The Booming Lingerie Industry in China: Consumer & ...
The Booming Lingerie Industry in China: Consumer & ...
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The lingerie industry is an intense and competitive market. Renowned global brands bank on fashion trends, quality, and style to sell their products, while independent manufacturers rely on price-friendly fashionable undergarments to market their products locally and internationally. Although world renowned brands have a somewhat stable market share, finding new markets is always an important factor for future growth. With that said, one of the biggest emerging markets to date is China, with an estimated growth rate of a little more than 8%.
The Consumers
While global lingerie designers and manufacturers try to employ serious marketing efforts to develop and maintain their brand image in this relatively newbut rapidly-expandingindustry, it is important to know that China itself is one of the major manufacturers and exporters of price-friendly apparels, including womens lingerie, to the global market. China is home to more than 1.3 billion people. That is a huge market for any industry. This is why most global manufacturers are trying to get their hands on a piece of the pie.
The Chinese lingerie market is a vibrant and constantly developing sector with great potential for future growth. The market atmosphere in the country, when it comes to womens lingerie and intimate apparels, is composed of a wide range of national and international brandsthe latter of which is generally unknown to the typical consumer. This is why when an international brand wants to enter the Chinese market, it has to essentially rebuild and sustain its brand image in order to capture the attention of the consumers.
Amongst the rich Chinese, there is a marked decline in their notorious (and oftentimes berated) obsession with brand logos and other flashy displays of wealth. As such, we are seeing a rise in the popularity of invisible, covert luxuries for personal satisfaction, most noticeably in lingerie offerings. This altered view on decadence has prompted the entry of well-established European lingerie brands, such as Etam, La Perla and Aubade. While these brands present an image of sophistication and luxury in attempt to satisfy the Chinese predilection for foreign goods, the degrees of their market penetration pales in comparison to homegrown underwear brands. The superstar of these is La Miu (), which has achieved household-name status in a mere 7 years.
Christened the "Victoria's Secret of China," La Miu excels, ironically where Victoria's Secret in China failed. Like the massive US chain, it targets middle class women with its mid to high end, fashion-focused lingerie. However, La Miu and other successful Chinese brands tap into Asian women's aspiration to be cute and innocent, rather than sexy. It's an aesthetic called "kawaii" that originated in Japan and now pervades throughout all of Eastern Asia. Likewise, here at Petite Cherry, this "cute-centric" ideal forms the core of our design philosophy. It's no surprise that our lingerie incorporates Japanese influences in the form of youthful colors, ruffles, ribbons and trims.
Compared to Caucasian women, Chinese women on average have more petite frames and a greater concern for slim body contour. Shaping functions like push-up and back-fat concealment are therefore priorities for her. The neglect of these functions by Western imports has been to the benefit of Chinese brands, whose designs often include ample push up padding and spandex-like architecture as standard, not premiums. We've taken that to heart at Petite Cherry. Most, if not all, of the bras from our Cute Collection incorporate removable push up "cookies" and high-stretch fabrics to create a shapely figure that flatters both under and without clothing.
The countrys intimate apparel industry is fast moving and dynamic. The lingerie market alone has an estimated value of around US$2.3 billion. China is also ranked as the 3rd largest when it comes to luxury consumption and is a major player in the fabric industryboth in manufacturing and consumption.
The Producers
Chinas lingerie industry has not always been this lucrative. In the past, Hong Kong was the business capital and the manufacturing hub of the country. During the s, many factories in Hong Kong began moving across the border and into the neighboring cities, such as Shenzhen and Dongguan, mainly due to the price difference. In addition to manufacturers, various companies originally based in Hong Kong also started to move their base of operations on the other side of the river delta, mainly around the cities of Zhongshan and Zhuhai, because of logistics and the higher concentration of Cantonese-speaking workers in the region.
Located just west of the city of Guangzhou, in the Nanhai district of Foshan City, is a large concentration of lingerie factories. Today, the areas around the Pearl River delta and the Guangdong Province region have the highest cluster of mid and high end lingerie manufacturers. This is where some of the most popular and highly regarded Chinese lingerie brands in the market are located. Petite Cherry lingerie is sourced from the Foshan area as well. =) Many of the textile factories and accessory suppliers are also found in this region, including some foreign fabric manufacturers of lace, microfiber, and other fabrics used on womens lingerie. The cities located in southern China, specifically around the Pearl River delta, are considered to be the largest production center for womens lingerie and intimate apparel.
