Why Chinese millennials dress for the lifestyle they aspire to – and why brands need to think beyond ‘niche’ to succeed in China in 2020
Local competition is fierce in China; to do well in this market, brands need to embody an identity that belongs to somewhere inspiring
In terms of business intelligence, articles and reports on China, we often read and hear that “niche” is what young Chinese consumers want. It is the case that non-mainstream, bold and distinct fashion is capturing their interest – but what do we find when we delve deeper? In the past 12 months, there have been successful market entrants and big winners – yet 2019 was a difficult year for some big names in fashion. What can be learned as we swing into 2020?
In November, high-end e-commerce Yoox announced it was leaving China, following in the footsteps of Old Navy and Forever 21, and before them New Look, Topshop, ASOS, Marks & Spencer and Macy’s. While China fuels the world’s fashion growth, its fashion market remains hard to penetrate for international players. Why?
Local competition is fierce. Having grown up in an era of relentless prosperity in China, young Chinese fashionistas are spoiled by the country’s hyper-efficient e-commerce system. For a spontaneous fashion splurge, they could head to Taobao, Tmall, JD, Netease’s Yanxuan, Little Red Book, or one of the countless influencer-run WeChat marketplaces for a good deal and get it delivered to their home the next day. While a D2C (direct to consumer) brand that sells trendy clothes at an affordable price point might be lauded as “innovative” or “rule-breaking” (or worse, disruptive) in the West, it has been a reality in China for many years. As well as having countless international brands vying for their attention and spend, the unbranded copycat market can duplicate a generic look rapidly.