"Love" On 2010, Distort The Industrial Chain

"T-shirts sold at low prices"

At the end of summer, typhoon tenth " Meranti It has brought continuous drizzle for many consecutive days along the coast. Nevertheless, Mei boss, who runs a small garment processing factory in Guangdong, got up early in the morning and arrived at the store in the local women's clothing city.

Mei's clothing processing plant is not large, with only 20 workers. Besides producing and selling all kinds of T-shirts and jeans, it also receives orders from other enterprises from time to time. At the same time, she also opened a store on the two floor of the local women's wear city.

In her ladies' shop, the price of all kinds of T-shirts is different, but the most obvious thing is to put them in the doorway. Trade price A short sleeved women's T-shirt for only 3.5 yuan.

"This T-shirt usually requires at least 100 pieces of bulk to get such a low price. If the volume is large, we can sell 3 yuan for one piece. " Mei said.

At the time of clothing changing season, there are still many retailers like Mei who sell the short sleeved T-shirts at the lowest price.

Apart from the boss's shop, Shu boss is also engaged in the wholesale clothing business. He also has his own garment processing factory in the town. Besides the orders of internal and external trade, most of the manufacturers sell and sell all kinds of T-shirts directly.

"Wholesale 200 or more, I can give you a price of 3.8 yuan." Facing the inquiry guests, Shu boss enthusiastically soliciting business. But even at such a low price, he said he still had 20 thousand overt T-shirts sold in his warehouse.

"There is no way out. There are thousands of processing factories like ours, and a garment machine can produce about 100000 T-shirts in one month. You can imagine how fierce the competition is and the price will not be raised. " Shu boss said.

Mei boss slightly reluctantly calculated an account, last year. Cotton yarn The price is only 12000 yuan per ton, now it is more than 20 thousand yuan. After the increase of manual wages and cloth costs, the cost of tax collection, storage management and store rentals is eliminated. The profit of a T-shirt is only a few cents, and a pair of jeans will earn one or two yuan. {page_break}

The cost is growing, but in the face of fierce market competition, a large number of garment production and processing enterprises can not release the pressure of cost increase to the downstream, but continue to be squeezed by retailers, and thus fall into the predicament of the industrial chain.

How to transform the value chain of industrial chain

You Chao

Sensitive chain

External demand is complicated, domestic market competition is increasingly fierce, industrial concentration is increasing and cost is rising. The above industry phenomenon determines that opportunities and challenges, interests and risks are evenly matched. China's textile and garment industry must accelerate strategic transformation and complete the "industrial chain" to "value chain" system.

The soaring prices of cotton have posed severe challenges to the domestic textile and garment industry. Cotton prices have been rising this year, and the rate of increase has accelerated markedly since September. As of September 25th, China's cotton price index has risen from 18002 yuan / ton in early September to 20236 yuan / ton, or 12.41%, breaking its 10 year high. In the year since September last year, a ton of standard cotton has surged from 8000 yuan to more than 20000 yuan, which has risen 1.5 times. The price fluctuation of upstream industry has a direct impact on downstream garment enterprises, especially production enterprises. In fact, this is a test for China's textile and apparel industry chain.

In recent years, China's textile and garment industry has made considerable progress, and has formed a very complete industrial chain, and industrial concentration has been continuously improved. Statistics show that by the end of 2008, the total amount of textile fiber processing in China was more than half that of the world, and the per capita fiber consumption in China doubled in 2008 to 15 kg in 2000. From 2000 to below the world average, by 2008, it exceeded 50% of the world's per capita consumption, and textile and garment exports accounted for more than 30% of the world's total exports.

Although the development of China's textile and garment industry has made remarkable achievements, the development of the industry still can not fundamentally get rid of the extensive mode characterized by the number growth pattern, and the overall profit level is not high. The embarrassing situation of "800 million shirts for a Boeing aircraft" has not been fundamentally changed.

Among the Chinese textile and garment enterprises in the global economy, a common consensus is that the "individual competition era" has come to an end, and the "system competition" between the supply chains has become another test question facing the Chinese textile and garment enterprises.

"China's textile and garment industry is the single industry with the longest chain and the most employed industries. The current situation is that China's textile and apparel industry is still at the low end of the supply chain. Sun Ruizhe, vice president of China Textile Industry Association, has a clear understanding of the status quo of the industry. It is precisely because of the low end reality that the industrial chain is extremely sensitive to the fluctuations of any of them, so it is easy to understand the ripple effect of the cotton price fluctuation on the entire industrial chain.

