Chinese Underwear Market Insight 2012

Similarity of product, Vagueness of concept and high competition has become three main trends in China underwear market. First class brands stand out, whereas the others main still and gain little progress. Chain store has gotten fair development with increasing wants and needs of high quality lingerie products. Differentiations on product and brand are the main points in 2012.

Key Word 1: Differentiations

According to an official report released by China Underwear Association, overall sales of China underwear exceeds 100 billion each year from 2009 to 2012, increasing at a rate about 20% annually. First class brands have played an important role in the domestic and international market. Fierce competition made many small underwear manufacturers to face serious sales and capital pressure.

The reason for this situation is that the majority of underwear labels share the same consumer market with similar products, prices and marketing channels. Customers usually leave a vague impression on them and feel no surprise for their goods.

With the increase on cost, many insiders agree that over half of them may meet the crisis of bankruptcy after three years.

Key Word 2: Added Value

Many Chinese manufacturers invest most of their resources on processing instead of marking their own underwear produces, which makes those who are seeking high quality lingerie choose foreign brands. Therefore, more and more first class brands have established chain stores to satisfy the current market, such as Aimer and Odifen.

Key Word 3: E-commerce

E-commerce will remain fast on development. What we need to pay more attention is that price difference between online boutiques and franchise sores. Unreasonable difference will certainly impair the interests of online retailers and district distributors. (Translated by wilson)