China has emerged strong in the luxury fashion market. The country today, is redefining the world of luxury fashion with latest fashion trends influenced by extremely selective consumers. As Jing Daily report says, the luxury fashion industry in China has become more advanced due to the pandemic. It has emerged one of the most growing segments with demand being driven by domestic consumers.
Over the last decade, China has also witnessed a spurt in local independent multi-brand stores across the country. These stores help meet consumers’ need for new clothes and accessories, benefitting both foreign niche labels and new local brands. One reason for the growing popularity of these stores is higher brand awareness amongst Chinese consumers and a rise in domestic demand, says Mike Roberts, Former CEO, Green Room. Many of these stores are led by social media influencers whose fashion choices are blindly trusted by consumers.
An opportunity to regain lost consumers
The arrival of multi-brand stores in China is viewed as an excellent opportunity to attract lost consumers. As per latest Fund Business Intelligence survey, China has seen a dip in footfalls at shopping malls and department stores over the years due to increased competition from e-commerce players. The report shows, from 2014 to 2019, department store and footwear businesses in China dropped from 38.6 per cent to 26.3 per cent. Consumers are opting for multi-brand boutiques for personalized shopping experiences they provide.
Wenyan Jiao, Co-Founder, Shanghai and Wuxi-based boutique Mushion, attributes the dip in footfall to outdated operational methods of malls or department stores. Most malls and stores fulfill the needs of general consumers. They re-innovate their stores periodically to counter increased competition from specialist brands such as Proenza Schouler.
A popular multi-brand store Autumn Sonata chooses brands that uphold its values and promotes product exceptionality, avers Kian Zhang, Co-Founder. The store currently sells pieces from British brand Margaret Howell’s August/Winter 2020 collection.
Rolling inventory to innovative product assortment
Multi-brand retailers also attract consumers with a purposeful and poignant content on social media platforms, says Roberts. They adopt a rolling inventory model to uphold their brand values, and create an innovative product assessment. Many retailers also get their stores designed by indigenous architects who are aware of local Chinese customers.
Growth rate of multi-brand stores in China will continue to soar as local retailers act as a catalysts between global brands and audiences. However, mono-brand stores will also flourish as they will help brands track consumers’ shopping behaviors, desires and preferences.