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    New Clothing Industry: The Coming Of Brand Competition Storm

    2008/8/16 16:33:00 34

    Clothing Industry Brand Competition Brand Strategy

    "There is no sunset industry in the world, only sunset enterprises."

    Carris founder Quan Lei said.

    Therefore, he turned from the "investment banks closer to money" to the garment industry.

    Zhou Shaoxiong, chairman of the seven wolves pointed out that from 2004, the domestic garment industry began to be sought after by VC and PE.

    The upsurge is still continuing. This newspaper learned that an overseas VC has just completed its investment in a garment field last week. The VC has previously set foot in the sports chain brand.

    At the same time, some institutions have close to the end of the "over season brand bundled sales platform".

    Wang Zhuo, Secretary General of China Fashion Association, said that the most concentrated expression of clothing in the field of clothing is 2007.

    This year, the business pformation of the clothing industry is surging. There are not only innovative models of business channels such as ITAT, but also some of the leading clothing manufacturers such as Shanshan, YOUNGOR (600177, stock bar), seven wolves, good news birds (002154, stock bar) and so on. They have joined the practice of business innovation, and the traditional sales channels such as Mts. bonwell, YISHION, and even department stores are actively seeking to upgrade.

    The recent report of CIC Securities Institute pointed out that under the four driving forces of domestic economic growth, urbanization, increasing farmers' consumption level and "demographic dividend", the textile and garment industry will maintain more than 20% growth rate in the next 5 years.

    The industry expects that this kind of pursuit of capital will continue for 3-5 years.

    "If we sell the clothing through the Internet as a Pacific (601099, stock bar), PPG, Vancle or Carris will be just a boat in the ocean."

    Quan Lei said that there is a large number of latecomers entering this field, which is the trend of development.

    However, the combination of capital and clothing industry is not without obstacles.

    Carris founder Quan Lei said, "I don't want VC intervention."

    He has invested himself, and now thinks that most of the VC in China is still through the "fertilizer" industry to achieve the goal of withdrawal. "Whether it is clothing industry, or network sales, in the country need time to explore".

    Capital has encountered a "Refusal" in contact with Shenzhen, including Norge, Beijing, and so on.

    "China's clothing market is indeed very large, but the new emerging mode is also unpredictable."

    A VC personage said, they have seen many clothing companies that do Internet sales, but they never voted.

    "Business management and process control problems like PPG are unanticipated for their investors."

    The above said, what kind of people can do such a business is uncertain now.

    Is the experience in the clothing field necessary?

    Channel is king?

    8 years ago, Ding Hui, who had been a garment manufacturer for many years, began to consider the way out for his own business.

    "The competition is so fierce."

    There are thousands of garment processing enterprises in Quanzhou where he is located.

    "In order to make a two foreign trade order, we are fighting for the first time, and we can't make any money."

    This competition is even more prominent in the case of China's trade structure adjustment.

    In the National Bureau of statistics statistics, in the first three quarters of 2007, the total export volume of garment industry increased by only 10.34%.

    In the first 4 months of 2008, clothing exports increased by 11.67% over the same period last year.

    China's first textile network analyst Fan Min pointed out that this environment will make about 50% of the enterprises eliminated.

    China's textile and garment enterprises must "light up the battle array".

    This creates opportunities for capital.

    Tang Yue, capital founding partner of Lanshan (China), believes that garment enterprises must combine capital with capital.

    If any company fails to become a listed company, it is difficult to become a truly long-term sustainable development company.

    The result of an independent brand is only two: failure or acquisition.

    This is why Ding Hui turned around to do the circulation. How can we find the blue sea in this red sea?

    Ding Hui thought that since there are so many clothing brands in China, why can't we provide them with a platform for sale?

    In 2001, he opened his first "clothing supermarket", the predecessor of Nochi (N&; Q).

    The difficulties faced by Ding Hui were faced with and thought, and most Chinese clothing manufacturers would feel empathy.

    These small businesses are the components of China's garment industry cluster.

    "The total capacity of China's industrial cluster accounts for more than 70% of the country's garment production capacity.

    Under the new historical conditions, industrial clusters will have great danger if they do not grasp the initiative of business.

    China Garment Industry Association's "business innovation to promote the development of China's clothing industry" report.

    In the traditional center of clothing processing, the Pearl River Delta and the Yangtze River Delta, "production enterprises have controlled the circulation sector through joint ventures or joint ventures" has become a trend.

    The combination of capital and capital has become a trend.

    In the second half of 2007, "baozi", one of the leading clothing enterprises, has extended its tentacles to the department store and acquired the shopping center, which is the first high-grade department store in Beijing.

    Lining sports, BELLE international, Anta sports, Bosideng, Hongxing Erke and so on have been listed in China.

    And the seven wolves, BELLE and China trend also began the merger and integration journey.

    Brand building needs?

    "If the brand can be built in the past few years, it will cost no more than 3 to 500 million. If you want to play a new brand in the future, the cost will be several times or even more than ten times."

    Cui Chunguang, vice president of Huaxing capital, said, more importantly, if we miss this opportunity, many enterprises may miss the opportunity to mold their own brands.

    This view has been approved by some investment institutions.

    Wang Zhuo, Secretary General of the China clothing association, pointed out that the commercial value of the clothing brand 10%-20% can only be accounted for by the garment processing section. The commercial value of the clothing brand 30%-40% is accounted for by commercial channel operation, while the commercial value of the brand operation is as high as 40%-50%.

    Since 2006, the focus of China's economic development has shifted from foreign trade to domestic demand.

    According to the statistical analysis of China's business information center on major retail enterprises in China, the retail sales of large retail enterprises increased by 23.5% in the 1-11 months of 2007 compared with the same period in 2006, while the sales volume increased by 12.5%; the cumulative sales price increased by 16.23% over the same period in 2006.

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