What Changes Have Taken Place In Chinese Fashion In The Past Ten Years?

Looking back at the changes in China over the past ten years, the word "great change" may be slightly conservative.
In the past ten years, in a sense, China has not only expanded rapidly, but also changed the direction of development rapidly: China was once known as the "world factory" - the center of the global manufacturing industry, but at the same time, China has become the most important luxury market in the world. On this land, there are also a lot of exciting brands, enterprises and business models.
In today's review of the series, BoF will review the strength and trends of China's fashion, beauty, luxury, and retail industries from 2010 to 2019, and explore how they can continue to shape this booming market in the coming years.
　　 Giants dominate the electricity supplier battlefield
According to the data of the international trade administration, China is the largest electricity supplier market in the world. By the end of 2019, China's online retail sales will be close to US $2 trillion, accounting for more than half of the total volume of global transactions.
The "double eleven" launched by Alibaba in 2009 is the best epitome of the scale of China's e-commerce development. The first "double eleven" trading volume was only 52 million yuan on that day. This figure seems insignificant, but it has been very alarming at the time when online shopping has not yet become a common practice. In 2015, its sales reached 91 billion 217 million, more than the sum of the traditional marketing day of the United States, namely "black Friday" and "network Monday". Subsequently, other giants such as Jingdong and Suning compete to follow up. In November 11th, they became the battleground of e-commerce giants and the carnival of consumers. This year, Ali's "double eleven" record reached 268 billion 400 million yuan, and Jingdong also recorded a record of 204 billion 400 million yuan.
In order not to miss the frenzied Chinese consumers, international brands have signed up to enter these local e-commerce giants to make their products and services localized. In 2016, Stadium Goods, a sports shoe market, entered Tmall. This year, Farfetch merged its China business with Jingdong platform, while Richemont, the parent company of Net-a-Porter, announced last October that it had established a joint venture with Ali's Tmall platform, "Feng Mao", and launched an online flagship store based on Tmall platform this year. The brand will focus more on the third party business platform rather than its own official platform, which has become the norm in China.
Emarketer estimates that competitive platforms such as Jingdong and Alibaba will account for 56% of China's online retail sales this year. In 2014, Alibaba listed on the New York stock exchange for us $25 billion to become the world's largest initial public offering. Five years later, the company made second public offerings in Hongkong and raised up to $12 billion 900 million.
However, even though the two giants, such as Matthew effect, are getting bigger and bigger, we should not forget that there was a lot of spells that were founded in 2015, and three years later, the company was listed on NASDAQ. Although the platform is highly controversial, it undoubtedly gives the industry a glimpse of the huge potential of China's sinking market.
　　 Mobile apps become necessities.
In this generation, the BAT giant of China's science and technology industry, Baidu's seats have changed to byte beating. The same thing is that they expand the territory together with Tencent and Alibaba, monopolize people's daily interactions and transactions, from streaming media, entertainment to shopping to health care, everything in life is all inclusive.
In 2011, Tencent launched WeChat, which was once challenged with SMS or Mobile Fetion. Today, WeChat has become a necessities of life. Up to now, there are 1 billion 151 million users. Its small program launched in 2017 will further expand its functions and install other applications on its interface, allowing users to shop, order takeaway, watch streaming media programs, pay bills and so on without leaving WeChat. For fashion and beauty brands, it is a vital asset to establish contacts with customers through WeChat. Almost every brand now has its own public numbers and small programs. Its sales staff maintain close communication with WeChat customers through WeChat.
Over time, Chinese Internet technology companies have sprung up more and more new players, many of whom have challenged WeChat's dark horse. The short video application of the byte beating, launched in September 2016, has been used to make young people even more mature generation addicted by sophisticated algorithms. The platform also attracted brands such as Dior and Adidas. Overseas, such as byte beating, the layout is also expanding. According to the data of Sensor Tower, the Western version TikTok launched after the acquisition of Musical.ly has been downloaded more than 750 million times this year, beating other social media such as Facebook, Instagram, YouTube and Snapchat.
　 Rapid development of social media
Social media in China has gone through four main stages of development. From the initial blogs of celebrities and elites, in 2009, Sina launched the national social networking campaign after micro-blog. In 2012, the WeChat public number allowed users to focus on brands and their devoted creators. This also brought a host of new bloggers and a wave of content entrepreneurship.
Since 2015, the popularity of the flick, the beat, the quick hand and the Tencent micro vision has been followed by the short video boom. More recently, there are also a network of bloggers and bloggers (who are usually called KOL, the key opinion leaders), pouring into YY, Ying Ke, Zanthoxylum, one live broadcast and the Taobao live broadcasting platform launched in 2016. The live media, which seems to be not very new, burst into great vitality in the last year of 2010s: "lipstick Prince" Li Jiaqi sold 15000 Lipsticks in the five live Taobao platform on the double eleven this year.
