Clothing and Footwear Specialist Retailers - ChinaEuromonitor International : Country Sector Briefing January 2010 ................ Outlets and Selling Space 2009-2014 ......... 6 Euromonitor International Page i ............................................................... Outlets and Selling Space: % Growth 2009-2014........ 2 Sector Data .................................................................... Outlets and Selling Space: % Growth 2004-2009..................................................................................................................... 3 Table 2 Clothing and Footwear Retailers: Value Sales..................................................................................................................................................................... 3 Table 3 Clothing and Footwear Retailers Company Shares by Value 2005-2009 ..................................... 3 Table 4 Clothing and Footwear Retailers Brand Shares by Value 2006-2009..................................................................................................................................... 2 Chart 1 Clothing and Footwear Specialist Retailers: Independent Stores in Shanghai........................ 3 Table 1 Clothing and Footwear Retailers: Value Sales......................................................................................................................................................... 1 Overview ........ Outlets and Selling Space 2004-2009....... 1 Sector Formats ........ 5 Table 6 Clothing and Footwear Retailers Brand Shares by Selling Space 2006-2009 .................................................................................................................. 5 Table 7 Clothing and Footwear Retailers Forecasts: Value Sales.............................. 6 Table 8 Clothing and Footwear Retailers Forecasts: Value Sales...................................................... 4 Table 5 Clothing and Footwear Retailers Brand Shares by Outlets 2006-2009.....................................................................................................................................Clothing and Footwear Specialist Retailers China List of Contents and Tables Headlines ............................ 2 Chart 2 Clothing and Footwear Specialist Retailers: Independent Stores in Shanghai........................................... Belle International Holdings Ltd is the leading company in the market for clothing and footwear specialist retailers. the company planned to enter a number of first-tier cities in the next few years and expected to open more than 6. Sportswear specialists. After the listing in 2009. The market for clothing and footwear specialist retailers is relatively fragmented. On the other hand. in the long term. 361 Degrees International Ltd was an emerging company in 2009. Regional and small retailers are still quite popular in China. access to abundant capital guarantees further development of the company in the future. the leading company. the company opened around 3. With increasing brand awareness. The growth in number of outlets fell from 8% in 2008 to under 6% in 2009. the company is also a leading distributor. due to the efforts of many retailers. As a listed company on the Hong Kong Stock Exchange.200. growth of sales through clothing and footwear specialist retailers fell back from the review period average. total sales value reached over RMB229 billion by the end of 2009. However. Belle International Holdings Ltd. with the former mainly targeting lower-tier cities and the mass market. The channel is expected to post a CAGR of almost 7% in constant value terms over the forecast period. compared with the explosive growth in 2008. The clothing and footwear specialist retailers market is largely split between domestic and international players. while in 2008. its product quality and design is well accepted by most