SHANGHAI — When it comes to fashion in China, the focus tends to be on foreign brands entering the market and quickly expanding here. They tend to overshadow China’s own crop of homegrown brands — some of which have thousands of stores but practically no name recognition internationally.
In many cases, Chinese textile manufacturers “who cut their teeth” making apparel for Western retailers decided to start their own fashion lines for the domestic market, according to Torsten Stocker, a Greater China partner at the consulting firm Monitor Group.
These players were able to expand at breakneck speed by working with diverse networks of distributors, franchise partners and business partners. “Basically, [the brands] didn’t have to invest their own capital,” Stocker said. “That is how they managed to scale up so quickly.”
Yet many say there are signs that the initial boom for domestic retailers is coming to an end, especially as consumer tastes become more sophisticated, exposure to foreign brands in smaller cities increases and China’s economic growth slows.
Now simply opening stores and selling products does not work. “Very few have merchandisers who can put together a real look and feel for the season. There are very few people who can manage the retail shops at an operational level. There are very few people who can actually build a brand,” Stocker said. “The slowdown in demand is just exposing some of this.”
Analysts say they expect some domestic fashion brands to fail while others will close stores, streamline operations and adapt to a new, more competitive marketplace. Nevertheless, the sheer size and wealth of many of China’s big brands means they likely will be around for a while, and perhaps even become household names in markets beyond China.
Here are seven of China’s biggest fashion brands worth watching:
Metersbonwe is China’s answer to Hennes & Mauritz. Founded in the mid-Nineties by Zhou Chengjian, an entrepreneur from Zhejiang Province, the brand is listed on the Shenzhen Stock Exchange and has more than 4,500 stores on the Mainland.
Known as one of China’s most famous casualwear brands, the retailer is popular for its affordable fashion targeting young customers. The company’s revenues for the third quarter ending Sept. 30 were 2.6 billion yuan ($416.3 million at current exchange), a 13 percent decrease from the same period in 2011. Profits for the third quarter were 319.7 million yuan ($51.3 million), down from 369.2 million yuan ($59.2 million) in the third quarter of 2011.
Metersbonwe is gearing up for international expansion within the next several years, according to a company spokeswoman, who said the retailer is eyeing North American and European markets. She could not confirm any plans for specific store openings outside of China.
While Metersbonwe is the company’s main brand, parent company Metersbonwe Groupalso has a number of other smaller labels, including Me & City, which targets young white-collar workers seeking fashionable clothes, and urbanwear brand Tagline.
According to Jeff Zhou, an associate with Mandarin Capital Partners in Shanghai, Metersbonwe is beginning to struggle as it faces stronger competition from brands, like H&M and Zara, that are expanding in China. “I don’t think Metersbonwe will disappear, but in the short term, they must figure out what to do. The next decade could be very difficult for them,” he said.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews