by The meetings, incentives, conferences and exhibitions, or MICE, economy is seeing a strong rebound in China this year.
From Shanghai to Shenzhen, and even in second-tier cities such as Dalian, Ningbo, Haining and Zhuzhou, fashion shows are spreading across China. Those taking part include international luxury brands; a range of supply chain companies for clothing, footwear and accessories, and many industrial clusters. The exhibitions include jewellery, watches, trendy fabrics, fur fashion, and new woolen products across various niches and specialist areas.
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Data from China’s National Bureau of Statistics show that in July, the growth rate of social financing slowed, the decline in M1 money supply widened to 6.6 percent, total retail sales of consumer goods grew 2.7 percent year on year. , with the growth rate increasing by 0.7 percentage points compared to the previous month, and the value added by industry above nominal size increased by 5.1 percent, while the growth rate fell by 0.2 percentage points compared to the previous month that.
The latest data make it clear that the overall growth of the Chinese economy is “decelerating and improving in quality,” which is in line with the judgment of the situation at the meeting of the Political Bureau on July 30: “There is not enough effective domestic demand, the economic. the operation is different, the hidden risks in the main areas are still quite high, and there are temporary difficulties in the transformation from the old growth drivers to the new ones.”
From a public perspective, a series of highly popular “new lows” continue to emerge in areas such as consumption, employment and lending. However, at the macro level, financial policies that “break the water” are very much in favor of the “real economy”.
In the next phase, as massive amounts of credit flow into the manufacturing sector, the market is bound to face the problem of resource depletion — how to balance supply and demand through various strategies and measures. In short, the current fundamentals of the Chinese market remain unchanged: a weak real estate sector, more goods being produced than consumed, and external demand stronger than internal demand.
Against this background, and in stark contrast to the gloomy data, a series of fashion shows held across China in August are to some extent helping to guide the growth of the fashion industry in the second half.
“Hardship” and “intense competition” have become buzzwords throughout the industry. Currently, with the undeniable trend of declining consumption and a slowing economy, local governments and clothing associations are working together to set the stage for various fashion shows, which came up in August in different places.
In Zhejiang, after the China International Fur Fashion Exhibition (Yuyao) which showcased the industrial chain of fur products, from raw materials to finished pieces and opened in Ningbo on August 8, the Expo 2024 Haining China-International Home Textiles (Autumn) was held in Haining three days later.
In Shenzhen, from 12 to 15 August, the clothing exhibition Link Fashion attracted global visitors. Dalang, which aims to be the woolen fashion capital of the world, presented an overall image of an industrial base transformed through foreign trade.
In Shanghai, from August 27 to 29, the National Exhibition and Convention Center (Shanghai) hosted Intertextile Shanghai Apparel fabrics-China International Trade Fair for Apparel Fabrics and Accessories, CHIC-China International Fashion Fair (Autumn), Yarnexpo and PH Value International Knitting Exhibition (Autumn/Winter).
Taking the Intertextile International Pavilion as an example, more than 800 companies from 26 countries and regions participated in the exhibition, including Italy’s Milano Unica Pavilion, as well as those from France, Japan and Korea, as well with many other countries and regions bringing the latest R&D results. The joint pavilion of Lenzing, Lycra, Hyosung, and Sorona brought cutting-edge technologies and the latest concepts in the industry. Innovations focused on current industry needs were in digital solution belts, functional fabrics, fine wools and eight other product categories.
In Hunan, the Fashion Expo was also officially unveiled in late August, to be held in Zhuzhou, Hunan from September 24 to October 15. The 22-day professional expo will cover 11 themes and will focus on the central region of China. , with the main goal of promoting trade within and outside the province.
But since textiles and clothing are established industries, what kind of signal is being sent by all the trade shows taking place this month and scheduled for the coming months?
Industry insiders believe that the strong participation of companies in the recent clothing and textile exhibitions is a reflection of the intense competition in China, with exhibitors using the trade shows to take advantage of incremental markets, especially international markets.
In 2024, with the unprecedentedly complex market, innovative firms in supply chain technology may have the opportunity to achieve a “bumper harvest” through the exhibitions. This is because there is a high demand for products that help companies reduce costs and increase efficiency.
During the two sessions of the National People’s Congress earlier this year, “MICE economics” was a frequently used item in local government work reports. And on July 28, Premier Li Qiang of the State Council and Prime Minister Giorgia Meloni of Italy signed the “Action Plan to Strengthen the Comprehensive Strategic Partnership (2024-2027)” during a meeting in Beijing. Both sides attach great importance to international exhibitions held in both countries and will continue to encourage companies from all countries to participate.
In China, government work reports from developed regions such as Beijing and Shanghai have recommended promoting the MICE economy to help spur consumer consumption. Guangdong Province, with major exhibitions such as the Canton Fair, High-tech Fair, CPTPF, and the Expo Central China, as well as the “Cantonese Business Go Global” exhibition series, regularly brings visitors from established markets in Europe, America . , Japan, and South Korea, and is actively exploring emerging regions such as ASEAN, the Middle East, Africa, Russia, Latin America, and the South Pacific island countries.
In addition to the first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, Tianjin plans to build itself into the northern exhibition capital and Dalian aims to become a famous international conference and exhibition city in northeast Asia, and forwarded by Jiangxi Province. the goal of “one exhibition representing one city and one representing one industry”, to develop new forms and models of consumption, such as instant retail and social e-commerce.
The MICE economy can, in fact, drive the development of industries such as tourism, accommodation, catering, logistics, infrastructure, transport, construction, commerce and human resources, playing a role in the economic development of cities. However, the greater influence of professional exhibitions remains within the industry itself.
Take the Haute Horlogerie exhibition “Watches & Wonders” for example. After its successful conclusion in Geneva, the exhibition was held again in Shanghai, where it presented a new edition of the Haute Horlogerie event at the Shanghai West Bund Art Center for five days from August 28. Watch enthusiasts, vintage timepiece collectors, and high. – net-worth individuals can wander around the world watches and industry experts, a series of activities such as product launches, panel discussions, seminars, basic training courses, product introductions, industry exhibitions and photography exhibitions help visitors to explore the future development of high. -end surveillance. In addition, the Shanghai edition has a newly established LAB Innovation Technology Space, presenting forward-looking inventions and innovations.
This is the fourth time that Shanghai has been the location of the China stop of “Watches & Wonders,” and it has joined more than 50 exhibitions in the city this month, with an average of more than 10 per day. Also this month, Shanghai released the report “Some Measures to Improve the Driving Effect of the MICE Economy in Shanghai”, encouraging the introduction of even more exhibitions to build an “International Exhibition City” and the impact of the MICE economy to improve.
For the fashion industry, what is particularly anticipated is the third World Design Cities Conference (WDCC) to be held at the end of September, which will once again host the annual Shanghai Gala, organized by WWD China. This year, with the theme “Together, We Keep Moving Forward,” the conference will invite young Chinese fashion designers, global industry partners and academic experts. Through a series of activities such as exhibitions, fashion shows and forums, the conference will focus on sustainable fashion concepts in contemporary design and explore how Chinese fashion creativity will inspire future trends.
The MICE economy plays a leading role in supporting China’s overall macro-economy as well as regional economy, acting as a driving force for global development. Professional exhibitions in the fashion industry are vital engines for promoting the internationalization of the market and driving global trade.
Editor’s Note: China Insight is a monthly column from WWD’s joint publication WWD China that looks at developments in that vital market.
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