Chinese favor 'value for money' domestic apparel brands

The proportion of Chinese consumers who like domestic apparel brands has more than doubled to 46 percent compared to two years ago, according to a survey

More Chinese are starting to favor Chinese apparel brands now according to a survey, which also pointed out that top international brands are the still the frontrunners.

The proportion of Chinese consumers who like Chinese apparel brands has more than doubled to 46 percent compared to two years ago, said the survey covering 2,450 respondents in 22 domestic cities by consulting firm OC&C Strategy.

China’s apparel market has grown by double digits for decades and overtook the US to be the biggest apparel market in the world in 2015 and is now worth close to US$300 billion, according to market research firm Euromonitor International.

Although negativity toward domestic labels has dropped to a record low of 10 percent from 24 percent two years ago, the research also suggests Chinese brands still suffer from a less competitive marketing strategy and product design.

Respondents said they chose “value for money” and “Chinese elements” as the top reasons for buying Chinese apparel brands while they focused on “better quality”and “better design” when they bought international apparel brands.

But top international brands are disproportionately favored as domestic labels continue to lose out to foreign competitors in terms of business performance. Front runners  are  predominantly international brands, with Uniqlo, Adidas and Jack & Jones occupying three of the top five spots.  

But "China still presents lucrative opportunities. If local apparel brands are to regain dominance, developing a strong understanding of Chinese shoppers will be pivotal,” said Jack Chuang, partner,  China, OC&C Strategy Consultants.





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