How important is China in the Fashion industry?
By Hope Allsuch
In the late 20th Century,
with the ending of the Cultural Revolution, the Chinese economy has witnessed a
boom in the Chinese fashion Industry and no doubt it is a burgeoning market.
"The Chinese fashion industry has tripled over the past decade and it is
expected to increase multi fold over the coming years."[1] China’s fashion market the last 5 years has
increased 10% per annum.Where once Chinese good were looked upon as being relatively cheap
and of poor quality; it is now regarded as an influence to the worldwide Fashion
industry. “China’s clothing market has been
growing at 7% and is now a USD40 billion industry. Department stores account
for approximately 40% of the market.”[2]
Whilst several Chinese technological brands such as Huawei and Lenovo are
becoming more popular, in general Chinese fashion brands still remain unknown
internationally, although that is clearly changing. Within the fashion sector
whether it be modeling, socialites, fashion designers or generally the
influence of the Chinese fashion, China is now emerging and becoming hugely important
in the Fashion Industry. “in 2020, total fashion
sales in China are expected to be triple their current level, rising to more
than RMB 1.3 trillion ($200 billion) from RMB 398 billion ($60 billion) in
2010.”[3]
Whether top luxury goods to downscale street fashion, it is clearly accepted
that much of the clothing in the worlds fashion industry is manufactured in
China. As a result, western brands such as Louis Vuitton, Prada, Chanel and
Gucci’s main consumers come from the Chinese market place. It can be seen when shopping
in London whether it being Harrods or Selfridges; every top designer employs a
shop assistant who speaks Mandarin Chinese.
Certain individuals such as Joe Wong
at Gucci and Josephine Chien at Cartier are contributing to those international
companies success in China. Investors from Greater China such as Hong Kong and
Taiwan also are having influences on the importance of China in the fashion
industry. The Forbes ’Fashion 25’ listings indicate those persons who were born
in Greater China and have made it in the fashion industry in the past year.
This emphasizing that China is seen as the Dark horse in the race to top the
worlds fashion industry. China has many advantages; whereby clearly there is a
market and demand within China providing most of the world with their goods.
Although most designer labels are stuck on in other countries such as Germany,
the US and the United Kingdom, in fact the clothes are all made in China.
Zhejiang is famous for Clothes; and one only needs to go to Ningbo or Yiwu to
witness this phenomena. Ningbo has been selected as the headquarters of Peace
bird a Famous Chinese clothing company. Whereas, Yiwu is the factory supply
outlet for many goods such as underwear, lingerie, shoes and much more. Additionally,
Guangzhou is famous for handbag factories. Shaoxing every year holds its
fashion exposition. "China is predicted to become the world's biggest
luxury market with sales of $14.6 billion in the next five years, according to
the World Luxury Association."[4] Therefore
emphasizing the growth of the fashion industry in the last decade and how
important China has become in the fashion industry due to combining social and
economic factors.
There has been a steady growth pattern in the last 10 years
in the fashion industry.With the annual capita disposable income of urban
households growing by 7.8% in real terms in 2010 and the annual net income per
capita of rural residents growing by 10.9% in the same year. The fashion
industry has seen urban households spending on average 10.7% of their annual
expenditure on clothing compared to rural households spending 6.8% of their
total annual expenditure in the same year.This is reflected in department
stores and speciality stores being the major distribution channels for branded
apparel in China..The number of these Chinese apparel brands have increased
from 10 to 18 from 2010 to2011,although the foreign brands still dominate the
chinese luxury apparel market such as Armani and Burberry.With the introduction
of online retailing this has also seen a massive growth in online shoppers
especially in the fashion industry estimated from 108 148 million shoppers over
a one year period from 2009 to 2010.
The growth in the number of Chinese
models on the catwalks worldwide emphasizes the growing influence and
importance of China in today’s fashion industry. "Modeling has become a
flourishing industry in China since famous French fashion designer Pierre
Cardin hosted the country's first fashion show in Beijing in 1979."[5]
This is listed by Models.com. One such
famous model Liu Wen, was born in Yangzhou, Hunan province. She is now 5th
in the Top 50 women models in the world.