consumers.000 outlets all over the country.000 new outlets in 2009. planned to open less than 1.and third-tier cities of China. However. OVERVIEW • Due to the impact of the economic crisis. are more outstanding in terms of brand marketing. prospects for this market remain quite promising. due to its low entry barriers. Given the uncertainty surrounding economic prospects as well as relatively low consumer confidence. to some extent restricted development of the industry in 2009. Domestic brands have some key strengths such as a better understanding of the local market and low prices to win over mass consumers. while the latter mainly target first-tier cities and the premium market. The top 10 companies account for a combined share of just 20% of total market value. Most companies faced shrinking consumer demand and had to endure slashed profit margins in 2009. The major competitive advantage of the company is its strong network in second. Meanwhile. reaching almost 114. Leading companies maintained their advantages and the industry as a whole became more concentrated.5% in 2009. spurred by the Beijing Olympics.Clothing and Footwear Specialist Retailers China CLOTHING AND FOOTWEAR SPECIALIST RETAILERS IN CHINA HEADLINES • • • • Clothing and footwear specialist retailers developed well in 2009. For example. such as Li Ning and Anta. especially in more remote rural areas or lower-tier cities.1% in 2008 to 1. especially white-collar women. • • • • • • Euromonitor International Page 1 . reaching sales of over RMB229 billion. most companies opened fewer new outlets in 2009. The company was listed on the Hong Kong Stock Exchange in June 2009.900 outlets by the end of 2010. The impact of the economic crisis on this market was relatively limited. international brands such as Esprit. selling the adidas and Nike brands in China. Due to the robust growth in 2008. with value growth of approaching 9%. Year-on-year growth declined from 10% in 2008 to under 9% in 2009. but this is still considered a strong rate of expansion given the difficult economic times. adidas and Zara. due to the improving health consciousness of Chinese people. After several years of brand building. with its market share rising from 1. slowed their growth in 2009. the excessive sales in 2008. It is also one of the largest women’s shoe manufacturers in China and its branded products penetrate all the first-tier cities across the country. the market is expected to become more concentrated over the forecast period. compared with local companies whose major advantage is relatively low prices. For example. • SECTOR FORMATS Chart 1 Clothing and Footwear Specialist Retailers: Independent Stores in Shanghai Source: Euromonitor International Chart 2 Clothing and Footwear Specialist Retailers: Independent Stores in Shanghai Euromonitor International Page 2 . accelerated their pace of expansion in the Chinese market. termed “fast fashion” companies. despite the poor economic environment. Zara and Mango all planned to open more outlets in China. Shanghai and Guangzhou. The channel is expected to post a CAGR of 7% in constant value terms over the forecast period. All these new concepts are particularly welcomed by young white-collar consumers in major cities such as Beijing.Clothing and Footwear Specialist Retailers China • A number of new international players. the rapid development of Internet selling and private label products is a potential threat to clothing and footwear specialist retailers in the future. Advanced design capabilities give these companies a considerable competitive advantage. There are several other types of retailing which may put pressure on the further development of this channel. Companies such a H&M. 140.211.2 2.155. company research.4 114.4 1.0 1.211.827. Outlets and Selling Space: % Growth 2004-2009 % growth 2008/09 Value sales RMB million Outlets Selling Space '000 sq m Source: 2004-09 