China Apparel Retail 71782

A Progressive Digital Media business
MarketLine Industry Profile
Apparel Retail in
China
November 2018
Reference Code: 0099-2005
Publication Date: November 2018
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China - Apparel Retail 0099 - 2005 - 2017
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EXECUTIVE SUMMARY
Market value
The Chinese apparel retail industry grew by 10.5% in 2017 to reach a value of $240.1 billion.
Market value forecast

In 2022, the Chinese apparel retail industry is forecast to have a value of $400.7 billion, an increase of 66.9% since
2017.
Category segmentation
Womenswear is the largest segment of the apparel retail industry in China, accounting for 51.7% of the industry's total
value.
Geography segmentation
China accounts for 45.8% of the Asia-Pacific apparel retail industry value.
Market rivalry
The presence of strong incumbents and relative lack of diversification in this industry increases the competition between
players. However, strong growth in China alleviates the degree of rivalry between players and reduces the likelihood of a
zero-sum game.

TABLE OF CONTENTS
Executive Summary......................................................................................................................................................... 2
Market value ................................................................................................................................................................ 2
Market value forecast .................................................................................................................................................. 2
Category segmentation ............................................................................................................................................... 2
Geography segmentation ............................................................................................................................................ 2
Market rivalry ............................................................................................................................................................... 2
Market Overview.............................................................................................................................................................. 7
Market definition .......................................................................................................................................................... 7
Market analysis............................................................................................................................................................ 7
Market Data ..................................................................................................................................................................... 9
Market value ................................................................................................................................................................ 9
Market Segmentation .................................................................................................................................................... 10
Category segmentation ............................................................................................................................................. 10
Geography segmentation .......................................................................................................................................... 11
Market distribution ..................................................................................................................................................... 12
Market Outlook .............................................................................................................................................................. 13
Market value forecast ................................................................................................................................................ 13
Five Forces Analysis ..................................................................................................................................................... 14
Summary ................................................................................................................................................................... 14
Buyer power .............................................................................................................................................................. 15
Supplier power........................................................................................................................................................... 17
New entrants ............................................................................................................................................................. 19
Threat of substitutes .................................................................................................................................................. 21
Degree of rivalry ........................................................................................................................................................ 22
Leading Companies....................................................................................................................................................... 24
Belle International Holdings Limited .......................................................................................................................... 24
Bestseller A/S ............................................................................................................................................................ 27
Fast Retailing Co., Ltd. .............................................................................................................................................. 28
JD.com Inc................................................................................................................................................................. 31
Macroeconomic Indicators............................................................................................................................................. 34

Country data .............................................................................................................................................................. 34
Methodology .................................................................................................................................................................. 36
Industry associations ................................................................................................................................................. 37
Related MarketLine research .................................................................................................................................... 37
Appendix........................................................................................................................................................................ 38
About MarketLine ...................................................................................................................................................... 38

LIST OF TABLES
Table 1: China apparel retail industry value: $ billion, 2013–17 ......................................................................................9
Table 2: China apparel retail industry category segmentation: $ billion, 2017 ..............................................................10
Table 3: China apparel retail industry geography segmentation: $ billion, 2017 ...........................................................11
Table 4: China apparel retail industry distribution: % share, by value, 2017.................................................................12
Table 5: China apparel retail industry value forecast: $ billion, 2017–22 ......................................................................13
Table 6: Belle International Holdings Limited: key facts ................................................................................................24
Table 7: Belle International Holdings Limited: key financials ($) ...................................................................................25
Table 8: Belle International Holdings Limited: key financials (CNY)..............................................................................25
Table 9: Belle International Holdings Limited: key financial ratios.................................................................................25
Table 10: Bestseller A/S: key facts................................................................................................................................ 27
Table 11: Fast Retailing Co., Ltd.: key facts..................................................................................................................28
Table 12: Fast Retailing Co., Ltd.: key financials ($) .....................................................................................................29
Table 13: Fast Retailing Co., Ltd.: key financials (¥) .....................................................................................................29
Table 14: Fast Retailing Co., Ltd.: key financial ratios ..................................................................................................29
Table 15: JD.com Inc: key facts .................................................................................................................................... 31
Table 16: JD.com Inc: key financials ($)........................................................................................................................32
Table 17: JD.com Inc: key financials (CNY) ..................................................................................................................32
Table 18: JD.com Inc: key financial ratios .....................................................................................................................32
Table 19: China size of population (million), 2013–17...................................................................................................34
Table 20: China gdp (constant 2005 prices, $ billion), 2013–17 ...................................................................................34
Table 21: China gdp (current prices, $ billion), 2013–17...............................................................................................34
Table 22: China inflation, 2013–17................................................................................................................................ 35
Table 23: China consumer price index (absolute), 2013–17 .........................................................................................35
Table 24: China exchange rate, 2013–17 .....................................................................................................................35

LIST OF FIGURES
Figure 1: China apparel retail industry value: $ billion, 2013–17.....................................................................................9
Figure 2: China apparel retail industry category segmentation: % share, by value, 2017.............................................10
Figure 3: China apparel retail industry geography segmentation: % share, by value, 2017 .........................................11
Figure 4: China apparel retail industry distribution: % share, by value, 2017................................................................12
Figure 5: China apparel retail industry value forecast: $ billion, 2017–22 .....................................................................13
Figure 6: Forces driving competition in the apparel retail industry in China, 2017 ........................................................14
Figure 7: Drivers of buyer power in the apparel retail industry in China, 2017..............................................................15
Figure 8: Drivers of supplier power in the apparel retail industry in China, 2017 ..........................................................17
Figure 9: Factors influencing the likelihood of new entrants in the apparel retail industry in China, 2017 ....................19
Figure 10: Factors influencing the threat of substitutes in the apparel retail industry in China, 2017 ...........................21
Figure 11: Drivers of degree of rivalry in the apparel retail industry in China, 2017......................................................22
Figure 12: Belle International Holdings Limited: revenues & profitability.......................................................................26
Figure 13: Belle International Holdings Limited: assets & liabilities...............................................................................26
Figure 14: Fast Retailing Co., Ltd.: revenues & profitability ..........................................................................................30
Figure 15: Fast Retailing Co., Ltd.: assets & liabilities ..................................................................................................30
Figure 16: JD.com Inc: revenues & profitability .............................................................................................................33
Figure 17: JD.com Inc: assets & liabilities .....................................................................................................................33

