Industry overview of the cosplay costumes and cosplay wigs market

As confirmed by CRI, the information contained in the CRI Report was derived from qualitative and quantitative market data and intelligence collected from various sources which include:

 

  • • first-hand interviews with market participants from trade associations, cosplay costumes, cosplay wigs and sexy lingerie suppliers and related academic institutions, etc.; and
  • • second-hand researches including reviewing publicly available statistics, independent research publications and reports, other related company reports and data based on CRI’s own research database.

 

Note: All statistics were reliable and were based on information available as at the Latest Practicable Date.

Other sources of information, including government, trade associations or marketplace participants, may

have provided some of the information on which the analysis or data is based.

 

CRI also adopted the following primary assumptions while making projection for both cosplay costumes, cosplay wigs and sexy lingerie markets respectively:

 

  • • related industry key drivers are likely to drive the global animation derivative industry and sexy lingerie industry, and global cosplay costumes, cosplay wigs and sexy lingerie markets in the forecast period, such as rising household income and rising purchasing power;
  • • the global economy is likely to gradually recover over the forecast period;
  • • there is no obvious replacement of the raw materials; and
  • • there is no external shock such as natural disasters to affect the demand and supply of raw materials during the forecast period.

 

THE ANIMATION DERIVATIVE INDUSTRY

Overview of the animation derivative industry

The animation industry can be divided into two sub-industries, namely animation core industry and animation derivative industry. Animation core industry is defined as an industry that directly connected with original animation figures and its stories. Animation derivatives industry is defined as an industry with the focus on presenting the creativity in forms of animation and comics, by developing, producing, publishing, broadcasting and selling of direct products such as animation books, film, TV shows, audio-visual products and theatre show. It also includes production and operation of animation derivatives such as cosplay costumes, cosplay wigs, toys and video games.

 

According to the CRI Report, animation derivative industry contributed approximately 71.4% and 93.0% of the revenue of the global and PRC animation industry in 2014, respectively.

 

According to the CRI Report, cosplay costumes and cosplay wigs contributed approximately 2.4% and 0.1% of revenue of the global animation derivatives industry in 2014 and 5.7% and 0.1% of revenue of the PRC animation derivative industry in 2014, respectively.

 

Overview of the cosplay costumes and cosplay wigs market

According to the CRI Report, cosplay costumes and cosplay wigs are mainly used in carnivals, traditional festivals including Halloween and Christmas. Cosplay costumes and cosplay wigs are two of the important products of consumer goods in cosplay-related market under the animation derivative industry. The market demand of both cosplay costumes and cosplay wigs are increasing.

 

Global

According to the CRI Report, the market size of the cosplay costumes and costumes wigs in global market by revenue reached approximately US$11.7 billion and approximately US$561.5 million in 2014, respectively, and are expected to grow to approximately US$23.6 billion and approximately US$1,129.4 million in 2019, respectively. The following charts illustrate the historical and projected market size of global cosplay costumes and cosplay wigs from 2010 to 2019:

Market size of global cosplay costumes (by revenue), 2010-2019E

Market size of global cosplay wigs (by revenue), 2010-2019E

The PRC

According to the CRI Report, the market sizes of the cosplay costumes and cosplay wigs in the PRC market by revenue reached approximately RMB4.8 billion and approximately RMB113.9 million in 2014, respectively, and are expected to grow to approximately RMB11.9 billion and approximately RMB283.4 million in 2019, respectively. The following charts illustrate the historical and projected market size of PRC cosplay costumes and cosplay wigs from 2010 to 2019:

Market size of PRC cosplay costumes (by revenue), 2010-2019E

Market size of PRC cosplay wigs (by revenue), 2010-2019E

Key market drivers of the animation derivative industry

  1. Increasing consumer’s purchasing power

The recovery of the global economy and the growth of the PRC economy drive the improvement of consumers’ purchasing power. This trend is likely to continue to drive consumers’ growing expenditure on animation derivative products, such as cosplay costumes and cosplay wigs.

