How China is redefining fashion: Jiao Pei discusses CHIC, technology and market strategies

While in Shanghai for the China International Fashion Fair (CHIC), FashionUnited had the chance to hold a one-on-one conversation with Jiao Pei, the vice president of the event’s organiser China National Garments Association. He offered expert insights into China's textile industry, shedding light on current trends, market entry strategies for foreign brands, and the disruptive influence of Chinese companies, especially in the realm of technology and AI.

Could you briefly introduce the China International Fashion Fair?

CHIC was established in 1993 in Beijing with the aim of providing a platform for clothing industry exhibitors to expand their markets. Initially, Beijing was the ideal location to reach a wider audience. However, as the event grew, we recognised that many of our exhibitors were concentrated in the Yangtze River Delta and Zhujiang Delta regions. To better cater to their needs, we relocated CHIC to Shanghai in 2016. Today, CHIC stands as one of the world's premier fashion events, often held in conjunction with other exhibitions like Intertextile.

The textile and clothing industry in China has tremendously evolved. It is no longer about “Made in China”, but rather about emerging national designers and brands. What do you observe?

The Chinese clothing industry has undergone significant transformation in the past two decades. While we still have some ground to cover compared to European, American, and even South Korean and Japanese counterparts, China has become a powerhouse in clothing manufacturing. Actually, we are now the strongest in this field.

Recent advancements in creative design, materials, and cultural empowerment have also been particularly impressive. Our goal is to support businesses in leveraging these strengths to not only provide high-quality products to domestic consumers but also to successfully penetrate international markets. Many Chinese clothing enterprises are eager to reach a global audience.

“China is home to numerous intelligent manufacturing enterprises that can significantly enhance production efficiency for international brands,”

How does an event like CHIC help companies expand, even globally?

CHIC offers companies a convenient platform to participate in international exhibitions. We have partnerships with events like Pitti Uomo in Italy and Who's Next in Paris, and we also organise our own exhibitions in New York. These partnerships allow Chinese enterprises to efficiently reach a global audience. To further support these companies, we collaborate with Chinese embassies worldwide to invite buyers and distributors to recognize and appreciate Chinese brands. Through these efforts, we aim to facilitate the global expansion of Chinese clothing companies.

What are the current trends in the Chinese clothing market?

Generally speaking, I think the Chinese clothing market has become increasingly more fashionable and diverse. Consumers now enjoy a broader array of choices, with a growing preference for functionality and comfort. This trend extends beyond outdoor sportswear to include men's suits and women's skirts, which are increasingly designed with comfort in mind. Fashion has also become more affordable, making it accessible to a wider range of consumers. In the past, fashion was often associated with high prices, but today, it caters to all income levels. Additionally, international styles have gained popularity in China, while the "New Chinese Style" has emerged, combining traditional elements with modern designs.

What are your recommendations for overseas brands entering the Chinese market?

My advice for overseas brands entering China aligns with the recommendations I give to Chinese brands seeking to go global. Understanding the local market is crucial. Researching consumer preferences and market dynamics will help you tailor your offerings effectively. Partnering with Chinese companies can provide valuable insights and support. They can guide you on product selection, considering regional variations, and help you navigate the complexities of the Chinese market.

Moreover, establishing production facilities in China can offer significant cost advantages, allowing you to provide competitively priced products to Chinese consumers. By following these strategies, overseas brands can successfully enter the Chinese market and capitalise on its growth opportunities.

What distribution channels are available for foreign companies in China?

There are several distribution channels available to international companies entering the Chinese market. One option is to collaborate with local agents. Many top Chinese brands not only produce their own products but also act as agents for international companies. For example, some agents manage their own brands while also working with global names like Fila.

Another option is to partner with trade companies. These companies can assist by connecting foreign brands with various distribution channels, often through participation in industry events and networking opportunities. Lastly, international companies can also choose to work directly with shopping malls and large distributors to establish their presence in the market.

