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Chinese apparel brands have shorter survival rate
13
Sep '11
Chinese apparel brands have shorter survival rate and around 2,000 brands get extinct each year, according to a survey by Hongye information company.

The research says on average nearly six apparel brands get eliminated each day from the Chinese market, and as such the average survival rate of each brand can be said to be just four hours.

In 2000-05, the survival duration of China's top 500 apparel brands was only 1.5 years. In contrast, the top 50 global brands had average survival duration of 52.5 years in the Chinese market. In fact, some of the foreign apparel brands have survived for more than a century in the Chinese market.

In the next five to 10 years, industry analysts expect the China's apparel industry to undergo a process of consolidation.

Currently, the consolidation is more in the menswear segment than in the women's wear. Since the number of apparel brands catering to women are more in number, with at least a 1000 brands in Shenzhen and Guangzhou alone, several brands will experience an 'ebb tide' situation.

While selecting a corporate brand, experts say, companies must thoroughly analyze the features and merits. Successful brand management involves choosing the most appropriate brand to take the growth momentum forward.

Fibre2fashion News Desk - China

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