Market Analysis: China'S Clothing Industry Is Undergoing Reshuffle And Iteration

 

From fast fashion to fashion brand, and then to the subversion of underwear and other subdivision fields, now the clothing industry is being reshaped by new consumer groups.  

"The national self-confidence and brand confidence of the new generation of Chinese young people have created a number of new domestic brands." To build a new consumer interaction mode and marketing experience, the bottom layer is to deeply understand the functional and spiritual needs of consumers.

From the brand to the supply chain to the cross-border e-commerce platform, "great change" is giving birth to a great opportunity for the globalization of Chinese brands. It seems that the traditional clothing industry, in fact, has quietly changed a lot.

According to the data, in 2019, the retail scale of China's clothing market will reach 2.19 trillion yuan, with a year-on-year growth of only 5.29%. China's clothing market will reach 2.4 trillion yuan in 2021. A huge and slow growth market means there are many pain points.

According to incomplete statistics, there are more than 100 representative financing events in the domestic clothing industry, involving more than 20 billion yuan. Since 2021, there have been nearly 50 domestic clothing track investments, with a total investment of more than 10 billion yuan, a record high.

There are 40 or 50 investment institutions behind these enterprises, such as Sequoia Capital China, IDG capital, tiger Global Fund, DST, pan Atlantic capital, Carlyle investment, today capital, source code investment, Tencent investment, Jingwei venture capital, etc. Even station B, bubble mart, fast hand and so on are also interested in the fashion brand, second-dimensional clothing, Hanfu and other subdivision clothing fields related to generation Z.  

As can be seen from the financing table, since 2016, capital intensive investment in the field of clothing, mainly concentrated in three areas.

First, the new and cutting-edge brands in the field of segmentation. Second dimensional clothing, fashion brands and functional brands are favored by institutions.

Whether it is the hot underwear subdivision track, or the eye-catching asexual wear fashion brand and so on, the clothing competition track is divided into more and more details. Of course, these "upstart" brands also start from generation Z.

Station B, which is closest to the new consumer group, holds more and more young people's "concerns". In the field of clothing, he has invested more than thirteen Hanfu and bosie, a gender free wear brand. Even bubble Mart has invested more than 13 years in the cat galaxy.

The "three pits" minority clothing, which is more popular with the Z generation, is gradually moving towards the public. Especially behind the popularity of Hanfu, young people's love for national style elements and self-confidence in national culture.

In addition, the functionality and design concept of products have also changed a lot. For example, the combination of the natural characteristics of clothing fabrics and technological innovation, so that functionality can be reasonably released from sports, improve women's daily leisure clothing experience, and achieve fashion diversity and functional convenience.

Second, supply chain. In this field, most of them are large-scale financing above the level of 100 million, and high-level venture capital, GGV Jiyuan capital, Zhongding capital, source capital, Jingwei venture capital, etc.

The traditional textile production and circulation mode is no longer suitable for the trend of "personalized consumption" and "small single quick return" in fashion industry. B-end upgrades and transforms the digital supply chain of textile fabrics, intelligent clothing manufacturing, foreign trade clothing brands, logistics and supply chain finance, which directly lays the foundation for the rapid rise of the industry.

Third, DTC cross-border e-commerce platform is favored. In 2020, the revenue of fast fashion export e-commerce brand sheen will reach 10 billion US dollars. It is reported that the latest round of financing valuation of sheen is more than 300 billion yuan and has begun to prepare for IPO.

Influenced by the trend of thought in the social times, the acceptance of domestic brands has increased rapidly, and the brand has put forward the value proposition of conforming to the times, which has achieved explosive growth; Secondly, new media and channels restructure the industrial chain. Traditional clothing enterprises sell at all levels, and their products are built behind closed doors. The new brands can directly face consumers, have more sufficient operation toolbox, and form their own high cultural community through lifestyle advocacy. Therefore, brand loyalty is higher and category expansion is more direct.

China has built the world's leading clothing supply chain, efficient products and supply chain organization, achieving the leading in efficiency and cost performance.

Behind the emergence of these new and hot brands is the upgrading of the bottom supply chain, the change of consumption concept and the remodeling of e-commerce channels. The market is awakened again and again by the changes.

On the one hand, fast fashion brands at home and abroad have been defeated and retreated in China; on the other hand, the fast fashion export e-commerce led by sheen is developing in full swing. Affected by the epidemic, overseas consumers have turned to online, which has brought continuous benefits to the e-commerce retail platform.

China's fast fashion industry has experienced more than ten years of development, during which the business strategy, marketing channels, market structure and other aspects have changed greatly. The low-quality fast fashion brands can no longer rely on low prices to attract consumers' attention.

Millennials and generation Z are the main consumers, and fast fashion is even less popular. It also provides a considerable market space for the rise of local clothing.  

The essence of fashion clothing lies in the concept and expression behind the brand. We should grasp the personality, diversity, self-expression and other characteristics of generation Z, firmly grasp the popular culture of young people and grow up with it. The concept advocated by the new brand is closer to the thinking of new people.

New people, new aesthetics, and strong national confidence are all pushing forward the great change of the trillion yuan garment industry. Clothes are not only for wearing, but also for the interaction between consumers and brands, and one of the ways for young people to express themselves. In the field of clothing, there will be a series of new domestic brands with their own independent aesthetics and representing the life style concept of generation Z. at the same time, they will also lead the whole consumer market.

The clothing industry is undergoing shuffling and iteration, and the secret of success is hidden in the wardrobe full of young people.