CAGR 7.2 2.7 75.7 1.3 2007 6.0 11.3 2.925. company research.829.2 55.Clothing and Footwear Specialist Retailers China Source: Euromonitor International SECTOR DATA Table 1 Clothing and Footwear Retailers: Value Sales.1 2006 3.5 1.937.017.2 2004/09 TOTAL 46.2 82.153.0 2006 177.111. trade press.0 9.0 2.5 6.3 Euromonitor International Page 3 . trade interviews. trade associations.5 8.4 156. trade press.227. trade associations.4 91. Euromonitor International estimates Table 2 Clothing and Footwear Retailers: Value Sales.2 1. Euromonitor International estimates Table 3 Clothing and Footwear Retailers Company Shares by Value 2005-2009 % retail value rsp excl sales tax Company Belle International Holdings Ltd Li Ning Co Ltd Anta (China) Co Ltd Prime Success International Group Ltd 2005 1.4 3.8 0.180.1 2.0 2008 211.9 8.7 3.341.404.103.2 2009 229.0 Official statistics.4 100.0 12.5 0. Outlets and Selling Space 2004-2009 2004 Value sales RMB million Outlets Selling Space '000 sq m Source: 2005 166.6 1.0 10.432. trade interviews.8 9.6 2008 8.6 108.0 Official statistics.0 8.2 2009 8.5 2007 192.0 12.252.2 52.5 5. 6 0.3 1.4 1.5 0.6 1.Industria de Diseño Textil Prime Success International Group Ltd 2006 1.1 1.1 0.9 0.2 0. trade interviews.0 2.2 0.2 0.2 1.1 73.2 1.Industria de Diseño Textil Shanghai MecoxLane International Mailorder Co Ltd Punto Fa SL (Mango) Hennes & Mauritz (H&M) AB Shanghai Yinmin Department Stores Co Ltd Bossini International Holdings Ltd Crocodile Garments Ltd Mirabell Int'l Holdings Ltd Others Total Source: 1.9 0.6 0.6 0.4 1.8 0.3 0.1 88.0 1.2 2.1 2007 2.4 0.3 0.0 1.2 0.1 1.0 2.4 1.8 0.6 1.7 0.2 0.4 0.2 0.0 0.4 0.4 0.0 0.5 0.1 1.0 1.1 0.1 1.6 1.4 1.4 0.7 0.4 100.4 0.4 1.6 0.6 0.3 0.2 0.6 0.1 72.7 1.4 0.9 100.1 0.4 1. company research.1 1.7 0.4 0.0 100.2 1.3 0.1 1.8 0. trade press.0 1.7 1.3 1.0 1.0 Trade associations.2 1. Euromonitor International estimates Table 4 Clothing and Footwear Retailers Brand Shares by Value 2006-2009 % retail value rsp excl sales tax Brand Company Li Ning Anta Metersbonwe Daphne Belle 361 Degrees Jeanswest Baleno Esprit Yishion Teenmix Giordano Ports Int'l et al Staccato Tata Zara Shoebox Li Ning Co Ltd Anta (China) Co Ltd Metersbonwe Group Prime Success International Group Ltd Belle International Holdings Ltd 361 Degrees International Ltd Glorious Sun Enterprises Ltd Texwinca Holdings Ltd China Resources Enterprise Co Ltd Dongguan Dongyue Caparison Co Ltd Belle International Holdings Ltd Giordano International Ltd Ports Design Ltd Belle International Holdings Ltd Belle International Holdings Ltd INDITEX .1 0.7 1.8 0.1 1.6 0.6 0.3 0.3 0.2 0.1 0.Clothing and Footwear Specialist Retailers China Metersbonwe Group 361 Degrees International Ltd Glorious Sun Enterprises Ltd Texwinca Holdings Ltd China Resources Enterprise Co Ltd Dongguan Dongyue Caparison Co Ltd Giordano International Ltd Ports Design Ltd INDITEX .6 1.8 0.3 0.1 0.0 0.3 100.1 0.5 0.2 84.1 1.4 1.2 0.9 0.4 0.0 0.1 0.6 0.2 0.4 1.4 0.3 1.5 1.6 0.6 1.8 0.4 1.0 0.2 2008 3.1 0.5 0.5 0.6 0.9 0.7 0.2 0.0 2.2 0.5 0.0 1.5 0.3 2.9 0.2 2.4 Euromonitor International Page 4 .6 0.3 0.1 0.9 0.3 2009 3.5 0.1 1.2 1.0 0.4 1.2 79.9 0.7 0.5 0.0 0.5 1.1 100.7 0.2 0. trade press.0 4.0 5.0 1.0 2.0 929.2 79.0 0. trade interviews.Clothing and Footwear Specialist Retailers China Euromoda Mango H&M Others Total Source: Shanghai MecoxLane International Mailorder Co Ltd Punto Fa SL (Mango) Hennes & Mauritz (H&M) AB 0.0 100.0 100.800.0 500.0 2.0 507.0 1.333.284.0 Li Ning Co Ltd 361 Degrees International Ltd Anta (China) Co Ltd Texwinca Holdings Ltd Prime Success International Group Ltd Dongguan Dongyue Caparison Co Ltd Metersbonwe Group Glorious Sun Enterprises Ltd Belle International Holdings Ltd Belle International Holdings Ltd Shanghai Yinmin Department Stores Co Ltd China Resources Enterprise Co Ltd Giordano International Ltd Prime Success International Group Ltd Belle International Holdings