▼The following discussion and summary from the Coldy Fashion Circle address industry-related issues. These insights are the product of collective wisdom and do not represent individual opinions. The aim is to benefit industry professionals.
Current Status of De-Branding Consumption
1. What is De-Branding?
When exploring the phenomenon of de-branding consumption, we must first understand its multi-layered implications:
- Product logos become more subdued, and brand influence weakens;
- Products return to their functional and design essence, presented as “white-label” items that eliminate added value, with pricing based primarily on production and operational costs;
- Consumers prioritize practical value over brand influence in purchasing decisions.
In daily life, consumers often stick to top brands like “心相印” (Xinxiangyin) or “斑布” (Banbu) for basic consumables such as tissues and sanitary products. This habit stems from a reluctance to spend excessive time deciding on essential items. However, with e-commerce platforms offering more options in categories like skincare, consumers now spend longer browsing自媒体 (self-media) recommendations, extending decision-making time.
Apparel consumption channels have diversified. Beyond traditional brand stores, consumers frequent wholesale markets. In cities like Beijing and Shenzhen, haggling with vendors in wholesale markets is common to secure discounts, even if it requires enduring inconvenient shopping conditions. Markets like Hangzhou’s “四季青” (Sijiqing) impose restrictions like no try-ons, coupled with inconsistent product quality, making selection challenging.
Secondhand clothing rental platforms like “衣二三” (Yiersan) have emerged as new channels. Participation in internal sales events of brands through personal networks is another key avenue. Year-end sample sales often feature steep discounts—e.g., leather jackets priced as low as ¥100—but popular styles sell out quickly. Since most sample garments are made in medium sizes, consumers with standard body types have more choices; however, stylish designs are often prioritized and purchased by the design department.
On platforms like Douyin (TikTok), numerous factory stores promote “luxury-quality” products. For example, a factory store sells a 400g goose-down jacket for over ¥2,000, while summer items like silk dresses retail for around ¥500-600. The rise of such channels reflects consumer demand for high cost-performance ratios.
2. How is De-Branding Manifested in Current Apparel Consumption Behavior?
The de-branding trend correlates with consumption downgrading, as brands typically carry premiums. Meanwhile, abundant supply from domestic brands and factories intensifies competition, shifting consumer focus to cost-performance over brand identity. Some consumers actively resist brand saturation, seeking alternatives.
Yet brand value persists:
- It represents consistent product quality;
- Reduces decision-making costs;
- Embodies cultural and value alignment. Trust built through long-term brand cultivation remains invaluable. For loyal customers, familiarity with a brand’s sizing standards enhances shopping efficiency, as sizing variations within the same brand are minimal.
Notably, premiums for ordinary brands mainly reflect pricing strategies, while true high premiums are concentrated in luxury markets. This differentiation caters to diverse consumer tiers.
How Did De-Branding Enter the Public Consciousness?
1. Social Media and Live-Streaming E-Commerce
Industry professionals acknowledge brands’ role in quality assurance, but deeper forces drive de-branding: consumption downgrading, shifting perceptions of luxury, new consumption models spurred by platforms like Douyin, and transparent production costs squeezing profit margins. Economic downturns and e-commerce growth further fuel price wars.
Foreign trade surplus stores (外贸原单店) epitomize de-branding channels. Areas like Shenzhen’s Sungang once clustered such shops. Though authenticity is hard to verify, consumers judge products by style, fabric, and craftsmanship. With stricter brand control over raw material procurement, genuine surplus goods are now rare.
2. Direct Sales Experiments by Apparel Factories
Factories pivoting to live-streaming sales exemplify de-branding. They attract buyers with claims like “factory-direct, luxury quality, affordable prices.” For instance, snow boot vendors in Henan’s Sangpo demonstrate genuine leather by cutting or burning samples. However, transitioning from B2B to B2C is challenging. A knitwear factory’s post-pandemic live-streaming attempt failed due to lack of marketing expertise. Homogenized content across livestreams also leads to rapid imitation by competitors.
