2010, where to cut? The answer: Lucky on thousands of Korean women's clothing
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"Traditionally, consumer brands are moving to a new level," said Sun Ruizhe, vice president of the China National Textile and Apparel Council. Consumers are now more focused on getting high-quality products at lower prices. In fact, "the consumption bubble in overseas markets is shrinking," Sun added. Prices have shifted from mid-to-high to mid-to-low, and a trend toward rational consumption is emerging again. Therefore, he advised companies to pay attention to changes in "effective demand" as consumption structures adjust, and to offer "popular brands" that feature excellent design, reasonable quality, and relatively low prices. This is clearly an excellent opportunity for many Chinese brands. The reality also supports this: "Our brand has not been affected by the economic environment," said You Hongyan, chairman of Beijing Aou. "This is because our products have original design advantages and competitive pricing." During the economic downturn, the original luxury market has shifted toward the middle class, bringing a "great year of development" for some brands. Facing the crisis, "we place great emphasis on market demand," said Xu Bo, CEO of Balabarra. Market changes have excited him, as parents used to focus on children's behavior, but now emphasize their fashion sense. "According to this demand, children's clothing has become increasingly adult-like," Xu explained, noting that children now have their own values and know what to wear for different occasions.
In the next 15 years, China's population will continue to grow, national income will rise, and rural urbanization will accelerate further. With proper resolution of housing and social security issues, the potential for consumer demand in the apparel sector could be greatly unleashed. One of the highlights of the 2009 Central Economic Work Conference was to speed up rural urbanization and narrow the urban-rural gap. Leisure and sports brands are expected to lead the way into rural markets. Market segmentation is deepening, with divisions based on product categories, grades, functions, marketing models, service populations, and regional areas. For example, while dresses are still not commonly worn for specific events, suits are often used instead. Dress codes are becoming more varied, with different occasions requiring distinct styles. Sports and fitness, for instance, are shaping a new "aristocracy" and "middle class," becoming key components of modern life, leading to more specialized segments such as hiking, camping, and mountaineering.
Another example is the integration of accessories like jewelry, shoes, hats, and luggage into the clothing category. These items are gradually becoming part of everyday fashion. "The power of a country is determined by consumption, not just production or circulation," said Sun Weiting, chairman of Huafu Holding. "We used to compete on production, but now it's about competing at the consumer level." Sun Ruizhe added, "A market economy is all about 'producing with sales.'" However, many brands remain medium to high-end and lack differentiation. For instance, men's fashion often targets "good guys" or "successful men," while women’s fashion tends to focus on white-collar professionals aged 25–40. Young graduates often struggle to find suitable workwear. Many companies fail due to imitation. After the successful registration of the "Septwolves" trademark, nearly 30 wolf-themed brands emerged, hoping to leverage its reputation. However, only a few have succeeded, while others have failed or stagnated.
"In the early stages of market development, following trends brought significant benefits," experts noted, but as the market matures, the lack of brand culture will lead to decline. "A brand needs a distinctive personality to stand out in the crowded market," said Zhou Shaoxiong. "Homogeneity and following trends will eventually lead to the collapse of small and medium enterprises, turning big businesses into international contract manufacturers." Jiang Hengjie, vice president of the China National Garment Association, emphasized the need for a deeper understanding of the Chinese market, clear positioning, and market segmentation. Learning from foreign examples, brands can create multiple series—such as a "girlhood series" or a "golden autumn series"—to meet diverse consumer needs and expand market share.
Without Muji, the concept of "design without design" has become iconic. MUJI represents a lifestyle of simplicity, naturalness, and minimalism. It has divided the world into branded and unbranded products. After the financial crisis, the future should focus on quality rather than quantity. The goals of the 12th and 13th Five-Year Plans include industrial upgrading. China is now at a new starting point, with a shift from quantity to quality. As Jiang Hengjie pointed out, 2010 marked the end of the 11th Five-Year Plan and the beginning of the 12th. Over the next decade, China aims to become a global leader in the garment industry, with leadership in research, technology, and standards. Chinese fashion culture should gain international recognition, and Chinese brands should expand globally.
To achieve this, breakthroughs in four modernizations are needed: building supply chains, enhancing technological innovation, improving brand value, and optimizing industrial structure. Brands must evolve from selling products to selling experiences and happiness. "Operating a clothing brand requires a dream," said Miao Hongbing, chairman of white-collar workers. "What we sell is not just products, but happiness, elegance, and visual beauty." A brand's identity comes from its founder's vision and passion. As the industry moves forward, franchising offers a secure path for investors. While many are attracted by promises of quick profits, success depends on preparation, understanding, and commitment. Franchising is not a shortcut; it requires effort, collaboration, and alignment with the brand's vision. With the right approach, franchising can be a reliable and profitable investment.