
|
|
|
|
|

It is an opportunity ripe for the picking: more than a third of Japanese and Chinese consumers make apparel purchases online. Yet, the percentage of those consumers who buy most of their clothes on the Internet is only on par with the U.S., which has significantly less online apparel penetration. Add to that the fact that both China and Japan are tech savvy with a growing mobile usage, and it is clear the countries hold significant growth potential.
According to the Cotton Incorporated and Cotton Council International 2010 Global Lifestyle Monitor Survey, 38% of Japanese and 37% of Chinese consumers say they use the Internet to make apparel purchases. Yet just 6% of Japanese and 2% of Chinese buy most of their clothing online. Compare that to U.S. shoppers: 25% shop for clothes online, and 4% buy most of their clothes from web sites.
Steve Yi, chief strategy officer of Grey Group, a global market communications agency, says cultural and economic factors are at play.
"On the surface, with Japanese spending more time at home during the economic recession, one would almost think online purchasing would increase, but actually the reverse has become true," Yi says. "Japanese often go �hunting for value� at casual clothing chains in a paradigm they refer to as �spending time to save money� rather than in decades past when Japanese were more about �spending money to save time.�"
Meanwhile, in China, the vast geographic size of the country would seem to make online purchasing attractive. However, credit cards are not yet widely, used as China has traditionally been more of a "saving society," according to Shalendra Sharma, PhD, professor of Politics at the University of San Francisco and author of China and India in the Age of Globalization.
That is expected to change rapidly, though. MasterCard Worldwide recently stated that it expects China to overtake the U.S. as the world's largest credit-card market in number of credit cards by 2020 because of the country's fast urbanization. The Wall Street Journal reported that only in the last few years have credit cards become popular in China. Consumer demand has increased, and as a result the number of credit cards has increased from 30 million in 2007, to more than 207 million in June 2010. MasterCard expects 800 million to 900 million credit cards issued by 2020. By 2025, that number is expected to reach 1.1 billion, with spending on those cards amounting to $2.5 trillion.
Over the last several years, Chinese consumers have sharply increased their use of the Internet for clothes shopping, from 4% in 2003 to 37% in 2010, according to the Global Monitor. More than half (54%) use the Internet as a source of clothing ideas, up from 16% in '03. Further, shopping for apparel has gradually become more appealing to Chinese consumers, as nearly two-thirds say they like or love shopping for clothes. Compare that to just 49% of U.S. consumers who say the same thing.
Japanese consumers have increased their Internet apparel purchases over the last several years, from 7% in '03 to 38% in 2010, according to the Global Monitor. The Internet has also revealed another "window" of opportunity: the percentage of Japanese consumers who use it as a source of clothing ideas has increased, from 9% in '03, to 60% in 2010.
Despite the long economic downturn in Japan, there has been little change in Chinese or Japanese consumers� attitude toward clothes shopping � 70% of Japanese respondents say they like or love it. From 2006 to 2010, EuroMonitor International shows that online clothing and footwear sales in China and Japan will increase 627% and 85%, respectively. These kinds of statistics represent a huge potential growth for companies looking to expand their foothold in Asia.
Gap, Inc. is already well-integrated into the Asian market, having entered Japan in 1996. Today, there are 126 Gap and 23 Banana Republic stores in the country, and both stores have dedicated Websites for Japanese consumers. In June, the company unveiled plans to open Gap stores in Beijing and Shanghai in late 2010, and simultaneously bring an online shopping experience to all Chinese consumers. The first four Gap stores will feature a full range of Gap adult, GapKids and babyGap products, including all styles of the brand�s stylish and fashionable 1969 Premium Jeans.
"For over 15 years, we've been increasing our connection to global consumers by offering Gap's American-inspired casual style to now over 25 countries," said Glenn Murphy, chairman and CEO. "Now, after spending a lot of time listening to Chinese consumers and learning more about their shopping preferences, we�re excited at the prospect of meeting their fashion needs, initially by bringing our Gap designs to our stores and online later this year."
Yi says all apparel retailers must recognize they need a simultaneous, multi-platform marketing strategy.
"You cannot just start with the physical and then take your time to do online and mobile," Yi says. "You have to do as much as possible at the same time. This is because many local Asian retailers are already pursuing this strategy, so for larger multi-nationals not to pursue such a strategy is just self-defeating. Even prestige fashion brands have recognized this and have moved away from solely prestige magazine advertising, and getting into social networks to promote their events, shows and designers."
ComScore Inc. reports the top Asia Pacific internet apparel sites are Vancl, MBAOBAO, Moonbasa, Nike, Uniqlo, OkayBuy, MAI520, Cecile and Belluna and Lamiu. Forever 21 is ranked 16th.
Of course, the appeal of shopping via smart phone must be considered.
"Mobile definitely contains the social-sharing component that desktop online simply cannot duplicate," Yi says. "And Asia�s mobile development tends to be much faster-paced than the rest of the world, so this is definitely worth a few apps developed by apparel makers, or to partner up with telecoms for database marketing."