Brand choices in specific contexts still reflect identity. Government workers may prefer domestic brands like Erdos (鄂尔多斯) to maintain professionalism. Outdoor enthusiasts prioritize functionality, opting for specialized brands like Patagonia over trendy labels like Arc’teryx (始祖鸟), highlighting the role of social identity in brand selection.
3. Consumer Groups Returning to Pragmatism
Consumer shopping behaviors are also changing. Even within the apparel industry, purchasing philosophies vary. Some prioritize style compatibility and budget over brand loyalty. Certain consumers visit physical stores to inspect items, then search for affordable alternatives on platforms like Pinduoduo using image recognition.
Consumption habits often shift with economic status and life stages. Students may prioritize low prices, buying multiple cheap garments; post-employment, repeated disappointments drive them toward quality, paying premiums for trusted brands. Others adhere to the philosophy of “buying one expensive item rather than ten cheap ones.” Interestingly, even in clearance livestreams, some consumers still value brand labels as social symbols, willingly paying higher prices to retain them.
Algorithmic recommendations on e-commerce platforms also influence behavior. Users browsing specific products receive persistent similar suggestions—like Xiaohongshu (Little Red Book) pushing content based on search history. This “big data labeling” frustrates some consumers, trapping them in repetitive recommendation loops.
4. The Intrinsic Link Between De-Branding and Personalized Consumer Needs
On e-commerce platforms, some consumers consistently follow specific foreign trade stores, initially discovered through platforms like Zhihu. Though doubts about surplus goods’ authenticity persist, consumer scrutiny has waned. Now, livestream hosts collaborate with factories or stores to clear inventory. These products often feature outdated designs, with factories lacking designers directly copying branded styles—removing logos and altering materials. Such imitation practices, long-standing in the industry, are now tacitly accepted under the mantra “just pay for it.”
Open Discussion
1. Is De-Branding a Return to Product Essence or a Transitional Phase in Brand Value Evolution?
De-branding fundamentally differs from “anti-branding”: the former implies indifference to brands, while the latter rejects brand consumption entirely. More accurately, de-branding reflects consumers temporarily rejecting mainstream trends and brand premiums to focus on intrinsic product value.
When discussing brand-building, a key perspective emerges: a brand’s ultimate value lies not in pricing or logos but in fostering community relationships and cultural belonging. Future brand development must emphasize authentic connections and community-building over symbolic identifiers.
Regarding apparel factories’ prospects amid de-branding, the industry remains cautious. Factories relying solely on livestreams face growth limitations; expanding offline channels would mirror traditional B2B models. To scale B2C sales, factories must invest in consumer trust, marketing campaigns, and symbolic recognition—effectively reverting to branding strategies.
One view argues that de-branding cannot fully replace brands’ necessity. It resembles youth rebellion against mainstream consumption logic—a temporary escape from symbolic society. Brands still provide trust, reduce decision costs, and remain vital in today’s information-saturated environment.
2. Can Apparel Factories Become Major Winners in the De-Branding Trend?
Social progress drives consumption back to essentials, eroding past models reliant on information asymmetry for brand premiums. Compared to the era when TV ads dominated brand exposure, today’s brands face more discerning consumers. Early consumers encountered brands through TV commercials; now, information channels are vastly diversified.
Interestingly, when “de-branded” foreign trade stores gain loyal followers on Xiaohongshu or community platforms, becoming “check-in spots” and cultural symbols, they paradoxically undergo rebranding—evolving into new trendy labels. This suggests de-branding practices may morph into alternative forms of branding.
Historically, brands survived by fulfilling consumer needs for community ties and cultural identity, using logos to convey respectability and belonging. These core psychological functions remain relevant. However, in today’s transparent information landscape, brands face new challenges: building meaningful community relationships and emotional bonds without relying on information gaps or marketing gimmicks.
This shift reflects fundamental consumer psychological needs. As transparency increases, consumers ultimately return to pursuing brands’ intrinsic value. For brands, fostering authentic communities and cultural resonance outweighs creating premiums through marketing tactics—a critical direction for future brand strategies.
PS: The translation is done by AI.
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