China'S Home Textile Industry Calls For Brand Tackling

For most consumers, there are at least 7 to 8 brands of household appliances that can be reported casually, and nearly ten brands of sweaters, up to ten or dozens of clothing brands.

However, for home textile brands, consumers can not report more than 3 brands.

It's really pathetic.

According to estimates, the average profit margin of China's home textile industry is less than 6%, and the profit margin of small and medium-sized enterprises is even less than 3%.

Some enterprises complain that there is no money to build brand when the basic survival is very difficult.

Ai Feng, deputy director of the China Famous Brand Strategy Promotion Committee, said: "it is precisely because of the indifference of brand awareness in the home textile industry that the profits of the whole industry are low."

Although consumers are familiar with terms such as bedding, curtains, and cloth art, they are not familiar with the category names of garments, industrial textiles and home textiles (household textiles) belonging to the "three brothers" family in the textile industry.

In fact, home textiles as a separate concept has only become more prominent in recent years.

With the increasing emphasis on real estate, color science and fabrics, home textile has become an increasingly important element in people's daily life.

Experts believe that the 10 year is the end of the first phase of life cycle for home textiles enterprises.

The development of home textiles in China has been bumpy for nearly 10 years. When China's home textile industry has gone to the end of the first stage of life cycle and entered the second life cycle of life, the major issues facing only a few large enterprises in home textiles industry are: how to smoothly pition to second cycles of rising or even peak?

Home textiles also use advertising to brand.

The advertising war is a conventional tactic for Chinese enterprises to attack the city, but there are few advertisements in the home textile industry, such as thermal underwear, cashmere sweater and body building clothes.

Now, this situation may become history.

In May 17th, the market share occupying champion of bedding industry in 2005 -- Luo Lai home textile announced in Beijing that it would launch a systematic brand strategy so as to divide as many industries as possible the fast-growing cake of the industry.

Some experts believe that China's home textile industry has been in line with the world, but in fact, there is still a distance between China's home textiles and the world's home textiles. Compared with the huge profits of foreign home textile brands, the average profit margin of China's home textile industry is less than 6%. This harsh fact makes the vast majority of home textile enterprises regard brand building as a "luxury" behavior.

Although the first group of home textile enterprises in the industry have moved through the idea of raising the gold content through the brand, there is still a great distance from the real implementation. At present, it basically stays in the stage of affecting the mass consumption by asking the celebrity endorser.

There are three main reasons for this situation.

First, the home textile industry starts with more modeling enterprises, and the profits of the manufacturing enterprises themselves are low.

Two, home textiles is a new industry. When the enterprise enters the industry, the market economy has entered a relatively mature stage, which makes tens of thousands of enterprises in the industry directly enter the short battle. Many enterprises have not yet accumulated the brand, and have fought the price war, resulting in the profit becoming thinner and thinner. Three, despite the changes in the economic life and the increase in the consumption of real estate, the consumption of home textiles is on the rise. However, the era of consumer brand home textile has not really arrived yet.

According to the China Business Information Statistics Center, "Luo Lai home textile" occupied the first place in China's "bedding sales volume" in 2004, and became the "market share champion" enterprise in 2005.

In the case of less than 6% of the average profit margin of the household textile industry, the action of Luo Lai has aroused concern in the industry. Will there be a lot of home textile brands to follow? This has become a noticeable suspense.

Brand enterprise sprint 10 year inflection point

Although the pattern of big brands in the home textile industry has not yet been formed, the market space for home textile consumption in China is enormous.

According to experts, in the next few years by 2010, the growth rate of home textile consumption market will not be less than 20% per year, while per capita consumption will increase by one percentage point, and the annual increase will be about 30000000000 yuan.

At present, the increasingly fierce competition, including the domestic and overseas giants Huayuan, leading and Vico, have attacked the home textile industry, and it is precisely because of the rapid growth of the industry that only the professional brands such as Luo Lai, VU, Meng Jie, fuanna, Meng LAN and Bo Yang have been Awakening and maturing and self-defense.

However, most of these first group enterprises thrived in the past 10 years, and now they have developed to the end of the first phase of the enterprise lifecycle. How to smoothly pition to the second cycle rising period or even the peak period is a major issue before them.

The laws of economics tell people that when the market enters a relatively stable period of development, only those market participants who take the lead in grasping the focus of brand strategy are more likely to become new kings by industry reshuffle.

From the current situation of the home textile industry, under the temptation of huge market space, many foreign brands are competing against the brand advantage to enter the home textile industry.

Among them, there are many super brands such as "Sheraton" and "yvd". According to the reporter, there are even Pepsi Cola, the beverage industry overlord, and Pierre Cardan.

Faced with such internal and external attacks, the first group of domestic textile enterprises, which lingered in low profits for many years, and had no time to take into account the brand operation, did go to the critical moment when they did not advance or retreat.

Brand story

"Dark horse" in home textile industry

"From follow to lead" is the best summary of the success of the brand.

