Are there any new opportunities in the apparel industry? Where is the transformation and upgrading going? This is an issue that the industry is concerned about and must think about.

In my opinion, the answer points to one point, which is to build a strong brand (strong brand awareness).

It is undeniable that China's garment industry has faced many challenges in recent years, and overall development has been relatively weak. However, from a brand's perspective, this is driving the supply side of the garment industry to continue to clear up, accelerating the increase in industry concentration. Moreover, the clothing industry itself has low concentration, and there is plenty of room for integration. Instead, it means an opportunity where those left are king, and strong brands have potential.

At the same time, looking at well-known brands around the world, most of their business is driven by brand assets, that is, entering the consumer mentality, letting consumers buy by name, and profit flexibility is also greater. However, the share of sales from local clothing brands from this dimension is still low, and there is plenty of room for corresponding improvement.

It can also be seen that some leading players initiated transformations and upgrades, which quickly achieved results. GXG is such a new sample.

In October of last year, GXG underwent a new brand style upgrade to occupy the Xindu market scene. By January-May of this year, many of its operating indicators hit the best in nearly 5 years, and new products quickly received positive feedback. For example, sales of Polo products doubled year-on-year. In this context, GXG also formally established a new brand strategy in May: focusing on the commuting scene and positioning it as “youth casual menswear that is more suitable for commuting”.

As for the new sample GXG, we might as well further analyze and disassemble it to see how it quickly promotes transformation and upgrading, and how much potential it has in the future.

racetrackStrong demand, weak supply, strong awareness,First-mover brands have unique advantages

First of all, GXG has found a new circuit segment where it is easier to build strong brands.

On the demand side, today, young people, represented by Gen Z, have entered the workplace and even become corporate management, while young people are increasingly pursuing work-life balance, and have also created new demands on clothing. They must not only be practical, but also achieve self-expression. Men's clothing consumption is no longer satisfied with basic choices, showing the same new demands.

This gradually blurred the entire boundary between business and casual wear, and commuting was the “middle ground” linking the two.

At the same time, judging from the scale of demand, according to big data forecasts from various parties,By 2035, the overall consumption scale of Gen Z will quadruple to $16 trillion; in the next 10 years, 73% of Gen Z will be newcomers to the workplaceThis means that young people in the workplace will be the core group for future consumer market growth.

This huge new demand has also undoubtedly established the strong growth and plasticity of related brands to a certain extent.

On the supply side, there are currently few mature contenders on this track.

Although some existing business menswear brands are also undergoing a youthful and casual transformation, they have not met the needs of young people well, and have had average results in seizing the mentality of young people. Market participants put it bluntly that most business menswear brands are changing for the sake of change, causing brands to move further and further away from young people.

One internal logic behind this is that after years of development, the “local flavor” label of traditional business menswear has been engraved in young people's minds. Young people regard it as dads' closets, and it will take longer to completely reverse this perception.

However, according to similar logic, menswear brands that are closer to young people, such as GXG, only need to upgrade their brand perception rather than reverse it, and have a better chance of seizing market opportunities. At the same time, GXG has always developed products guided by the needs of young people. With its products to support the brand, it can establish a close relationship with young people by effectively meeting their needs, and is highly competitive.

Furthermore, judging from the characteristics of the menswear category, the cognitive advantage of commuter menswear tracks is likely to be stronger.

Compared to female consumers, male consumers pay more attention to the efficiency of consumption decisions. Leading brands are more likely to be nominated by consumers to buy, and once they establish loyalty with a certain brand, they will continue to spend.

Therefore, commuter menswear essentially corresponds to a “strong demand, weak supply, and strong awareness” segmented circuit. Brands that seize the market first can be expected in the future.

Differentiated competition, breaking the “impossible triangle” and building a high moat

Outside of the racetrack, GXG's differentiated core competitiveness also cannot be ignored. This determines that GXG is more likely to seize the market first in the commuter segment and achieve growth.

In terms of quality, GXG insists on using high-quality fabrics to ensure product quality, including the use of black technology fabrics to empower the product experience. For example, in its newly upgraded zero pressure series this year, GXG developed a variety of easy-to-care, stretchy, lightweight, stain-resistant and wrinkle-resistant fabrics to bring consumers a comfortable and free experience. At the same time, GXG menswear uses strict quality control standards in the production process to provide more assurance of quality.

Aesthetically, GXG has always stood out among men's clothing at the same price.