She walked 22 shows in New York Fashion week, modeling for famous brands
such as Michael Kors and Jason Wu. In addition, she modeled another 10 times at
the Milan Fashion week in Italy. Liu Wen was the only Chinese model to appear
in the Victoria Secrets Fashion show between 2009 and 2010, which is one of the
most prestige fashion shows in the Industry. Mo Wandan was the only Asian model
to walk in 2008 all of the four international fashion weeks London, New York,
Milan and Paris. She was praised by the world famous fashion designer Georgio
Armani and has featured on the covers of FHM, French and Elle. This further
justifies the ever increasing influences and importance of the Chinese in the
fashion industry. Other models such as Sun Feifei and Qin Shupei have also
modeled down catwalks of New York, Milan, Paris and London. "Overall, at
10 major brands' shows, there were 26 Asian models, eight more than those
brands used in the previous New York Fashion Week in February."[6] Although
Chinese brands are still not household names to many peeople and there is a
long way to go, China is beginning to emerge from being an international
factory to becoming a fashion house with its own ideas and designer brands.
"As the fashion market continues to grow, hopefully Chinese Designers and
brands will secure their sports in the international scene."[7] 
China’s significant importance to
the Fashion industry can be witnessed by the ever increasing number of fashion
designers. Their job and aim is to direct Chinese fashion through their designs
that are emerging in the fashion sector. "The less than desirable image of
the "Made In China" label is set to be replaced by a much more
covetable "Created in China" one as Chinese-based designers go to the
top of the must-have scale.”[8] 
Since China has the mind thought of fashion being elegant and quaint, many
worldwide famous designers have shown increased interest in Chinese fashion.
China has up and coming designers such as Guo Pei who look at the more couture
end of the spectrum and in fact turned down a Milan Fashion week invitation.
"At the annual Central China Television (CCTV) New Year’s Gala, hosts and
performers wear Guo’s designs. She was also the designer behind the ceremonial
dresses in the 2008 Beijing Olympics."[9] This
portrays Guo as an influential and an important up and coming designer. Ma Ke, another
famous Chinese designer, has been credited with being the designer behind the
brand Exception. This brand is sold to 30 cities in China covering
approximately 60 stores. Other designers such as Uma Wang are important to the
fashion industry. “Dubbed "China's hottest emerging designer" by
Business of Fashion."[10]
She was also a major feature by the Italian Vogue magazine. The Central Saint
Martins graduate created her label in 2005 and now is based in Shanghai. Her labels
with her designs are sold everywhere from London to Moscow. She recently joined
forces with Swatch the world famous watch company. "Other countries too have
shown an interest China's fashion-focused culture; with Donatella
Versace choosing Beijing to show Versace's spring/summer 2009."[11]
For China in the modern world, this is a huge step towards fashion victory.
Since China has the mind thought of fashion being elegant and quaint, many
worldwide famous designers have shown increased interest in Chinese fashion.
China has up and coming designers such as Guo Pei who look at the more couture
end of the spectrum and in fact turned down a Milan Fashion week invitation.
"At the annual Central China Television (CCTV) New Year’s Gala, hosts and
performers wear Guo’s designs. She was also the designer behind the ceremonial
dresses in the 2008 Beijing Olympics."[9] This
portrays Guo as an influential and an important up and coming designer. Ma Ke, another
famous Chinese designer, has been credited with being the designer behind the
brand Exception. This brand is sold to 30 cities in China covering
approximately 60 stores. Other designers such as Uma Wang are important to the
fashion industry. “Dubbed "China's hottest emerging designer" by
Business of Fashion."[10]
She was also a major feature by the Italian Vogue magazine. The Central Saint
Martins graduate created her label in 2005 and now is based in Shanghai. Her labels
with her designs are sold everywhere from London to Moscow. She recently joined
forces with Swatch the world famous watch company. "Other countries too have
shown an interest China's fashion-focused culture; with Donatella
Versace choosing Beijing to show Versace's spring/summer 2009."[11]
For China in the modern world, this is a huge step towards fashion victory.