Insiders believe that the "price surge" is a shock to the industry. In the entire industrial chain, the weaving status, fabric, manufacturers and brand enterprises that are sandwiched between material sources and terminal consumers are not easy to survive. After a number of "price rises" and "lack of jobs", it is time for the industry to reshuffle again and again.

In fact, not only is the textile and garment industry, but the whole "made in China" is facing the dilemma of the low end chain. China enjoys the reputation of "world factory". Research shows that in industrial manufactured goods, China has more than 130 kinds of products ranking first in the world. But in fact, China's manufacturing industry is only the thinnest part of the profits in the international industrial chain.

Take the toy industry as an example. A Bobbi doll has a factory price of US $1, and the retail price of WAL-MART in the US is US $9.99. For this reason, economist Lang Xianping even thought, "China is not a big manufacturing country at all. The real manufacturing power is the United States".

In fact, in addition to manufacturing, there are 6 main links in the industrial chain of any industry: product design, raw material procurement, logistics and transportation, order processing, wholesale operation, and terminal retail. These 6 links create the value of US $9, which is the most valuable and profitable part of the whole industry chain.

For most Chinese textile and garment enterprises, the value they create basically belongs to the category of 1 dollars.

Integrated innovation integration

"Compared with ZARA, the speed of pushing our style can also reach 7 days and a cycle. Apart from the history and scale of business, why can't we still compare with these ZARA and H&M giants? Fundamentally speaking, they are still relatively weak in the integration of industrial chains." The boss of a clothing brand sighed.

In fact, Sun Ruizhe and his team used two years to conduct a detailed and thorough investigation of the brand market of the developed countries in Europe and America. The scope of the inspection is locked in some strong brand enterprises that can appeal to the whole supply chain system and play a leading role. To his surprise, there were no "very large" R & D teams in the survey, but the operation of these brand companies seemed orderly.

So who is supporting the huge product R & D system? "Not the other, it is the huge supplier team behind the brand. The competition between suppliers is fierce. They not only provide products, but also design various designs for each brand in the brand, forming an optimized industrial chain. Sun Ruizhe said.

External demand is confusing, domestic market competition is increasingly fierce, industrial concentration is increasing and cost is rising. The above industry phenomenon determines that opportunities and challenges, interests and risks are evenly matched. China's textile and garment industry must accelerate strategic transformation and complete the "industrial chain" to "value chain" system.

In Sun Ruizhe's view, if China's textile and apparel industry chain wants to get rid of the low end, it must take the road of integrated innovation, transform the industrial chain into a value chain and turn into a gold chain -- break the original industrial chain division of labor, establish the strategic layout thinking of the industrial chain, and extend the innovative touch to vertical and efficient integration, including product design, raw material procurement, warehousing and transportation, order processing, wholesale operation and terminal retail. {page_break}

The operational thinking of industrial chain integration innovation runs through vertical cooperation between upstream and downstream enterprises in the industrial chain, and also covers the organic collaboration of horizontal cooperation with related enterprises. It will help textile and garment enterprises reduce transaction costs, reduce process uncertainty, respond quickly to market demand, and improve transparency and agility of supply chain.

Sun Ruizhe emphasized in particular that the textile and garment industry as a production industry, regardless of your ability to control the entire supply chain, the final flow of its products is still consumers. Therefore, taking the effective demand of the market and consumption as a value orientation in the supply chain, it is undoubtedly of practical significance to make the value guidance of the "effective demand" become an effective reference frame for the enterprise to grasp the operation supply chain.

The industrial chain is like the natural chain of life, strong and weak, but interdependent. At the same time, it is not the same as instinctive biological chain, because it no longer plays the role of brute force in the interest of the seesaw battle, but is willing to experience thinking, collaboration, division of labor, choice and integration of a series of skilled intelligence activities. Rational, smart, transparent, open, honest... These value words will also witness the amazing leap in the expectation of China's textile and apparel industry in the global textile and apparel industry chain.

Chain brand

Yin Li Jie

For the current stage of China's garment industry, the monomer operation capacity is no longer a measure of all standards. China's apparel industry is gradually forming an industrial chain similar to the automotive industry. The interest alliance is the foundation of the integration and innovation of the industrial chain. It is precisely because of this that any part of the "immoral" or "non green" may lead to the whole body, causing the entire industrial chain cooperation network to be in crisis.

With the upgrading of industrial concentration, high-quality industrial resources will continue to concentrate on dominant enterprises. These advantageous enterprises will continue to consolidate their dominant position in the operation of the industrial chain. At the same time, around these advantageous enterprises, various industrial chain partners will continue to cluster. They will be combined into a new competitive system through the way of network collaboration. The "atoms" of these strategic alliances are mutually restricted and standardized through the standardization process, and the appearance of the "ecological community" under the guidance of brand enterprises is gradually emerging.