MARKET OVERVIEW
Market definition
The apparel retail market includes baby clothing, toddler clothing and casual wear, essentials, formalwear, formalwear-
occasion, and outerwear for men, women, boys and girls; excludes sports-specific clothing.
Any currency conversions used in the creation of this report have been calculated using constant 2017 annual average
exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific, Middle
East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
Market analysis
The Chinese apparel retail industry has experienced very strong growth in recent years, a trend which is expected to
continue in the forecast period.
The Chinese apparel retail industry had total revenues of $240.1bn in 2017, representing a compound annual growth
rate (CAGR) of 11% between 2013 and 2017. In comparison, the Singaporean and Indian industries grew with CAGRs of
1.8% and 11.1% respectively, over the same period, to reach respective values of $2.5bn and $54.0bn in 2017.
Although economic growth in China has slowed down in recent years China’s economy grew at an average of 7.1%
during 2013–17. The country has undergone a period of rapid urbanization in recent years, with the growth of the middle
class and rising incomes becoming a more dominant driver of the economy. Household final consumption expenditure
has also grown at a rapid pace and according the World Bank reached 39.01% in 2016 (the latest available figures).
Consumption has gained momentum in China, being a key factor in driving the nation's economic growth; this has led to
a number of policy changes such as the legalization of cross-border e-commerce and the adoption of a universal two-
child policy in 2017. Policies that encourage consumption are likely to become more prevalent in the future as the
country becomes more reliant on it for the economic growth.
The growing popularity of shopping online is a key factor which has impacted on the apparel retail industry. The Chinese
online retail sector grew by 26.4% in 2017 and is expected to increase a further 154.3% by 2022. Customers have been
won over by the convenience, variety and cheaper prices which online apparel retailers can offer. This has led to growth
in the online-pureplay channel which now accounts for 14.8% of the industry’s total value. While this has helped drive
growth in the industry, the prominence of heavy discounting and low prices online has eroded revenue somewhat.
Online companies such as Alibaba have been credited for transforming the landscape of online retail, consumers
responded well to e-commerce which has encouraged apparel retailers to take business online. JD.com has become a
leading player in the online pureplay channel and reported revenues of $55,689bn in 2017.

The womenswear segment was the industry's most lucrative in 2017, with total revenues of $124.2bn, equivalent to
51.7% of the industry's overall value. The menswear segment contributed revenues of $74.8bn in 2017, equating to
31.1% of the industry's aggregate value.
Fast fashion has also proven to be a lucrative sector in the industry. By combining the demand for fast fashion and online
shopping, pureplay retailers such as JD.com have experienced strong growth in China. Uniqlo has also become a
leading player in the Chinese industry following its entry in 2002. The retailer now has 644 stores across China (As of
September 30, 2018) and also an online retail platform.
The performance of the industry is forecast to follow a similar pattern with an anticipated CAGR of 10.8% for the five-
year period 2017 - 2022, which is expected to drive the industry to a value of $400.7bn by the end of 2022.
Comparatively, the Singaporean and Indian industries will grow with CAGRs of 1.9% and 11.7% respectively, over the
same period, to reach respective values of $2.8bn and $93.8bn in 2022.
The Chinese economy is expected to slow down in the coming years, although it will remain robust due to strong
infrastructure investment and strong property sector activities. However, the ongoing trade dispute with the US is a
strong threat to the Chinese economy as tensions remain high.
Socio-demographic factors will also play an important role, the economic growth in the country, rapid urbanization and
the growth of the middle class will increase disposable incomes and encourage consumption. This will continue to drive
growth in the apparel retail industry.
The trend towards increased online spending will only grow over the coming years thanks to its ability to deliver
convenience and unbeatable prices. This will encourage growth in the apparel retail industry but also cause a slight
deceleration over the forecast period as the penetration of online retail sales becomes close to saturation and leads to
increased downward pricing competition. The penetration of online shopping in China in terms of potential consumers
(internet users) is low compared to developed countries, meaning there is ample room for growth.

MARKET DATA
Market value
The Chinese apparel retail industry grew by 10.5% in 2017 to reach a value of $240.1 billion.
The compound annual growth rate of the industry in the period 2013–17 was 11%.
Table 1: China apparel retail industry value: $ billion, 2013–17
Year $ billion CNY billion € billion % Growth

2013 158.4 1,069.5 140.0
2014 177.0 1,195.3 156.5 11.8%
2015 196.7 1,327.7 173.9 11.1%
2016 217.3 1,466.9 192.1 10.5%
2017 240.1 1,621.3 212.3 10.5%
CAGR: 2013–17 11.0%
SOURCE: MARKETLINE MARKETLINE
Figure 1: China apparel retail industry value: $ billion, 2013–17

MARKET SEGMENTATION
Category segmentation
Womenswear is the largest segment of the apparel retail industry in China, accounting for 51.7% of the industry's total
value.
The Menswear segment accounts for a further 31.1% of the industry.
Table 2: China apparel retail industry category segmentation: $ billion, 2017
Category 2017 %
Womenswear 124.2 51.7%
Menswear 74.8 31.1%
Childrenswear 41.2 17.2%
Total 240.2 100%
Figure 2: China apparel retail industry category segmentation: % share, by value, 2017

Geography segmentation
China accounts for 45.8% of the Asia-Pacific apparel retail industry value.
Japan accounts for a further 17.6% of the Asia-Pacific industry.
Table 3: China apparel retail industry geography segmentation: $ billion, 2017
Geography 2017 %
China 240.1 45.8
Japan 92.1 17.6
India 54.0 10.3
South Korea 32.2 6.2
Singapore 2.5 0.5
Rest of Asia-Pacific 103.0 19.7
Total 523.9 100.1%
Figure 3: China apparel retail industry geography segmentation: % share, by value, 2017

Market distribution
Clothing, Footwear and Accessories Specialists form the leading distribution channel in the Chinese apparel retail
industry, accounting for a 60% share of the total industry's value.
Online Pureplay accounts for a further 14.8% of the industry.
Table 4: China apparel retail industry distribution: % share, by value, 2017
Channel % Share
Clothing, Footwear and Accessories Specialists 60.0%
Online Pureplay 14.8%
Department Stores 10.1%
Hypermarkets, Supermarkets and Hard Discounters 6.1%
Other 9.0%
Total 100%
Figure 4: China apparel retail industry distribution: % share, by value, 2017

MARKET OUTLOOK
Market value forecast
In 2022, the Chinese apparel retail industry is forecast to have a value of $400.7 billion, an increase of 66.9% since
2017.
The compound annual growth rate of the industry in the period 2017–22 is predicted to be 10.8%.
Table 5: China apparel retail industry value forecast: $ billion, 2017–22
Year $ billion CNY billion € billion % Growth

2017 240.1 1,621.3 212.3 10.5%
2018 265.7 1,793.9 234.9 10.6%
2019 294.1 1,985.4 260.0 10.7%
2020 325.8 2,199.3 288.0 10.8%
2021 361.1 2,437.7 319.2 10.8%
2022 400.7 2,705.1 354.2 11.0%
CAGR: 2017–22 10.8%
Figure 5: China apparel retail industry value forecast: $ billion, 2017–22

