From September 25-27 the next September edition of CHIC Shanghai shows the latest developments in the Chinese fashion market. At Asia’s most important fashion fair, around 800 national and international brands will present themselves on 62,000 sqm at the National Exhibition and Convention Center in Shanghai to the professional visitors from all distribution channels.
Despite an economic slowdown, China´s economic growth still amounts to 6%, the focus is put on domestic consumption, the basis for a long lasting and reliable growth. Government measures, especially in the financial sector and through geopolitical projects, are intended to further boost economic growth.
China´s consumers are still the strong economic driving force, whose preferences and consumption patterns are now differentiated into more and more specific clusters. The growing Chinese middle class is hungry for individual expression through fashion and accessories. Consumers are increasingly willing to trade up for quality products, the disposable income rose by 8% in 2018. Especially the young generations appear to be resistant to global economic uncertainties. Already today the group of “millennials” encompasses 380 million people that earn more money than their parents.
The post-80´s generation is optimistic about the future, 35% of 18-29 year olds expect a continued rise of their household income, Gen-Z is prone to impulse purchases. According to estimates by BCG the urban consumption of millennials will rise to 2.6 trillion US dollar by 2021 (+9% compared to 2011). The young consumers buy especially ready-to-wear, accessories, shoes, there is also potential for bags and jewellery. The luxury market is already clearly dominated by China, with a volume of 110 billion Euro (+6%) the worldwide leading engine of the luxury business. Until 2025 China will probably account for 41% of global luxury consumption (Boston Consulting Group/Tencent). Fashion, Accessories, cosmetics and jewellery are especially in demand. A study by Bain predicts that in 2019 the sales of premium brands will increase by another 18% to 32 billion Euros.
Italy will again present the biggest international group participation with a focus on exclusive shoe brands. The Sustainable Zone will look back at 70 years of sustainable development in China while also looking into the future. Sustainability is a consumer topic met with increasing interest especially by the young consumers, GenZ (born between 1998 and 2016) in particular. A strong consumer group that
spends the biggest proportion of their income in global comparison. CHIC picks up on this trend and points the way to the future.