(picture)
Where
fashion was once associated with Paris, Tokyo or Milan, much of the spotlight
is now focused on China and the potential China has to give to other foreign
designers. In November 2008 designers such as Christian Dior, MaxMara and
Salvatore Ferragamo were investing in Chinese Fashion houses. It is evident that China is becoming
increasingly important as "The next big issue for fashion is not China's
economic boom but Chinese creativity," Italian trend-setter designer and
retailer Elio Fiorucci said on the sidelines of a Dolce and Gabbana show."[12]
Elio Fiorucci suggests that China will become a major fashion influence further
justifying its importance in the Fashion industry. As quoted by Chen "The
promotion of fashion modeling is closely linked with the promotion of the
textile industry in China, and many modeling teams are attached to garment
industry organizations."[13]
Chen signifies the importance of Chinese models to the Chinese Fashion
industry, emphasizing the importance of their success on the world’s runway
shows in order for China to become important in the Chinese Fashion industry.
Below is a graph of the predicted fashion market, it suggests that the market
since 2010 is on a sharp rise and the sales in china are expected to exceed in
2020. Suggesting how important China’s growth is in the fashion industry.
Chinese factories are important to
the fashion industry because major fashion houses manufacture a significant
amount of clothing and fashion accessories in China. "These days, Italian
fashion is as likely to be made for China as it is made in
China."[15]
Many fashion brands, in the 1980s moved their labor and decided to make their
products in China in order to reduce labor costs.
“Luen Thai provides major clients such as Polo Ralph Lauren and U.S.
department-store chain Dillard's with dedicated teams of designers,
merchandisers and sales staff all housed in plush offices located on the
factory site.”[16] This suggests that many of the major designer’s
clothes are made in china both suggesting and emphasizing Chinese contribution
and an influence to the fashion industry of the world.
China’s expansion in the fashion
industry has greatly influenced western fashions. China "caught the
attention of the fashion industry for a different reason: thanks to its booming
economy, numerous high-profile fashion houses have announced their intention to
expand operations on the Chinese mainland."[17]
The Chinese are becoming increasingly important in the fashion sector, as they
are the major purchasers for designer goods. Due to the fact that the Chinese
are attracted to western brands but due to their traditions, many designers have
begun creating Chinese versions of their designer label such as Levi Strauss
& co and Hermès. Levi Strauss & Co created the brand Denizen which is
known to be more affordable, Hermès have created a luxury brand known as Shang
Xia. “The idea is to bring the Hermès philosophy to China, to create a Chinese
Hermès,” said Hermès Chief Executive Patrick Thomas.”[18]
The investments of international brands in China clearly portray their respect
for Chinese culture and their fashion needs. In addition, certain brands such
as Louis Vuitton and Marc Jacobs introduced Chinese orientated products, which
have bright colors, panda motifs and glitter to reminisce Shanghai in the
1920s. In 2010 Christian Dior introduced its Shanghai Blue mobile phones. This
was aimed at the Chinese fashionistas. Once again justifying the importance of
China and how far it has come in the sector, showing the importance and power it
has in the influence in the Fashion industry.
Foreign direct
investment is the direct
investment into a production or business in a country from company in another
country. FDI increased greatly in the early part of 21st century, around $59.1
billion. In the first six months of 2012 was invested, overtaking the US which
had $57.4 billion of FDI. This makes China the largest country for foreign
direct investment. “It was reported that the popular
Chinese online retailer and wholesaler Milanoo.com has successfully acquired an
investment of multi-million dollars from the U.S. based capital firm Sequoia.”[19] Milanoo is looking for the chance to join with
Chinese distinguished brands in clothing and accessories to expand its business
mission, in order introduce affordable fashion. Milanoo invited some of the
most famous Chinese fashion brands into its Store, which included YiMiLAN,
VANCL, Moonbasa and AOKANG. A company called
Novo is expanding with the help of $30 million from FDI “Fast-growing
Chinese fashion retailer Novo is expanding its store network and signing new
licensing agreements on the back of a US$30m cash injection from Kohlberg Kravis
Roberts & Co (KKR).”[20]
Even big chains store such as “Wal-Mart Stores
Inc. and a group partners last month agreed to invest more than $500 million in
Chinese online retailer 360buy Jingdong Mall.”[21]
Emphasizing the importance of China in the world economy, not just in the
financial markets but also in the retail and fashion sectors. To support this
argument, Frank Trentmann says “China’s retail sector has opened gradually to
FDI; foreign companies have been allowed to participate in this sector since
1992”[22] suggesting that the real importance of China
in the fashion industry was due to Deng Xiaoping’s southern tour.
