Several domestic and foreign apparel retail firms are further strengthening their expansion in Chinese lower-tier cities,in the midst of intensified competition in the first-tier cities,according to a latest report.
The lower-tier cities in China are turning into major battlefields for many apparel firms,says a report on"China's apparel market,2012",released by Li&Fung Research Centre.
The fact that people in the lower-tier cities are getting wealthier and are having stronger spending power is also driving domestic and foreign apparel companies to expand in lower-ties cities,according to the report.
Foreign luxury brands like Gucci and Louis Vuitton,which used to expand in tier 1 cities like Beijing,Shanghai,Shenzhen etc.,are now veering toward lower-tier cities like Wuhan,Wuxi,Changsha,Fuzhou and Xiamen.
Recently,international sportswear giants such as Nike and Adidas have also announced their penetration into lower-tier cities.
Meanwhile,in face of fierce competition led by foreign companies,some domestic Chinese enterprises such as Youngor,Fuguiniao,Joeone and Septwolves are also striving to expedite their penetration in lower-tier cities,while consolidating their foothold in tier 1 cities.
In recent years,fast fashion retailers such as Zara,H&M,C&A,Uniqlo,etc.,have successfully won Chinese consumers'hearts with their fast,trendy and affordable apparel products.
According to the China National Garment Association(CNGA),by the end of 2011,Zara,H&M,C&A,Gap and Uniqlo already operated 92,77,36,13 and 113 retail stores in China,respectively.
In 2011,Zara,H&M,C&A,Gap and Uniqlo respectively opened 29,31,11,5,and 43 new stores in China.Of these,more than 80 percent of the new stores set up by Zara and H&M were situated in tier 2 and 3 cities.
