High-end lingerie sales are outpacing China’s generally downbeat luxury market, and heating up competition between international brands and local rivals looking to go upmarket.
U.S. brand Victoria’s Secret will open its first store, and companies including Italy’s ultra-luxury La Perla and Germany’s Triumph are adding stores and moving beyond China’s mega-cities to tap a lingerie market that has more than doubled in five years to $18 billion, according to Mintel Group.
SEE ALSO: Victoria’s Secret is falling into the same trap that has been killing Macy’s
Chinese consumer tastes are maturing, women are more confident about buying for themselves and President Xi Jinping’s drive against conspicuous consumption is likely diverting spending from flashy branded bags and accessories to sports and athleisure wear and the more discreet lingerie.
China’s women’s underwear market is expected to have a retail value of $25 billion by next year – double that of the United States – and will grow to $33 billion by 2020, according to Euromonitor.
Chinese firms such as Beijing Aimer, Maniform and Ordifen are also chasing that money, targeting higher-end customers and raising their quality.
New stores
Victoria’s Secret will open a 20,000 square foot (1,860 square meter) flagship store in Shanghai this year, taking over a prime downtown location that used to house a Louis Vuitton store.
“I think it will announce our arrival in China in a very significant way, and should be the beginning of an enormous business for us,” said Martin Waters, L Brands International President.
Triumph, which already has 1,000 China stores, plans to open in five new cities this year and up to 11 cities next year.
Cosmo Lady, a Chinese firm that has focused on the mass market, selling bras from 50 yuan ($7.50), last year bought Ordifen to increase its presence in the luxury market.
Follow Retail in Asia on Facebook, Twitter and LinkedIn.
Get our top stories delivered to your inbox:
(Source: Reuters)