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The sales of women’s underwear in China market have experienced a breakthrough since 2008, nearly 17.8 billion dollars in 2013 and catching up to the US market in 2009. While expenditures per capita per female is still far from the markets developed as the United States and the United Kingdom, it is configured to save a 9% CAGR over 2013-2018, compared to the 6% for the whole of the clothing industry . Thanks to China’s economic development, the intimate apparel industry develops as more quickly and a thus attracts a larger number of investors in recent years when demand increases.
Market Shares of the Underwear Market in China
The market shares between the brands are approximately the same between 5% and 10%, there no leader in the field. Foreign brands represent 60% of the market of the undergarment. The consumers prefer to order their lingerie on the internet because online stores give them greater privacy. Nearly 73.5% of online shoppers are between 20 and 39 years. Luxury brands are in the first level cities. Therefore, a there group of customers targeted are more around Shanghai, the east of Beijing and the south of Hong Kong.
The main buyers are women aged from 24 to 35 years, they represent 78.94% of users compared to men. Many girls in China run between a size A or B cup. Among potential consumers of about 525 million of underwear in China, nearly 21% of them are aged from 15 to 24. The Statistics reveal that about 140 million Chinese people prefer high underwear range and their annual budget for clothes including underwear reach almost CNY 2 212,91 per person.
The Chinese women are concerned about their comfort, fashion style, and customization needs. The market has increased by almost 20% since 2009, a great opportunity for foreign brands to meet the needs of the Chinese population. Here is a closer look of the different foreign brands established in the Chinese market.
Etam has been launched in China in 1994 with a Chinese family partnership, a good way to integrate into the Chinese market. Now, the Group ETAM has nearly 3000 stores in China and three brands Etam Lingerie, Etam Sport and Etam weekend. Shops are more luxurious than in France with spaces store exceeding 500 square meters in a luxury mall.
Etam has a good reputation in China, with its shops, but also thanks to the development of its online store.
The implicit stores are located in the four metropolitan cities in China namely Beijing, Shanghai, Nanjing and Hong Kong, the location where Chinese people have a higher salary and, therefore, more purchasing power. Implicit has established different marketing strategy: on one side, his strategy is quite similar to ETAM, a trademark of mid-range with shops everywhere in China. On the other hand, a more luxurious collection sold in special stores located in major metropolitan cities.
Triumph, a German international manufacturer, has stores in luxury malls, with a selective range of products. Many people think that Triumph is a Chinese brand because of their long presence in China.
Aubade is a foreign brand that is the most recognized by Chinese people because it represents French luxury underwear with design, quality, and glamor.
The Underwear Market in China, A New Trend
Since the 1980s, with the improvement of the living conditions, underwear began to enter the Chinese market. Indeed, the rate of average growth of the amount of sales and the volume of sales of bras, remain at around 15-20%. The China underwear industry began with the cotton jersey knit and underwear at the beginning of the Chinese reform. The scale of the underwear industry was well developed. With the continuous increase in the domestic demand for clothing from China, underwear market wrote the age of segmentation.
Nowadays, most Chinese women content simply comfortable Bras, knickers or sleepwear. but they also want attractive models and a feeling of wearing luxury. Companies are trying to respond to the changing demands and make profits by creating this new trends.
The largest business Web sites in China garment industry, the total revenue of China of underwear market in 2010 amounted almost 3billion euros ($3.9 billion). It has an annual growth rate of 10 percent. The increasing demand and the promising future of the underwear industry attract more and more many young people.
The trade of underwear and the processing industry is one of the major origins of the development of the underwear market in China, a number of Chinese underwear brand can compete with international brands in the design of the products, its technical expertise, and other aspects. But due to a lack of popularity of the brand, the selling prices are much lower than those of international brands. With the improvement of the Chinese standard of living, underwear is no longer an inside clothing, but a complement to the dress; A new fashion trend is coming in China that is to match underwear fashionable to the everyday clothes.
Chinese Women Attitude
When purchasing high-quality underwear, Chinese women have the same tastes as Western consumers, because they want to be sexy and glamorous, to give more value to their bodies and feel more attractive for their men. Although the purchasing power is very concerned, there are few major differences in Chinese culture compared to other Western cultures. Originally underwear is regarded as a useful necessity and not a fashion accessory. Today, luxury brands in France, Italy, Hong Kong brands want to get more information on the lingerie market in China. Trying to promote a sexy image with fashion that has been a great success with companies like Victoria secret. With a stronger Western influence, young Chinese girls begin to develop a similar taste to Western’s one. Women in China are beginning to emancipate themselves and lingerie is a sexy new way of expression.
Nowadays, Chinese women spend 10% of their expenses in their underwear. the Chinese market is growing fast and the possibilities are endless. Brands should make every effort to adapt to the Chinese market, because habits change from one country to another, and this applies also to China more than any other country.
Chinese consumers are much more modest and conservative compared to Western women who find sexy, transparent lingerie and nightwear. Colors are one of the aspects to take very into consideration when entering the Chinese market: Indeed, Chinese are quite superstitious, especially when related to colors, Chinese have preferences on the ranges of red and rose colors. The Chinese women have a smaller and thinner bust compared to European women, but they also tend to have a larger chest. Chinese morphology differs a lot from western countries. For Chinese consumers, the choice of underwear depends on the influence of the communication campaign and advertising, the quality of the product and the price of the product.