Lingerie industry is in a state of intense competition. Fashionable and price friendly lingerie’s are sold by the manufacturers while global brands are looking for new markets. International specialty brands are at their wings; seeking entry into emerging markets for future growth. Current global market for lingerie’s rose by 2.6% to $29.92 billion USD from 2004 to 2007, while clothing prices dropped down by 4%. China, as an emerging market has seen a growth rate of 8.1% during the same time. Fast fashion retailers are now offering fashionable intimate apparels at lower prices and are undertaking hardcore marketing efforts to sustain their brand image in China. On the other hand, China itself is a major exporter of apparels to the global market at competitive prices.
Chinese Lingerie Market:
Chinese lingerie market is a dynamic sector. Their market structure is composed of many national and international brands, and intimate apparels are brought in by many countries; names unknown to the consumer.
The country’s lingerie market is a fast moving one, and there is a drastic change during the recent past. The lingerie market is estimated to be of a total value of 2 billion euros, and industry experts predict a further positive increase of 20% every year. The country is the third largest for luxury consumption, and is assumed by the market leaders to catch up with the position of Japan in the next 10 years. China is a key player in fabric industry, having good potential for creation and consumption. Major lingerie players in China have reassessed their market positions, and are now closing the knowledge gap to become ‘low cost’ producers.
Integral Apparel in the Wardrobe of Chinese Women:
As Chinese lingerie manufacturers eye the global market, rest of the world eyes China. Shanghai is in the forefront of the lingerie boom. Lingerie is progressively becoming one desirable item in the wardrobe of Chinese women. A survey states that an average Chinese woman spends 8% of their fashion budget on lingerie annually. Though 8% appears to be meager, China is populated with 503 million women and the huge numbers are promising. From lavishness, luxury lingerie’s have now become a wardrobe necessity. A lingerie industry survey states that Chinese population consists of more than 200 million women in the age limit of using lingerie, the annual consumption would go beyond 600 million pieces, reaching a sales figure of 15 million RMB.
Exports-The Lacy Lingerie Race:
Encompassing promising prospects in the global market, lingerie industries in China are actively seeking opportunities to expand its domestic market overseas. On an average, the country exports around 4 billion pieces of lingerie; annually. They export intimate wears mainly to France, US, Japan, and Europe. Export of Chinese bras rose as high as 10.5 million; i.e., 93% after the EU ended a 40 year quota system. China enjoys a good market in US as a lingerie exporter. Its performance is on a high base capturing 25% of exports to US. Despite the restrictions on US exports to China, the communist giant is expected to become the third largest exporter to US. China, enfolded with continuous enhancement in technology, makes it a cost effective destination for other countries to have their production base offshore. China along with India is projected to increase its global market share by $100 million USD each in the next few years.
Leading Intimate Wear Hubs:
The city of Shenzhen is considered as the ‘fashion capital’ of China. It is a pedestal of domestic and foreign intimate wears, designing, R&D, and manufacturing of lingerie’s. The economic benefits acquired and the market size favor Shenzhen and draws continuous attention of the investors. Many popular brands sold in the global market are being exported from the Pearl River Delta, especially Shenzhen. The ‘Sun Hing Group’ who manufacture 70% of its lingerie accessories in Asia, the ‘YKK’, a fortune 500 company, and ‘Regina Miracle’ all have their manufacturing base in Shenzhen. The city has a perfectly formed industry chain starting from design to production, marketing, and sales both at the domestic and export level. A renowned lingerie brand has launched its outlet in Shenzhen especially because of its cluster effect which will enhance brand promotion and boost sales. Two of the popular Chinese lingerie brands come from Shenzhen, and almost 10 internationally reputed lingerie brands have their production base here. Topform, Calvin Klein, Triumph, Regina Miracle, and Victoria’s Secret are a few to name. Embry Form, Xusany, Venies, Ordifen etc are a few domestic brands, having their manufacturing facilities in Shenzhen and enjoy a nation wide reputation.
Click Here to View Full Article
