Introduction: Foreign investment retreats, domestic products rise
After the cancellation of Shanghai Fashion Week and removal from the entire network caused by the D&G commercial in 2018, more international brands will be seen in 2019 due to lack of The recognition and understanding of traditional Chinese culture has paid a price. Internationally renowned brands such as Versace, Coach, and Givenchy have terminated the contracts of their spokesmen due to incorrect geographical divisions. The brand represented by Anta has been terminated due to the wrong remarks of NBA executives. Terminate cooperation with them, etc. We also found that after experiencing a golden development period in the Chinese market, more and more international clothing brands have announced their withdrawal from the Chinese market since 2016, including British ASOS, M&S, Topshop, and NewLook, and American brands Forever21 and Old Navy. Japan’s forest-style women’s clothing brand Earthmusic&ecology, and even fast fashion leader ZARA began to close stores in China in 2018. At the end of December 2019, four stores in Wuhan were closed at the same time.
At the same time, we have seen that local brands including Li Ning, Bosideng, Antarctic, Peacebird, Jai Alai, Sangun, Feiyue and other local brands have regained popularity in the market after experiencing changes in the external environment and their own in-depth changes. ; At the same time, new domestic brands including 90 Fen, Zhihe, UR and other brands have also begun to accelerate their rise. Take Antarctic e-commerce as an example. Leveraging the rapid development of e-commerce channels, the company’s GMV has grown from less than 1 billion in 2012 to over 30 billion in 2019. The growth is brilliant. The Nanjiren brand leads the sales of textile and apparel categories on the entire network. The 90-point brand that leveraged Xiaomi’s ecological chain has emerged. In less than four years from its establishment in 2015 to 2018, its GMV exceeded 1 billion yuan, surpassing Samsonite and becoming the number one brand in terms of trolley case shipments in the Chinese market. As for Li Ning and Bosideng, which have experienced deep adjustments in the early stage, their operating income reached an inflection point around 2015, and showed a significant acceleration after 2018.
According to data from the Ali Research Institute, in 2018, Chinese brands accounted for 71% of the online consumer market, while the online high-end market accounted for 29.1%, which increased in 2017/2018. 3.6/2.2pct; among them, the high-end market share of local brands in the clothing field has steadily increased, while the market share of local brands in the sports and outdoor field has accelerated in 2018, confirming the accelerated rise of local clothing brands.
In this report, we will first analyze the core driving factors for the formation of competition patterns in different categories based on the competitive landscape of local and overseas brands in mature countries. At the same time, we will take UNIQLO, which has been established for less than 40 years, as an example. For example, analyze how it grew into Asia’s number one apparel company based on the Japanese local market. Secondly, based on the review of the development history of China’s garment industry over the past century, we analyze the evolution of the competitive landscape of the garment industry at different stages and its core influencing factors, in order to understand the reasons for the formation of the current competitive landscape of my country’s garment industry; further, we will base on social and cultural From multiple dimensions such as , channels, consumers, and the company itself, analyze why domestic brands are accelerating their rise at this point in time. Finally, we will take representative domestic brands such as Li Ning, Antarctic, and 90 Fen as examples to analyze their differentiated rise.
The stone from other mountains, the pattern of footwear and clothing in mature markets and the rise of giants
High frequency of clothing consumption and non-standard products, diversified consumer demand Numerous market segments have been derived, and the industry is naturally fragmented due to low entry barriers; at the same time, in addition to meeting the basic functional needs of consumers, clothing is also a symbol of consumers’ status, life attitude, and personal style, and has a certain cultural Attributes. Different clothing segment industries are affected by differences in category attributes, and the competitive landscape also shows obvious differences. In this chapter, we selected the four representative clothing consumer markets of China, Japan, the United Kingdom and the United States, compared the three major subcategories of sports, women’s clothing, and children’s clothing, and distinguished the competitive landscape of local and foreign brands to analyze and determine different subdivisions. The core elements of the formation of category competition pattern. At the same time, we take Uniqlo as an example to review how it established a foothold in the Japanese market and gradually grew into Asia’s number one clothing company in less than 40 years, in order to learn from the rise of domestic brands.
What is the competitive landscape of the footwear and apparel markets in mature countries?
1) Sports: high concentration, brand globalization The CR10 of the competitive sports shoes and apparel industry is significantly higher than that of women’s and children’s clothing, and the competitive patterns of representative countries show certain similarities. The top two brands are NIKE and adidas, while brands such as Skechers, PUMA, TheNorthFace, and NewBalance also Ranked in the top ten in 3 countries. From the perspective of brand origin, the United States, as the most developed sports consumer market in the world, has given birth to many world-renowned sports brands such as NIKE, UA, Skechers, Columbia, New Balance, Reebok, and TheNorth Face.The chain and industrial clusters are relatively complete, and product quality can meet the consumption needs of target consumer groups. At the same time, the credit system established by the e-commerce platform using technical means and platform credit endorsement, as well as the terminal horse racing mechanism, are the basis of this model. At the same time, the platform, suppliers, brands and dealers work together to control quality.
Category expansion: The ecosystem is blooming in more places and expanding rapidly with low trial and error costs. Nanjiren’s category expansion opportunities are relatively diverse, including self-exploration of opportunities (home textiles), as well as the extension of sub-categories from traditional suppliers, the expansion of new suppliers, etc. Antarctic e-commerce will conduct a detailed evaluation of the category: whether there are market segments, whether it has economies of scale, whether there are price gaps, etc., and will join hands to enter after meeting the standards. The Antarctic E-Commerce Association provides partners with resources (traffic, activities, etc.) support, product research and development, rate concessions and other aspects of support. By superimposing the accumulation of supply chain resources by suppliers, the efficiency of category expansion is improved under the strong alliance, and the cost of trial and error is significantly reduced. decline.
