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Competition may intensify in Chinese infant wear market
Sep '13
Competition is likely to intensify further in the Chinese infant wear market over the next few years as many new companies would enter the business in view of the market’s high growth potential, according to experts.
Baby wear industry in China is still in its infancy. Although the number of existing enterprises is more, most of them are small and medium enterprises, mainly because the industry started with low threshold for capital and technology.
Moreover, small-scale industries are in a dispersed state, and branding in baby wear is yet to be built.
But at the same time, the infant wear industry is also showing great potential for development. In 2013, around 68 percent of enterprises engaged in the production of infant wear are expected to achieve 20 percent growth, while 29 percent of companies are expected to achieve more than 50 percent growth.
Some new entrants in business are expected to achieve even 100 percent growth during the year, according to report from baby industry related organizations.
The current baby wear industry is in a healthy state in China, but as more and more enterprises enter the business, the market competition is set to become more intense, according to industry analysts.
From the point of view of brand development in infant wear sector, the operating system of the industry as a whole is still weak and several small and medium brands have not even entered the stage of product segmentation and category management.
Meanwhile, second-tier urban consumers are becoming more and more rational in their shopping of baby wear. They are increasingly becoming concerned about the brand, product quality, product safety, and other aspects.
Hence, the Chinese infant wear market offers huge opportunities, but also intensified competition, especially in branded products, in the coming years.

Fibre2fashion News Desk - India

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