Inside Out
Lingerie sees steady growth in Asia’s mega markets.
By Ernest Kao
Southeast Asian manufacturers are struggling to keep up with rising competition from their Chinese counterparts as price becomes a much more crucial component in the current global downturn. For foreign brands the challenge is the difficulty in getting into China’s large domestic market.
Despite these problems, many participants in the recent Hong Kong Mode Lingerie (April 7-9) believed that a competitive advantage could still be garnered. According to Natthakit Chaithanaporn, president of Thai-based manufacturer/exporter, Princess Bra, “China and Thailand are extremely competitive with each other in this market but the thing is, we will never have lower prices than China,” he said. “Cheap does not always mean better though. Price defines the quality of the product and most people usually perceive cheaper price as having cheaper quality.”
Finding an opportunity in overall with reduced consumer spending, manufacturers of accessories and intimate apparel seem to be gaining from apparel manufacturers’ loses. Princess Bra has been able to capture the market through its two brands, the ‘Princessbra’ brand for the high-end and the ‘3 Angels’ brand for the low-end. “Being an OEM for life is not good for your business. When business is down, we are able to spread our risk across our two companies,” said Mr. Chaithanaporn.
Simple No Longer Sells
“Buyers are currently looking for creativity and innovation and consumers want something fashionable, comfortable, better fit and easy to wear,” said Valerie Lemant, the Eurovet Division Director for Lingerie & Swimwear shows. “Simple things are just not popular anymore; everyone wants something with performance such as smart fabrics or seamless design.”
According to Guangzhou-based Huar Lingerie brand, one of their best selling products is their seamless lingerie. The technology-orientated OEM/ODM company also offers specialty products like the ‘Fused Bra’ and the ‘One Piece Bra’. “We are bringing a lot of new concepts to the Chinese market. In China people are willing to try new things,” says Penny Fung of the Guangzhou Huar Garment Company.
An Emerging Market
All in all, China’s lingerie market has increased 11% over the last five years according to statistics from Eurovet, and Asian now accounts for an impressive 20% of the worldwide lingerie market.
Unquestionably, the economic growth of China and India are pulling the lingerie market to the East. Eurovet research also showed that Chinese consumers have been spending an average of 8% in their apparel spending on lingerie and the figure was expected to rise to 10% by the year 2010.
What’s the Difference?
Extreme differences in terms of consumer preferences exist in India and China which can pose as quite a challenge to foreign brands looking to enter the market. The conservative attitude of Chinese consumers demand less transparent fabrics and a slimmer body type requires pared downsizing. In India, larger busts and affection for brighter colors is more similar to the European markets. Sizing remains complex within the Asian region. According to surveys conducted by the Beijing Apparel Institute and AIMER Group, bust sizes for women in China have increased by an average of 1 cm with women from northern China averaging at 83.54 cm and women from the south and west at 82.21 cm.
Triumph International is one of the few international lingerie brands which have enjoyed major success in India. Managing Director Thorsten Allenstein told Inside Fashion that “There are two lingerie markets in India. The first would be in the ‘fashion area’ targeting 25 to 30 year old women who look for sexier and more fashionable lingerie such as the g-string and the push-up bra. The other would be the ‘traditional area’ which consists of the pregnant women or women in the more mature segment who wears traditional bareback saris requiring bras with transparent straps.”
Capturing the teenage market in Asia will be a core focus of many lingerie producers as young women achieve greater purchasing power and aspire to wear Western brands. Opportunities will lie in the area of innovation and technology as consumers begin to look for functionality and added value features. “We are seeing some of our best sales in the lingerie segment which provides more unique features for pregnant, those with obesity problems and even women with breast cancer. Women are looking for specialty,” said Dr. Vichit Uon, marketing consultant for the 3 Angels Lingerie brand.
Like accessories, lingerie will remain relatively safe from the global recession as consumers turn to more practical, comfortable and cheaper ways of getting a ‘fashion fix.”