The city of Shantou, located in the eastern part of Guangdong Province, is another lingerie manufacturing center in China that is known for producing low end bras and panties for both the local market and for overseas importers. The average quality of the products produced in Shantou is slightly lower than those manufactured in cities like Dongguan or Zhongshan. But because of the difference in labor costs in this area, lingerie manufacturers in Shantou are able to produce exceptionally cheaper products, making the region a popular destination for low end buyers.
Located four to five hours to the east of Shantou is the city of Quanzhou. Home to thousands of manufacturing workshops that produce cotton bras, panties, and other undergarments, as well as molded cup brassieres. Cotton fabrics are manufactured locally, so they can be purchased at very low cost. Resulting in a much lower price range when it comes to cotton underwear from the region. Prices in this locale are even lower than those produced in Shantou. Most factories in these cities and provinces do not directly conduct business with export consumers. Factories generally go through trading companies based in either Xiamen or Hong Kong.
Although Yiwu, Zhejiang, is home to the world's largest wholesale market for small commodities, there is not much in terms of lingerie manufacturing expertise here. Some factories specialising in seamless underwear exist. Going towards the inner provinces, namely Jiangxi, Guangxi and Hunan, you'll find some newer lingerie factories attracting lower-cost labour. However, they pay a bit more to transport fabrics and materials to them.
Planning to Start Your Own Lingerie Business?
If you are looking to either manufacture or source lingerie for your own business, China should definitely be at the top of your list. Don't be misled by people who say China only has cheap, poorly made goods. Anyone experienced with China sourcing knows that there are many trustworthy, quality Chinese manufacturers if you take the time to seek them out.
Although Alibaba is now the de-facto source to look for Chinese suppliers of underwear (or any consumer good for that matter), it may not be the best option if you are just starting out. This is because they only recruit large suppliers who have dealt with an established Western brand or who pay for Alibaba to promote their company. This makes it difficult to judge the quality and reliability of suppliers. In addition, these companies often require large order minimums. The usual MOQ (minimum order quantity) for lingerie is pieces per color. With the exception of those who have funding, this quantity is unattainable by most small to medium sized businesses. You will need a highly strategised distribution network to sell that much. Now, this isn't because the Chinese suppliers are assholes. For them, it is simply not profitable to start a new production line to make anything less than pieces.
The more feasible but harder route is to find one of the underwear suppliers that's not on Alibaba. These are often small factories operating at less than 40% capacity and with a single owner/manager. Some of these are hungry for business and will accept your order even if it's a couple hundred pieces. You may even find one who is in the business of manufacturing similar products but is willing to rework production lines to make your lingerie (e.g. at Petite Cherry we converted a swimwear factory managed by a former bra maker). You will need business connections and an extremely convincing argument to make this possible. One tip I'd give is to seek factories with a 2nd-generation manager, preferably below 29 years of age. This means he's in charge of a family business whose retired owners (his parents, grandparents, uncle) used to deal with foreigners. As a young business owner, he is probably more receptive to new ideas from other entrepreneurs and therefore more willing to accept your small order quantity.
Alternatives to Chinese lingerie manufacturers include those in Thailand and Vietnam. These countries have expertise in bra manufacturing (and generally in textiles), producing for the likes of Victoria's Secret and La Senza. However, Thai and Vietnamese suppliers are fewer, more difficult to access and may require higher order minimums.
For those of you not interested in producing your own lingerie, but simply sourcing and reselling finished goods the industrial city of Dongguan, China, is the answer. Home to China's largest garment wholesale markets, Dongguan is peppered with thousands of trading companies specialising in all sorts of women's underwear; the range includes everything from maternity bras to disposable panties. You can find suppliers accepting quantities as low as a few pieces per color or style. You will need someone fluent in Mandarin to help you navigate and negotiate through the markets.
If you do not have the time to learn Chinese or hire a translator and fly to China in search of a lingerie supplier, Petite Cherry offers wholesale pricing for our lingerie to retail stores and resellers. Our order minimum is only 30 sets, within which you can mix sizes, colors and styles. We also have a dropshipping programme, where we handle all the warehousing and order fulfilment. Having grown up in Canada/the US, we're fluent in English and have a totally intimate knowledge of Western clients' tastes and expectations. Drop us a line if you're interested.
