China's textiles, new market for fashion

22 Sep, 2004

Exception de Mixmind, Jefen, Farina.Z. Mention these brands overseas, or even in China, and few people would recognise they are creations of the country's top fashion designers.
As the world's biggest textile manufacturer, especially in low- and medium-end products, China is also becoming a new market for high-end fashion, but it lacks name brands of its own.
The country's textile production jumped 50 percent to 272 billion yuan (33 billion dollars, 27 billion euros) in the five-year period from 1998 to 2002.
Factories in China churn out clothes for many international brands, including major top-end lines.
New wealth has also meant increased spending on clothes by Chinese people, but none of China's top 10 designers have made it to the stages of Paris, New York or Milan and few have opened boutiques overseas.
"We don't have a single designer with international recognition," said Wang Qing, president of the China Fashion Designers Association, which represents the country's more than 25,000 designers, up from only 64 in 1993.
Six young Chinese designers unveiled their collections on the catwalks of Paris last year for the first time, but only because they were invited as part of a year-long celebration of Chinese culture in France.
"What's being sold overseas is mainly fashion with Chinese characteristics, such as traditional Chinese outfits, but these are not being sold on a large scale," Wang said.
"But to be successful, our designs have to succeed in the mainstream."
Brand recognition is also lacking in the domestic market.
In Beijing's upscale China World mall, shoppers including Ma Li, a 30-year-old real estate agent who spends 2,000 yuan a month on clothing, did not recognise Exception, one of the best-selling Chinese brands of casual women's clothing.
"I can't think of any Chinese designers," said Ma. "I prefer the South Korean style."
Industry experts said a relatively young fashion culture and a poor retail system were to blame.
Department stores in China, unlike those overseas, shy away from risks and do not purchase clothes from designers, but require them to rent space from the stores to sell their clothes.
That forces designers to fork out a lot of money to rent store space or open boutiques in hopes of bringing their collection to a wider audience.
China also lacks the culture to support designers' creations.
"There are a lot of people with spending power, but their sense of culture is lacking," said Frankie Xue, whose Jefen brand grosses 75 million yuan in sales a year. He pointed to the country's nouveau riche who often can be seen plunking down wads of cash for expensive items that are not color co-ordinated or clash in style.
Fashion sense was virtually non-existent for decades under Communist rule. A rebirth occurred only two decades ago when economic reform began.
Given the conditions back then, most people could only afford to experiment with jeans and T-shirts. It was only in the last few years that they could afford middle and high-end clothing.
While there is a mushrooming population of well-to-do yuppies willing to splurge on fashion, spending on clothes still remains low compared to developed countries.
A survey of spending habits in five major Chinese cities in 2002 found that people spend an average of 2,080 yuan (251 dollars, 206 euros), or 7.3 percent of their income, on clothes each year.
The survey also found that a majority of consumers preferred foreign brands, reflecting increasing exposure to overseas goods through travel or imports.
Wang admitted Chinese designers lacked originality and creativity compared to overseas counterparts.
"They're either so unique that you take one look and you can see it's Chinese or you can't see any individual character in them," Wang said.
Exception's young designer Ma Ke blamed an overemphasis on commercialisation and copying.
"There are many designers in China, but regrettably only a handful create original pieces," said Ma, whose designs of women's clothing have a functional elegance.
But Ma is confident that will change as the country's consumers become more sophisticated and its designers more daring.
"Initially, the consumers couldn't accept some things, but now they are more experimental," said Ma. "In the past, if they spend 3,000 yuan on something, it would be something like a TV. Now they have all the home appliances they need and they are willing to spend that much on a piece of clothing."
Xue, whose fall collection is an array of feminine but smart-looking outfits in warm autumn colors for young professional women, said he does not believe Chinese designers would be squeezed out of their own market.
"Overseas designers don't understand China's environment. When Chinese people wear overseas brands, people might comment that their collar is a bit low or the floral pattern is a bit big. It's because it's designed for bigger people."
"It's like borrowing other people's clothes," Xue said.
Some of the best selling Chinese brands in China use durable fabrics that are not too expensive looking, conservative colors and low-key cuts.
Xue and other designers said in order for a country to have top brands, it must be economically influential.
"If it's economically powerful, people will accept its culture, including its clothes," Xue said.

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