In recent years, there has been a significant rise in the demand for niche fashion brands in China. A niche market refers to a specific segment of consumers who have unique tastes and preferences that are not catered to by mainstream fashion brands.
The Chinese fashion market offers ample opportunities for niche brands to thrive. With a population of over 1.4 billion people and a growing middle class, there is a strong demand for unique and exclusive fashion products. Chinese consumers are increasingly seeking out brands that offer high-quality, sustainable, and personalized fashion options.
Niche Markets in China
In recent years, the concept of niche markets has gained significant popularity in China. Niche markets refer to specific segments of the population with unique needs and preferences that are not adequately catered to by mainstream products or services. These markets can range from eco-friendly and sustainable products to luxury goods for pet owners.
With a population of over 1.4 billion people, China offers immense opportunities for businesses to tap into these niche markets. By understanding the specific demands and desires of these consumer segments, companies can tailor their offerings to meet their needs and establish a loyal customer base.
For example, Serge Lutens is a niche brand that has gained popularity in the beauty industry, known for its unique and artistic approach to fragrance and cosmetics. In China, Serge Lutens has managed to carve out a niche market for itself by appealing to consumers who appreciate luxury, exclusivity, and a touch of avant-garde.
As China’s middle class continues to grow and consumer preferences evolve, niche markets are set to play a crucial role in shaping the country’s retail
What do Chinese Fashion Consumers Want?
Chinese consumers buy more than two-thirds of their luxury goods abroad, with negative repercussions for companies operating in the domestic market.
What strategies should, therefore, be adopted by fashion brands to keep up with the new trends and not lose competitiveness in the Chinese market? Undoubtedly it is necessary to focus more on women’s fashion, expand the spaces dedicated to women’s collections, and the range of products of the collections themselves, evaluating their relative profitability.
Some brands have adopted a product diversification strategy to keep consumers’ interest in the brand alive. In fact, in addition to the increase in demand for women’s ready-to-wear, the products that recorded the greatest growth last year are perfumes and cosmetics.
Today, Chinese consumers are looking for more innovation, product customization, and high production value. Preferences are shifting from products with over-exposure of the logo, to products of the highest quality. From this point of view, luxury and fashion brands will have to be able to transmit their value proposition to consumers in the local market.
What do Fashion Companies Need to do?
Companies will have to operate with “greater transparency”, relying on the authenticity and originality of products beyond the attachment to traditional brands, in a context in which small emerging brands are becoming more and more popular.
Finally, the advancement of digital and e-commerce will make it necessary to proceed with acquisitions, investments, and research and development activities to diversify the sources of profit, aiming at the same time as an ‘agile’ production model and without stocks (just in time). This will also entail strong growth in investments in other countries between now and 2025.
Identify your own fashion niche market
The market, in itself, can be very large or very small: in both cases, it must generate a business that allows you to support your business. Currently, especially on the web, the market is not only big: it is an infinite expanse of offers of services or products.
For this
By niche, we mean a small market space made up of people with specific needs. It might, at first, seem uneconomical but, on the contrary, being able to meet the needs of a market segment is very convenient: needs to be met by few competitors = low competition and high earning potential.
Focus on a niche idea and on a fashion target
Start with an online search and check if there is a question about your offer. You can check on search engine number one in China or Baidu controls the volume of research and of competitiveness. If someone is looking for a product or an online solution it means there is a demand.
Ask yourself: “What’s missing?”
One of the most effective tricks and to ask oneself “What is missing?”. Many times we rely on a manifest need, in a market that already has a thousand offers to satisfy it.
The best successful products, often patented, were born instead by analyzing small market niches to capture potential unmet needs and position themselves with their product.
In the case of the fashion world, ask and evaluate what is missing from Chinese fashion addicts, A brand more minimal? A clothing line made of lotus flowers? Search research search.
Find your niche market with social media
In today’s digital age, social media has become an indispensable tool for businesses to reach their target audience. When it comes to finding your niche market in China, social media platforms play a crucial role.
Explore Groups on Chinese social networks and forums, such as WeChat, Weibo, and Little Red Book related to your business idea and participate in the conversation.
You could identify exactly the type of person that is right for you and ask for advice on the idea of launching a product: would you like your audience? How much would they be willing to spend? What characteristics should the article in question have?
Remember that Chinese consumers, especially millennials, like to be involved.
In China, the Power of niche
In recent years, Chinese consumers tend to avoid big-name bands and instead turn their sights toward niche brands that offer less recognized products and items.
