Branded ladies fashion in Hangzhou is being forced to enter discount territory, with price increasingly the top influence for buying decisions in tough economic times.
A 2008 survey shows the average monthly clothing spend of female office workers is Rmb500, or Rmb1,500 per quarter, on average.
Assuming that three garments are purchased in a quarter, it means the average spend on each item is Rmb500.
Using the seasonal price differential of ladies fashion as the base for calculation, the acceptable price level for branded ladies fashion is between Rmb200 and Rmb1,000.
Another survey reveals that about 75% of white collar women in Hangzhou find the price range of between Rmb500 and Rmb1,500 for formal business attire is acceptable, while over 60% are happy with the range of between Rmb200 and Rmb600 for leisurewear.
The "200 yuan less for every purchase of 400 yuan" promotion launched by various major department stores, such as Intime Department Store, testifies to the rationale behind this particular price level.
During promotional campaigns, the most sellable items at shopping malls are ladies fashion offered at a unit price of between Rmb200 and Rmb800, after discount. Single item transactions are generally over Rmb600 each.
Discounts are a real magnet for consumers, propelling a quick growth in sales despite the dwindling economy.
Intime launched its most aggressive promotional activity of the year on its anniversary day on November 2008, ringing in sales amounting to Rmb99 million. Annual sales at the department store in 2008 hit Rmb2.45 billion, a growth of around 10%, year-on-year.
Statistics released by the Hangzhou Statistical Bureau show that in 2008 the total price level for garment consumption in the city dropped 1.4% over the previous year.
In January 2009, retail sales of garments, footwear, headgear and knitted textiles was Rmb1.288 billion, up 40.8% over the same month in the preceding year. This reflects the pricing trend in Hangzhou's garment market.
As price affects consumption behaviour, branded ladies fashion enterprises should give in to consumers in terms of pricing, offering different degrees of discounting.
Back-to-basics a hit
Natural, simple things of life.The economic crisis has come as a wake-up call to consumers that they should pursue natural, simple things.
Traditional arts and crafts are making a comeback. Fashion statements upholding simplicity are expected to find favour in Hangzhou. These include tablecloth-style checked cotton fabric with a strong flavour of hand-knitted textiles, traditional English floral prints, cotton fabric with pyjama-style stripes, and light blue denim treated with old-fashioned methods such as bleaching, fading and wrinkling.
Also popular are natural colours, tea stain white, earth brown, campanula blue and washed and faded effects. Undoubtedly, floral patterns are among the most popular natural elements. The texture of abstract and solid floral patterns is expressed by the changes in colour.
Also in the "craft" segment, embroidery and three-dimensional effects can be used to highlight flowers, bringing visual vitality.
Where fashion styles are concerned, enterprises are due to place more emphasis on infusing natural elements to bring out the countryside touch.
Innovative eco-friendly materials such as organic cotton and eco wool are being recommended for use as fabrics, with three-dimensional cutting, no dyes and only basic treatment in a bid to satisfy people's desire for embracing nature.
The use of embroidery and other three-dimensional effects in production to highlight natural elements are also expected to be garments of choice.
Leisure styles gaining popularity
Lifestyle statements.Leisure lifestyles have taken off in Hangzhou. As this lifestyle statement spreads to fashion, such styling will be the mainstream for branded ladies fashion this year.
Career women increasingly go after a better work-life balance, so wearing casual and leisure clothing fits demand.
As a result design is expected to focus on silk, chiffon and silk linen, coupled with light colours and simple cuts.
Hangzhou is also good at keeping abreast of fashion trends abroad. It's no wonder that elements in vogue this year such as geometric lines and patterns, asymmetrical designs, narrow-bottom and high-waist trousers, glossy fabrics, polka dots, three-dimensional stripes, checks and spade patterns are all making a splash in shopping malls.
Abstract figures and differing materials, coupled with unusual cuts, can bring out a sharp, three-dimensional look for the overall silhouette of the garment. The elegant lines and trendy energetic feel of the geometric patterns are unique in character.
Brands should give emphasis to using rich colours to match three-dimensional geometric figures, combining abstract art.
Wide-bottomed trousers put emphasis on female line
For working women, high-waist, one-piece flare trousers with rolled-up ankle-length bottoms can best demonstrate their elegance and maturity. Such trousers, matched with a cardigan, silk blouse with romantic pleats, or worn with some flouncy accessory or a belt with long tassels at the waist, will produce the desired effect.
Flare-bottomed trousers can bring emphasis to the female form both in terms of material and cut.
Producers are also expected to upgrade their brand image. It's only by so doing that they can enhance their edge in an increasingly competitive market environment.