FIVE FORCES ANALYSIS
The apparel retail market will be analyzed taking retailers as players. The key buyers will be taken as individual
consumers, and clothing manufacturer and wholesalers as the key suppliers.
Summary
Figure 6: Forces driving competition in the apparel retail industry in China, 2017
The presence of strong incumbents and relative lack of diversification in this industry increases the competition between
players. However, strong growth in China alleviates the degree of rivalry between players and reduces the likelihood of a
zero-sum game.
Demand patterns are susceptible to branding and advertising, which, despite the lack of significant switching costs, tends
to weaken buyer power. However, despite consumers' lack of a significant financial muscle, the position of retailers at the
end of the value chain makes it impossible to integrate forwards. This means that they are obliged to offer buyers what
they demand, in an industry often subject to unpredictable and rapid changes in fashion.
There is a degree of forward integration amongst the manufacturers of apparel products. Large companies often
manufacture and retail their own products, with the majority of production sites being located in low-cost countries, China
being one of them.
Low barriers to entry and relatively low requirements for capital mean there is a high likelihood of new entrants in this
industry; this will be further encouraged by strong growth.
Substitutes to apparel retail include bespoke tailoring, factory shops, homemade clothing, and second hand clothing,
although these pose a minimal threat to industry players.
As consumers place more importance on overall experience, retailers are introducing new attractions to drive visits and
earn more time with their shoppers. Product innovation is constant in the sector and apparel retailers are also
increasingly aiming to establish themselves as lifestyle brands. Retailers continue to fine-tune their promotional
strategies, with many relocating their discounted goods by introducing off-price formats.

Buyer power
Figure 7: Drivers of buyer power in the apparel retail industry in China, 2017
Buyer power in the apparel retail industry is weakened by the small size of buyers: virtually all buyers are individual
consumers. What's more, retailers tend to have large numbers of individual customers, which further weakens buyer
power as the loss of one customer is unlikely to have a significant impact on revenues.
Despite the fact that brand consciousness in this industry is substantial, the loyalty of consumers to specific brands is not
always the overriding factor in their decision making, which is likely to be influenced more by the products they offer.
Buyer power is enhanced by the high level of choice within the industry and the low cost of switching between different
players, which enables buyers to easily sway from company to company. Brand loyalty is relatively low in the industry
especially amongst international powerhouses; in the top end of the industry loyalty is connected more with specific
designers rather than the retailer as a whole.
The depth of price sensitivity varies regionally, although clothes are perceived as closely linked to lifestyle and social
status, which grants retailers the opportunity to influence consumer behavior. There is a large industry for non-designer
apparel retail, especially among customers with lower disposable incomes as customers in the region are increasingly
favoring off-price stores that offer fashion at an attractive price. This trend has increased buyer power, as many mid-
range apparel retailers have had to mark down prices and offer promotional deals more frequently in order to attract
customers away from low priced retailers such as H&M and Inditex.
Retailers can differentiate themselves through the styles of clothing offered and the price range of this clothing, meaning
buyer power is weakened. For example, if a customer has a preference for casual style clothing their buyer power will be
limited as only certain stores cater to this taste. Price can also be a factor which decreases buyer power, as consumers
who seek garments within a low price range will be limited to shop at fast fashion retailers such as H&M.
Apparel is an essential item for consumers, and they are significantly exposed to the penetration of marking icons and
images into most forms of media. However, retailers must remain aware of the developments that shape public
perception and subsequent demand. Growing sophistication and wide fashion media exposure has changed the
consumer's perception of fashion and raised awareness of trends, thus increasing buyer power.

With the exception of a small number of high net worth individuals, the majority of customer's lack financial muscle and
backwards integration is not a possibility. However, retailers equally are unable to forward integrate, balancing the
equation somewhat.
In an industry that is often subject to unpredictable and rapid changes in fashion, players are obliged to offer buyers what
they demand. This strengthens buyer power.
Overall, buyer power is assessed as moderate.

Supplier power
Figure 8: Drivers of supplier power in the apparel retail industry in China, 2017
The key suppliers in this industry are clothing manufacturers and wholesalers. These are typically small to medium sized
enterprises. The wholesale and clothing manufacturing sectors are fairly fragmented. Supplier fragmentation is made
greater by the ability of retailers to source from foreign manufacturers. With the liberalization of international trade,
supplier power in the global industry is decreased through competition from manufacturers in low-wage regions. Despite
the increase, minimum wage in Asia remains a fraction of the level in the developed countries making it an appealing
destination for clothing manufacturers and wholesalers.
Apparel manufacturing is almost always labor intensive, due to the difficulty of automating processes such as the sewing
of garments, meaning that the industry does not benefit greatly from scale economies. This has meant that small-scale
apparel manufacturing businesses are typical in many countries, thus reducing supplier power. The existence of a
minimum wage in many countries slightly increases the power of suppliers of labor. However, rising costs and
employees' wages in China have led retailers to move production to lower cost geographies elsewhere in Asia; most
notably India, Bangladesh, Vietnam, and Indonesia. In fact, between 2003 and 2006, Chinese workers' wages
appreciated by 100% and steady increases have continued since.
While manufacturing in the Asia-Pacific region is cheaper, Corporate Social Responsibility (CSR) is becoming more
important in the industry and there is a pressure from consumers and non-governmental organizations (NGOs) for
companies to be more transparent in regard to supply chains. For example, the Fashion Transparency Index report
published by NGO Fashion Revolution, ranks apparel companies on the level of supply chain transparency and
governance practices that are employed in their facilities. It has become more important for suppliers to operate in an
ethical way in order to comply with the expectations of players, however, the number of successful CSR performers is
low and suppliers who are successful are in high demand, thus increasing supplier power.

