Underwear industry: pattern acceleration transforms, high - speed growth can expect

- Apr 24, 2019-

Production capacity distribution focuses on guangdong, Vietnam

    In terms of the regional distribution of China's underwear industry, China is now mainly concentrated in guangdong, the Yangtze river delta and Beijing and other places.

    Guangdong area is current our country underwear produces the biggest area, among them shantou, foshan wait for a place to be more famous.

    We focus on Vietnam for the distribution of underwear production capacity overseas. Currently, enterprises that focus on the supply of upper and middle reaches of underwear (e.g.

Industry concentration is still improving, the future of medium - high - speed growth is expected to be sustainable

    At present, the market share of foreign dominant underwear enterprises in the local market is more  than 20%, while the market share of China's single underwear brand is less than 10%. However, according to the data in recent years, the industry concentration of China's female underwear industry has been continuously increasing.

    In 2008, the market share of China's underwear brand CR5 was about 24%.In 2013, that number rose to 32%.In 2015, that number rose to 36%.At the moment, we are forecasting about 40 per cent.

Tmall combines multiple factors such as repeat purchase rate, sales volume and customer price to get the current top 10 list of Tmall women's underwear.

    We believe that in the current market stage, the development of a single brand has a ceiling effect and there is a risk of a single brand operation, multi-brand operation of enterprise groups, in the process of industry concentration will be preferred to benefit.

We believe that for the underwear industry, China's demographic dividend has not yet fully played.

First of all, China's working-age female population is huge.At present, the number of women in this age range in China is basically stable at more than 485 million, and underwear consumption has a good population basis.

    Secondly, China's women's consumption of underwear presents an overall upgrading trend, and their demand for wearing underwear in different scenarios gradually increases. With the improvement of per capita disposable income and the change of consumption concept, China's per capita expenditure on underwear is expected to continue to grow.

In conclusion, we believe that the whole industry is expected to maintain medium-high growth in the future.

Online living brand shows amazing vitality

    At present, the market concentration of domestic underwear industry is still rising. Traditional enterprises prefer the development of multi-brand and multi-category, and e-born brands in segmented fields are rising rapidly and showing amazing vitality.

According to incomplete statistics, only in the past year, the domestic underwear industry about 200 million yuan of investment and financing amount.

    Looking at the relatively smooth development of the network brand, we believe that there are mainly the following characteristics:

1) it is easier for consumers to identify with Oriental culture with brand names.

At present the underwear brand name with higher industry market share has more "fen", "an", "ni", "oli" and other words, brand pronunciation has a strong western language color.

However, the name of the emerging online brand is mostly based on the Chinese context. The pronunciation of the brand name makes it easier for consumers to have a sense of cultural identity, and the overall tone is different.

2) obvious brand differentiation and strong product iteration ability.

At present, there are well-developed online brands in China with different positioning. Some focus on the fashion of light luxury and underwear, some on data customization, and some on extreme single product. On the whole, the brand differentiation is obvious.At the same time, its product iteration ability is strong, supporting the continuation of the brand.

3) innovation in channels and marketing.

In the online marketing of nethealth brands, theme, hot spots and other scene-based copywriting will be adopted to increase the number of plain models and experiential designers and strengthen the interaction with consumers. Generation Z and generation Y have a high acceptance.

To successfully realize the brand from online to offline, most physical stores choose the middle and high-end business circle in first-tier cities or new first-tier cities.

Emerging network of brand marketing sensitivity is very high, publicity, pay attention to the balance between tonality and marketing.

Underwear is a subdivision of textile clothing, its wear and replacement frequency, rigid demand, anti - cyclical strong.

    After years of development, the overseas underwear market has become more mature. At present, due to the transfer of consumer groups' center of gravity and globalization, mergers and reorganizations are frequent.

    The domestic underwear market is still in the growth stage. Although some brands are well-known, the concentration of the whole market is still low.Through multi-brand and multi-category layout, traditional underwear enterprises smooth business risks and optimize product structure.

    At the same time, domestic online underwear brands have shown amazing vitality, which has caused a great impact on the traditional enterprises with a large proportion of offline channels.Generally speaking, the pattern of underwear industry at home and abroad is accelerating.

    We believe that the domestic underwear market in the future will remain a high-speed growth, China's underwear age wear huge population base, growing segment of the lingerie scene wear requirements and leisurewear and men's underwear market need to be developed, and many other factors, are expected to form a strong support to the size of the market growth.

    From the underwear enterprise sample portfolio performance, performance performance in recent years than the industry.

    Some enterprises are slow to adjust their business strategies, and their performance scale and profitability have decreased significantly. However, some enterprises have the advantage of moat effect in the industrial chain