Opportunities And Challenges In Garment Industry

A new stage of development of quantity and quality

At present, the development of China's apparel industry cluster has entered a new stage.

According to the statistics of each garment cluster, the proportion of the garment industry's total economic output in the local industrial economy accounts for 20%, up to 80%.

Compared with 2005, the number of clothing enterprises above the size of most of the clusters has doubled, and the output of clothing and exports also increased by more than 60%.

While the number of enterprises is increasing, it is also accompanied by the improvement of the level of industrial development.

In the industrial cluster, many enterprises change from product management to brand management.

With the joint, integration and reorganization of enterprises, enterprises above Designated Size have been increasing gradually, and they have begun to pform the mode of economic growth, focusing on the pformation and upgrading of enterprises, realizing the pformation from OEM processing to independent design and independent licensing.

In the process of garment industry cluster development, local governments actively support and advocate the creation of regional brands.

In recent years, with the guidance and promotion of the government and trade associations, the industrial clusters often appear in the overall image, and the image application of regional brands has begun to appear in publicity, exhibition, exhibition and even product identification.

Regional brand advocacy is most prominent in two provinces of Zhejiang and Guangdong.

Shengzhou, the famous tie city of China, has organized the "Chinese ties" regional brand publicity every year, enhanced the popularity of Shengzhou ties and enterprises, enhanced the popularity of Shengzhou ties and enterprises, and made the "Shengzhou tie" a famous regional brand in the country. The regional brand and geographical indications of Guangdong Shunde "Junan Cowboy" have also won wide attention and recognition from the same industry in China. The reputation and reputation of the overall image of Junan cowboy are growing.

The industrial chain in the cluster is becoming more and more perfect, and the cluster development adds new impetus.

With the development and expansion of clusters, many garment industry clusters have gathered from the original single production enterprises, and have gathered to the relevant enterprises in all links of the industrial chain.

The upstream and downstream products supporting production enterprises, the corresponding clothing trade, brand design and R & D centers, as well as clothing, apparel industry related exhibition industry, excipient industry, service industry have been developing rapidly.

From e-commerce to modern logistics, from professional market to R & D center construction, from product detection to technology R & D design, from kindergartens, libraries to banks and other supporting facilities.

The improvement of relevant industrial chain of industrial clusters has promoted the healthy development of garment industry clusters to a certain extent.

In addition, inland undertake gradient pfer to form new clusters, and cluster development presents new trend.

In recent years, the rapid development of garment industry in the central and western regions, especially in the central part of China, has witnessed the emergence of new industrial clusters in some areas.

Judging from the absolute value of production, the central and western regions are far from being the main force to support the development of China's garment industry.

Compared with the eastern region, the output of the central region is relatively low, but the trend of industrial gradient pfer has been formed.

In 2009, the 27 District of Zhengzhou City, Henan Province, and Hunan Province, Zhuzhou, were awarded the title of "Chinese women's trousers famous city". Sun Cun town, Fanchang County, Wuhu City, Anhui Province, was awarded the title of "China's export garment manufacturing town".

In Jiangxi, Hubei, Chongqing, Sichuan, Shaanxi and other central and western regions, as well as Liaoning and other northeastern areas, garment industry has begun to appear. This shows that the development of industrial clusters has new trends.

In the cluster, the marketing of enterprises turns to be diversified, and there are new changes in the development of clusters.

Since the international financial crisis in 2008, due to the rising labor costs, rising raw materials and the pressure brought by the appreciation of the renminbi, the export oriented enterprises are facing many practical problems, such as no single access, no dis orders and thin profits.

To this end, in the post crisis era, industrial clusters with high dependence on foreign trade have taken the lead in diversifying their exploration, and by strengthening product research and development, speeding up the creation of their own brands, and actively expanding domestic and foreign markets, so as to achieve pformation and upgrading of enterprises.

Some enterprises go abroad to make full use of the abundant cheap labor and raw materials in ASEAN and other places, and set up factories in Southeast Asian countries such as Vietnam or Kampuchea, or through the acquisition of textile and garment enterprises to achieve the integration of domestic and foreign markets.

And cluster enterprises enhance their competitiveness through the form of alliances.

In Yueqing, Zhejiang, 11 enterprises have jointly sponsored the Yueqing alliance garment industry Co., Ltd., aiming to create and operate brand clothing, Yueqing garment production enterprises as the brand clothing production base, the new sports clothing marketing mode, the direct selling of manufacturers' products, the direct selling of Yueqing garment products in the international market, the foreign trade first hand orders, and the orders for the Yueqing garment production enterprises.

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Change extensive operation resistance is not small.

In the post crisis era, the scale enterprise's consideration of winning, extensive management and simplistic operation was tested.

For those garment industry clusters that lack planning at the early stage of development, the resistance to change previous patterns is not small.

First, the shortage of land and labour resources.

Inadequate supply of land resources and shortage of professional workers bring pressure to the development of garment enterprises.

In recent years, the lack of jobs in garment enterprises is serious. Some enterprises are in a state of labor shortage all the year round, which seriously affects the normal production and operation of enterprises.

Secondly, in the management, R & D, marketing and other aspects of garment enterprises, due to the lack of high-level professionals, the technological capabilities of enterprises are obviously not suited to the scale of development.

Second, the shortage of labor force directly leads to the rising cost of labor.