China's minority cultural enthusiasts, especially the younger generation, have found their own world on the video platform Bilibili with social functions. The platform has nearly 150 million users living on the platform, although the number of users is lower than other platforms, but its creator's intensity and audience's stickiness and loyalty are unmatched. Many "up owners" share Vlog, games, makeup and costume matching videos on the platform, which are full of whimsical ideas. The platform is also known as China's "the highest quality video platform". Through the barrage, the audience will create and interact with each other on the basis of content.
　　 E-commerce social networking, social media shopping
The ubiquitous digital ecosystem and the convenient Chinese electricity supplier environment have changed the way people shop and communicate. WeChat launched the WeChat payment function in 2013. After a year's launch, Tencent smartly popularized mobile payment through the way of "red envelopes" and taxi.
Although many luxury goods are still cautious about selling products directly on the third party e-commerce platform, there are many players who dare to take the initiative. Dior is the first luxury brand to sell its handbags in WeChat in 2016. Since then, the use of WeChat platform for "Tanabata" and other limited series offering has become the norm. Senior jewellery brands such as Cartire have completely turned their WeChat public numbers into commercial ones.
Another popular battleground for the fashion industry is the little red book, which was established in 2013. It has developed from a user evaluation recommendation platform and cross-border electric business to a beauty, fashion and lifestyle content platform with electricity suppliers and creators. Objectively speaking, it is partly due to the absence of Instagram in China because of shielding. Xiao Hong is now a 85 million month live user. It is helping Dior, Louis Vuitton and other luxury brands and countless beauty brands attract the attention of post-90s. It also helps new overseas brands enter the Chinese market. Because of the success of the little red book model, the US and Sina have followed up the launch of similar products.
There are many spells mentioned before. In four years, the platform has changed from a website that imitates Groupon group buying to the third largest e-commerce platform in China. Recently, Amazon has bought a lot of overseas stores and has launched a flash store on its platform. Over the years, the overseas electricity giant in China has suffered from climate change. In 2014, Amazon China no longer emphasized the traditional local e-commerce mode, and began the transformation of cross-border e-commerce. In September this year, its local e-commerce service was completely withdrawn from China.
　　 KOL and vermicelli Economics
China's thriving social media ecosystem has grown more and more popular around celebrities, KOL and net red, and this group has become an indispensable asset in the hope of dealing with Chinese consumers. Their scale and profitability are unparalleled. According to TopKlout, the think tank institution, by 2020, the value of China's KOL industry will reach 300 billion yuan.
Over the past ten years, more and more diverse lineup of international brands T and advertising have witnessed their embrace of Asia and China. In 2010, Liu Wen became the first Chinese global spokesperson of Est e Lauder, proving that more and more Chinese supermodels are on the international stage. (E) Feifei Sun, Xi Mengyao and ho Sui are memorable names. Since then, top celebrities such as Fan Bingbing and Yang Mi, "fresh meat" such as Wu Yifan, Lu Han, Cai Xukun and Yi Jie Xi have been favored by luxury brands such as Louis Vuitton and Burberry, Cartire, Prada, Bottega Veneta and so on. When they appeared in Paris and Milan, Zhou Zhou's head row was no longer a novelty. In particular, the rise of male stars has paved the way for China's booming male beauty and men's wear market, and more and more young men are beginning to abandon conservative stereotyped gender norms.
Micro-blog, WeChat, Xiao Hong and live broadcast have also catalyzed the rise of different generations of bloggers and net red. In 2016, Mr. Bao, Liang Tao, CO operated with Dior to sell limited handbags at WeChat, which was soon sold out. After that, he began to launch a design collaboration with Tod's, Longchamp and other brands. A year later, the record of 100 Mini cars sold by female blogger Rebecca in 4 minutes is also breathtaking. Gogoboi, who is known as "Yu Bo", has opened up its own online buyer's shop, and has frequently taken over Louis Vuitton's social media account. In the whole 2019, the risk of change was so fast that this year belonged to the anchor of Wei Ya and Li Jiaqi.
Fierce competition has made them the top content producers. They not only help brands promote, but also promote and transform sales, and even empower brands through various innovative ways.
Consumers can forgive, but never forget.
With the growth of China's economy and national strength, the brand must be aware of the growing patriotic sentiments of the Chinese people and the undisguised expression of this sentiment. In recent years, many brands have gained painful lessons and losses.
In April 2018, Balenciaga and the spring department store in Paris, France, apologized to Chinese consumers for being "queued up" and had not yet launched a large-scale boycott. But it was precisely later that year that the storm of Dolce & Gabbana really ignited the fuse. Although the brand tried to remedy it, it has not yet been accepted by the vast number of consumers in China.
In the last year of the year, such contradictions reached a climax. From NBA to Valentino, a series of brands encountered a public relations crisis and scrambled to repair the relationship with the Chinese market. In many cases, the Chinese market has become the biggest growth driver of these brands. Some crises stem from the offences (such as Dior and Versace) caused by maps related to brand names or products related to Chinese sovereignty, while others involve brands associated with the Hongkong storm (such as Nike and Vans).
If we can learn anything from those brands that have recovered in crisis, that is crisis management and showing real respect, which is more important to the success and survival of the Chinese market than ever before.
