Global Apparel Brands Struggle in China Due to Rising 'White Labels'

Sunday, 4 August 2024, 01:30

A notable change in consumer spending patterns is affecting global clothing brands, including Uniqlo and Nike, in the Chinese market. This shift towards 'white label' products is driven by a downgrade in consumption, exacerbated by a stagnant job market and limited income growth. Deutsche Bank predicts that this trend will continue, forcing major brands to adapt or risk losing market share in one of the world's largest economies.
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Global Apparel Brands Struggle in China Due to Rising 'White Labels'

Impact of Changing Consumer Behavior

The evolving spending habits of consumers in China are significantly affecting global apparel brands such as Uniqlo and Nike.

Enduring Challenges

  • An increase in popularity of 'white labels' is reshaping the competitive landscape.
  • Major brands are experiencing a decline in sales due to shifting consumer preferences.
  • Factors such as a stagnant job market and limited income growth further complicate the situation.

Conclusion

As the trend of prioritizing value and affordability over brand loyalty dominates, global clothing brands must adapt to survive in the Chinese market.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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