In 2013, a five-story building named Rana Plaza collapsed in Bangladesh, killing over 1,000 and injuring over 2,000
clothing factory workers. The incident put a spotlight on the unethical and unsafe working conditions of factory workers
and at the time brought about calls for an overhaul in the supply chains of major fashion retailers. Brands such as
Walmart, Primark, Benetton and Mango all supplied clothing from Rana Plaza. Despite the fact that some of the big
brands have made some positive steps to create more ethical supply chains, this has not been enough and many
workers still face abhorrent conditions in garment factories in many parts of the world. Fast fashion remains increasingly
popular, with consumers attracted by the cheap price regardless of the nature of the supply chain the product came
through; therefore the issue continues to play a role within the apparel retail industry in regard to suppliers.
Although retailers' switching costs are not very high, switching includes the risk of choosing a supplier with a more
extended supply chain or who may not be able to cope with sudden changes in demand on the industry. The lack of
diversity between suppliers weakens their power, as the apparel retail industry is highly important to their business.
Apparel manufacturing is almost always labor intensive, due to the difficulty of automating processes such as the sewing
of garments. The existence of a minimum wage in many countries slightly increases the power of suppliers of labor.
While labor intensity remains high in 'slow' fashion, it is likely that in the future fast fashion companies will make way for
capital-intensive production that focuses on new technology and robotics as a means of production. For example,
Amazon has already patented an automated on-demand clothing factory that is able to make clothes once orders have
been placed. The automation of apparel manufacturing will be encouraged by rising minimum wages in Asia which is
becoming a problem for fast fashion companies and may drive automated production back to places such as Europe and
the US. Suppliers who can adapt to these changes will be in an advantageous position.
There is a degree of forward integration amongst the manufacturers of apparel products. Large companies often
manufacture and retail their own products, with the majority of production sites being located in low-cost countries,
notably in Asia. However, problems related to keeping the production overseas may include: delays, high intellectual
property protection burdens, quality control issues, management overheads, logistics overheads and other hidden costs.
Unlike its rivals, who make their clothing primarily in Asia, Inditex conducts most of its operations in Spain, with 59% of
the company's factories located close to its headquarters in Arteixo in North West Spain, allowing it to make garments
and quickly ship them to Europe, its biggest industry. The company keeps inventory low, shipping products based on
demand. This allows it to take fewer markdowns for things like bad weather and shifting consumer tastes, avoiding the
kinds of problems its competitors run into. Fast Retailing's most successful subsidiary, Uniqlo has tackled this issue by
ensuring that its manufacturing factories are located nearby in China allowing it to make garments quickly and ship them
to the biggest industry’s in the Asia-Pacific region.
Reputable manufacturers who have a large brand portfolio and are known in the industry for the durability of their
garments may have a unique appeal to certain players. This can also be said for fast fashion companies, who tend to be
less interested in the durability of apparel and more in the speed and cost of manufacturing, as the items produced are
intended to be more dispensable. Therefore suppliers who can differentiate their services to suit certain kinds of players
may experience increased power.
Overall, supplier power is assessed as moderate.

New entrants
Figure 9: Factors influencing the likelihood of new entrants in the apparel retail industry in
China, 2017
In this industry, barriers to entry are not high, with capital requirements being low enough for individuals to enter.
However, a small number of large corporations, such as Fast Retailing, Belle International Holdings Ltd and JD.com
account for a significant share of total industry revenues. They benefit from scale economies that allow them to build
brands in multiple retail outlets and grant them a greater buying power when negotiating with suppliers. The latter allows
them to compete more intensely on price and product range, which is a key factor influencing customers in the current
landscape. Although players may respond to new entrants with aggressive pricing, this trend is representative to the
industry as a whole, and not just new entrants alone.
There is also rising competition from low price retailers, as well as off-price retailing. In order to satisfy demand for
discounted branded products, the brands either overproduce or repeat last year's designs to ensure the off-price stores
are full. As such players compress consumer prices, traditional retailers will be forced to emphasize low price and low
cost operations. As a result, they will also have to look at their cost structure and decide how to be lean and competitive
in their pricing, staffing, and store count. This may prove difficult for new entrants, thus the threat is decreased.
Level of government regulation differs from country to country. Some countries have introduced protectionist measures
to support their domestic industries; these include high import tariffs and non-tariff barriers. Such regulations can have a
huge impact on retailers importing their products from foreign suppliers. In other cases, there are trade agreements in
place that allow more apparel into the country at very low prices, increasing imports from the low-cost producing
countries. This in turn forces local producers or other international companies to lower their prices in order to compete,
driving down prices for the entire segment. Suppliers in China tend to be easily accessible; the region hosts some of the
largest apparel manufacturers in the world and also a large number of small scale suppliers. The Asia-Pacific Trade
Agreement (APTA) has liberalized trade in the region, making trade between China and other popular apparel
manufacturing countries more accessible, thus creating a positive environment for new entrants.

Low switching costs for buyers and a low level of product differentiation make it easier for new entrants to compete with
existing players. In the Chinese industry current demand growth is becoming increasingly centered on fast fashion
trends. Fast fashion retailers are filling the gap in the industry for consumers who want to wear fashionable clothing but
cannot afford luxury items. By changing their offering quickly, companies can create scarcity value, leading customers to
visit stores more often. Even as luxury brands such as Gucci and Burberry have reported slower growth in China, fast
fashion retails brands such as Zara/Inditex, H&M, GAP and Uniqlo (part of Fast Retailing) are set to expand further in the
country. Gap is looking to China for growth opportunities to offset sluggish sales in its domestic market. Fast Retailing,
which also has strong presence in China, intends to triple the number of stores it has on the Chinese mainland over the
next three years.
Online fast fashion retailer Asos has experienced strong growth in recent years and has become a global e-commerce
giant; in 2017 its sales surpassed $2.5bn. The company now delivers to 200 countries worldwide and is well known for
offering on trend items for low prices. Two-fifths of its sales are its own-brand products and the company launches 5,000
new products on its site every week, at any one time the company has around 85,000 products available to purchase.
Asos have utilized the online shopping trend to increase sales and have invested heavily in technology and site
accessibility on mobile devices. The introduction of free delivery and returns in certain regions has made shopping at
Asos much more convenient than other online retailers and innovative offerings such as same day delivery and 'buy now
pay later' options have proven popular with consumers. An efficient global shipping strategy and e-commerce localization
have played a key role in Asos's international expansion and popularity amongst shoppers. The success and dominance
of online retailers like Asos is likely to deter new entrants.
Strong international and domestic brands do exist in the industry, but customers tend to lack loyalty and are more
interested in the price and range of products, thus increasing the threat of new entrants who wish to capitalize on this
trend.
Chinese apparel retail is divided between two sectors: organized and unorganized. Sales through the unorganized retail
sector are predominant with the organized retail sector being a lot smaller. There are a large number of local,
independent stores throughout the country that are popular amongst low income consumers. Due to its size, the
unorganized sector is likely to attract new entrants.
The Chinese apparel retail industry had total revenues of $240.1bn in 2017, representing a compound annual growth
rate (CAGR) of 11% between 2013 and 2017. Although economic growth in China has slowed down in recent years
China’s economy still grew at an average of 7.1% during 2013–17. The country has undergone a period of rapid
urbanization in recent years, with the growth of the middle class and rising incomes becoming a more dominant driver of
the economy’s growth. Household final consumption expenditure has also grown at a rapid pace and according the
World Bank was reported at 39.01% in 2016 (the latest available figures).
Overall, the threat of new entrants is assessed as strong.

