Today (August 7), it was reported that Sir Philip Green is going for gold in the country by signing up to rent space in the Shanghai Super Brand Mall for Topshop’s global assault. Locations in Beijing and Hong Kong are also on the cards.
The news comes a week after Chinese retailer Metersbonwe, which claims to be the country’s largest fashion retailer, announced it was preparing for an IPO to raise Yn1.8 billion (£134.4 million) to take on international fashion rivals setting up shop in the country.
The Chinese group, which notched up a more than fivefold increase in profits to Yn364 million last year, will take on international fashion giants such as Inditex, H&M and Uniqlo, which have made their own march on the country’s as-yet untapped fashion market.
Historically, international retailers have been slow out of the blocks to capitalise on China’s potential. But there has been a shift-change.
China’s casualwear market is worth about US$519 billion (£265.95 billion) and growing at a rate of 14 per cent year on year. Last year, the country’s total retail market increased to about Yn5,075.6 billion (£378.96 billion).
China’s population is 22 times that of the UK and the burgeoning spending power of its growing middle class makes it a contender to host one of the most hotly contested international fashion battlegrounds.
High-end brands, such as those in the LVMH luxury group, are well-established in China and in the minds of a younger, aspirational consumer who has a passion for western fashion.
Just look at the reported sums that supermodel Kate Moss is reportedly set to make by spearheading Topshop’s launch in the country. This is no meagre£3 million sum – the figure the fashion icon was reportedly paid to launch her Topshop collection in the UK – but a possible£15 to£25 million.
The importance of how China performs on an international podium this month, on sporting, human rights and civil liberties levels, cannot be underestimated.
And nor can its potential for foreign fashion retail investment. In the battle for the Chinese fashion marketplace, the race is wide open.
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