You Chance To Dress 1.3 billion people

by Michael Zakkour, Principal, Technomic Asia

We are very active in the fashion/accessory/luxury market in China. For a couple of years now I have been telling anyone who will listen that this is the hottest apparel market in the world. Well, we now have this A.T. Kearney report to back up what I have been talking about.

Hat tip to Mr. Robert Shecterle for the summary. To which I would add that in addition to the sales channels mentioned we have found that multi-brand stores, multi-brand boutiques and franchises are starting to creep their way into increasing importance in China. The dominance of the distributor/mall/department store and/or stand alone store model is starting to erode. Not to mention the growing importance of e-commerce and concept stores. Part II two of this post will discuss these new channels.

There is an an interesting top ten market list at the end as well.

We are extremely active in the fashion/accessory/luxury market in China. For a couple of years now I have been telling anyone who will listen that this is the hottest apparel market in the world. Well, we now have this A.T. Kearney report to back up what I have been talking about.

Hat tip to Mr. Robert Shecterle for the summary.

To which I would add that in addition to the sales channels mentioned we have found that multi-brand stores, multi-brand boutiques and franchises are starting to creep their way to increasing importance in China. The dominance of the distributor/mall/department store and/or stand alone store model is starting to change. Not to mention the growing importance of e-commerce and concept stores. Part II of this post will discuss these new channels.

There is an an interesting top ten market list at the en! d as wel l.

China is now the most attractive emerging market for apparel retailers, according to A. T. Kearneys latest Apparel Index, and already, several brands have aggressively entered the market.

PHV Apparel Group (perhaps best known for its signature brand, Izod) plans to open 3,000 stores in China over the next five years. Likewise, Italian retailer RDM has invested $910 million to develop five luxury outlet centers there, and Gap, Inc. opened stores in Beijing and Shanghai late last year.

According to A. T. Kearney, Chinas growing middle class is expanding its buying behaviors beyond traditional venues.

Retail formats in China are diversifying beyond traditional department stores. Chinese consumers are beginning to shop at venues such as hyper markets, specialty stores, outlets, discount stores and online, Hana Ben-Shabat, a partner with A.T. Kearney and co-leader of the 2011 Apparel Index study, said.

The United Arab Emirates ranked second in the 2011 Apparel Index, driven by a population with a high disposable income and immense fashion consciousness. In addition, as A. T. Kearney points out, the expatriate populace and tourism also drive consumption in this market. Plus, the UAE is both a regional commerce center in the Middle East and a preferred market for entering the Middle East, as well as for testing new products and retail formats.

The Retail Apparel Index is calculated on a scale from 0 to 100. It includes analysis of the clothing market attractiveness (60 percent), levels of retail development (20 percent) and country risk (20 percent). Country risk indicators include political and financial risk, business readiness and business cost of crime, terrorism and corruption.

Here are the 2011 Apparel Index top ten, along with each countrys overall score:

1. China 61.4
2. UAE 58.9
3. Kuwa! it 48.6< /strong>
4. Russia 46.4
5. Saudi Arabia 43.9
6. India 42.0
7. Brazil 40.1
8. Turkey 37.4
9. Vietnam 37.3
10. Chile 36.9

A full copy of the report is available at www.atkearney.com/grdi.