China Garment Market
In brief, China garment market showed an upward trend in the period of 2011 to 2016. The revenue of this market increased from CNY1,381.0 billion in 2011 to CNY2,167.0 billion in 2016, representing a CAGR of 9.4%. In the following five years, driven by the increase in disposable income, improvement of living standard and multiple sales channels, China garment market is estimated to grow at a CAGR of 7.9%, reaching CNY2,933.1 billion in 2020.
Main Drivers of Garment Market in China
The Steady Growth of Disposable Income in China
The per capita annual disposable income of urban households in China increased from CNY21,810 in 2011 to CNY33,351 in 2016, realizing a CAGR of 8.9%. The per capita net income of rural residents in China increased from CNY6,977 in 2011 to CNY11,517 in 2016, realizing a CAGR of 10.5%. The annual income of urban households and rural residents is expected to enjoy a steady growth in the next few years, with a CAGR of 6.0% and 6.8% respectively from 2016 to 2020. The growth in annual income level of people in China will directly stimulate the general consumption, in particular, those related to daily life such as garments and food. With the stronger willingness to make consumption, China garment market is likely to be driven up by strong spending.
Rising Brand Awareness of Consumers
Due to rising purchasing power and living standard, Chinese consumers prefer branded garment over non-branded ones as they represent finer quality, aesthetic design, personal style and sense of decency. Well branded garment companies are hence expected to experience a highly positive growth over the forecast period.
Pursuit of Fashion and Personality
In the recent years, the trend of fashionable and casual design in China garment market has generated customer demand for garments with various styles to fit into different social situations. Chinese consumers, along with increasing fashion awareness, intend to purchase multiple sets of clothes. And local garment brands and manufacturers are also creating new series.