China’s fashion consumption market is expected to receive high-quality growth in the current decade, according to a recent report by Boston Consulting Group.
According to BCG, China’s footwear and apparel market was worth 2.5 trillion yuan ($307.8 billion) in 2022, and is expected to reach 3.4 trillion yuan in 2030.
“China’s economy has entered a high-quality growth phase, and economic growth is stable,” said Veronique Yang, managing director and senior partner at BCG. “With the continuous emergence of digital touch points, the relationship between brands and consumers has become more direct and intimate. The continuous increase in household income and the emergence of new-generation consumers have led to the increase of more fragmented and diverse needs. The expression of personal needs.”
Yang says that the improvement in the quality of fashion information and the evolution of digital social media have combined to gradually strengthen the demand for fashion. Between 2020 and 2030, China’s fashion consumer market will grow steadily and “high quality”.
Although China’s fashion consumption has been affected by the Covid-19 pandemic over the past three years, consumer confidence has steadily rebounded earlier this year, Yang said.
“We need to be confident about consumer recovery. A remarkable change over the past three years is that online touchpoints are playing an increasingly important role in fashion consumption. In addition, consumers have high expectations for customer service, including multi-channel returns. Service quality,” she said.
According to BCG, offline passenger traffic is rebounding rapidly after China eases its epidemic prevention and control measures.
“The recovery of passenger flow is good news for fashion brands, consumers are entering the stores again. In addition, the government has focused on promoting consumption this year, sending a positive signal to the industry,” she added.
In the first five months of this year, China’s total retail sales of consumer goods grew 9.3 percent year-on-year to 18.8 trillion yuan, and the growth of the footwear and clothing sub-category was even higher, according to the Bureau of Statistics.