A Selection Of Headlines From The Week In Fashion#
Retailers in Hong Kong recently saw a flood of pre-Chinese New Year consumers
Jing Daily has often highlighted the fashion industry’s focus on China, which is now so prevalent that it can no longer be called a new trend. This week, fashion industry trade journal Women’s Wear Daily turned its spotlight onto Chinese consumers -- projected to be the world's top buyers of luxury goods by 2015 (or 2020, depending on your source). A roundup of the week's headlines:
Asia’s Rising Tigers#
In an analysis of global emerging markets that are poised to attract increased production and new ventures, China is forecasted to have the strongest growth in GDP in 2011, with India a close second. China, with an estimated 10% growth in GDP in 2010 is estimated to have an 8.7% growth in 2011. While it’s labor and materials costs has risen and moved some production to other locales, China is still the leading producer in apparel and textile production.
Climbing Prices In China Not Slowing Down Spending#
WWD reports that apparel prices have succumbed to the record-pace inflation in China and in fact is growing faster than many sectors with experts projecting a 10% increase in 2011. Even as Beijing is becoming one of the most expensive cities in the world for clothing, the article underlines the willingness of the youth generation to spend.
China’s Middle Class On The Move#
As tier one cities in China like Beijing and Shanghai are becoming more and more expensive to live in, a small but growing group of middle class consumers are looking to migrate to smaller cities. This migration, back home for some, will bring big city urban attitudes and sophistication to second and third-tier cities that will create a demand that retailers are looking to fill. While e-commerce sites like Taobao has brought online shopping options from outside those cities, it will be up to retailers to make up for other differences.
Hong Kong Financial World Eagerly Awaits Prada IPO#
After several stalled attempts, Prada announces it will carry out its IPO on the Hong Kong Stock Exchange. China as the fastest growing consumer market, as well as Hong Kong’s “speculative nature” will help drive valuations higher, but Prada has postponed many times before and the rising inflation in China may be a concern.