Fashion and Beauty on The Rise in China According to Technomic Asia Study
Chinese Women Spend 15 percent of Income on Cosmetics
New York, Monday, October 3, 2011 Internationally known China business consultant Michael Zakkour of Technomic Asia, said the flood gates are open for foreign fashion brands in China. Speaking today at the Fashion Institute of Technology event entitled Fashion, Beauty, and Status, Zakkour highlighted his year long study On The Frontline of Chinas Apparel and Luxury Markets.
China is the number one apparel market and the second largest fashion accessory market in the world. The opportunities for established and independent fashion brands are opening up now in second and third tier China cities. We see accelerated investment in cities including Chongqing, Suzhou, and Qingdao, said Zakkour.
Technomic Asias research showed Louis Vuitton, Burberry, Coach, and Ferragamo investing in these new fashion-conscious urban markets. These are cities that every US business should become familiar with as they will be the new wave of dynamic consumer growth in China, Zakkour added.
The boost in casual apparel sales, up 20 percent annually in China, is a strong indication of clothes becoming a fashion and status statement and less of a utility purchase. We are in an era where a new generation of Chinese is purchasing more clothes for a variety of purposes, or even as a political statement, said Zakkour. He added, its a statement that says, China has arrived to be noticed on the world stage as consumers and designers in their own right.
Lastly, Zakkour called specific attention to the average percentage of a womens income, between 10 and 15 percent, spent on cosmetics and skin care. A large portion of that, approximately 45 percent, is dedicated to skin care and moisturizers as compared to heavy use of makeup. He called this an important distinction that reflects China as a unique consumer market.
Our research ! shows it would be a mistake for foreign companies to market themselves in China as in other parts of the world; Chinas consumers are unique and need to be understood by marketers before they try to replicate what worked in other countries here, Zakkour said.
About Technomic Asia
Technomic Asia, a division of Tompkins International (www.tompkinsinc.com), is a business strategy and supply chain consultancy with more than 30 years of experience helping clients plan and execute Asian growth and operational strategies. Technomic Asia assists companies in entering the Asian market or in expanding their business by providing critical market insight, an understanding of business potential and assistance in designing the optimum strategy for success. Technomic Asias Michael Zakkour is a principal with the firm, is a resource on topics involving Chinas economy and growth opportunities. He is a frequent speaker for business and international conferences.
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