Analysis of Apparel Retail Market in China 2008

China Market Report
December 12, 2008
40 Pages - SKU: CMP2444936
License type:
Countries covered: China

China's huge population actually is a huge bonus for apparel market. Meanwhile, the growth incomes of urban and rural dweller contribute to the Chinese apparel sales growth. After deducting the effect of price increases, the annual net income per capita of rural dweller increased 9.5% in 2007 than 2006 and the disposable income of urban dweller grew 12.2% in 2007 than 2006. The sales growth of clothing in 2007 increased 28.75% than 2006, is one of the fast growth industry in the variety of whole sales and retail industries.

According to statistics, during 2006 to 2007 period the average clothing consumption growth per capita of China's urban dweller increased 15.5% and is expected that China will surpass Japan to become the world's third largest clothing market by 2010.

In terms of China's apparel brand, after the transformation of the market consumption structure, the Chinese apparel market divided into two different sub-markets; one market is high-end market, which is focused on well-known brand, the reason of this market has been a great success in recent years is the rapid growth of high-income population who have a strong appetite for high-class brands and luxury goods. Another market is low-end market, which is focused on Chinese unknown brands and low price clothing, this market also has a great profit because of their main customers are young people and university students, therefore the huge population is the major factor for its growth. Meanwhile, tail goods and fast food pattern sales are new sales modes.

At present, China's high-end clothing market has been almost entirely dominated by well-known international brands from France, Germany, Italy, Japan, the United States, Britain and South Korea; while Hong Kong and Taiwan brands mainly concentrated in the mid-end market, and Chinese brands occupied the low-end market.

China’s apparel market has attracted South Korean apparel industry as its main market in recent years because of it has an optimistic prospect of Chinese clothing market. South Korean apparel industry firstly started into Chinese market was focused on women casual clothing, then men's golf sportswear, children's clothing and underwear, and finally almost all kinds of clothing have sold in the Chinese market. Some South Korean companies in recent years have been vigorously expanding their investment in China.

Chinese textile and apparel industry in the first half of 2008 achieved sales of 243.2 billion yuan, up 28% year-on-year and the total profit was 10.3 billion yuan, up 31% year-on-year. The growth of profit exceeded the growth of income showing that the Chinese apparel industry has a great prosperity. But with the implementation of the Chinese new labor contract law, there will be a great pressure of labor cost on garment manufacturing industry.


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