The COVID-19 (Coronavirus Disease 2019) pandemic is still deeply and widely impacting the world, and is also affecting the supply and demand chains of the apparel fashion industry in China. As a pillar industry of the national economy, a stable domestic fashion industry is of great importance as it can help ensure people’s livelihood and promote employment. Meanwhile, it is also important to multinational companies that are concerned about the business environment and the huge consumer market in China.
The center of the fashion industry moves eastward, and the potential in the Chinese market is great
「Fashion has become an integral and important part of modern life, enriching people’s material and cultural life, and playing an increasingly greater role in the economy. In general, it has become an economic momentum,」 said Sun Yao, Deputy Director of the Beijing Municipal Commerce Bureau.
According to third-party research, the global center of the fashion market has been moving eastward, as the Asia-Pacific market is growing strongly. In 2018, the Asia Pacific market contributed nearly 40% of global apparel and footwear sales.
In recent years, more and more fashion companies have entered the Chinese market. According to Sun Yao, China has formed a number of industrial clusters for jewelry, apparel, fashion electronics, etc.; fashion companies are focusing on the construction and promotion of their own brands, establishing some outstanding domestic brands, which have also achieved fame around the world. In addition, more and more global well-known luxury brands are designing using Chinese elements, and more and more Chinese designers are taking part in international fashion weeks.
「Since the 18th National Congress of the Communist Party of China in 2012, China has carried out economic strategies focusing on innovation, to bring about new momentum. China has perfected social services and issued a number of favorable policies for the fashion industry. Nowadays, the fashion industry has become a key indicator for the competitiveness of a city,」 Sun Yao said.
「The continuously upgrading and developing consumption structure in China has ushered in a new era, and it is the same for fashion consumption. Taking clothing as an example, clothes represent an important market growth point, as they are one of the basic mass consumption merchandises,」 said Chen Dapeng, President of the China National Garment Association and Vice President of the China National Textile and Apparel Council.
Chen Dapeng also expressed the idea that, from a basic demand for survival to seeking out individuality, and from quantity to quality consumption, Chinese consumers are currently placing more value on individuality, fashion, quality, function, experience and so on. Brands of outstanding quality, and with intimate services, satisfying experiences and a high cost performance have won favors in the fashion consumption market, supporting and promoting the quality development of the apparel industry.
Digital technology boosts industrial upgrading, and innovation becomes the key
Chen Dapeng said that new products, new services, and new models based on the Internet and digital technology are constantly inspiring and creating new consumer demands, providing stable stimulation to consumption reforms, industrial transformation and economic development. An industrial transformation of innovation is under way in the textile and apparel industry, and may have redefined the industry. It is now more advanced in technology and greener, boosting industrial transformation and upgrading and innovating development.
Therefore, the fashion industry needs to accelerate the adoption of new technologies such as digitization, networks, big data and artificial intelligence across the industrial chain, and should reconstruct the consumption-oriented value creation mechanism. On the other hand, participants in the industry need to further make insights into changing contemporary lifestyles and take these opportunities. By understanding and learning from diverse cultures around the world and by expressing the excellence of Chinese culture, companies in China should comprehensively enhance the creative ability of the fashion culture.
「Currently, consumption is playing a greater role in promoting economic growth, and a strong domestic market in China is also accelerating. Meanwhile, China is a continuously expanding market with diversified demands and an optimizing and upgrading structure. New consumption brings new energy to cities. We must unswervingly insist on supply-side structural reform, rely on innovative reform and opening up, and stimulate the market, in order to provide a Chinese contribution to the construction of an open world economy,」 Chen Dapeng said.
Vice President of the China General Chamber of Commerce, Wang Yao, said that the fashion industry in China is facing a great transformation. The cycle of fashions has been greatly shortened, and fashion brands have an update rate as short as a week or so. All of these factors will lead to changes in circulation channels. Companies will adopt a future model that provides consumers with direct and instant fashion experiences, namely, fashion brands will have tighter connections with customers through physical stores and online sales channels.
Faced with the pandemic, the fashion industry should seek out new opportunities and international cooperation for high-quality development
IMF estimates that China will regain an economic growth rate of 9.2% in 2021, reflecting the confidence of the world in long-term Chinese economic development. The global market, including the clothing industry, is paying close attention to the reopened Chinese market and the post-pandemic trends.
At present, restoring the economy is of primary importance. The fashion industry is a great part of the consumption market, and consumption is a great contributor to the entire Chinese economy. Center for China and Globalization (CCG) Co-Founder and Secretary-General Mabel Miao expressed that the fashion industry should educate consumer groups to regard fashion as an important consumption trend and a key factor in consumption decisions.
Mabel Miao also said, 「there have been guiding policies put in place to boost consumption upgrades and development in order to establish the fashion industry as a key industry in the consumption market, thus enhancing consumer confidence and leading consumption trends. At the same time, the government should also pay attention to the protection of intellectual property rights, which is the key to our next move.」
However, in a hostile global environment, China faces some new unfavorable factors, such as a sharp decline in the global economy, uncertain global industrial chains caused by the pandemic, and a series of 「withdrawing」 decisions by the US government. Huo Jianguo, former Director of the Chinese Academy of International Trade and Economic Cooperation, explained that as the Chinese economy recovers, consumption can be further boosted if it is possible to guide fashion consumption or develop a new consumption environment.
「The state and local governments have taken many measures to support enterprises in difficulty, including favorable policies. These policies should cover foreign-funded enterprises, as well as Chinese-funded ones,」 Huo Jianguo said.
In this special period, the fashion industry still appears promising. Lu Jinyong, a professor at the School of International Trade and Economics of the University of International Business and Economics (UIBE), said that the government can issue policies to promote fashion culture and style, while emphasizes the cultural elements in fashion, including the adjustments and changes in original culture. 「In one word, we should appreciate and support such fashion culture and consumption,」 he said, 「establishing brands is important too.」
「Mid-to-high-end products must have their own brands. In addition to intellectual property protection, special emphasis should be placed on continuous cultivation and promotion. Only brands can gain consumers』 loyalty,」 Lu Jinyong said.
Catherine Edem, Retail Operation Director of Value Retail China, explained that every brand, including Chinese or international brands, has responds to the pandemic differently.
「Enterprises should value customer experiences and focus on both online and offline sales channels. Besides this, brands should also develop 「smartly」, rather than just opening more stores quickly. In addition, the elderly population aged over 50 form a consumption market that mustn’t be ignored, and this market should also be upgraded and segmented,」 Catherine Edem said.