Threat of substitutes
Figure 10: Factors influencing the threat of substitutes in the apparel retail industry in China,
2017
While there are no substitutes for apparel as such, there are alternatives to retail. One option is purchasing clothing
directly from the manufacturer as opposed to the conventional distribution chain. This is facilitated by the growth of online
sales. All major apparel retailers now have their own online stores as there is an increased consumer acceptance of the
internet as an alternative shopping channel. A multi-channel approach will become more widespread in the apparel retail
industry in order to cater to the growing demand for an online shopping platform and to compete with online pureplay
companies.
A growing number of 'pureplay' online fashion stores have emerged in the industry, as they look to take advantage of
lower running costs from not having to pay for the overheads incurred by running a high street store. The online sale
avenue opens the door for manufacturers who may be tempted by the opportunity of selling directly to end users without
the need for a retailer. The international e-commerce player Alibaba Group is a growing threat to clothing, footwear and
accessories specialists due to its ability to offer low price products to consumers. Alibaba's executive chairman Jack Ma
has described the company as an integration of online, offline, logistics and data across a single value chain, which has
proved to be successful business model which has encouraged growth. Alibaba has succeeded in connecting small
manufacturers with customers and for small to medium sized businesses is a cost effective way to enter the apparel
retail industry. The Chinese online retail sector grew by 26.4% in 2017 and is expected to increase a further 154.3% by
2022. This will increase the threat of online pureplay apparel retailers in the future.
Home-made and custom-made (couture) clothing are also niche alternatives to the retail of ready-made clothes.
Counterfeit clothing can also be a significant threat to revenues of manufacturers. A substantial amount of fake goods
are manufactured in China and are not only sold through illegal channels such as street sales but also through retail
chains. According to a survey conducted by the National Retail Federation, 95 % of retailers reported acts of organized
retail crime in 2017. Many retailers had cut their staff to reduce costs during the global financial crisis, which aggravated
the problem. Many consumers are now turning to auction sites to find budgeted deals, which provide a market for stolen
goods. Another option is purchasing second-hand clothing from charity shops and internet sites such as eBay.
Overall, the threat of substitutes is moderate.

Degree of rivalry
Figure 11: Drivers of degree of rivalry in the apparel retail industry in China, 2017
The Chinese apparel retail industry is typically composed of large numbers of similar retailers, many of which are
independents. However, there is still room for large numbers of smaller players in this industry, especially in certain
regions that are perhaps not as urbanized as major cities. Major increases in capacity may be fairly costly to smaller
players if they require the outlay of opening additional outlets, although this may be lessened if it can be accomplished
by taking on more staff on a flexible basis.
Retailers continue to fine-tune their promotional strategies, with many relocating their discounted goods by introducing
off-price formats. These new banners or outlet stores attempt to segment shopping occasions by price sensitivity.
However, a challenge with off-price stores is that some customers may switch completely to shopping at the new
concept stores, which means that retailers are cannibalizing sales rather than growing profitability.
Big data can also be used to give players a competitive edge as shoppers continue to expect a high level of information
and efficient services online. Using big data to predict user behavior has helped players such as Asos and Zalando to
increase sales by providing relevant information about products and influencing a shoppers' next purchase. In order to
create a competitive edge, companies have also invested in establishing a presence on social media platforms in order
to communicate with customers. As social media usage is high, players have begun to use platforms such as Facebook
and Instagram to advertise products and deal with customer queries in a personal way. This will continue to be an
important way for players to differentiate themselves from competitors and if utilized effectively, will help reduce the
degree of rivalry within the industry.
Clothing, footwear and accessories specialists have also focused on enhancing customers in store experience in a bid to
ensure they have an advantage over competitors. Hospitality offerings such as food and drink have been used to attract
customers to stores; this may include having a cafe or restaurant to enhance the overall experience of shoppers.
Technology is also being utilized in stores to take advantage of high smartphone use; some stores now have 'smart
dressing rooms' which allow shoppers to interact with a display screen. The screen enables the customer to view the
available sizes and colors of products, adjust the lighting, request assistance and even save the session information to a
personal profile, which they can store on their smartphone. Players who invest in enhancing in store experience will gain
a competitive edge over rivals.

Product innovation is constant in the sector and apparel retailers are also increasingly aiming to establish themselves as
lifestyle brands. Lifestyle brands are expected to experience success in the future due to their premium quality and
higher price point, which remains accessible to most middle class consumers. This trend has manifested itself in new
collections like plus size and athleisure lines, as well as fundamentally new categories. The athleisure trend is very
popular around the world and has mainly been driven by millennials, but remains appealing to all age groups. This has
led to the resurgence of a number of athletic brands and has encouraged apparel retailers such as H&M to launch
ranges of their own in order to increase their competitive edge over sportswear specialists. While some retailers selling
apparel have diversified into the retail of other items, many retain a strong emphasis on apparel specifically, which
intensifies rivalry.
While some retailers selling apparel have diversified into the retail of other items such as home goods, many small to
medium sized companies retain a strong emphasis on apparel specifically, which intensifies rivalry. Singles' Day, the
annual event held on 11 November which celebrates people who are single has also experienced great success in
China. The day is promoted by online retail giant Alibaba and has grown in popularity throughout the years. In 2017
Chinese shoppers spent a record $25bn on the event, making it four times bigger than US shopping events Black Friday
and Cyber Monday. As a result, it is easy for customers to move from one retailer to another based on price and this
boosts the intensity of rivalry.
JD’s recent partnership agreements could drive its revenue growth. In February 2018, JD and Tencent announced a joint
minority investment in Better Life, a multi-format regional retailer in China. Combining Tencent’s massive social media
traffic, JD’s e-commerce know-how and logistics capabilities, and Better Life’s offline retail chain, the three parties have
established a strategic partnership to provide customers with integrated online and offline shopping experiences. The
new venture will build and operate a social e-commerce platform leveraging resources on JD’s level-1 Weixin entry point,
bringing innovative and interactive social-commerce features to shoppers, and helping small businesses reach a broader
consumer base at lower cost. In FY2017, JD continued to expand its fashion offering on the JD platform with Bebe, an
American contemporary fashion brand.
Fast Retailing, a leading player in China through its primary brand UNIQLO, utilizes an SPA business model that controls
all stages of the business - from design through manufacture and retail. The group constantly refines its SPA model in
order to differentiate itself from its competitors. In terms of procurement of materials, Fast Retailing negotiates directly
with materials manufacturers worldwide, and places orders in large quantities to ensure steady access to high quality
natural materials. It collaborates with synthetic fiber manufacturers to develop new functional materials. For instance,
UNIQLO partners with Toray Industries, a synthetic fiber manufacturer, to create HEATTECH. In terms of inventory
control, UNIQLO’s inventory control department maintains the optimum level of store inventory by monitoring sales and
stock every week. It dispatches necessary inventory and new products to fulfill product orders. At the end of every
season, merchandisers and the marketing department finalize the markdowns and limited-period sales (usually 20-30%
off the regular price) to make sure that the inventory sells out. This approach prevents inventory pile-up and thereby
helps reducing the associated costs, giving the company an edge over its competitors.
The performance of the industry is forecast to follow a similar pattern with an anticipated CAGR of 10.8% for the five-
year period 2017 - 2022. Strong growth will alleviate the degree of rivalry between players and reduce the likelihood of a
zero-sum game. The Chinese economy is expected to slow down in the coming years, but it will remain strong due to
strong infrastructure investment and strong property sector activities. However, the ongoing trade dispute with the US is
a strong threat to the Chinese economy as tensions remain high.
Socio-demographic factors will also play an important role. Rapid urbanization and the growth of the middle class will
increase disposable incomes and encourage consumption. This will continue to drive growth in the apparel retail
industry.
Overall, the degree of rivalry is assessed as moderate.