Looking at the past, GXG's design genes are bold and have continued to lead trends and achieve innovation through various methods such as joint brands, joint names of independent designers, IP cooperation, and the creation of its own IP. Taking the joint name of independent designers as an example, it can be seen that GXG has collaborated with many famous designers, including not only Chen Peng, Takahiro Okazawa, Jason Freeny, Chanoir, Zhang Jianshiyang, Shantell Martin, and Paola.

I also have to mention that after establishing the “commuter” brand positioning,GXG invited a former Armani chief designer to explore this year's Master Series products. According to reports, this designer is Armani's own personal designer, helping Armani achieve the pinnacle of menswear. This collaboration will revolve around five categories, including sweaters, coats, padded coats, suits, and outerwear.

In terms of price, market data shows that GXG's product prices cover the price range of 100 yuan to 1,000 yuan. Compared with high-quality, high-aesthetic luxury brands, they are cost-effective, and are also more in line with the affordability of GXG's target customer group of young people in the workplace.

Looking at it from a raised perspective, its differentiated advantages fully cater to the preferences of young people, and it also has a better chance of turning differentiation in the product physical market into differentiation in consumer mentality, thus actually building a “moat” in brand perception.

Promote precise marketing and accelerate the consolidation of new brand positioning in multiple dimensions

It is also worth noting that GXG is focusing on precision marketing to improve the efficiency of market communication and accelerate the consolidation of new brand positioning.

It can be viewed from several aspects:

1) Explosive brand communication

Under the new brand positioning, GXG proposed a new slogan “It's just right to wear GXG at work” to create a stronger brand symbol, and will strengthen this brand awareness by reaching strategic cooperation with Fanzhong Media to launch media, as well as by developing scenarios on social platforms and endorsements from top stars.

Judging from the strategic cooperation between GXG and Fanzhong Media, Fanzhong MediaCovering 400 million mainstream consumers in Chinese cities, and marketing scenariosDefinitely, high frequency, low interference, GXG's target customer base is highly consistent with it, thereby forming a more definitive connection. At the end of April, the strategic cooperation between the two was tested. In the end, core city launch data/individual models increased 35% year-on-year, and stores increased 15% month-on-month.

Furthermore, it is reported that this collaboration will make a further big move. In the autumn/winter product launch phase, mass media will ignite the entire Chinese office buildings and youth-dominated communities, helping GXG reach consumers in all scenarios and coverage from apartment buildings, office buildings, shopping malls, and cinemas.

Judging from the scale of investment, GXG is expected to reach 100 million dollars. This is the biggest effort since GXG was founded.

2) Channel upgrades leverage brands

In this regard, GXG has initiated a new round of channel upgrades to accelerate brand communication and better match its brand positioning.

For example, GXG plans to promote the upgrade of all stores, visually display positioning and brand information in stores, reach every consumer, and take the lead in seizing consumer mentality through shopping guide training, etc. At the same time, GXG plans to enter high-potential channels in the future, including high-end commercial systems, to greatly enhance GXG's potential and allow consumers to further perceive its channels and brand upgrades.

3) “Heavy inventory” popular backfeed brands

Finally, it is also a very important point. Since this year, GXG's product strategy has been updated, continued to be iterated on a monthly basis, and its grasp of popular products has been strengthened. This has enabled it to distribute marketing resources in a more targeted manner, “heavy inventory” of certain products, and has a better chance of actually creating hot products.

Going back to the perspective of brand awareness, hot products also play an important role in raising brand awareness. When consumers buy and use trending products, they often actively connect with brands, generate more interest and appreciation for the brand, and may spread it naturally through word of mouth and social sharing. Hot products are also more likely to link brands to their specific product images, strengthening brand awareness.

Through the superposition of these multiple strategies, GXG's brand awareness upgrade battle may also have more certainty.

epilogue

Seeing this, it is clear that building a strong brand is a difficult and valuable thing that requires a systematic methodology and practice behind it.

For GXG, building a strong brand is not just a simple circuit switch, but a systematic upgrade to re-examine its target market and core competitiveness, and adjust its business model and business strategy based on the strategic direction of these restructured enterprises.

Similarly, by building a strong brand, GXG will redefine its position in the market, which will eventually lead to a reshaping of its value.

In a more realistic sense, no matter what, through this transformation and upgrading, GXG has created a new and vibrant brand image that is more vibrant than ever before.