Unzipping China's Lingerie Capital
JIANGSU, East China Even though all four of Lei Congruis lingerie warehouses were flooded when a typhoon hit Guanyun County in August of , he has one fond memory of that time: After the storm, he enlisted villagers to help him launder his drenched stock with their washing machines. They then laid the seductive garments out to dry on clothes lines strung above their corn stalks, turning their fields into a kaleidoscope of corsets, chemises, and camisoles.
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I climbed onto the roof of my warehouse and looked out over the countryside, Lei, now 27, tells Sixth Tone. There was lingerie as far as the eye could see. I felt like it was my kingdom.
By then, Lei had already made a name for himself. He had pioneered lingerie production and e-commerce sales in Guanyun a lucrative business that grew from practically nothing about a decade ago to 1 billion yuan ($150 million) in sales for the whole county in . Guanyun has become Chinas largest lingerie production base, according to local government figures that claim 60 percent market share. Lei himself owns the countys largest business, employing some 200 people many of them from farming families in around 20 workshops that churn out sexy tops and bottoms around the clock.
One worker is 64-year-old Liu Yonglan, a retired public servant. One afternoon in December, she gently runs her hands over a leopard-print corset trimmed in black lace, snips off the loose threads, pairs it with a matching G-string, and carefully folds them into a bag to be shipped to a bedroom in China or abroad. Its hilarious, Liu says, somewhat befuddled. Wearing this lingerie, you might as well be wearing nothing, because every part of the body can be seen so clearly. Even though hundreds of similar garments pass through her fingers every day, Liu finds it hard to imagine who would buy what she considers impossibly small articles of clothing. They are definitely indecent people, says Liu, the mother of two adult women. My daughters would never wear that.
Despite their bemusement, Liu and her 20 or so colleagues all women treadling sewing machines to produce baskets full of lace kimonos, sheer bralettes, and strappy bodysuits are glad for the work. Lingerie production staff earn about 3,000 to 4,000 yuan per month, making it a more lucrative profession than county residents traditional livelihood of growing wheat or rice. Rural residents annual per capita disposable income in Guanyun was just over 5,000 yuan in , according to government figures. In , this number had risen to 13,000 yuan.
More than a decade ago, few people in Guanyun had heard of lingerie or e-commerce. In , Lei, the factory owner, suggested his mother try online retail after her childrens clothing store shut down. Together, they sold everything from clothes and cosmetics to condoms. But Lei grew suspicious that his suppliers were selling him fakes, so they decided to make their own products. Lei had learned that lingerie was easy to produce and even easier to sell. Business went smoothly, and Lei opened his own factory in . The then-law student was just 17, and while his classmates were talking about their dream careers becoming lawyers, prosecutors, judges he had other ambitions: I told them, I want to make 1 million yuan before I turn 25, he says. Just a few months later, he had achieved his goal.
Guanyun now has more than 400 lingerie manufacturers that together employ some 20,000 workers and have spawned a host of related businesses to provide fabric, labels, and delivery. This industry is thriving and has brought great monetary benefits to the local people, deputy county head Chen Xinhong tells Sixth Tone. The farmland is now dotted with workshops the luxury cars of their young millionaire owners parked out front beside old tractors and everyone has friends or relatives working in lingerie. During a regular meeting between businesspeople and local officials, Lei breezily greets most of the lingerie bosses, who are his neighbors, friends, and uncles. Even my high school teacher called me, asking whether I could give his wife a discount for wholesale, Lei says.
In the early years, Lei and other manufacturers stuck to a simple design ethos one material, one color, one size so they could keep prices under 10 yuan per piece. Leis most successful item was a black chemise, of which he sold some 10 million pieces in three years. As Lei tells it, the garment was easy to make: Take 1 square meter of black lace and cut a hole in the middle, sew on two shoulder straps, and youre done. The rest of the [cut out] material is still enough to make two G-strings, Lei says.
Guanyun workshops operate their own online stores in addition to producing wholesale stock for other brands. They are increasingly looking to sell overseas, which now only accounts for about a tenth of the countys yearly output. But understanding the preferences of foreign customers remains an obstacle, according to Lei. Theres a huge gap in the aesthetics of different countries, he explains. Sexy cop costumes are popular in Brazil, which Lei says is because Brazilians dont like the police; French maid costumes dont sell well in Poland because, he theorizes, the two countries dont have a good relationship; and Japanese customers love any and all seductive outfits. The lingerie tastes of most European countries except France and Italy are still riddles to him. Every collection that we deliberately designed has failed in their markets, Lei says. Germany borders France, right? But their taste is the most difficult thing for me to figure out.
