The luxury fashion goods industry is not just a passing fad. Millions of consumers across the globe are turning to chic and exclusive attire to make a statement about their status, boost their self-confidence or simply to look and feel their best. Although fashion trends are likely to change seasonally, consumers cannot deny that they are never ending. High-end fashions tend to be the top choice of people from all age groups and for many, style is more important than price. Luxury fashion brands represent an investment in quality clothing at a comfortable price and many consumers are attracted by this strategy.
Although it is true that China is the manufacturer of some of the world’s most popular and stylish designer labels, the country’s manufacturers still have a long way to go. In the past few years there has been a sudden growth in the number of private label products produced in China. Although many western retailers complain that these are fakes and poorly made replicas, Chinese consumers point out that the quality is far better than those offered by their western counterparts. In fact, the luxury brands from China are often more highly regarded and well received in western Europe and North America than by eastern and South East Asia.
There are two main factors behind the increasing popularity of luxury fashion goods. The first is that China is offering consumers the best indicators of value. The current regime in China allows for freer trading with its neighbors, so there is much scope for manufacturers to sell at a premium. As well as being the largest economy in the world, China offers the consumer something unique, something which they had never before experienced. They can purchase authentic knock offs and they can do so without any fear of impurities. Ultimately, it is consumers that drive the luxury brand industry and as China continues to liberalize its economy and become a more open global trading partner, this trend will continue to grow.
The second factor behind the luxury fashion goods industry’s global popularity is that China has become an important regional manufacturing hub. Between Europe and Asia, China manufactures the bulk of the world’s designer handbags and accessories. With the advent of the economic boom in China over the past 20 years, the country has experienced a phenomenal growth and has become the manufacturing capital of the world. China has also led the way in terms of liberalization and has developed its own unique system to deal with foreign direct investment. This has led to the emergence of China as the world’s best indicators of value.
The third reason that makes China the premier destination for luxury fashion brand manufacturing is its massive supply of cheap labor. At present, China possesses one of the biggest populations of millionaires. This has encouraged entrepreneurs to establish their own enterprises and to seek international markets. Not only do they cater to the needs of the millionaire consumers, but they have also extended an olive branch to middle class citizens who are looking to purchase quality goods at reasonable rates. This has ensured a huge rise in retail sales and helped Chinese manufacturers to expand their business reach. In fact, some of the countries like Taiwan have turned into China’s biggest competitor in terms of investment opportunities in the clothing industry.
Another factor that has facilitated the rise of the Chinese fashion industry is its embrace of electronic commerce. Through e-commerce websites and online stores, Chinese manufacturers are able to tap into the power of the internet to sell their products to the global consumers at a much lower price. Apart from reducing their overheads, this has enabled them to increase their consumer base and target a wider audience. As a result, they are able to meet their multi-billion dollar demand comfortably.
To keep pace with the global trend, Chinese manufacturers are making efforts to register their trademarks online. To promote their brands, they are offering discounts and enticing freebies to their consumers, apart from offering exclusive offers and value added services. E-commerce websites are the best platforms to introduce your products to the international market. Once your products start getting noticed by the right target consumers, you can expect your business to go up in price and your profits to increase exponentially.
The rise of the Chinese manufacturers has opened up a new era of competition in the luxury goods sector. This has paved the way for Chinese manufacturers to reduce their overheads and offer a variety of value added services to their customers. At present, almost every high street store sells a wide variety of luxury brands and their range keeps widening to include more new names. As a consequence, even commoners, looking to enter the world of fashion, are taking help of the Chinese manufacturers to buy wholesale goods and also engaging in e-commerce. Hence, it is clear that Chinese companies have made huge inroads into the luxury goods sector.