　 "Made in China" upgraded to "China design"
In the past ten years, China, once the world's manufacturing power, has been repositioned as a nurturing base for local designers. According to McKinsey Co's data, in 2011, China surpassed the United States to become the world's largest producer of finished goods, and its GDP per capita doubled in just ten years. But with rising costs and continued tension in the US China trade, many companies are turning their investment to neighboring Vietnam and Kampuchea.
China's image as a low cost and low quality commodity source has changed. Organizers of the Shanghai fashion week redefined themselves as a "fashion oriented week" based on local design and global vision. In addition to Uma Wang, Qiuhao and Sankuanz in the city, the Fashion Week Organizing Committee promotes itself through a huge trade fair and Showroom network. These exhibitions attract buyers and media from well-known retailers all over the world. And since 2016, another platform Labelhood on the Shanghai fashion week has been supporting new designers from the mainland, Shu Shu/Tong and Ximon Lee. These two brands have already entered the global zero sale vendors such as Farfetch and Ssense. Chen Anqi, the designer of Angel Chen, has become the first Chinese designer of H&M brand cooperation this year.
There are more highlights. In 2015, Rihanna showed the high degree designer Guo Pei's gorgeous dress on the red carpet of the Met Gala of the Met Fashion College in Rihanna, which exploded the global social media. Since January 2018, the "China Day" hosted by Centrino fashion and Tmall's "China Cool" project have made local giants such as Lining, JNBY, Lily business fashion, Taiping bird and other brands boarded the flyover of New York and Paris fashion week to enhance their popularity and fashion. Guangdong local women's clothing brand, represented by Mo&Co. and Edition 10, has led the fashion trend of modern women's wear. National pride, which is related to nostalgia and traditional Chinese elements, has led to "national tide", which is increasingly reflected in casual clothes and tide cards, and has begun to spread to fast selling products - "domestic products" are reviving.
Brave the wind and waves in China's beauty market
According to reports, as of 2018, the value of China's beauty market is 57 billion 800 million dollars, whether it is household beauty equipment or the medical online market, consumers are not afraid to spend lavishly on unfamiliar products. China has become the world's largest driver of beauty revenue, stimulating growth in the industry giants from L'OREAL to Estee Lauder Co, which has increased 40% in fiscal year 2017. More and more overseas brands are beginning to issue exclusive or high priority new products in China. Many niche brands have also entered the Chinese market through cross-border e-commerce and social media marketing, and gained unexpected scale revenues.
The rise of buyer shops has also led to the expansion of multi brand sales channels. One example is that Space NK, a British boutique retailer, has won the Chinese channel of 10/10 Apothecary and has become the leader of Dipytique, Eve Lom and other brands.
Local brands are also taking the lead in this wave: from Mary de Jia, perfect diary, Hua Xizi's local brand to the white hot the Imperial Palace lipstick series, the "national tide" heat wave is also playing in the beauty industry.
Whether skin care or make-up, or even medical beauty, is becoming a new habit for Chinese consumers. The Frost & Sullivan survey shows that in 2017, the consumption of Chinese medical beauty courses was 16 million 290 thousand, second only to that of the United States, and China's annual growth rate was 26.4%, far exceeding that of the United States by 3.9%. It is estimated that in 2019, China will surpass the US, Brazil, Japan and South Korea. Although the "net red face" is still popular, the Chinese concept of beauty is diversified. The social media debate brought by Chinese models and the appearance of Wang Ju (who later became ambassador to Fenty Beauty in China) made the US standard no longer single.
However, despite the news that the animal testing regulations in China's cosmetics industry are about to open for many years, by the end of 2019, they had not been completely loosened. Bulldog was the first "no animal testing" beauty brand to sell through the international zero cruel organization pilot scheme.
　　 Consumption upgrading and consumption sinking
In 2015 and 2015, China began to try to shift the economic growth center from manufacturing to other fields, and the term "consumption upgrading" entered the Chinese retail industry. In 2018, consumption continued to drive nearly 80% of China's GDP growth, which was less than 50% 8 years ago, especially in luxury goods, cosmetics and household products. At the same time, the improvement of the electricity supplier infrastructure provides more opportunities for low-income groups to purchase affordable low-quality goods.
This change coincides with the rise of China's two or three tier cities after 2012, thanks to the influx of young Chinese labor force and investment in technology and infrastructure. Although brands such as Armani and Burberry listed the lower tier cities as strong growth drivers as early as 2013, the super brands such as Louis Vuitton, Chanel and Dior have been cautious. Until the second half of 2010, the expansion of retail business in the lower tier cities has become a top priority. A recent report by Kai Yun group shows that the company plans to launch a new store layout in the second tier cities on the basis of its existing retail network in China's first tier cities. It will open 14 new retail outlets for its 5 brands in 6 cities, such as Dalian and Wuhan. In recent years, cities like Chengdu, Wuhan and Chongqing have become the favorite of Chinese young people, thanks to their attraction in social media, boutiques and food. Looking forward to the next ten years, they will become an indispensable growth point for fashion, beauty and luxury brands.