In China, the lingerie industry has had to overcome taboos and ignorance. For people in Guanyun, sex is still something to be ashamed of. An 18-year-old employee at Leis factory who produces countless G-strings on a daily basis is too shy to talk about her work. Sitting next to her is 38-year-old Meng Xia, who rescues her from Sixth Tones questions. She explains that unmarried women such as her young colleague prefer to avoid sex-related topics. I also felt ashamed to say I produced lingerie at first; instead, I would just say I made garments, Meng says. Its a new thing to farmers some old people even asked me whether a G-string was a mask. Chen, the county official, says that when he first saw a piece of lingerie in a workshop, it was smaller than he had imagined: How could there be so little fabric? he recalls wondering.
Official attitudes toward sex-related content and products have also shifted over the years. In the s, the Chinese government regarded selling and producing sex-related items as criminal behavior. Though the official stance has softened as Chinese people have become more open-minded, authorities still occasionally crack down on sex-related businesses. In , Chinas first known sex shop opened in Beijing but a year later, a supplier of erotic products in the eastern province of Zhejiang was investigated for allegedly disseminating obscene goods.
Sex shops and suppliers of sex toys, erotic attire, and related items are now commonplace in China, but they still operate in a legal gray area. In , Taobao, Chinas largest e-commerce website, was told to reform its adult products category after being accused of spreading vulgar information. The nations advertising law also puts limits on promoting sex-related products, and on Taobao, sellers are now discouraged from using the Chinese term for lingerie qingqu neiyi to describe their wares.
Lingerie manufacturers had a bad year in , when a huge anti-vice campaign was launched in Dongguan then Chinas unofficial capital of paid sex in southern Chinas Guangdong province. Lingerie sales to sex workers, valued in the billions of yuan, disappeared practically overnight. Lei was hit hard, too; he still has outstanding payments of about 400,000 yuan today. Yet the crackdown also had a silver lining, Lei says, because the substantial media attention introduced the concept of sex products to the Chinese public.
People in Guanyun arent too worried about the occasional bouts of disapproval from the government. Certainly, the government used to have misgivings about promoting this industry, deputy county head Chen says, but objectively speaking, when I talk to people from the big city, they think lingerie is something very normal that doesnt have to be concealed. Guanyun officials like Chen are in full support of lingerie businesses and plan to invite lingerie design and business management experts to visit the county. A lingerie-themed tourist town is under construction near the site of a planned high-speed train station. In this town, we will have a museum-like exhibition center to show the history of lingerie, Chen says. We will also develop a main street with various sex shops and love hotels. The government is even planning regular Victorias Secret-like fashion shows to attract tourists. For the countys inaugural fashion show in July , a dozen models including four foreigners were invited to walk the runway in lingerie produced at local workshops.
Lingerie production in the county has been so successful that there is currently a labor shortage, but Chen is confident that Guanyun natives working out of town of which there are thousands will soon be drawn back. In a few years, there will be another 20,000 people who will join the lingerie industry, Chen estimates. Sun Yubai, 40, left her job at a state-owned company to work in one of Leis workshops. She firmly believes in the future of lingerie: Compared with making traditional clothing, this new trend that young people are willing to spend on will give us much more stable incomes in the long term, she says.
Despite the countys shift toward a new form of labor, residents havent given up their traditional rural livelihoods. Several times a year during planting and harvesting seasons, many employees leave the factories to work on their families farmland. Even though everyone knows that farmwork is less profitable, taking care of the land they have depended on for generations is a habit that seems hard to shake.
Even Sun, who says she learned how to sew clothes to avoid facing the harsh wind and rain while working in the fields, tells Sixth Tone that she leaves her job at the lingerie workshop for several weeks each year to help her family with planting and harvesting crops. She cant refuse her relatives: The older generation here believes that they should harvest their own food from their own farmland, Sun says. We should never betray that.
Editor: Kevin Schoenmakers.
(Header image: Local lingerie workshop employees pose for a photo in a field in Guanyun County, Jiangsu province, Dec. 28, . Though lingerie has proven lucrative for the county, residents still work the fields they have depended on for generations. Wu Yue/Sixth Tone)
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