As the leading brand in the industrial chain, what kind of changes will the brand depend on the industrial chain and bring to the industrial chain? The mature automobile industry has many reference meanings for the clothing industry. Many famous automobile brands now turn their cars to others. They only retain their brands and rely on them to maintain a large number of enterprises, but no one stands out to "make an independent". In fact, they form a national industrial chain similar to ecology. For the current stage of China's garment industry, the monomer operation capability is no longer a measure of all standards. China's apparel industry is gradually forming an industrial chain similar to the automotive industry. The emergence of a large number of light companies and fast fashion enterprises is a witness.

Wu Huijun, chairman of Ningbo Bo Yang Garments Co., Ltd., said: "in the industrial chain, due to the difference between their respective division of labor and risks, their prices are different. This difference is reasonable. The enterprises in each garment industry rarely cover the whole industrial chain, and most of them are only part of the industrial chain. The key is to find out where you are and do what you are good at.

The famous case of "Bobbi dolls" shows that our profits are too low. If the profits of Chinese garment enterprises are too low, is the production of bottled water more profitable and less competitive? Selling a bottle to earn a few cents, but Wahaha's founder Zong Qinghou is not in the fiercely competitive place step by step to become China's richest man.

"To improve our position in the world industrial chain, we must first improve our industrial chain." Wu Huijun said so. He believes that many industries in China lack the ability of independent innovation. China can produce BMW and produce iPhone, but this does not mean that China's industry is advanced and competitive. Only when China develops its own "iPhone" and makes its own "BMW", can it improve its position in the whole international industrial chain.

The industrial chain of textile and clothing is also the same. The integration of textile and apparel industry chain can not be completed by a single factor. It is also a systematic project that brings together elements such as logistics, information flow, capital flow and so on. The interest alliance is the foundation of the integration and innovation of the industrial chain. It is precisely because of this that any part of the "immoral" or "non green" may lead to the whole body, causing the entire industrial chain cooperation network to be in crisis.

Therefore, in the era of brand management, we should not only pay attention to what products we produce, but also focus on what materials and ways to produce products. We should not only pay attention to the promotion of labor productivity, but also pay attention to harmonious production relations. We should not only pay attention to the quality and performance of products themselves, but also pay attention to the social value of products in the consumption process, and guide healthy and sustainable life style.

The final product of the global brand clothing supply chain is the brand, and all the nodes of the supply chain should be branded. Only by brand development can we truly integrate into the brand supply chain.

How can global resources be used for us?

Chen Guoqiang, deputy director of the Institute of industrial economics, China Garment Association

In recent years, with the rapid development of textile and garment industry in India and Vietnam, some people even think that they will soon surpass China. I think this view is very one-sided. Because of industrial transfer, it is a process to establish the status of a world factory. And this process takes a long time, or its advantages and effectiveness play a long process.

Whether from the earliest Britain or to the United States, and then to Japan, to Hongkong, the status of the world factories in these countries and regions is indeed in the process of continuous transfer, but each process has gone through a long time. We can not simply see that some factors such as labor cost have been replaced, that China's status will be surpassed. It can be said that until now, the connotation of China's world factory is still developing and upgrading.

Industrial transfer, first of all, is a long process of time, which must be seen. Secondly, at the present stage, because of the great changes in the world economic integration and the industrial background, if China wants to establish the factory status of the labor world, it is much more difficult than that in Britain, America and Japan. However, a fact that can not be ignored is that all the other elements are in a free flowing state except for the transfer of labor force. Third, because the historical conditions have changed and the industrial environment has changed, China is no longer simply a process factory. We are constantly upgrading to the two sides of the industry. Although China will undertake the tasks of the world's processing plants to a large extent, we have extended to both ends. In this sense, China's manufacturing has been endowed with new tasks, new functions and new connotations in the process of undertaking the transfer.

Moreover, there is another point to remember: China's industrial transfer is both in the process of undertaking and in a rational layout. Our shift is not a forced transfer, but a reasonable and positive behavior of Chinese enterprises. It not only sees the problem of labor force elements, but also sees some market problems. Because some products are close to Southeast Asian and India markets.

However, we should not neglect to constantly enhance our connotation in the process of "made in China", while giving play to our traditional comparative advantages and giving full play to our creative and competitive advantages.