In conclusion ,China has
become vitally important to the fashion industry whether it be through
influencing the fashion sector through the emergence of up and coming
Chinese designers and their designs or on the other hand the lure of the
massive consumer market which attracts all the large and famous fashion houses
to China. Western designers are being attracted to the Chinese fashion sector
and opening up more shops and in departmental stores as well as
collaborating with retailers such as Lane Crawford. It should be noted that not only are the designers vital to the
importance of the fashion industry, but equally are the people who wear and
represent them such as famous international models, or celebrities. After compromising photos appeared online, the annual “Two
Sessions” or NPC and CPPCC meeting was ironically labeled “The Beijing Fashion
Week.”[23]
The
importance of China in the fashion industry can be witnessed with the increased
use of Asian models compared to say15 years ago where this would have been a
rarity. These models are now more in demand than ever. It has become common
practice that top designers whether Chinese or foreign want Chinese celebrities
in their front rows at the runways at their fashion shows in order to draw
attention to the Chinese public who are attracted to the consumer market.
China’s fashion market the last 5 years has increased 10% per annum. The fashion
industry believes that in the next 5 years China will become the largest
fashion market in the world even surpassing the USA in volume. “The high growth
rate of the Chinese economy is enticing market for the luxury fashion goods
industry.” [24] For example,
China has outgrown japan in the race to become the world’s biggest market for
luxury watches. Further evidence of China's importance to the fashion industry
can be seen in conjunction with the rapid growth in China's economy, where
brands all over the world are desperate to get a foothold in the Chinese market
place and capitalise on China's booming retail market. China's fashion sector
has been growing at 7% and is a $40 billion industry. The youth of China more
than ever are hungry for anything relating to fashion and luxury goods and
amounts of investment have been ploughed into advertising, marketing and the
media in order to endorse the fashions from the west. Such exposure can be seen
through fashion shows, editorials and adverts screened on planes, subway
stations and buses throughout all the major cities in China. It has become
widely acknowledged that China's textile factories has turned the country into
the workshop of the world and it is only a matter of time before China will
have to decide whether it concentrates on manufacturing or creating in its own
right its own styles and standards. China’s ever increasing population
estimated at 1.3 billion people is a big enough incentive for foreign brands to
invest in the fashion industry in China in order to break into the consumer
sector and offer western fashion to this lucrative market. Profit margins for
retail chains in China are high due to the lower costs of manufacturing in
China. Fashion houses are aware of the rapid growth in China's middle classes
and the immense demand in quality brands both Chinese and foreign which are
sold in departmental stores in the main cities such as Shanghai and Beijing.
The collaboration between Western and Chinese fashions has emphasised that
China's fashion sector has arrived on a global scale. Together with the
emergence of more inventive and artistic designer, attracting the Chinese
populace and the market place and China's current openness in encouraging trade
with the capitalist western world. China has become vital, important and
influential in the worldwide fashion industry.
