Fashion Industry Looks to China and India For Growth
As the recession continues, retailers are looking to new markets to grow their businesses. Research indicates
that the next big growth markets are in India and China, where the middle class is expanding, as is consumers' demand for Western goods.
China's middle class will rise, the report outlined, from the current estimated 5 percent of total households to 45 percent and "become one of the most active consumers of apparel in the next 10 to 20 years."
Meanwhile, the size of India's retail market, it said, is expected to reach $637 billion by 2015, or more than double from around $300 billion in 2005-06.
In India's case, the boom in the construction of hundreds of malls in the last few years is putting in place the "infrastructure required to support and fuel the rapid rise of retail."
With its huge population of 1.3 billion and increasing apparel consumption, China "offers a lucrative business opportunity to the rest of the world," said the study. Given the country's robust growth and increasing purchasing power by consumers, per-capita fiber consumption in China's apparel market increased to 14 kilograms in 2005 from 4.1 kilograms in 2000, and is forecast to reach 20 kilograms in 2010, the report said.
The ITC study said that, with per-capita gains in gross domestic product and a likely appreciation of the Chinese currency, the yuan, consumer purchasing power "will grow even stronger" and spur further consumption of apparel. The study said, "The Chinese consumer's lifestyle is undergoing tremendous change, and the domestic clothing market is becoming more versatile, fashionable and segmented."
With demand for comfort dressing increasing, it noted, more consumers today prefer quality apparel made of pure cotton and other natural fibers. There is also a growing interest by some segments in brands and in country of origin. "At the higher end of the market, consumers also care about brands, the countries where these brands originated and the countries where the articles bearing the brand names have been manufactured," the study said.
At last, some good news for fashion manufacturers and retailers. Emerging markets means growth for the fashion industry. It's interesting that the growth markets are in countries that have not been considered wealthy. It's the growing middle class that will provide the boost to sales.