Ltd Belle International Holdings Ltd Shanghai MecoxLane International Mailorder Co Ltd Bossini International Holdings Ltd Belle International Holdings Ltd Crocodile Garments Ltd Others Total Trade associations.0 610.0 352.0 1.180.0 3.210.0 3.0 114.445.719.150.0 67.1 0.106.0 477.380.374.667.0 2009 639.0 3.0 732.0 1.0 64.800.0 1.090.0 2.0 2.0 0.008.278.1 100.0 820.0 1.0 Trade associations.0 108.0 28.3 0.485.0 483.667.145.0 400.3 207.0 2.0 1.0 645.0 2.0 336.0 800.0 380.0 398.0 2008 571.0 2.060.100.0 591.373.699.0 2007 540.0 700.211.0 1.795.716.0 68.0 2.258.0 701.0 909.3 0.176.0 2.0 3.0 729.0 2007 5.0 100.0 Euromonitor International Page 5 .0 67.0 1.0 125.0 2. trade press.227.937.233.0 739.0 220.0 1.0 1.7 395.0 834.0 950.0 467.245.0 1.0 459.2 310.0 6.0 616.0 91.374.8 100.0 3.850.0 320.250.0 346.3 0.300.212.0 419.200. Euromonitor International estimates Table 6 Clothing and Footwear Retailers Brand Shares by Selling Space 2006-2009 surface area '000 sq m Company Anta 361 Degrees Li Ning Anta (China) Co Ltd 361 Degrees International Ltd Li Ning Co Ltd 2006 493.0 3.4 0.0 600.0 2008 6.462.698.0 2009 6.9 100.3 78.0 0.0 6. company research.048.0 866.0 4.0 1. company research.0 3.194.970. trade interviews.0 840.800.000.0 5.0 260.0 0.0 2.0 2.879.245. Euromonitor International estimates Table 5 sites/outlets Clothing and Footwear Retailers Brand Shares by Outlets 2006-2009 Company Li Ning 361 Degrees Anta Baleno Daphne Yishion Metersbonwe Jeanswest Belle Teenmix Gujin Underwear Esprit Giordano Shoebox Tata Staccato Euromoda Bossini Mirabell et al Crocodile Others Total Source: 2006 4.200.0 552.0 0.2 86.0 164.0 2.0 83.244.296.0 2.108. Clothing and Footwear Specialist Retailers China Jeanswest Metersbonwe Yishion Baleno Daphne Belle Esprit Giordano Teenmix adidas .0 53.0 14.0 14.8 215. Euromonitor International estimates Table 8 Clothing and Footwear Retailers Forecasts: Value Sales.5 56.885.0 212.0 7.2 2009/14 TOTAL 37.0 15.800.2 133.0 86.0 96.8 12.7 9.535.0 15.0 13.7 2012 281.7 26.0 96.0 10. trade press.0 72.3 22. Outlets and Selling Space 2009-2014 2009 2010 246.2 11.599.0 143.Original Collection Ports Int'l et al Zara Tata Mango Shoebox Gujin Underwear Staccato Others Total Source: Glorious Sun Enterprises Ltd Metersbonwe Group Dongguan Dongyue Caparison Co Ltd Texwinca Holdings Ltd Prime Success International Group Ltd Belle International Holdings Ltd China Resources Enterprise Co Ltd Giordano International Ltd Belle International Holdings Ltd Prime Success International Group Ltd Ports Design Ltd INDITEX .003.0 153.0 28. company research.0 42. Outlets and Selling Space: % Growth 2009-2014 % growth 2013/14 Value sales RMB million Outlets Selling Space '000 sq m Source: 2009-14 CAGR 6.1 127.1 76.0 38.5 2.5 118.5 131. trade associations.5 173.5 22.180.0 35.211.404. trade interviews.2 44.756. trade press.6 200. Euromonitor International estimates Table 7 Clothing and Footwear Retailers Forecasts: Value Sales. company research.5 2014 314.Industria de Diseño Textil Belle International Holdings Ltd Punto Fa SL (Mango) Prime Success International Group Ltd Shanghai Yinmin Department Stores Co Ltd Belle International Holdings Ltd Others Total 139.4 Value sales RMB million Outlets Selling Space '000 sq m Source: 229.4 Official statistics.889.0 18.215.0 40.780.0 45.0 2011 263. trade press.9 80.0 52.829.0 170.0 25.2 233.0 46.0 Official statistics.2 3.808.0 156.7 75.0 112.0 145.8 182.609.0 8.0 58. trade interviews.1 78.3 150.0 12.0 34.0 132. trade associations.2 2013 297.9 73.8 5.155.0 35.0 85.5 60.0 65.0 136.0 8.269.0 30.103.885.7 50.9 76.872.0 72.0 80.210.0 30.4 124.5 165. trade interviews.0 150.1 52.0 9.2 4.085.7 120.297.0 67. Euromonitor International estimates Euromonitor International Page 6 .7 119.3 12.0 8.0 17.4 114.0 18.2 31.4 Trade associations.0 50.140.5 3.024.829.7 92.6 38.0 182.4 52. company research.0 178.
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