Bibliography
(Author unknown), China’s Fashion
Industry: A Burgeoning Gold Island, (October
24th,) 2011 http://www.asiaperspective.net/china%E2%80%99s-fashion-industry-a-burgeoning-gold-island/
(Author Uknown)
China’s fashion industry, http://www.chinatownconnection.com/china-fashion-industry.htm
(Author uknown), Sequoia Capital Invests Multi-Million Dollars in Chinese Fashion
Retailer and Wholesaler Milanoo.com
http://www.danviews.com/sequoia-capital-invests-multi-million-dollars-in-chinese-fashion-retailer-and-wholesaler-milanoo-com/
(Author Uknown), “Fashionable” brand strategies to adopt in China
(Author unknown) , Emerging Chinese Fashion Industry, CNTV,
November 16, 2012, Accessed in http://www.china.org.cn/video/2012-11/16/content_27130533.htm
(Author
Unknown) , The 8 most influential Chinese Designers (6
October 2010). Accessed in - http://red-luxury.com/2010/10/06/the-8-most-influential-chinese-designers/
Chen, Nancy N. China Urban: Ethnographies of Comtemporary
Cluture,(Feb 2001) P.133
Ciancio,
Antonella. Milan Fashion awaits Chinese
design boom, (Feb 27 2011), Accessed in - http://www.reuters.com/article/2011/02/27/us-italy-fashion-china-idUSTRE71Q1RR20110227
Cochrane,
Lauren. Five Chinese fashion designers to
watch, (30 October 2012)accessed in -
http://www.guardian.co.uk/fashion/fashion-blog/2012/oct/30/five-chinese-fashion-designers
Goldman,
Corrie. Made in translation: Stanford
scholar explores Italian-Chinese collaborations in fashion, (December 21,
2012) Accessed in - http://news.stanford.edu/news/2012/december/italian-chinese-fashion-122112.html
Gough, Neil, made in china, Time
Magazine (October
2004)http://www.time.com/time/magazine/article/0,9171,733846,00.html
Gould-Simon,
Alisa. Leading British fashion brands
entice China's nouveau riche , (Sunday 6 June 2010), Accessed in -
http://www.guardian.co.uk/world/2010/jun/06/china-fashion-designer-shops
Junmian Zhang, Top 10 Chinese models ,China.org.cn,
(November 6, 2012)
Liu , Vincent. Capturing
the dynamic growth of China’s fashon market,
(july 2011) https://www.bcgperspectives.com/content/articles/retail_consumer_insight_dressing_up/
Milligan,
Lauren. Chinese Top Ten, Vogue (29
April 2009) accessed in -
http://www.vogue.co.uk/news/2009/04/29/top-10-chinese-designers
[1]Rasi,
Alena (13.11.2012) Scandalous
political fashion http://gbtimes.com/third-angle/chinas-leadership-change/features/web-tv-third-angle-insight/fashion-chinese-politics
Smith ,Ray A. More Asian Models on Fashion's Big Stages,
The Wall Street Journal (September 13,2012) accessed in - http://online.wsj.com/article/SB10000872396390444426404577647651939481504.html
Sung, Chinme. ,Foreign Direct Investment in China in 2010 Rises to Record $105.7
Billion. Bloomberg
news (Jan 18, 2011) http://www.bloomberg.com/news/2011-01-18/foreign-direct-investment-in-china-in-2010-rises-to-record-105-7-billion.html
Trentmann,
Frank . The making of the consumer: Knowledge power and identity in the
modern world, Berg, (2006) ,P177
Welters, Linda.
The fashion reader : second edition, Berg (2011) P610
Woodard,
Richard. CHINA: Fashion retailer Novo gets $30m investment (21 August
2012) http://www.just-style.com/news/fashion-retailer-novo-gets-30m-investment_id115326.aspx
Zhang, Ella.
