RMB Appreciation To Children'S Clothing Export Enterprises

Since 2007, the RMB has appreciated frequently, the US dollar has been weak, the export tax rebate has been lowered, the raw materials have gone up rapidly, and the children's clothing export enterprises have been growing at a low level. In 2008, the introduction of the new labor contract law has greatly increased the labor cost and the labor shortage rate of the enterprises.

Compared with the slow rising export market, the expanding domestic demand market has become the driving force for the development of children's clothing industry.

In 2007, the number of children's clothing enterprises nationwide increased by 35% over the same period last year. The average sales revenue increased by 8.3% over the same period last year, and the children's clothing market consumption continued to grow at a rate of more than two digits.

However, children's clothing export enterprises still face the Chinese market.

Confusion about many pformation, such as localization style design and color matching ability, brand positioning, marketing team formation, etc., the most headaches are costly channel construction and distribution costs.

The pformation of children's clothing enterprises in China usually adopts two ways to build a channel network. First, the brand positioning is low price, producing enough quantity of goods, relying on the traditional wholesale market, and selling the brand operation to the distributors, while the distributors in the children's wear channels lack the ability to maintain the shop and the consumers, which is not conducive to the pformation and upgrading of the enterprises.

Two, aim at the high-end market, seek to enter a large department store to build a special counter, or build a brand exclusive store; and without the difficulty of entering the shopping mall, the cost of self built channels is high, and the commodity structure of a single store is extremely difficult.

Export enterprises tend to focus on the export processing of a large class of fabrics, such as knitted underwear, woven fabrics, sweaters, down garments, cowboys and other special products, while children's clothing stores belong to the "small consumer market". The commodity allocation that supports the profits of the stores needs a large number of items, otherwise it will be worrisome.

Then, how can we pform the processing ability of export oriented children's clothing enterprises into brand merchandise advantages?

How can we build a distribution network quickly and economically?

First, the commodity R & D strategy is the first choice for enterprises to specialize in the manufacture of large categories of commodities: in the first two or three years of entering the Chinese market, we should specialize in market segments, create professional product brands, cater to and even guide the trend of children's wear market segmentation.

The product age group is 3-7 years old, 7-12 years old, 12-16 years old again.

Second, commodity pricing strategy is the first choice for medium and high prices: the low end market shrinks, the middle end market has many brands and fierce competition, while the middle and high end market is growing rapidly and the competitors are few.

Take children's trousers as an example, the price of a single piece is more than 150-230 yuan.

Third, the commodity distribution strategy should put more resources into the emerging market for pregnant and infant, and choose the traditional wholesale market or department store or exclusive store.

Starting from 2005, there was a revolutionary structural change in the baby market. Children's consumption at the age of 0-16 was a one-stop purchase feature. The growth of children's stores in all parts of the country grew rapidly, with a single store area of 50-1000, including children's clothing, food, housing, pportation, education and entertainment. The annual sales growth rate was 31%, much higher than that of children's clothing store 11%.

Because children's clothing stores are single items, they can not take into account the needs of consumers' diversity, and business scale and performance are hard to compete with the booming baby store.