Originated in 1992, Nantong Huayuan Embroidery Co., Ltd. was established in cooperation with Taiwan businessmen. In 1994, the Nantong Luo Lai bedroom products Co., Ltd. was registered. It registered the "Luo Lai" trademark and spent 380 thousand yuan. At that time, the famous advertisement company in China had designed the brand logo.

From 1994 to 1998, the rapid development of the Lai Lai expressway.

Because of the rapid development and smooth development, Xue Weicheng's brain began to expand.

So he set up a hotel textile company.

But the brutal reality of the market gave him a head start.

Because of poor management and long-term losses, the final result of hotel textiles can only be the withdrawal of funds.

Xue Weicheng, who broke the boat, decided to follow the "leader" of the home textile industry "fuanna", referring to fuanna's chain Monopoly and franchising mode, to carry out channel pformation for Roley home textiles, pform from past office system to chain Monopoly and franchise system, and change the heads of offices to agents.

Fuanna is radiated from Shenzhen and Southern China, while Luo Lai is radiating from Jiangsu and East China.

Fuanna is mainly based on chain stores, and on the basis of it, Luo Lai has abandoned and developed a compound chain operation mode that is rich in its own large and medium-sized cities, directly operated by small and medium-sized cities, which is more in line with its own reality and more competitive in the market. Strategic big cities such as Shanghai have built direct franchise stores, and have joined and franchised in other large and medium-sized cities.

From 2000 to 2004, the average annual growth rate was 60%.

Today, the marketing network has been established all over the country, and more than 300 chain franchisees have been developed in the whole country. There are more than 600 chain stores.

In 2004, sales of Luo Lai ranked first in the same industry.

In 2005, Luo Lai emerged from the ground and became an object of concern both inside and outside the industry.

In September 2005, the brand of Luo Lai Luo Lai won the title of "China's famous brand products". In June 2005, Luo Lai put Paris's fashion home brand Saint Marc in the arms and joined the world famous brand home brand Sheraton to form a strategic alliance. In April 2005, according to the news from the China Federation of Commerce and the China National Business Information Center, the "Luo Lai" brand bedding made in the home textile production company ranked first in the market of the same products in 2004.

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Factors affecting the home textile industry

Home textile is not very long in China, although it is said that people use bedding, curtain and tablecloth for a long time, but the real mention of the brand, with the development of real estate to pay attention to the home textile.

In fact, in foreign countries, home textiles and clothing, and cars, and real estate are very closely related. It can be said that in the fashionable colors of foreign countries, the most popular designs of clothing are not on clothing, but in home textiles. Many of them are placed on home textile products, and some popular color elements are introduced in home textile products, so that consumers can recognize fashion colors through home textiles, and finally accept the fashion of fashion in the future. So we can see that the role and significance of home textile products is very large.

Home textile numbers

In 2005, the sales performance of Chinese textile enterprises reached 554 billion US dollars.

Among them, the export of home textiles is US $14 billion 180 million, which accounts for only 12% of our textile industry's export volume of US $117 billion 500 million last year.

Export of garment enterprises reached 75 billion last year.

From the point of export, home textiles also have such growth space.

Last year, China's textile industry consumes 9 million tons of fiber. That is to say, the three largest textile and clothing products, industrial textiles, household textiles and clothing, last year's fiber processing volume is 26 million 900 thousand tons, while China's fiber processing accounts for 1/3 of the world's fiber consumption. China's textile consumption accounts for 1/9 of the world's fiber consumption.

Expert voice

Yang Donghui, President of China Textile Industry Association

Home textile entry threshold low

But the market is hard to grasp.

I said the threshold of home textiles is not high enough to buy several devices.

But the threshold of the market, you can not grasp, a business told me, I want to do home textiles, I want to do the largest in the country, I said you slowly, you first try.

After trying it out, he said, Chairman Yang, I listened to you. I didn't invest a lot of money. This market is hard to grasp.

In recent years, some real estate enterprises also want to join home textiles. Some large garment enterprises also want to enter home textiles. Large textile enterprises have to extend to home textiles, and thousands of troops, as if seeing a new growth point of home textiles.

But in this case, we only see the newcomers laughing, and we can not see the old people crying. We have many enterprises and are also fading out of the market.

Now that you have entered a good stage, you can not operate according to the original mode of operation. The past habit should be forgotten and how to do it. This is a problem that our company should consider. Brand now, the home textile needs to be in the brand market.

I want to remind you that if you want to be a brand, you must first conquer yourself and conquer yourself.

It is how to choose the choice between Yi and Li.

We have many brands. We lost a little bit in the choice of Yi and Li. We all know that Nanjing Guan Sheng Yuan has lost a lot of money in profits and profits.

I use Sanskrit to say, "remember forever, forever".

We should not lose a bit of brand, we may lose your whole brand.

The brand of home textile is different from other brands. The brand of home textile should carry out the culture of home textile, and the culture of home textile is your return home. The culture of home textile is a kind of communion and communication for your mind physiology.

Wang Yao, director and doctor of China business residence Statistics Center