The Development Of Free Brand And Value In OEM Mode Of Chinese Apparel Industry

Low carbon economy, high labor cost, personalized and differentiated consumption pursuit; the new business mode of Internet, Internet of things, cloud computing and e-commerce. In this era of "everything is possible", we should have more development thinking and prospect as a major producer and consumer of clothing.

First, OEM mode Changes

Since 1994, with the encouragement of the preferential export tax rebate policy, China's garment OEM processing enterprises have mushroomed along with foreign trade enterprises. With the support of cheap labor market and national preferential policies, China's clothing exports to foreign countries account for 30% each year, plus the domestic consumer market, China can produce 60% of the world's clothing products and accessories annually. After 10 years of ~20 development, many garment enterprises have gradually changed from pure processing mode to independent brand and independent production mode (such as Quanzhou Jinjiang area). During this period, after two financial crises and shortage of migrant workers, a number of OEM clothing enterprises began to consider the spanformation to their own brands. Another part of the small OEM clothing enterprises were forced to close down or take the initiative to withdraw from the garment industry. Whether it is the OEM clothing enterprise that started 10 years ago, or the OEM garment enterprise now preparing to make brand, it can be seen that the traditional Chinese OEM clothing enterprise has already spanformed to its own brand.

This spanformation is a good thing and a bad thing. If everyone is a rational spanformation, it is a good thing to make China's clothing brand more competitive in the world. On the contrary, if everyone goes all the way up, it will be a bad thing. It will disturb the market value of Chinese clothing brand and make the interests of all enterprises diluted. Vicious competition is bound to bring about a wave of price cuts. In the meantime, more and more garment enterprises will be spanformed. If the industry associations and relevant state organs can play a guiding role at this time, it can not only reduce the losses of enterprises, but also make rational and effective layout of the garment industry and make the cake of the garment industry bigger and stronger.

Two. Free brand Development

China's clothing brands are developed from independent production, far away from Lining, whose predecessor developed in Guangdong Jianlibao sportswear Co. Ltd., near Anta, its predecessor was a workshop shoe factory in Jinjiang. Lining now remains the only independent garment factory (internal general plant), that is, Mr. Lining's start-up factory; while Anta is developing its brand, it pays more attention to product R & D and production capacity. While referring to Nike and Lining, Anta has also maintained its own development style: do not become China's Nike, but become Anta of the world. By strengthening the development of independent factories, Anta and XTEP achieved two difficult points of other brands (Nike, ADI, etc.): the high cost performance of products and the rapid reflection of market supply.

70% of China's clothing and sports brands were born in Jinjiang, Fujian. Obviously, the "Jinjiang model" has made a number of Chinese clothing brands. But after these enterprises become famous, they are facing the continuous development. So many people from the Pearl River Delta dress management personnel are heading for Fujian.

The Pearl River Delta region is the frontier of China's reform and opening up. It is also the earliest place for garment enterprises to develop, and adjacent to Hongkong, so the management level of clothing enterprises in the Pearl River Delta region is generally higher than that in other regions. And the products are also diversified and large-scale. For example, clothing in Humen, underwear in Chaoyang, underwear in Yanbu, underwear in Zhongshan, etc., can complete the whole life cycle process of product development, design, material purchase and production without going out of town. This unique condition has created the resplendence of the garment manufacturing industry in the Pearl River Delta region, and has also trained a large number of advanced managerial talents and entrepreneurs for the Chinese garment industry. Under the impetus of the Pearl River Delta, China has successively formed the Southern China garment industrial area centered on the Pearl River Delta, the East China garment industry center centered on the Yangtze River Delta, the North China garment industrial area centered on the Shandong Peninsula Bohai, and the southwest garment industrial area centered on Chengdu. These garment industrial zones have also established their own independent brands while establishing their own factories.

Three. Brand value Development

China has a reputation for nearly 1000 clothing brands, but its brand value is generally not high, which is ten times different from that of foreign brands. On the one hand, this difference is influenced by the "distorted" brand view of the Chinese people. It is considered that everything is good for foreigners. I wonder if many clothing products are made in China. On the other hand, there are very good designers abroad, who are more particular about styles and material selection, and at the same time, they also do better in brand promotion than we do. But in the past five years, China's clothing brand enterprises have also gone abroad, holding product launches and taking fashion shows abroad. Whether in the daily consumption of the world or on the T stage, clothing is deeply printed with Chinese elements.

