1. <dd id="afufw"><noscript id="afufw"></noscript></dd>
        <th id="afufw"></th>

          <tbody id="afufw"><pre id="afufw"></pre></tbody>
          <th id="afufw"></th><th id="afufw"></th>
        1. Home / Knowledge / News / Apparel/Garments / PRC apparel market to see $60-bn contraction: survey

          PRC apparel market to see $60-bn contraction: survey

          Jun '20
          Pic: Shutterstock
          Pic: Shutterstock
          More than 75 per cent of Chinese consumers reduced or postponed purchases on apparel and footwear and their total spending decreased by 45 per cent in the first quarter of 2020, according to a latest survey by New York-based global management consulting firm Oliver Wyman, which found there was little retaliatory spending in April and May. The largest apparel market is expected to see a 15 per cent contraction in 2020, equivalent to about $60 billion in market value.

          On the bright side, the survey found that consumer spending would probably return to its 2019 level in the second half of 2020.

          “It is going to be a turbulent year, with structural and longer-term shifts in the apparel and footwear market in China,” said Imke Wouters, partner of Oliver Wyman, who led the survey.

          “Despite the industry downturn, we are seeing the further growth of e-commerce, with an accelerated penetration into sub-segments, such as high-income customer groups. The post-COVID market is expected to be more polarized across income levels and city tiers,” an Oliver Wyman press release quoted him as saying.

          The COVID-19 outbreak has exacerbated the spending gap between the high and low-income groups. The low-income group tends to buy less and trade down for essentials. More than 70 per cent of the low-income survey respondents said they would prefer good value for money, and more than 60 per cent said they would purchase essentials only.

          On the other hand, the respondents from the high-income group said they would trade up and go for both value and quality, with 54 per cent of them saying they would still look to buy products offering higher quality and functionality, and 56 per cent of them saying they also preferred items offering value for money.

          Another key change brought about by the COVID-19 outbreak is how some shopping channels have fared better than others. With the shift to e-commerce accelerating with the onset of the COVID-19 outbreak, Oliver Wyman predicts online channels could take up to half of the entire market in 2020, rising significantly from 34 per cent in 2019.

          Traditionally favouring shopping for apparel and footwear in stores, shoppers from the high-income group have jumped to become the biggest online spenders during the outbreak, carrying out 64 per cent of their spending online. While some growth was seen in the share representing pure online shoppers, dominated by the younger generation, most of the survey respondents said that they would still like to do their shopping in multiple channels.

          Thus, offline stores still have a useful role to play. Specifically, the survey indicates a relative rebound in certain brands’ offline stores for the remainder of the year. However, sales in department stores are not expected to come back robustly.

          More than 40 per cent of the survey respondents said they would still like to try on the products they are interested in and make sure of their quality hands-on. In particular, new features such as new technologies, exclusive offline products, and personalised services would encourage more than 60 per cent of the respondents to visit and possibly make a purchase in an offline store in future.

          The survey also found that the sportswear sector showed stronger resilience in its offline presence than the general apparel market. Compared to the average consumer, sportswear fans said that they intend to shop more at various sportswear brands’ own stores in the next one to two years.

          “The impact of the COVID-19 outbreak on China’s high-street fashion market has been material. We have seen the market recover to some extent as people’s lives have started getting back to normal, but retaliatory spending was not widely observed right after the outbreak began to subside. For the remainder of the year, we believe the market’s overall growth will still be lower than the historical level. Fashion retailers need to adjust their proposition to address consumers’ changing behaviours, rationalize their store networks, and take cost-control initiatives to minimize their losses while also prepare for the future,” added Wouters.

          The survey was fielded between April 30 and May 12 and covered 1,000 consumers in China who had purchased apparel and footwear products in 2019.

          Fibre2Fashion News Desk (DS)

          Must ReadView All

          Pic: GOV.UK

          Textiles | On 25th Nov 2021

          Uzbekistan 1st beneficiary of UK Enhanced GSP Scheme

          Uzbekistan became the first country to be officially admitted to the...

          Pic: Tomas1111 | Dreamstime.com

          Textiles | On 25th Nov 2021

          12,605 services by China-Europe freight trains in Jan-Oct period

          More freight train services linked China and Europe in the first 10...

          Pic: Boarding1now | Dreamstime.com

          E-commerce | On 25th Nov 2021

          Vietnam to be fastest-growing e-com market in SE Asia by 2026: Report

          Vietnam is expected to be the fastest-growing e-commerce market in...

          Interviews View All

          Water stewardship, Stakeholders

          Water stewardship

          Water use efficiency remains relatively unexplored

          Textile Industry, Head honchos

          Textile Industry
          Head honchos

          Liquidity is a primary issue in Indian context

          Textile Industry, Head honchos

          Textile Industry
          Head honchos

          Strongly believe in 'people first' policy.

          Klaus Bergmann,

          Klaus Bergmann

          German company Erbatech GmbH develops, designs and manufactures high end...

          Raiyan Islam,

          Raiyan Islam

          Founded in 1981 by Sayeeful Islam, Concorde Garments Group is a market...

          Ritu Oberoi,

          Ritu Oberoi

          Established in 2018, Forsarees is a socially driven business enterprise,...

          Keith McMillen, Bebop Sensors

          Keith McMillen
          Bebop Sensors

          Bebop Sensors' smart fabrics allows for a new level of interaction between ...

          Sven Ghyselinck, Devan Chemical

          Sven Ghyselinck
          Devan Chemical

          Headquartered in Belgium and with offices in the United Kingdom, Portugal...

          Serkan Gogus, Mogul Nonwovens

          Serkan Gogus
          Mogul Nonwovens

          Mogul is a global player ranked among the top 40 nonwoven producers in the ...

          Sunita Shanker, Label Sunita Shanker

          Sunita Shanker
          Label Sunita Shanker

          Inspired by the rich traditional crafts of India, Sunita Shankers work is ...

          Vidur Adlakha & Riccardo Bennidini, La Fuori

          Vidur Adlakha & Riccardo Bennidini
          La Fuori

          With an active presence in US, Italy and India, clothing brand La Fuori...

          Anju Modi, Label Anju Modi

          Anju Modi
          Label Anju Modi

          Filmfare Award winner for best costume designer,<b> Anju Modi </b>is...

          Press Release

          Press Release

          Letter to Editor

          Letter to Editor

          RSS Feed

          RSS Feed

          Submit your press release on


          Letter To Editor

          (Max. 8000 char.)

          Search Companies


          Leave your Comments

          November 2021

          Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

          Advanced Search

          <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <֩>| <ı> <ı> <ı> <ı> <ı> <ı>