【正文】 Transaction Services Project Harbour PreFinalisation Market Report 1 July 2020 Strictly Private amp。 Confidential Draft C:\Documents and Settings\xinmei situ\My Documents\Ports\ 7/1/02 16:49 Project Harbour Table of Contents Section Page PRC Economy and Fashion Wear Market 3 8 Tariff Reduction And Its Impact On Price Competitors Overview 13 19 Ports 20 21 Notes 22 23 9 12 Disclaimer 24 1PRC Economy And Fashion Wear Market 1 Transaction Services Draft C:\Documents and Settings\xinmei situ\My Documents\Ports\ 7/1/02 16:49 Project Harbour China fashion wear market appears steady growth trend. The CAGR of overall garment retail market is %. In the beginning of 80?s, the percentage of readymade clothes only made up to 20% of the garment market in major cities, ie BJ, SH and TJ, in China. Most people still chose to buy fabric and make clothes on their own. In the beginning of 90?s, 3 major cities? readymade clothes consumption rate reached 60%, most people chose to buy “offtherack” instead of making it on their own. From mid 90?s to present, China fashion wear market is primarily readymade clothes market. The lowandmid end brands take the biggest market share. The mentality of purchasing brand names start to form. The mid and midhigh end fashion wear markets begin to take into shape. The overall Chinese fashion wear market’s growth trend The consumption level has increased gradually The market capacity is growing at a steady pace Source： China Commerce Information Centre Section 1PRC Economy And Fashion Wear Market 2 434 billion China Garment Annual Retailer Volume 9601 CAGR % Billon RMB Growth rate 050100150200250300350400450500’8 9 ’9 0 ’9 1 ’9 2 ’9 3 ’9 4 ’9 5 ’9 6 ’9 7 ’9 8 ’9 9 ’0 0 ’0 10%5%10%15%20%25%30%35%40%45%Draft C:\Documents and Settings\xinmei situ\My Documents\Ports\ 7/1/02 16:49 Project Harbour Leading brands ranking and their market shares (JanJun 2020 ranking) ? Lowandmid end segments take the biggest fashion wear market share in China。 ? A few of ladies? midend brands are making progress in taking more market shares, . Esprit was ranked among the top 10 in 2020。 and, ? No single one or two ladies? brands dominate market share. The top 10 in total takes no more than 13% of market share, which suggests any brand may have opportunities to grow. Source: China Commerce Information Centre. The information contains all segments of the garment market except high end, and brands are not all inclusive, Low and mid end segments take the biggest fashion wear market shares. No single ladies’ brands dominate the market. Signs show some midend brands are making their way in market shares. R an k M e n 39。 s S u i t M k t s h ar e T s h i r t s M k t s h ar e L ad i e s 39。 W e ar M k t s h ar e1 杉杉 % B a l e n o % 華鑫 %2 雅戈爾 % C r oc od i l e % 佐爾美 %3 羅蒙 % M on t a g u t % 滕氏 %4 仕奇 % G ol dl i on % 佳麗 %5 廢帥 % J e a n W e s t % 襲麗 %6 大維 % P l a y B oy % E s pr i t %7 滕龍 % 七匹狼 % 米蘭諾 %8 虎豹 % 康賽 % 雅琪 %9 威人 % 聖瑪田 % 哈德利 %10 培羅蒙 % 紅豆 % 太得 %總計 % % %Section 1PRC Economy And Fashion Wear Market 3 Draft C:\Documents and Settings\xinmei situ\My Documents\Ports\ 7/1/02 16:49 Project Harbour Source： National Bureau of Statistics of China Ine Ine / expenditure on garments Expenditure on garments by highest ine brackets Average % Key customers for midhigh brand fashion wears 10% 10% 20% 20% 20% 10% 10% Lowest Low Midlow Mid Midhigh High Highest 4% 5% 5% 6% 6% 6% 5% Ine expenditure on garments %%%%%1996 1997 1998 1999 2020Ine (Rmb per month) 3,000 5,000 8,000 1,800 3,000 5,000 Expenditure on garments (Rmb per year) Normally no ability to consume Occasionally Low frequency High frequency Possibility of midhigh end brands consumption low high Garment expenditure takes up 5% of urban people ine Statistics of 2020 Midhigh end fashion wear consumers are of monthly ine brackets of RMB5,000 and above. These consumers make up of % of total urban population. Source： PwC China Market Research Section 1PRC Economy And Fashion Wear Market 4 Draft C:\Documents and Settings\xinmei situ\My Documents\Ports\ 7/1/02 16:49 Project Harbour Below Rmb3,000 Rmb3,000 and above Manager 31% Professional % Male 73% Female 27% 30~40 37% 40~50 % 93% Ine Range (Rmb) Percentage Urban Population 3,0005,000 % 16 million 5,0008,000 % 7 millio