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The evolution of channel models has become a powerful tool for enterprises and operators to drive market growth. As the market evolves, the underwear chain model is emerging as a new trend, spreading rapidly across the country like wildfire. From Shenzhen’s urban beauty to Dongguan’s fresh vibe, from Guangzhou’s bustling streets to Chengdu’s vibrant culture, chains such as Jie Jie Children, Seven Colors Spinning, and Anhui’s wave of quality brands are flourishing. In provinces like Zhejiang, Hubei, and the Pearl River Delta, numerous underwear chains are sprouting up, creating a dynamic market landscape. Both businesses and dealers are closely watching this trend, eager to understand how to navigate it and how it can elevate the entire industry.
As a new marketing model, the chain concept brings both opportunities and challenges. To explore its potential, this article focuses on the core idea of "chain," analyzing its development, current status, and future prospects in depth.
**Trends in the Underwear Chain Market**
From a channel perspective, the underwear business model can be categorized into direct sales, franchise operations, and chain stores. Direct sales involve companies setting up their own stores in key markets, offering a wide range of products such as bras, loungewear, thermal wear, and more. This model emphasizes brand identity, store environment, and customer service to build loyalty and expand market share.
Franchise models, on the other hand, combine the strengths of brands with local partners. This allows for broader distribution and shared profits through joint efforts in production, logistics, and sales. The chain model, which includes voluntary chains, franchise chains, and direct chains, operates under centralized leadership to achieve economies of scale by managing multiple retail locations.
Currently, most underwear chains fall into two categories: one where the brand itself builds a unified system, such as “Underwear Living Museums,†offering a full product portfolio under one brand; and another where regional agents operate with a multi-brand and multi-category approach, serving specific areas.
In recent years, the popularity of underwear chains has grown significantly, putting pressure on traditional channels like department stores and specialty shops. High operational costs and fierce competition have forced many manufacturers to adjust their strategies, with some even choosing to avoid large mall spaces altogether. As a result, many malls are reducing the space allocated to underwear sections, while chains are expanding rapidly, opening new stores in major cities.
Despite its growth, the Chinese underwear chain industry still faces several challenges. While there are strong regional chains, national expansion remains difficult due to issues like management complexity, logistics costs, and low profit margins. Unlike the appliance industry, where giants like Gome and Suning have successfully built nationwide networks, the underwear sector lacks similar scale and efficiency.
**Growth Pains in the Chain Model**
The success of Gome and Suning in the appliance industry has inspired many in the apparel sector, including the underwear industry. However, replicating their model is not straightforward. One reason is that underwear is not yet a fast-moving consumer good with high brand loyalty. Consumers often choose based on comfort and fit rather than brand recognition, making it harder to build a loyal customer base.
Additionally, the industry is transitioning from an extensive to an intensive management model, but talent shortages and low profit margins limit the ability to manage large-scale chains. Logistics and remote control also pose significant challenges, especially for long-distance operations. These factors make it difficult for the underwear industry to replicate the success of the appliance chain model.
While the chain model offers great potential, it is not without risks. Just like the stock market, success is never guaranteed. Even successful chains like Mos Burger in Japan have a 5% failure rate, showing that no model is foolproof. Before entering the chain business, companies must carefully assess their capabilities, resources, and long-term goals.
In conclusion, the rise of the underwear chain represents both opportunity and challenge. As the market continues to evolve, it will take innovation, strategic planning, and strong execution to succeed. The road ahead may be complex, but with the right approach, the chain model could reshape the future of the industry.