A prospective customer tries to unload clothes at Bossiding Shop Mix, a shopping mall in Jinan, Shandong Province, in October. Wang Jian / For China Daily
Cold events in northern and western China have boosted sales of low-end clothing, with major Chinese brands competing with international brands for quality and innovation in the middle and high-end categories.
According to the National Climate Center, temperatures between December and March are forecast to be lower than the same period last year in many areas of northern and western China. Southern China also has colder weather cycles this winter than last year.
This heated up the competitive apparel market, with the younger generation’s interest in outdoor activities driving sales even higher. According to China National Apparel Association, China’s discount clothing market in 2010 It was estimated at 156.2 billion yuan ($22.35 billion) by 2021. And this year it is estimated to reach 162.2 billion yuan. The average annual growth rate between 2016 and 2021 is 12.7%, which is higher than the overall apparel market.
Huaon.com, a research unit, in a report on the prospects of the down jacket market in China between 2019 and 2025, the penetration rate of the down jacket segment in China is less than 10 percent, in Japan it is 70 percent and 35 is much less than 35. In Europe and As a percentage of US markets, it suggests more market potential in the coming years.
Meanwhile, the new national dress code went into effect in April. This includes measures to improve production and quality to make the industry more integrated with the international market.
With the new standard, low-quality products are not allowed to enter the market, it facilitates the better development of large or medium-sized brands based on design, skills, technology and marketing.
Lu Mei, deputy secretary-general of the clothing sector of the Jiangsu Provincial Federation of Industry and Commerce, said the new standard has caused the clothing industry to shrink. “These small and medium-sized enterprises that produce low-quality clothing will not survive because of the high cost of better feathers and fabrics,” Lu said.
Major domestic apparel players have benefited from the new standard and rising demand. At this year’s Double 11 Marketing Festival held in Timal in November, Bosiding International Holdings Ltd., a domestic low-cost clothing manufacturer, achieved a record high of over 100 million yuan in sales in the first 10 minutes.
According to Mktindex Bosiding ranked first in the Tamil women’s clothing sector, with a peak sales of 60.7 million yuan and an average sales of 1,540 yuan during the shopping festival.
In the first six months of the fiscal year ended Sept. 30, Bosiding Group posted revenue of 6.18 billion yuan, up 14.1 percent year-on-year, and profit rose 15 percent to 734.3 million yuan. During this period, the revenue of the underwear business unit, including the Bossing brand, increased by 10.2 percent year-on-year to 3.86 billion yuan.
International brands continue to dominate the mid- and high-end market segments. The Winter Olympics earlier this year brought Lululemon Athletic Inc.’s low-top apparel to consumers in China. At the opening ceremony, the Canadian delegation entered the stadium wearing the badge.
Beijing marketing executive Vivi Sun bought Lululemon down jackets 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 was known to my friends who practice yoga. Now it has become a major brand and frequent shopping destination.”
Lululemon has added winter apparel and utility lines this year to help runners and “on-the-go” keep warm this winter.
Oscar Wu, a veteran runner who participated in this year’s Beijing Marathon, said he would focus on facilities to keep him warm during winter training. And windproof clothing improves athletic performance with light and dry functions. For the first time ever, Lululemon has produced a Wunder puff jacket for male shoppers like Wu this summer.
Moreover, Moose Knuckles has accelerated its expansion in China by adding new brick and mortar stores in the country. China remained the largest market for Canada Goose in the second quarter of this year despite a decline in sales in the Asia-Pacific region. Moncler recently opened a new flagship store in Beijing.
Italian brand Max Mara says it has introduced its coats responsibly to appeal to young, environmentally conscious Chinese consumers, ensuring their products have a low environmental impact, made from natural camel hair combing and blended fibers. High resistance and high performance flooring with recycled polyester fibers.
Outdoor camping and frisbee activities have recently emerged, outdoor down jackets are becoming more popular as sportswear in China, while skiing and mountaineering are becoming fashionable.
Domestic brands have stepped up their investment in innovation to catch up with their foreign rivals to tap into the growing market potential. Bosiding has developed lightweight clothing that strikes a balance between warmth and comfort for the wearer on the move. Lighter weight and more precise thermal technology mean different positions of the jacket.
Its innovations in casual clothing brands are helping to extend the peak sales season, making the products easier to market in southern China and among the younger generation of consumers, Bossiding said.