Since the international financial crisis, the per capita wage of clothing industry has increased by 20%-30%, which has greatly increased the operating cost of enterprises.

At the same time, in terms of environmental protection and social responsibility, enterprises need to shoulder more responsibilities.

The rising cost and the reduced profit margins bring great pressure to the continuous improvement of enterprise efficiency.

It is difficult for some small businesses to digest the fast rising costs.

In addition, most of the apparel products in the industrial cluster have a relatively high proportion of low-end products, and the rising cost has a great impact on the development of industrial clusters.

Third, the upgrading of industrial clusters is slow.

One manifestation is slow progress in scale.

In addition to large enterprises, most garment enterprises are small in scale, weak in strength, poor in market adaptability, ineffective in dealing with the market, rigid in marketing mode, slow in production capacity, slow in the development of special industries, too narrow in market space, and unobvious in cluster advantages. Two of the slow upgrading of industrial clusters is insufficient industrial competitiveness. Many enterprises have low brand gold content, backward operation mode, low reputation and added value of their own brands, weak product development capability, and lack of industrial chains.

Fourth, the export situation is grim and the competition in the domestic market is becoming increasingly fierce.

The international financial crisis sounded the alarm for the whole industry.

With the reduction of demand in the international market and the continuous renovation of international trade barriers, the risk of foreign trade in China's garment industry is increasing.

This year, inflation expectations and RMB appreciation pressure further increase the operating costs of enterprises and reduce the profit margins of enterprises.

In the first half of the year, most export oriented enterprises were in a state of small profits or even losses. Some enterprises were facing difficulties in production and operation and faced with the dilemma of shuffling out.

The competition in the domestic market is becoming increasingly fierce. Especially, many foreign trade enterprises begin to turn to the domestic market, so that the market competition which has already been saturated has begun to turn white hot.

How to seek breakthroughs and maintain healthy development of enterprises has also become a problem that garment industry clusters must consider.

Fifth, the uncertainty of scale enterprise development.

Changing the family management mode, introducing and nurturing talents, promoting the modernization of management methods and means, strengthening the meticulous management within the enterprises, and striving to improve the quality of products are the development directions for scale enterprises to speed up their upgrading and enhance their core competitiveness.

At the same time, after accumulating certain wealth, some entrepreneurs have less desire for development, fewer new projects, smaller investment scale and less development potential.

Some entrepreneurs are too short-sighted, and too early in the main industry to diversifying into the real estate, capital and resource markets, which increases the uncertainty of the development of enterprises to a certain extent.

Good opportunities in Post Crisis Era

For the apparel industry cluster in the post crisis era, though facing many challenges, some subjective and objective conditions are changing, and there are many opportunities ahead for them.

First of all, the government of various industrial clusters actively promotes the construction of public service platform.

In recent years, various industrial clusters have continuously improved the construction of public service platform, focusing on optimizing the "soft environment" of the development of industrial clusters, providing services for small and medium-sized enterprises to provide product development, quality inspection, information technology, modern logistics, e-commerce and training services, so as to enhance the technological development and enterprise management level of small and medium-sized enterprises, so that the platform can truly become a practical base for integration, sharing, service and innovation, thus promoting the optimization and upgrading of industrial clusters.

Secondly, it is undeniable that the infrastructure and supporting industries in the industrial cluster are improving day by day.

In industrial clusters, the construction of industrial parks is a major feature and a major measure taken by the government to support the development of local garment industry.

After gathering the volume of enterprises in the industrial cluster, in order to enable the majority of garment enterprises to shift from labor-intensive to capital and technology intensive, most of the industrial clusters have established corresponding clothing trade, brand design and R & D centers, and the exhibition industry, accessories industry and service industry related to clothing and apparel industry have also developed rapidly.

Nowadays, it has become a new goal of garment industry cluster to build a gathering place for garment manufacturers, a designer gathering place, a brand gathering place, a fashion information distribution center and a popular publishing and gathering place.

Thirdly, in the post crisis era, enterprises' awareness of pformation is enhanced.

After the baptism of the international financial crisis, many enterprises began to realize that the long-term OEM mode of production has made the enterprises lose the power and ability to develop new technologies and establish new brands, and the sustainable development of enterprises is facing severe challenges.

Therefore, some enterprises began to take the initiative to change in the post crisis era, and strive for breakthroughs in many aspects such as brand, quality and design.

In addition, cluster leading enterprises play a significant role in demonstration.

After more than ten years of brand development in China's apparel industry, there are already some brand clothing enterprises stand out, and the demonstration effect of these enterprises is very obvious.

Whether in brand operation, marketing mode, product design or enterprise management, their successful experience and development mode have always been concerned by small and medium-sized enterprises, and have led more scale enterprises to become bigger and stronger in some degree.

Nowadays, most garment industry clusters begin to catch up with the demonstration effect of leading enterprises and promote the development and growth of the whole cluster through the way of "big belt and small size".

Finally, in the pformation of industrial clusters, the self-discipline and leading role of trade associations is increasing. At present, the organization of industry associations has been almost completed in industrial clusters. The important role of these industry organizations has begun to appear. As a bridge link between enterprises and governments, the guild organizations play a coordinating planning, monitoring and promoting role in price self-regulation, competition norms, market access, scale development, market cultivation, trade promotion, standard inspection, quality certification, and innovation protection, so as to create an innovative market atmosphere and healthy competitive environment.