 

  1. Expansion of new media channels

The expansion of new media channels, such as internet and mobile devices, is affecting the development of the global and the PRC animation derivative industry and prosperity of animation derivatives products. The mainstream platform of animation is transitioning from traditional TV to the internet. The growing number of online video websites and the prevalence of mobile devices like smartphones, tablet PC and e-book enable animation-related information to reach a larger pool of audience and at a faster speed.

 

  1. National political support

With the issue of the National Development Plan on Animation Industry During the 12th Five-year Period* (《十二五時期國家動漫產業發展規劃》), a series of detailed regulations and policies are expected to be launched in the near future and thus such favorable policies and governmental support are likely to drive the PRC animation derivative industry into a fast growing stage.

 

PRC’s position in global cosplay costumes and cosplay wigs export market

The cosplay costumes and cosplay wigs markets are highly fragmented and product variety of cosplay costumes and cosplay wigs is wide and in fast-evolving trends. Although PRC is the largest export market of cosplay costumes and cosplay wigs in the world, there is a large number of PRC manufacturers of cosplay costumes and cosplay wigs.

 

According to the CRI Report, in 2014, PRC was the major cosplay costumes and cosplay wigs exporter in the world and over 50% and 80% of the cosplay costumes and cosplay wigs were produced by PRC enterprises respectively. According to the CRI Report, the PRC’s export value of cosplay costumes (HS code 61143000) and cosplay wigs (HS code 67041100) reached approximately US$1.2 billion and US$180.2 million, respectively.

 

Top five destinations of the PRC’s cosplay costumes (HS code 61143000) are the United States, UK, Japan, Germany and United Arab Emirates, which in aggregate contributed approximately 60.6% to the total PRC’s export value in 2014. Top five destinations of the PRC’s cosplay wigs (HS code 67041100) are the United States, Germany, Japan, Hong Kong and Russian Federation, which in aggregate contributed approximately 57.5% to the total PRC’s export value and cosplay wigs export value went to the United States market respectively.

 

THE SEXY LINGERIE INDUSTRY

Overview of the sexy lingerie market

According to the CRI Report, sexy lingerie is a part of the lingerie category of the apparel industry. Sexy lingerie tends to focus on the “sexy and mysterious” features and is different from regular lingerie. It generally uses the element of tempt to create a strong and an attractive visual perception, and eventually forming a visual stimulus to stimulate human’s five senses and arouse human’s sexual interest. According to the CRI Report, the market size of the global and PRC sexy lingerie by revenue reached approximately US$7.6 billion and approximately RMB2.3 billion in 2014, respectively, and are expected to grow to approximately US$17.4 billion and approximately RMB7.1 billion in 2019, respectively. The following chart illustrate the historical and projected market size of the global and PRC sexy lingerie from 2010 to 2019:

Market size of global sexy lingerie (by revenue), 2010-2019E

Market size of PRC sexy lingerie (by revenue), 2010-2019E

Key market drivers of the sexy lingerie industry

  1. Increasing consumer’s preference

Consumer’s increasing preference for sexy lingerie with different design and concept is expected to drive the growth of the global sexy lingerie market.

  1. Improving life quality

In the past, sexy lingerie are usually targeted at customers of the young generations. Nowadays, with the improvement in living standard and more people with different aged group view sexy lingerie as tools to improve the life quality, more demand from sexy lingerie is resulted.

PRC’s position in global sexy lingerie export market

The sexy lingerie market are highly fragmented. Although PRC is the largest exporter of sexy lingerie in the world, there is a large number of PRC manufacturers of sexy lingerie. According to the CRI Report, as of 2014, PRC was the major sexy lingerie exporter in the world. According to the CRI Report, the PRC’s export value of sexy lingerie (HS code 61089200) reached approximately US$1.3 billion.

