Western Apparel Firms Enter the Chinese Market

While China’s exports grew significantly for years, many Western apparel firms are opening retail locations in China, hoping to tap into the country’s growing upper and middle class. Highly regarded foreign brands, luxury items and logos are very much in demand from newly affluent Chinese consumers.

Hennes & Mauritz AB, which owns the H&M chain of clothing stores, had 353 stores in China as of November 2015. Coach, Inc. has added large numbers of stores in China. Nike is a major presence in the Chinese retail market also. Towering multi-story ads featuring American NBA athletes are prominently displayed in downtown Shanghai and Beijing. Gap, Inc. opened its first Chinese store in late 2010. Many major apparel retailers look upon China as an important long-term market. In particular, luxury fashion and accessories firms have been enjoying brisk sales in both mainland China and Hong Kong, and many chains have been expanding there rapidly. Vast new malls have been opening in China on a regular basis, giving apparel store operators plenty of opportunities to create new stores. Many of these malls are within walking distance of new luxury hotels and major office complexes.

However, beginning in mid-2013, China’s growth began to slow, and the entire nation was going through a new focus on reducing corruption among public officials as well as conspicuous consumption in general. The volume of luxury items being purchased to be used as gifts to government officials is down considerably.

One issue that Western retailers must face is a general difference in Chinese body shapes and sizes. When compared to Westerners, most Chinese people have narrower hips which pose a problem when it comes to fit. Retailers could, of course, design separate lines for the Chinese market. However, doing so would incur great expense and complicate the production process. The booming market in China for goods of all kinds poses an economic potential of huge proportions. Global retailers and manufacturers cannot afford to overlook it.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Become a Plunkett Research Online subscriber to gain unlimited access to our massive amount of vital industry data and market research.

✔ 100,000 Industry Statistics
✔ 500 Industries Analyzed for Market Size, Profits and Forecasts
✔ 150,000 Industry Executives Profiled
✔ 25,000 Companies Profiled, Ranked and Analyzed
✔ 1,000 Vital Trends Analyzed, totaling 1,000,000 words

Learn More

Western Apparel Firms Enter the Chinese Market, Business and Industry Trends Analysis

A Representative List of Organizations that Have Used our Research and Products:

How to access Plunkett Research data.

What data challenge can we help you solve today?

Take a Tour

Contact

Testimonials