China'S Underwear Culture Is Being Scrambled By The International "Sexy Big Coffee".

Seize the market

The greatest characteristic of culture lies in its weakening of the physiological functions of thermal insulation and the management of body and body. The process of expression is also a process of revealing the inner thoughts and desires of the wearer.

In the Chinese market, luxury underwear accounted for 1/3 of the 20 billion dollar turnover in the underwear industry last year, according to data released by AngelitoTan, co-founder of RTGConsulting, a consultancy.

According to MintelGroup data, the size of Chinese women's underwear market has more than doubled in five years.

The retail value of Chinese women's underwear market is expected to reach US $25 billion next year, two times the US market and will grow to 33 billion US dollars in 2020, according to ou.

The heat of China's high-end underwear market is also evident from the plan of "sexy big coffee".

American brand

(Victoria's Secret) has planned to open its first full range flagship store in mainland China in the winter of Huaihai middle road in Shanghai. It covers an area of 1860 square meters, and the site is exactly the site of Louis Weedon's (LV) shop.

The products include signboard underwear series, including Bombshell TM, Very SexyTM, Dream AngelsTM, Bodyby VictoriaTM, TheLacieTM and Bodyby Victoria.

In fact, the retail store of Victoria has opened to Shanghai, Guangzhou and Shenzhen several years ago.

However, these stores are not directly operated by Victoria company, but are represented by Malaysia Valiram Group, and the stores only sell perfume, canvas bags and underpants of PINK sub line.

The LaPerla brand, representing the noble dream, is the pride of Italy's top luxury. It has 15 stores in China. Now it plans to open two stores in Chengdu and Chongqing, and is also planning to open an underwear store for men in Beijing. In order to expand the local market, LaPerla will choose China's supermodel Liu Wen in its advertising blockbuster.

LaPerla's Asian sales increased by 40%, to a large extent the contribution of Chinese consumers.

Ttiumph, a German brand that already has 1000 outlets in China.

(triumph) it also plans to open stores in 5 new cities this year, and will open 11 stores next year.

The British high-end underwear brand Agent Provocateur (AP) has at least 7 stores in mainland China. The turnover of Beijing stores has increased by 30%. 70% of the sales in the Greater China region come from underwear, with red underwear and body sculpting underwear best selling.

AP said that the brand store program will break through 20 in the next few years.

Demand spawn

It can be said that the persistent extravagance of the Chinese government seems to shift people's interest in luxury luggage and accessories consumption to sportswear and underwear.

The Wall Street Journal reported in early 2015 that because of China's anti corruption and low exposure high-end underwear market, hundreds of dollars of expensive underwear in lingerie stores across China is selling well.

At present, the domestic high-end underwear market is relatively scattered, and no brand occupies the dominant position in the market.

Under the gloomy global market outlook, the overseas underwear brand believes that the Chinese market is the key to enhancing the overall turnover.

Domestic underwear brands such as Beijing love, Manifen and Ordifen also take this market potential into consideration, constantly improving their product quality and targeting high-end customers.

The urban beauty, a public company who focuses on the mass market, sells its underwear from 50 yuan RMB last year, and acquired Ordifen brand last year to expand its position in the high-end market.

PeterLam, assistant to chief financial officer of urban beauty, stressed: "urban beauty should enter the high-end market step by step."

It can not be ignored that Japanese and Korean brands are becoming more and more popular in China.

Such as Japanese brands Wacoal and Narue, because of more intimate details, more diversity, become the advantage of PK domestic brand.

Mintel Group director Matthew Crabbe bluntly said: "this means that overseas brands have to compete with local brands, not only in terms of quality, but also in terms of innovation."

In addition to the market environment, consumer demand is also changing.

Compared to handbags, underwear prices are at a low starting point, but they are still luxury goods. The growing middle class in emerging markets such as China has begun to pursue unattractive luxury underwear and household clothing after meeting the luxury of handbags and clothing, so as to enhance the overall level of lifestyle.

Chinese consumers are becoming more sophisticated and women are more confident in shopping.

Although luxury underwear is luxuriously hidden under clothing, some consumers claim that good underwear can modify the body curve.

Ms. Li, a 22 year old student, said she would spend 500 yuan on an underwear, "for the sake of effectiveness".

Liu Nan, a 22 year old student in Shandong, said she would spend more than 1500 yuan on underwear every year, but she did not think there was a big difference between Chinese and foreign brands.

"I can accept the purchase of a domestic brand, but if I particularly like the style of an overseas brand, I may choose to buy overseas brands," she said.

ChiaraScaglia said to Reuters, "at the beginning, many people questioned why they spent thousands of dollars on underwear that no one could see, but now the lingerie industry has changed."

Matthew Clubb, director of Asia Pacific Research, said that the Chinese view of beauty, lifestyle and even sex is changing, which boosted the sales of high-end underwear. "Some women are thinking more about wearing sexy clothes including underwear."

People want to have secret "capricious hobbies".

It's just beginning.

Although the prospect of high-end underwear is broad, it is not smooth sailing.

City beauty has 8600 stores in China, including 550 stores in Ordifen. Last year, the performance of the brand mass market grew strongly, but by the first half of June 30, 2016, its revenue was 2 billion 211 million yuan, an increase of only 0.2% over the same period last year.

Net profit of 174 million yuan, a year-on-year drop of 35.63%, was mainly affected by the slowdown of China's economy and the more cautious influence of consumers. At the same time, online sales competition was fierce.

Also affected by fierce competition and economic slowdown, the Hongkong Fang Li Fang Group is the holder of an underwear brand. The company said retail sales fell by nearly 20% from 4 to June.

At the same time, high-end underwear also has its own fragile genes. To return to the underwear culture at the beginning, just like the show effect of Victoria's show to consumers, the freshness is constantly losing. The marketing of underwear culture will test the diversified needs, social regulations, the social consensus of the millennial generation and the changing consumer concept to redefine sexy.

Because selling underwear without any additional value may be a complete downturn in the highly socialized 80/ 90.

Hongkong analysts say that despite these problems, the lingerie industry is still very attractive. He predicts that the market will be stable for some time, but he points out: "this is a young market, and competition is fierce in the short term."