 

Top five destinations of the PRC’s sexy lingerie (HS code 61089200) are the United States, Japan, UK, Germany and Hong Kong, which in aggregate contributed approximately 47.5% to the total PRC’s export value in 2014. In terms of export value, the United States is the largest export destination of the PRC’s sexy lingerie. In 2014, approximately 22.4% of the PRC’s sexy lingerie export value went to the United States market respectively. The United States’ leading position in the PRC’s sexy lingerie export market is likely to be maintained in the following years.

 

ANALYSIS ON LABOUR COSTS IN THE PRC

Average wages of employees in the PRC’s manufacturing industry, 2010-2014E

Average wages of employees in the PRC’s manufacturing industry, 2010-2014E

With healthy growth of the PRC economy, wages of employees in the PRC have been gradually improved. From 2010 to 2013, average wages of staffs and workers in manufacturing industry of urban private enterprises increased from approximately RMB20,090 per year to approximately RMB32,035 per year, with a CAGR of approximately 16.8%. During the same period, average wages of employees in manufacturing industry of urban non-private enterprises increased from approximately RMB30,916 per year to approximately RMB46,431 per year, with a CAGR of approximately 14.5%. It is expected that average wages of employees in manufacturing industry of urban private enterprises and urban non-private enterprises will increase to approximately RMB35,720 and RMB51,028 in 2014 respectively.

 

As labor cost is one of the key costs for manufacturing enterprises, including manufacturers of cosplay costumes, cosplay wigs and sexy lingerie, rising wages are expected to bring about rising pressure on production costs. As a result, prices of those products are likely to witness a rise in the coming years, offsetting the rising costs.

 

PRICES OF THE RAW MATERIALS

Raw materials purchased and used by our Group include mainly fabrics (knitting flat cloth) and synthetic fibers (polypropylene fiber). Our Group purchases raw materials at spot price of the market.

 

The raw material of knitting flat cloth is Polyester Draw Textured Yarn (Polyester DTY), which is produced by lots of the PRC enterprises with many specifications. The price of Polyester DTY in the PRC market fluctuated between approximately RMB8,800 per ton and RMB13,600 per ton during 2012 to 2015. The price are influenced by factors including market supply and demand of Polyester DTY and international crude oil price.

Price trend of Polyester DTY in the PRC market, 2012-2015

Price trend of Polyester DTY in the PRC market, 2012-2015

The price of polypropylene fiber is influenced by the price of polypropylene. In the PRC market, the main type of polypropylene fiber is T30S. The price of polypropylene (T30S) in the PRC market fluctuated between approximately RMB7,950 per ton and RMB12,200 per ton during 2012 to 2015. The price are influenced by factors including market supply and demand of Polyester DTY and international crude oil price.

 

Price trend of Polypropylene (T30S) in the PRC market, 2012-2015

Price trend of Polypropylene (T30S) in the PRC market, 2012-2015

PRICING

The pricing of the Group’s cosplay costumes, cosplay wigs and sexy lingerie ranged from approximately RMB4.3 to RMB598.0, RMB1.5 to RMB136.1 and RMB8.7 to RMB156.7 respectively during the Track Record Period. Based on the CRI Report, the average pricing of cosplay costumes, cosplay wigs and sexy lingerie in PRC market ranged from approximately RMB1.9 to RMB744.0, RMB1.2 to RMB155.0 and RMB3.1 to RMB186.0 respectively in 2012 to 2014. It indicated that the pricing of the Group’s cosplay costumes, cosplay wigs and sexy lingerie was at the similar level with the respective markets average.

 

COMPETITIVE LANDSCAPE

Competitive landscape in cosplay wigs

According to the CRI Report, there are currently few hundred players in the market of cosplay wigs in the PRC and our Group was the largest manufacturer for cosplay wigs by revenue in 2014. Top five cosplay wigs manufacturers in the PRC contributed approximately 10.2% of the revenue in 2014.

 

Competitive landscape in cosplay costumes

According to the CRI Report, there are currently more than 1,000 players in the market of cosplay costumes in the PRC and our Group was the third largest manufacturer for cosplay costumes by revenue in 2014. Top five cosplay costumes manufacturers in the PRC contributed approximately 3.2% of the revenue in 2014.