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Apparel licensing business

09
Oct '06
The rapid expansion of China's economy has attracted great interest from many international apparel companies looking to explore and exploit the vastly potential China clothing market. China is the world's fastest growing market for licensed goods, of which clothing is a major portion, and has grown almost 60 percent, from US$ 600 million in 2001 to US$ 1 billion in 2004.

Despite its very short history of development, the huge size of the economy in parallel with such rapid development has made China the second largest licensing market in Asia. Hong Kong apparel licensing companies are the major players on the mainland.

They are expected to play a continuing important role in the mainland market, particularly since the implementation of the Closer Economic Partnership Arrangement (CEPA) agreement. With 90 percent of apparel licensing brands in the mid to high-end segments, the China market should prove to be an excellent market for US apparel exporters.

Market Demand
China accounts for almost 5 percent to 6 percent of the total European luxury goods sales. According to mainland consumer surveys, international apparel companies are very strong in design, workmanship, special-designed accessories and quality. Mid to high-end consumers have developed a strong awareness of international brands through tours and shopping trips to Europe, US, Korea, Japan and Hong Kong. Mid-to-high-end name brand apparel from the US, Europe and Japan are the most popular and recognized in China. Through increased media advertising, Chinese consumers are very sensitive and knowledgeable of the latest market trends. Licensed and known labelled apparel generally appeal to young and middle age consumers.


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