In addition to traditional advertising, sponsorship is the preferred brand of sportswear. The purpose of brand promotion is different and the object of sponsorship is different. For example, the national basketball team of Spain sponsored by Lining has achieved very good results in many world-class competitions. Whenever the Chinese men's basketball team meets Spain's men's basketball team, some netizens will laugh at themselves and say: China has lost to Spain, but Lining has won the Nike. It can be said that Lining's sponsorship of Spain is very successful, making Lining's basketball products more famous. This example does not mean that Nike is wrong in choosing the Chinese team, but the purpose of Nike and Lining's sponsorship is different. Nike aims to popularize the Chinese market, and Lining is going to the world.

The promotion of brand value can not rely solely on advertising, but the technology and quality of the product itself are fundamental. ADIDAS has more than 2 billion dollars of technology input each year, and more than 1000 R & D teams. Lining and Anta were also unwilling to be weak, and put forward their own bow technology and core technology respectively. Sports brands such as PEAK, Hongxing and Ke also followed suit and launched their own new technologies. On the premise of guaranteeing the quality of products, the upgrading of product technology has increased the chips of market competition on the one hand, and has also increased the added value of products on the other hand. Compared with shoes, garment itself does not have much technology, but it can work hard in fabrics and crafts. The technology of clothing will be more embodied in materials. For example, there is a kind of soybean fiber fabric (also called artificial cashmere), which contains 18 kinds of human essential amino acids and plant active factors to prevent dry skin, feel lubrication, breathe and keep warm. In the past, a domestically produced chest was at most 30~60 processes, and now some brands have 150 tattooing processes. With the improvement of fabric selection and technology, the original 100 yuan garment can now be sold to more than 800 yuan. In addition to technology, procurement, processing and other cost inputs, the overall value of clothing has made a qualitative leap.

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Four, the development prospect of garment industry

In the next 20 years, China's common OEM (Original Equipment Manufactuce, original equipment manufacturer), ODM (Original Design Manufactuce, original design manufacturer) and OBM (Orignal Brand Orignal, original brand manufacturer) will gradually change to two modes. At the same time, there will also be more professional DSP (clothing design, development enterprises or institutions, such as studio), specializing in providing third party product development services for OBM and ODM (as shown below).

OBM and ODM provide third party product R & D services.

With the rapid development of Internet, Internet of things and logistics, the retail industry has been developing unprecedentedly. As a commodity for daily use, garments must fight for the terminal. Whoever can master more terminal customers is the winner. So many brands are developing their own stores and channels. Lining has more than 8000 stores in 2010 and more than 7000 stores in 2010.

Sales terminals are coming up, but how to manage them efficiently is a common problem for these enterprises. At this point, enterprises should establish a more powerful information platform (such as supply and distribution system), and build personalized functions and business models that conform to the development of enterprises on this platform. There is absolutely no system to eat in the world. Even these first-class ERP software such as SAP and ORACLE also have many problems. Therefore, enterprises should adopt "introducing platform and self built facilities" to carry out the construction and deployment of informatization. Of course, if the enterprise is strong enough, it can build a self development Corps like WAL-MART, tailor the information system for the enterprise.

The widespread application of search engines such as Google, Yahoo and Baidu has led to the concept of "cloud computing". If one day: the personal credit system has been perfected, the global logistics system has been formed, and the e-currency world has been circulated; then the clothing business mode will surely change dramatically. At that time, clothing brand enterprises will become Internet intermediate stations (NMS), and Internet users have dual identities -- consumers (Consumer) and service providers (Service providers). When consumers are shopping to NMS, they are consumers; when users are providing services to NMS (such as participation in design, production, spanportation, publicity, etc.), they are the service providers. In this way, the supply / elimination cloud cluster with different clothing brands will be formed.

Supply / eliminate cloud clusters with different clothing brands as the center

No matter how the garment industry develops, the exploration and pursuit of industry people will never change. As long as the enterprise is bold in innovation and dare to challenge, everything can be realized.