Ken Research recently announced its latest publication titled “Clothing & Footwear Retailing in China-Market Summary & Forecasts” which discusses detailed analysis of clothing and footwear retailing, leading players, distribution channels and consumer trends and the report sheds light on how the existing players can use this information to capture major share in the market. Additionally, major trends, Challenges and opportunities have also been covered, describing the market penetration and future potential of each product segment.
China Retail Industry
China’s consumption base has widened and it captures the largest share of ‘the U.S’ imports. China had a share of 68.6% of ‘the U.S’ footwear imports in 2013 which is expected to increase up to 71% by 2018. Figure below is showing the same. Chinese economy is in transition phase from manufacturing driven economy to consumption driven economy especially in footwear sector. Footwear market in China is dominated by women followed by men’s footwear and Kid’s footwear. There are various distribution channels to meet the growing demands of the large consumer base which involves online retailing, retailers, Malls, Supermarkets and hypermarkets.
China’s Share in ‘the US’ Footwear Imports
Source: Foreign trade division, ‘the U.S’ census bureau
In china, per capita clothing consumption is projected to grow at a CAGR of 9.2% over the next five years.Clothing market in China has bright future. This market is labour intensive and China has the advantage of cheap labour. Huge production is taking place and the clothing sector is creating huge employment opportunities adding to the growth of the country. Today’s generation is very particular about their clothing style and in addition to domestic brands; they demand for international brands too and spends major part of their earning in this sector.
There are so many retailers and also the online retailing has cut the shares of existing retailers. Online retailing has captured the maximum market share. Economic growth of the nation leads to increase in disposable income of the Chinese, thereby increase in retail demand and also the changing lifestyles is the reason behind increase in retail demand.
There are some challenges which every businessman has to face. The rising factor cost is a very big challenge in this price competitive market. To capture the large share, manufacturers need to keep the price of their product as low as possible which lead to fewer profit margins. High cost of imported raw material is also adding fuel to the prices of the products. Also, the government’s concern towards environment and maintaining quality standards is increasing the cost of manufacturers.
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