According to the McKinsey China Luxury Report, the concept of a niche brand has multiple meanings across luxury segments, indeed it can depict a brand that exhibits unique design contrary to those that are niche in the sense of being less known and not as much seen on Chinese street, or simply not available in mainland China.
While the definition of a niche brand for Chinese consumers is quite subjective and depends on the consumer’s level of sophistication, the general sentiment is that labeling something as “niche” makes the brand, or product, feel more premier (“高级”) and rare, which is the new equivalent of bespoke and unique.
The restricted access to information available on platforms such as Instagram plays a role in fueling this newfound power of “niche.”
Consequently, if a brand does not have a presence in China, it can become more appealing to consumers who want to access what they think of as “new information.”
And with a rapidly growing middle class in China, more and more of the population is looking towards information to help them advance, which only increases the power of “discovered” brands.
Next step for the niche fashion market? Become digital
After doing all your research, and finding your niche in the world of fashion, and creating the brand is the time to find customers. One of the best ways to take this is to jump into the Chinese digital market, because in fact in China now 82% of people make purchases online.
Below is a list of the platforms and apps in the fashion industry that you need to know if you want to open your business in the middle ground.
Little Red Book is a perfect app for niche fashion brand branding
The retail app was born as a platform for reviewing and discussing products purchased abroad. The platform is a social network for fashion and beauty products, with 30 million active users per month.
Created from an internet-based life platform, the Little Red Book targets more youthful buyers and spotlights on themes, for example, style, travel, way of life, plan, city aides, and sports.
It works as a blend of Instagram, Weibo, and Dianping, enabling clients to share and discuss their encounters just as to make buys.
Niche brands such as Monica Vinader and Lush have utilized the Xiaohongshu’ to pick up the presentation and make deals, and various extravagance brands have begun to create techniques.
Vivienne Westwood has created a great collaboration with the Little Red Book, empowering her to dispatch crosswise over Asia.
Sell your Niche Fashion Brand Through Kaola.com
The Kaola.com web-based shopping platform, which name is the sound in Chinese of the words koala, has turned out to be one of the quickest developing sites where Chinese purchasers can buy products from abroad.
With a more relaxed mind of the Chinese government for casual cross-border, this platform is becoming more and more popular among Chinese consumers aged between 20-40.
Also, while other players mainly sell through marketplaces, their strategy focuses on selling featured products directly to shoppers. This business model enables consumers to purchase products at better prices and to save time in making their selections.
Kaola.com claims the biggest stockroom zones in China, which enables the website to offer huge-scale direct obtaining at marked-down costs, however, marks are allowed to utilize outsider activity groups, warehousing, and coordination.
Kidiliz, a French fashion kids company joined Kaoloa to bring its tasks into China and is quickening its extension subsequently.
From the USA instead the brand John Bosses Organics is sold on this platform too, but through sourcing cooperation, which is viewed as a standout because it’s the most productive way especially for niche brands to enter the market
Case study: The BEAST x New Balance: Brand Collab
On the site, you will discover numerous crafted items that go from fashion apparel to botanical items. They are watchful about which items they pick to show on the website, so teaming up with them is a long way from simple. Brands that succeed gain notoriety among the nation’s tip top.
They constantly seek out new ways to promote the brand, focusing on co-branding. One prominent example is the New Balance x BEAST collaboration. The iconic American footwear brand launched 3 new colorways of their 520 model. This was exclusive to the Chinese market.
We Can Help You Find The Best Niche Market for Your Brand!
The niche market for fashion brands in China presents a great opportunity for businesses. With a large population and a growing middle class, there is a strong demand for unique and specialized fashion products.
By targeting a specific niche within the market, such as sustainable fashion or plus-size clothing, brands can differentiate themselves and appeal to a specific segment of Chinese consumers. It is important for fashion brands to conduct thorough market research and understand the preferences and needs of their target niche in order to succeed in this competitive market.
We are a China-based marketing agency offering cost-effective solutions to foreign brands interested in tapping into the Chinese market. Our team of Chinese and foreign experts has the experience and know-how needed to succeed in this lucrative, yet complicated market.
Gentlemen Marketing Agency offers many digital marketing and e-commerce solutions, such as web design, e-commerce and social media marketing strategies, localization, market research, KOL marketing, and more.
Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts, that will learn about your brand and present you the best solutions for your China market strategy.