China is a big country, which has been an advantage for a long time. But we should learn from Germany and Italy very well. In the course of the whole financial crisis, Germany has been affected, but why can it be relatively stable in European and American countries? This has a very large relationship with its considerable share in a considerable period of time. Germany's design is very sophisticated, its manufacturing is complete, and its channels are very smooth. So in a sense, especially as a big country, it is impossible to undertake only one link in the industrial chain. China should stabilize its manufacturing and actively move to the two sides.

In a short time, there will be a big gap between China and Vietnam in terms of manufacturing level and China. Manufacturing is no longer a simple process. We must remember that the concept of "madein" is not a concept of processing. In the early days, "made in China" equals to "processing in China". Now, "made in China" has already included marketing, design and some high-end contents. If they want to catch up with China, it may take a long time. There is a problem of "advantage difference". It is not simply a question of "who is caught up and who is being transferred". The core is to enhance our competitiveness.

We need to make two arrangements, one to adjust the layout of the domestic industry, and the other is to learn the global layout. For example, we already have some enterprises going out, it can set up factories in Vietnam and Kampuchea, but we can also buy the brand in France and Italy, and build our own design and marketing center there. China is a big country, which can stabilize our industry with our own market and domestic demand, and build our industrial chain on the global scale at the same time of enhancing our capability.

So I have always said that our industrial development should also have a "three step" strategy. First of all, we should integrate ourselves into the world and enhance ourselves. Finally, we should establish the position of resource allocation. You can do this analogy, first you have to take part in the sports meeting to compete; then you have to get good grades, get into the finals, and finally get the top three teams to become the first tier.

In the final analysis, our chain economy should be viewed from the perspective of global economy and market economy.

Reporter eye

To become a brand is the key to the integration and innovation of the industrial chain.

When every enterprise in the industrial chain becomes a brand enterprise, the value of China's textile and garment industry chain will surely increase. How to specialize and be good at what you are good at is that every enterprise in the industrial chain should consider and make itself the brand of the industrial chain. A lot of people in the industry say: now there are experts in every field in the industry. You want to be a versatile enterprise. It is impossible and very tired, so long as you do your part well, then you can cooperate with experts.

When every industry chain in China becomes a brand, it is also the day that China rises in the international industrial chain. {page_break}

-- Yin Lijie

Economist Lang Xianping regarded the "made in China" situation as a "conspiracy" of the foreign superior industrial chain. First, do not argue with the "conspiracy", but we must realize that the "made in China" including the textile and garment industry must enhance its value.

From the manufacturing point of view, China's clothing industry has a very high gold content, the industrial chain of this ring has been quite complete, and many mature industrial clusters in China are confirmed. But from the point of view of value chain, the value of this ring is the lowest, just like the $10 "Bobbi", which can only get us $1. Under such a value distribution chain, we do not have more room to absorb the internal fluctuations of the industry chain, such as improving employee treatment, energy saving and consumption reduction, and the soaring cotton prices.

How to get more shares in the 10 US dollars will only fail to focus on manufacturing. More value shares exist in other aspects, such as product design, raw material procurement, logistics and transportation, order processing, wholesale operation, terminal retail, and so on. If in these respects, Chinese clothing can also do better, at least in the key link, "we can not afford to lose chains", then we are not far away from the "clothing power".

-- Ceng Youchao

A few days ago, such a news was very attractive: during the "11th Five-Year" period, China's industrial output value exceeded 10 trillion yuan pass, and the industrial added value accounted for more than 14% of the global manufacturing industry. China's manufacturing industry surpassed Japan and became the second largest industrial manufacturing country after the United States.

China's manufacturing industry has surpassed Japan, and catching up with the US seems to be just around the corner. A report released by IHS, an American economic research firm, has shown that Chinese manufacturing industry is close to catching up with the United States. Mark Kina, the chairman of the company, even predicted that China's manufacturing industry is most likely to exceed the US in 2011.

But after the "joy", another fact also hurts us and reminds us that the Americans say: "China will eventually surpass the United States." China relies more on manufacturing, manufacturing accounts for more than 1/3 of China's economy, while the US manufacturing sector accounts for less than 13% of the US economy.

From the perspective of "big economic structure", the "industrial microclimate", in China's textile and apparel industry chain, the proportion of processing and manufacturing industry and manufacturing industry in China's overall economy accounted for some "deja vu".

Speaking of this, we seem to understand that Americans' confidence stems from their "small size and large output", while we are "big volume and small output".

The textile and garment industry is already a low value-added industry, and we are quietly undertaking the low profit link in this low profit industry. When the proportion of low value processing and manufacturing links is less, the profit of "R & D", "design" and "quality" account for much more, and the overall value of China's textile and apparel industry chain is also enhanced.

-- Zhang Qiuying