“We have a chip called RFID, which will soon optimise our production schedules and ensure we are producing the right items at the right time,”

I've observed a significant presence of tech companies here at CHIC, including a talk on the integration of AI with 3D technology, which highlights the relentless push towards innovation. In your opinion, how could these highly advanced companies influence the global clothing industry?

Tech companies in China have indeed made remarkable strides in recent years. Their influence on the global clothing industry could be profound, particularly in two key areas. First, in production: China is home to numerous intelligent manufacturing enterprises that can significantly enhance production efficiency for international brands. For instance, the China National Garments Association has established an industrial alliance focused on intelligent manufacturing. This alliance brings together leading domestic manufacturers and equips them with cutting-edge software, devices, and products to deliver the most advanced solutions available in China.

Second, in design: China is at the forefront of design technology, particularly with the advent of Artificial Intelligence Generated Content (AIGC). This technology, which we refer to as AIGC-driven design, is revolutionising the design process by enhancing efficiency. Several companies specialising in AIGC are based in Shanghai, Zhujiang, Xiangfu, and other regions. While the products may still be in development, we are confident that the ongoing R&D efforts will soon yield significant results.

Moreover, technology is also transforming decision-making in sales. Headquarters can now respond swiftly to market data from various branches, allowing for quicker market adaptation. Our technological advancements extend to warehouse management as well. For example, we have a chip here called RFID, which can be integrated into clothing, enabling stores, warehouses, and companies to access real-time data about each item. This technology even allows companies to track how often a customer wears a garment, providing invaluable insights for future production. In essence, the rapid technological development within these enterprises is set to revolutionise not just design but also production and manufacturing on a global scale.

Can you also provide insights into the current state of the Chinese textile and clothing industry?

China’s textile and clothing industry is vast, making it challenging to capture the full picture through official statistics alone. While we have data from the national ministries and the Bureau of Statistics, these figures don't fully account for the numerous SMEs and startups, whose data is often harder to track. However, within the National Garment Association, we utilise a predictive model to estimate industry performance. For 2023, our model indicates that domestic sales reached approximately 4.5 trillion Yuan. On the export side, the industry generated around 170 billion dollars. These figures reflect the immense scale and impact of the industry, even if they don't encompass every enterprise.

“Consumers born between 1995 and 2000 not only drive clothing trends but also possess the most significant purchasing power,”

What are the upcoming plans for CHIC?

Looking ahead, CHIC has several key objectives. First, we aim to continue expanding and enhancing our brand, while also elevating the profile of our national brands, making them more youthful and stylish. Additionally, we plan to increase our influence within the medium-end market segment. Traditionally, our focus has been on strengthening our presence in the business-end segments, but now we are shifting our attention toward reaching and engaging medium-end consumers as well.

You've mentioned your focus on younger generations several times during our discussion. Why is there such a specific emphasis on young consumers?

Our focus on young consumers stems from the belief that the younger the product, the trendier it is. Currently, trends are largely driven by the younger generation, so attracting this demographic is crucial for staying at the forefront of fashion. Additionally, even the older generations—those in their 50s and 60s—are increasingly seeking a more youthful appearance, not just in their clothing but in their overall mindset. This shift in mentality across age groups is why we prioritise appealing to young consumers. If we can’t capture their attention, it becomes challenging to lead in setting trends.

Focusing on younger generations surely impacts your industry, particularly in terms of production and price range. For instance, catering to this segment might require focusing on low- to mid-range pricing due to their lower purchasing power. What are the economics behind your strategy, and how much does it make sense?

Your point about younger generations leading trends is valid, but there’s more to it. We conducted a survey within our association, and the data showed that those born between 1995 and 2000 not only drive clothing trends but also possess the most significant purchasing power, at least in China. This insight shapes our strategy, as we aim to present our brands in a more youthful manner to resonate with this influential demographic.

Thank you very much for this information, and perhaps we'll see you soon for the next edition of CHIC.

Thank you for this interview, and I look forward to welcoming you again at the next CHIC event.