Clothing and footwear is projected to grow at a CAGR of 23.93 and 26.92% respectively over the next five years in online spending.
China is the leading importer of footwear products.
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.
In both the sectors; Clothing and footwear, no firm can dominate the market because the market is fragmented. Now a day’s competition is at its peak. There are so many retailers and also the online retailing has cut the shares of existing retailers. Online retailing is capturing 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.
Clothing market in China has bright future. This market is labor intensive and China has the advantage of cheap labor. 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. In china, per capita clothing consumption is projected to grow at a CAGR of 9.2% over the next five years.
China used to be an exporter of the footwear products but now the 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.Manufactures in other countries produce by keeping in mind the demands of the Chinese consumers because it is the leading importer. 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.
Footwear enterprises achieved sales revenue of USD109.5 billion in 2014 and China produced 14.2 billion pair of foot wears. Leather shoes were in high demand and contributed 65% to the total sales revenue. Clothing production is more or less same in the last year.
From the business point of view, these two sectors seem lucrative but there are some challenges which every businessman has to face. The rising factor costs are a very big challenge in this price competitive market. To capture the large share of the market, manufacturers need to keep the price of their product as low as possible as if competitor’s price is lower than his price then he will lose all his market share. 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.
Follow the link to access the table of content:
The UK Accessories Market 2016-2021
Ankur Gupta, Head Marketing & Communications