fast-fashion-in-China-analysis-20150510

-Definitionoffastfashionmarket-Marketvolumeoffastfashionindustry-Chinesecustomersanalysis-ValuechainoffastfashionindustryinChinaWhat’sfastfashion?Fastfashionreferstolow-costclothingcollectionsthatmimiccurrentluxuryfashiontrends1.[1]JoyA,SherryJF,VenkateshA,etal.Fastfashion,sustainability,andtheethicalappealofluxurybrands[J].FashionTheory:TheJournalofDress,Body&Culture,2012,16(3):273-296.[2]Hines,Tony,andM.Bruce.2001.Fashionmarketing-Contemporaryissues.Oxford:Butterworth-HeinemannFastfashionisacontemporarytermusedbyfashionretailerstoexpressthatdesignsmovefromcatwalkquicklyinordertocapturecurrentfashiontrends2.Resource:Fastfashioncomesfrom20thcenturyEurope.itiscalled“SpeedtoMarket”inAmerica,and“McFashion”byEngland《TheGuardian》，meaningsellingfastfashioncostumeisjustlikeMcDonald’s.Fastfashionsuppliescurrentfashionablestylesandelements,withthecharactersoflowprice,morestyles,lessamounttostimulateconsumerinterestandmaximizedmeetconsumerdemand.Inanotherword,fastfashionistheoutcomeoffoursocialtrends,globalization,democratization,youngerandnetworking3.[3]王晶.快时尚刍议(A).服饰导刊.2013,31ChineseclothingmarketandfastfashionindustryResource:Euromonitor,Anxinstockresearchinstitute(安信证券研究)10.312.814.210.28.27.576.56.45.90246810121416050001000015000200002500020082009201020112012201320142015E2016E2017E2018EChineseclothingsalesandgrowthClothingsales(100millionYuan)Clothingsalesgrowth(%)20.00500.001,000.001,500.002,000.002,500.003,000.003,500.004,000.004,500.005,000.002007-01-042008-01-042009-01-042010-01-042011-01-042012-01-042013-01-042014-01-042015-01-04Chinafastfashionstockmarket0.0010.0020.0030.0040.0050.0060.0070.002014-10-222014-11-222014-12-222015-01-222015-02-222015-03-222015-04-22ChinafastfashionPEratio(%)Resource:CITICS(CiticSecurities)-AccordingtoEuromonitorprediction，ChineseclothingmarketsaleswillkeepaCompoundgrowthrateat6.8from2014to2018，and2018clothingmarketsaleswillupto2100BillionYuan.-AccordingtheindustryindexandPEperformanceofChinafastfashionfromCITICS,showfastfashionmarketinChinahavegreatprofitandinthequickandhealthydevelopmentprocess.0204060801001201999200020012002200320042005200620072008200920102011201220132014Americaneachcategoryclothingconsumptionexpenditureswomen's clothing(%)men's clothing(%)children clothing(%)Resource:Bloomberg,Anxinstockresearchinstitute(安信证券研究)Chineseclothingmarketanalysis-Withtheriseoffemaleconsumers,women'sclothingintheclothingconsumptionintheproportionwillgraduallyincrease.Justlikethefollowingtables,takeAmericanclothingmarketdataforexample,Americanwomenclothingconsumptionaccountedfor60.3%in2014,upfrom57.2%in1999,comparedwithmaleclothingconsumptionproportionfellto32.9%from37.8%.-AccordingtoEuromonitorprediction，2018clothingmarketsaleswillupto2100BillionYuan.ConsumethatinChineseclothingmarket,womenclothing,menclothingandchildrenclothingoccupy58%、32%、10%respectively,in2018,womenclothingmarketwillbe1260BillionYuan,with8.5%GAGR,higherthan6.6%GAGRofoverallretailmarket.3-UntilDec,2014，Chinanetworkshoppinguserscaleisupto0.36Billion,witha19.7%risegrowth,59.5millionbiggerthanthatin2013.Andnationalshoppingonlineincreasesfrom48.9%to55.7%.-Mainly,thepopularonlineshoppingchannelinChinaareTaobao,Tmall,andJingdong,whicharementionedinallonlineshoppingplatformabout87%,69.7%,45.3%duringinvestigationrespectively.Andamongtheonlinegoods,clothingisthebiggestpart.8769.745.318.816.214.212.912.611.7020406080100TaobaoTmallJingdongVIPDangdangSuningE-commerceStoreNO.1AmazonJumei2014networkshoppingmarketplatform（%）48.955.728.942.20102030405060010000200003000040000201320142013-2014ChinanetworkshoppingandmobileshoppingNetworkshoppinguserscale(10thousand)Mobileshoppinguserscale(10thousand)Onlineshoppingusage(%,netizensshare)Mobileshoppingusage(%,mobileInternetusersshare)ChinesenetworkshoppingmarketResource：CNNIC,2015,《ChinaInternetnetworkdevelopmentstatestatisticreport》75.645.143.334.932.730.625.722.722.41801020304050607080garment,shoeandcapGeneralMerchandiseComputers,communications,digital…virtualcardofprepaidphoneCARDS,…Suitcase and bagCosmeticsandbeautyproductsBooks,audioandvideoproductshousehold appliancesFood/VitaminSportingGoods2013ChinagoodscategorypercentagethatshoppingonlineuserpurchasedResource：CNNIC,2014，《shoppingonlinemarketdevelopmentreport》4DiversificationVariousbrandPersonalpreferenceCulturaldegreeTerritoryAgeIncomelevelEducationbackground01334813style,68CONCERNEDQUESTIONWHENBUYWOMEN'SCLOTHINGaftersalespublicpraisepricepopularityfabriccolorqualitystyleCustomeranalysis-Therearemanyfactorseffectingcustomerspurchase,likeincomelevel,age,culturaldegreeandeducationbackground,personalpreferenceandsoon.-Womencustomerwhenbuyclothing,morecareaboutthestyleandthenquality.Resource:Anxinresearchinstitute,《womencustomerinvestigation》52%59%39%0%10%20%30%40%50%60%70%High-endconsumerMid-rangeconsumerLowconsumerwomenclothingcustomercategory0500100015002000250030003500400045002021-2526-3031-3536-4040womenaverageperyearclothingexpenditureindifferentages(unit:yuan)Resource:Anxinresearchinstitute,《2014Chinawomenclothingmarke