends who practice yoga. Now it has become a mainstream brand and a frequent shopping destination.”

Lululemon this year has added winter clothing and accessory lines to help runners and those “on the go” keep warm during the winter.

Oscar Wu, a veteran runner who participated in the Beijing Marathon this year, said during winter training, he focuses on the environment to make sure running keeps him warm. And clothing that is windproof, with lighter and drier functions, can improve his athletic performance. For the first time, Lululemon has developed the Wunder puff jacket for male consumers like Wu this winter.

In addition, Moose Knuckles has accelerated its expansion in China by adding new brick-and-mortar stores in the country. China has become the largest market for Canada Goose despite a decline in sales in its Asia-Pacific region in the second quarter of this year. Moncler opened a new store in Beijing recently.

To appeal to young, environmentally conscious Chinese consumers, Italian brand Max Mara said it has introduced its coats in a responsible way, ensuring their production has less impact on the environment as they are made from fiber obtained from the natural combing of camel hair and mixed. with recycled polyester fiber to form a highly insulating, high performance padding.

With the recent emergence of outdoor camping and frisbee activities, outdoor jackets as sportswear have become more and more popular in China, with ski and mountaineering clothing becoming fashionable.

Domestic brands have stepped up their investment in innovation to catch up with their foreign rivals to cash in on the growing market potential. Bosideng has developed lightweight clothing that strikes a balance between warmth and comfort while the wearer is on the move. Lighter weight and more precise heating technology mark the different positions of the jacket.

Its innovations in light clothing brands are helpful in extending the peak sales season, making its products easily marketable in southern China and among the younger generation of consumers, Bosideng said.