Korrun: Riding on the expansion of Xiaomi and implementing the efficiency revolution, Korrun is a company that provides users with complete travel product solutions around high-quality travel scenarios. The company originally started as a luggage OEM, and then founded the 90-point brand in 2015. In a market lacking high-quality products, it used the ultimate single product and Internet thinking to achieve sales from 0 to 1 billion in less than 4 years. It has developed rapidly and surpassed Samsonite to become the number one brand in China in terms of luggage shipments. We summarize the success factors of 90 points from the four dimensions of market, structure, channel, and product.
Market: The high number of trips and the surge in luggage replacement support the high prosperity of the luggage industry. The increase in per capita disposable income has brought about the awakening of experiential tourism consumption, and the number of tourist trips has maintained rapid growth. The trolley case category is undergoing a transition from “soft cases” to “hard cases” and “one-way wheels” to “universal wheels”, which has brought about a significant increase in the frequency of replacement of luggage categories and also provided opportunities for industry changers. Opportunities to overtake in corners.
Pattern: Positioning the ant market, focusing on the main e-commerce price zone. my country’s luggage market is a typical ant market, that is, the market is extremely fragmented, lacking an absolutely leading large enterprise, and the huge market is divided up by small companies like ants. In addition to the fragmented market structure, the luggage market also shows the characteristics of large price differences. . In terms of price positioning, the 90-point brand is accurately positioned in the main price range of trolley case transactions on e-commerce channels, achieving coverage of the widest range of consumer groups. At the same time, it also achieves differentiated competition with leading brands.
Channel: Leverage the explosive Xiaomi channel to seize the industry dividends from channel changes. Traditional offline retail has many pain points such as long industrial chains and high markup ratios; traditional centralized e-commerce traffic costs are becoming more expensive, which is also gradually shrinking the profit margins of brand owners. The rise of new model enterprises represented by Xiaomi Ecological Chain has diverted traffic through Xiaomi fan groups, greatly reducing the cost of traffic diversion; through direct connection between traffic sources and supply chains, the reconstruction of the industrial chain and value chain has been achieved, and the operational efficiency of the industrial chain has been greatly improved. Improvement has caused a dimensionality reduction blow to the traditional retail model. Leveraging the explosive Xiaomi channel, 90fen has fully grasped the industry dividends brought about by channel changes.
Product: The ultimate single product polishing process to improve the quality and tonality. In the early days of its establishment, 90 Points adhered to the ultimate strategy advocated by Xiaomi, focusing on large-scale products priced at 299 yuan. By streamlining SKUs, it focused its limited resources on a few to create products with high cost performance. In terms of product design, 90 points product design is simple and exquisite, focusing on high cost performance, targeting young people who pursue high quality of life, and is in line with the trend of consumption upgrading. At the same time, the high-quality brand OEM + well-known supplier cooperation system for many years has also established the company’s high-quality supply chain value in the luggage field.
Based on our analysis of Li Ning, Antarctic E-commerce and Korrun By analyzing the rise of domestic products of three representative companies, and comparing the rise of UNIQLO listed in the first part, we believe that the common points are: 1) Complying with the general trend of social and cultural development, which is also the foundation for the growth of consumer goods brands. Uniqlo complies with the development trend of parity and quality upgrading in the context of the Japanese market recession, and launches affordable products with popular positioning; while this round of Chinese domestic brands conforms to the trend of increasing preference for domestic products in the context of increasing national confidence and the return of traditional culture.
2) Fashion trends are changing rapidly. Following the temporary trend can help the brand get started quickly, but the efficiency advantage is the core for the brand to maintain its long-term competitiveness. Uniqlo started with an efficient and integrated SPA model, and later proposed a “clear plan” to promote the company’s transformation into a “digital consumer retail enterprise” and continue to maintain its efficiency advantage. Compared with domestic brands, Li Ning, Bosideng, etc. generally used retail after the inventory crisis. Transformation, supply chain optimization, channel upgrading and other profound internal changes, and brands such as Nanjiren and 90fen have emerged based on the Internet innovation model that compresses the industrial chain and significantly improves retail efficiency.
In comparison, the differences are more reflected in emerging channels and emerging marketing and publicity methods. The rise of e-commerce channels is not only a change in consumption channels, but also significantly shortens the distance from the back-end supply chain to front-end consumers; at the same time, under the background of decentralization, traffic entrances are becoming increasingly dispersed. The accelerated emergence of new models and new brands based on changes in front-end traffic is also making it easier for new brands to emerge.
The opinions in the report belong to the original author and are for reference only. Author: Changjiang Securities, Yu Xuhui, Lei Yu, Ma Rong, Li Lixuan
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In comparison, the differences are more reflected in emerging channels and emerging marketing and publicity methods. The rise of e-commerce channels is not only a change in consumption channels, but also significantly shortens the distance from the back-end supply chain to front-end consumers; at the same time, under the background of decentralization, traffic entrances are becoming increasingly dispersed. The accelerated emergence of new models and new brands based on changes in front-end traffic is also making it easier for new brands to emerge.
The opinions in the report belong to the original author and are for reference only. Author: Changjiang Securities, Yu Xuhui, Lei Yu, Ma Rong, Li Lixuan
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