LEADING COMPANIES
Belle International Holdings Limited
Table 6: Belle International Holdings Limited: key facts
Head office: 9/F Belle Tower, 918 Cheung Sha Wan Road, Hong Kong City, HKG
Website: www.belleintl.com
Financial year-end: February
SOURCE: COMPANY WEBSITE MARKETLINE
Belle International Holdings Limited (Belle) is involved in retailing, wholesaling and distribution of footwear and
sportswear products. The company offers a wide range of casual, party, formal and sports shoes, which are sold under
various established and company-owned brands.
As of February 2017, the company operates 20,841 stores of which 20,716 are located in China and 125 stores in Hong
Kong and Macau. It also retails its merchandise through an online website yougou.com which is managed by its
subsidiary Yougou Technology e-Commerce Company Limited.
The company classifies its operations under two business segments: Footwear and Sportswear.
The Sportswear segment is involved in retail distribution of various internationally renowned shoe brands. The first-tier
Sportswear brands include Nike and Adidas, second-tier sportswear brands are PUMA, Converse, etc. and apparel
brands include moussy, SLY and REPLAY. As of February 2017, the company under this segment operates 7,654
sportswear stores of which 5,968 under first-tier brands, 1,497 stores under second-tier brands and 189 stores under
apparel brands.
In FY2017, first-tier brands accounted for 85% of the Sportswear segment sales followed by 9.5% from second-tier
brands and 5.5% from apparel brands. In FY2017, the Sportswear segment reported revenues of CNY22,746m
(approximately $3,369.1m), which is accounting for 54.5% of the company’s total revenue.
The Footwear segment is involved in sourcing, manufacturing, distribution and retailing of the company-owned footwear
brands which includes Belle, Staccato, Tata, Teenmix, JipiJapa, Millie’s, Senda, Basto, Joy & Peace, Mirabell, :15 MINS
and SKAP. In FY2017, the company-owned brands generated 87.9% of the segment’s total revenue. It is also involved in
brand licensing and retail distribution of established brands in China such as Bata, Clarks, Hush Puppies, Mephisto and
Caterpillar. In FY2017, the distribution brands generated 10.9% of the segment’s total revenue followed by 1.2% from
international trade. The company operates 13,062 footwear stores of which 11,753 stores under Company-owned
brands and 1,309 stores under Distribution brands covering 10 regions of China apart from Hong Kong and Macau. In
FY2017, the Footwear segment reported revenues of CNY18,960m (approximately $2,808.3m), accounting for 45.5% of
the company’s total revenue.
In FY2017, the company generated 97.4% of the total revenue from China, followed by Hong Kong and Macau (2.1%)
and other region (0.5%). The major subsidiaries of the company include Belle Group Limited, Belle International (China)
Limited, Best Able Footwear Limited, Bestfull International Limited, Full Sport Holdings Limited, Lai Wah Footwear
Trading Limited, City Talent Group Limited, Famestep Management Limited and Fullbest Investments Limited.
Key Metrics
The company recorded revenues of $6,178 million in the fiscal year ending February 2017, an increase of 2.2%
compared to fiscal 2016. Its net income was $356 million in fiscal 2017, compared to a net income of $435 million in the
preceding year.

Table 7: Belle International Holdings Limited: key financials ($)
$ million 2013 2014 2015 2016 2017

Revenues 5,369.1 5,467.7 5,925.9 6,041.7 6,177.5
Net income (loss) 665.3 655.0 705.6 434.6 355.9
Total assets 4,962.3 4,798.1 4,819.2 4,599.7 4,702.1
Total liabilities 1,164.6 897.4 1,127.7 885.5 758.7
SOURCE: COMPANY FILINGS MARKETLINE
Table 8: Belle International Holdings Limited: key financials (CNY)
CNY million 2013 2014 2015 2016 2017

Revenues 36,249.1 36,914.7 40,008.1 40,790.2 41,707.0
Net income (loss) 4,491.8 4,422.1 4,763.9 2,934.1 2,403.0
Total assets 33,502.4 32,393.9 32,536.5 31,054.8 31,746.0
Total liabilities 7,862.9 6,058.6 7,613.3 5,978.7 5,122.0
Table 9: Belle International Holdings Limited: key financial ratios
Ratio 2013 2014 2015 2016 2017

Profit margin 12.4% 12.0% 11.9% 7.2% 5.8%
Revenue growth 10.3% 1.8% 8.4% 2.0% 2.2%
Asset growth 17.1% (3.3%) 0.4% (4.6%) 2.2%
Liabilities growth 30.2% (22.9%) 25.7% (21.5%) (14.3%)
Debt/asset ratio 23.5% 18.7% 23.4% 19.3% 16.1%
Return on assets 14.5% 13.4% 14.7% 9.2% 7.7%

Figure 12: Belle International Holdings Limited: revenues & profitability
Figure 13: Belle International Holdings Limited: assets & liabilities

Bestseller A/S
Table 10: Bestseller A/S: key facts
Head office: Fredskovvej, Brande, DNK

Telephone: 45 99 423 200
Fax: 45 99 423 499
Website: www.bestseller.com
Bestseller A/S (Bestseller) is a retailing company that offers apparels and accessories. The company offers range of
fashion clothing and related accessories for men, women, teenagers and children. It markets products of various brand
names such as Vero Moda, pieces, Vila Clothes, Selected Femme, Selected Home, Junarose, YAS, Object Collector’s
Item, Only & Sons, and Only, among others. Bestseller imports these products from over 300 manufactures located in
China, India, Bangladesh, Turkey and Italy.
The company retails its merchandise through stores and online through its website. Its products are also sold in
department stores. The company operates through offices, warehouses and stores in Denmark. Bestseller is
headquartered in Brande, Denmark.
Key Metrics
As a privately owned company Bestseller A/S is not obliged to publish its financial results.

