Can H&M and Zara Compete with Chinese Rivals?
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
KEY INSIGHTS
- Unlike export-focused disruptors Shein and Temu making waves overseas, China’s offline high street brands have doubled down on the home market.
- Chinese mass market brands Metersbonwe, Peacebird, Youngor, Mo&Co and Eifini are among the local players competing with global fast fashion brands.
- H&M and Zara also compete with Chinese brands on platforms like Tmall, Taobao and Douyin that cater to hyper-local trends, fit and consumer behaviour.
For the second season running, Semir took to the runway at the last month’s Shanghai Fashion Week. The mass market clothing brand is an unlikely inclusion in the biannual showcase as its casual designs are far less fashion-forward than Shushu/Tong, Comme Moi or other designer labels on the calendar. It also retails for less than a tenth the price of its upmarket counterparts.
Brands operating in a similar price bracket in Europe’s fashion capitals, such as H&M and Zara, have come to realise that most consumers don’t value seeing them on the Paris catwalks but, in China, Semir intends to keep on showing, according to sources at the Shanghai event. It’s understandable in this fiercely contested corner of the Chinese market. Local brands have had to be bold to gain an edge over rivals with global brand status.
Unlike export-focused Chinese disruptors Shein and Temu, traditional offline Chinese brands in the mass market segment have doubled down on their home market. Semir, owned by Wenzhou-based apparel conglomerate Zhejiang Semir Garment Co Ltd., has scale on its side, boasting revenues of more than 13 billion yuan ($1.8 billion) in 2022. But it is just one of many Chinese apparel giants operating in a similar price bracket.
Though some face mounting challenges, established names like Shanghai-based Metersbonwe and Ningo firms Peacebird and Youngor have accumulated deep-rooted brand awareness across the country. Others battling for market share include Hangzhou-based Eifini and Guangzhou’s Mo&Co and Urban Revivo. The high-street segment of the Chinese market — unlike luxury which remains heavily skewed towards foreign brands — has seen local players emerge as serious contenders.