Fashion – hungry Chinese market expected
to triple by 2020, CNBC (july
2011)
http://www.cnbc.com/id/43826546/FashionHungry_Chinese_Market_Expected_to_Triple_by_2020
[1] (Author Uknown). China’s Fashion Industry: A Burgeoning Gold Island, (October 24th,) 2011http://www.asiaperspective.net/china%E2%80%99s-fashion-industry-a-burgeoning-gold-island/
[2] (Author Uknown) China’s
fashion industry, http://www.chinatownconnection.com/china-fashion-industry.htm
[3] Zhang, Ella. Fashion – hungry Chinese market expected to
triple by 2020, CNBC (july 2011) http://www.cnbc.com/id/43826546/FashionHungry_Chinese_Market_Expected_to_Triple_by_2020
[4]
Ciancio, Antonella. Milan Fashion awaits
Chinese design boom, (Feb 27 2011), Accessed in -
http://www.reuters.com/article/2011/02/27/us-italy-fashion-china-idUSTRE71Q1RR20110227
[5]
Junmian Zhang, Top 10 Chinese models ,China.org.cn,
(November 6, 2012)
Accessed in - http://www.china.org.cn/top10/2012-11/06/content_27006189.htm
[6]
Smith, Ray A. More Asian Models on
Fashion's Big Stages, The Wall Street Journal (September 13,2012)
http://online.wsj.com/article/SB10000872396390444426404577647651939481504.html
[7] (Author
unknown) , Emerging Chinese Fashion
Industry, CNTV, November 16, 2012, Accessed in http://www.china.org.cn/video/2012-11/16/content_27130533.htm
[8]
Milligan, Lauren. Chinese Top Ten,
Vogue (29 April 2009) accessed in -
http://www.vogue.co.uk/news/2009/04/29/top-10-chinese-designers
[9]
(Author Unknown). The 8 most
influential Chinese designers, (6 October 2010). Accessed in -
http://red-luxury.com/2010/10/06/the-8-most-influential-chinese-designers/
[10]
Cochrane, Lauren. Five Chinese fashion
designers to watch, (30 October 2012)accessed in -
http://www.guardian.co.uk/fashion/fashion-blog/2012/oct/30/five-chinese-fashion-designers
[11]Milligan,
Lauren Chinese Top 10, Vogue (29 APRIL 2009)
http://www.vogue.co.uk/news/2009/04/29/top-10-chinese-designers
[12]
Ciancio, Antonella. Milan Fashion awaits
Chinese design boom, (Feb 27 2011), Accessed in -
http://www.reuters.com/article/2011/02/27/us-italy-fashion-china-idUSTRE71Q1RR20110227
[13]
Chen, Nancy N. China Urban: Ethnographies
of Comtemporary Cluture,(Feb 2001) P.133
[14] Liu , Vincent. Capturing the dynamic growth of China’s fashon
market, (july 2011) https://www.bcgperspectives.com/content/articles/retail_consumer_insight_dressing_up/
[15]
Goldman, Corrie. Made in translation:
Stanford scholar explores Italian-Chinese collaborations in fashion,
(December 21, 2012) Accessed in -
http://news.stanford.edu/news/2012/december/italian-chinese-fashion-122112.html
[16]
Gough, Neil, made in china, Time Magazine (October
2004)http://www.time.com/time/magazine/article/0,9171,733846,00.html
[17]
Gould-Simon, Alisa. Leading British
fashion brands entice China's nouveau riche , (Sunday 6 June 2010),
Accessed in - http://www.guardian.co.uk/world/2010/jun/06/china-fashion-designer-shops
[18] (Author Uknown), “Fashionable” brand strategies to adopt in China
[19] (Author uknown), Sequoia Capital Invests Multi-Million Dollars in Chinese Fashion
Retailer and Wholesaler Milanoo.com
http://www.danviews.com/sequoia-capital-invests-multi-million-dollars-in-chinese-fashion-retailer-and-wholesaler-milanoo-com/
[20]
Woodard, Richard. CHINA: Fashion retailer Novo gets $30m investment (21
August 2012)
http://www.just-style.com/news/fashion-retailer-novo-gets-30m-investment_id115326.aspx
[21]Sung, Chinme. ,Foreign Direct Investment in China in 2010 Rises to Record $105.7
Billion. Bloomberg news (Jan 18, 2011) http://www.bloomberg.com/news/2011-01-18/foreign-direct-investment-in-china-in-2010-rises-to-record-105-7-billion.html
[22]
Trentmann, Frank . The making of the consumer: Knowledge power and identity
in the modern world, Berg, (2006) ,P177
[23]Rasi,
Alena (13.11.2012) Scandalous
political fashion http://gbtimes.com/third-angle/chinas-leadership-change/features/web-tv-third-angle-insight/fashion-chinese-politics
[24] Welters, Linda. The fashion reader : second edition, Berg
(2011) P610
No comments:
Post a Comment