Fast Retailing Co., Ltd.
Table 11: Fast Retailing Co., Ltd.: key facts
Head office: 717-1 Sayama, Yamaguchi, Yamagata, JPN

Telephone: 81 368 650 050
Website: www.fastretailing.com
Financial year-end: August
Ticker: 9983
Stock exchange: Tokyo
Fast Retailing Co., Ltd. (Fast Retailing) is a holding company that manages the design, manufacture and retail
operations of UNIQLO, GU, Theory, Comptoir des Cotonniers, Princesse tam.tam and J Brand. The group’s offerings
include outerwear, jeans, trousers, skirts, shirts, t-shirts, polo's, sweaters, fleeces, dresses, knit wear and inner wear.
Fast Retailing operated a total of 3,294 stores in FY2017.
The group operates through four business segments: UNIQLO Japan, UNIQLO International, Global Brands and Others.
The UNIQLO Japan segment consists of the UNIQLO clothing operations within Japan. By the end of FY2017 in August
2017 UNIQLO Japan had a network of 831 stores in the country. In FY2017, the UNIQLO Japan segment reported
revenue of JPY810,734m (approximately $7,233.1m), which accounted for 43.5% of the group's total revenue.
The UNIQLO International segment consists of UNIQLO clothing operations in China, South Korea, Hong Kong, Taiwan,
Singapore, Malaysia, Thailand, the UK, the US, France, Russia, Indonesia, Australia, Germany, Belgium and the
Philippines. The segment operated 1,089 stores at the end of FY2017. In FY2017, the UNIQLO International segment
reported revenue of JPY708,171m (approximately $6,318.1m), which accounted for 38% of the group's total revenue.
The Global Brands segment comprises the group's Theory, J Brand, Comptoir des Cotonniers, Princesse tam.tam, and
GU clothing operations. The group operated a total of 1,002 stores at the end. FY2017. In FY2017, the Global Brands
segment reported revenue of JPY340,143m (approximately $3,034.7m), which accounted for 18.3% of the group's total
revenue.
The Others segment includes real estate leasing and other operations. In FY2017, the Others segment reported revenue
of JPY2,868m (approximately $25.6m), which accounted for 0.2% of the group's total revenue.
Geographically, the group classifies its operations into three segments, namely Japan, China, and Overseas. In FY2017,
Japan segment accounted for 56.6% of the group's total revenues; followed by People’s Republic of China with 14%;
and Overseas with 29.4%.
Key Metrics
The company recorded revenues of $16,612 million in the fiscal year ending August 2017, an increase of 4.2%
compared to fiscal 2016. Its net income was $1,064 million in fiscal 2017, compared to a net income of $429 million in
the preceding year.

Table 12: Fast Retailing Co., Ltd.: key financials ($)
$ million 2013 2014 2015 2016 2017

Revenues 10,197.3 12,338.2 15,004.4 15,938.4 16,611.5
Net income (loss) 933.2 665.1 981.6 428.7 1,064.2
Total assets 8,040.3 8,853.1 10,382.3 11,046.2 12,387.7
Table 13: Fast Retailing Co., Ltd.: key financials (¥)
¥ million 2013 2014 2015 2016 2017

Revenues 1,142,971.0 1,382,935.0 1,681,781.0 1,786,473.0 1,861,917.0
Net income (loss) 104,595.0 74,546.0 110,029.0 48,054.0 119,280.0
Total assets 901,208.0 992,307.0 1,163,706.0 1,238,119.0 1,388,486.0
Table 14: Fast Retailing Co., Ltd.: key financial ratios
Ratio 2013 2014 2015 2016 2017

Profit margin 9.2% 5.4% 6.5% 2.7% 6.4%
Revenue growth 23.1% 21.0% 21.6% 6.2% 4.2%
Asset growth 51.4% 10.1% 17.3% 6.4% 12.1%
Liabilities growth 59.3% 13.0% 10.4% 60.8% (1.0%)
Debt/asset ratio 36.7% 37.7% 35.5% 53.6% 47.3%
Return on assets 14.0% 7.9% 10.2% 4.0% 9.1%

Figure 14: Fast Retailing Co., Ltd.: revenues & profitability
Figure 15: Fast Retailing Co., Ltd.: assets & liabilities

JD.com Inc
Table 15: JD.com Inc: key facts
10/F, Building A, North Star Cntry Cntr, No.8, Beichen West Street,
Head office:
Chaoyang, Beijing, CHN
Telephone: 86 10 5895 5500
Website: jd.com
Financial year-end: December
Ticker: JD
Stock exchange: NASDAQ
JD.com Inc (JD) JD is an e-commerce company, which provides consumers with online retail services through mobile
applications and website, www.jd.com. It is a member of the Fortune Global 500 and offers a wide selection of products
at competitive prices. The company also provides online and in-person payment options and customer services.
The company classifies its business operations into two segments; JD Mall and New Businesses. In FY2017, JD Mall
segment reported 98.3% of the company’s revenue, and remaining from (1.7%) New Businesses.
JD’s Research and Development division focuses on development and maintenance of technology platform data
science, artificial intelligence (AI), virtual and augmented reality, automation, robotics, and autonomous vehicle systems.
As of December 2017, JD employed 11,938 research and development professionals to design, develop and operate its
technology platform. It also built up a global team of artificial intelligence (AI) and supply-chain technology professionals,
including many top-notch AI and supply-chain researchers and scientists. JD also intends to develop its technology
strength in artificial intelligence (AI), leveraging its volume of data, to explore innovative business models. In September
2017, the company established the AI Platform and Research Division as a core component of the company’s
technological ecosystem to improve its mobile, AI, big data and cloud computing technologies. It also incorporated
cutting-edge technologies, such as machine learning, natural language processing and related computational
approaches, to continue to improve business operations. In FY2017, the company invested CNY6,652m (approximately
$985.3m) on its technology and content.
JD operates through more than 500 warehouses covering a floor area of 10 million sq. m. in China and 7,000 delivery
stations and pickup stations in China. Its logistics network covers 99% of China’s population.
Key Metrics
The company recorded revenues of $53,667 million in the fiscal year ending December 2017, an increase of 39.3%
compared to fiscal 2016. Its net loss was $23 million in fiscal 2017, compared to a net loss of $564 million in the
preceding year.

Table 16: JD.com Inc: key financials ($)
$ million 2013 2014 2015 2016 2017

Revenues 10,270.4 17,033.7 26,851.6 38,528.3 53,667.4
Net income (loss) (7.4) (740.0) (1,390.5) (563.8) (22.5)
Total assets 3,852.5 9,848.7 12,614.5 23,754.0 27,261.6
Table 17: JD.com Inc: key financials (CNY)
CNY million 2013 2014 2015 2016 2017

Revenues 69,339.8 115,002.0 181,287.0 260,121.6 362,332.0
Net income (loss) (49.9) (4,996.0) (9,388.0) (3,806.8) (152.0)
Total assets 26,009.8 66,493.0 85,166.0 160,373.5 184,055.0
Table 18: JD.com Inc: key financial ratios
Ratio 2013 2014 2015 2016 2017

Profit margin (0.1%) (4.3%) (5.2%) (1.5%) 0.0%
Revenue growth 67.6% 65.9% 57.6% 43.5% 39.3%
Asset growth 45.4% 155.6% 28.1% 88.3% 14.8%
Liabilities growth 46.0% 72.9% 87.9% 132.1% 4.4%
Debt/asset ratio 64.5% 43.6% 64.0% 78.9% 71.7%
Return on assets (0.2%) (10.8%) (12.4%) (3.1%) (0.1%)

Figure 16: JD.com Inc: revenues & profitability
Figure 17: JD.com Inc: assets & liabilities

MACROECONOMIC INDICATORS
Country data
Table 19: China size of population (million), 2013–17
Year Population (million) % Growth

2013 1,360.4 0.5%
2014 1,366.6 0.5%
2015 1,372.5 0.4%
2016 1,378.0 0.4%
2017 1,383.1 0.4%
Table 20: China gdp (constant 2005 prices, $ billion), 2013–17
Year Constant 2005 Prices, $ billion % Growth

2013 4,865.2 7.7%
2014 5,224.3 7.4%
2015 5,597.6 7.1%
2016 5,987.8 7.0%
2017 6,390.7 6.7%
Table 21: China gdp (current prices, $ billion), 2013–17
Year Current Prices, $ billion % Growth

2013 9,178.8 11.6%
2014 10,033.4 9.3%
2015 11,072.8 10.4%
2016 12,241.0 10.5%
2017 13,438.5 9.8%

Table 22: China inflation, 2013–17
Year Inflation Rate (%)

2013 2.6%
2014 2.2%
2015 2.9%
2016 3.1%
2017 3.3%
Table 23: China consumer price index (absolute), 2013–17
Year Consumer Price Index (2005 = 100)

2013 128.3
2014 131.1
2015 134.9
2016 139.1
2017 143.7
Table 24: China exchange rate, 2013–17
Year Exchange rate ($/CNY) Exchange rate (€/CNY)

2013 6.1948 8.2259
2014 6.1456 8.1643
2015 6.2288 6.9109
2016 6.6441 7.3513
2017 6.7514 7.6363

METHODOLOGY
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
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be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry associations
International Textile and Apparel Association
PO Box 70687, Knoxville, TN 37938-0687, USA
Tel.: 1 865 992 1535
www.itaaonline.org
International Apparel Federation
Utrechtseweg 95, 3702 AA Zeist, NLD
Tel.: 31 30 232 09 08
www.iafnet.eu
China National Garment Association
Tel.: 86 10 8529073
Fax: 86 10 85229018
www.cnga.org.cn
Related MarketLine research

Industry Profile
Global Apparel Retail
Apparel Retail in Asia-Pacific
Apparel Retail in Australia
Apparel Retail in India
Apparel Retail in Japan

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MarketLine Industry Profile

Reference Code: 0099-2005

Publication Date: November 2018

China - Apparel Retail 0099 - 2005 - 2017

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Market value forecast

China - Apparel Retail 0099 - 2005 - 2017

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Market value ................................................................................................................................................................ 2

Market value forecast .................................................................................................................................................. 2

Category segmentation ............................................................................................................................................... 2

Geography segmentation ............................................................................................................................................ 2

Market rivalry ............................................................................................................................................................... 2

Market definition .......................................................................................................................................................... 7

Market Data ..................................................................................................................................................................... 9

Market value ................................................................................................................................................................ 9

Market Segmentation .................................................................................................................................................... 10

Category segmentation ............................................................................................................................................. 10

Geography segmentation .......................................................................................................................................... 11

Market distribution ..................................................................................................................................................... 12

Market Outlook .............................................................................................................................................................. 13

Market value forecast ................................................................................................................................................ 13

Five Forces Analysis ..................................................................................................................................................... 14

Buyer power .............................................................................................................................................................. 15

New entrants ............................................................................................................................................................. 19

Threat of substitutes .................................................................................................................................................. 21

Degree of rivalry ........................................................................................................................................................ 22

Belle International Holdings Limited .......................................................................................................................... 24

Bestseller A/S ............................................................................................................................................................ 27

Fast Retailing Co., Ltd. .............................................................................................................................................. 28

China - Apparel Retail 0099 - 2005 - 2017

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Industry associations ................................................................................................................................................. 37

Related MarketLine research .................................................................................................................................... 37

About MarketLine ...................................................................................................................................................... 38

China - Apparel Retail 0099 - 2005 - 2017

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Table 4: China apparel retail industry distribution: % share, by value, 2017.................................................................12

Table 6: Belle International Holdings Limited: key facts ................................................................................................24

Table 7: Belle International Holdings Limited: key financials ($) ...................................................................................25

Table 8: Belle International Holdings Limited: key financials (CNY)..............................................................................25

Table 9: Belle International Holdings Limited: key financial ratios.................................................................................25

Table 10: Bestseller A/S: key facts................................................................................................................................ 27

Table 11: Fast Retailing Co., Ltd.: key facts..................................................................................................................28

Table 15: JD.com Inc: key facts .................................................................................................................................... 31

Table 16: JD.com Inc: key financials ($)........................................................................................................................32

Table 17: JD.com Inc: key financials (CNY) ..................................................................................................................32

Table 18: JD.com Inc: key financial ratios .....................................................................................................................32

Table 19: China size of population (million), 2013–17...................................................................................................34

Table 21: China gdp (current prices, $ billion), 2013–17...............................................................................................34

Table 22: China inflation, 2013–17................................................................................................................................ 35

Table 23: China consumer price index (absolute), 2013–17 .........................................................................................35

Table 24: China exchange rate, 2013–17 .....................................................................................................................35

China - Apparel Retail 0099 - 2005 - 2017

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Figure 4: China apparel retail industry distribution: % share, by value, 2017................................................................12

Figure 12: Belle International Holdings Limited: revenues & profitability.......................................................................26

Figure 13: Belle International Holdings Limited: assets & liabilities...............................................................................26

Figure 16: JD.com Inc: revenues & profitability .............................................................................................................33

Figure 17: JD.com Inc: assets & liabilities .....................................................................................................................33

China - Apparel Retail 0099 - 2005 - 2017

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