China'S Apparel Industry Moves From Cost Competition To Value Competition

In the past five years, it is China.

Growth under variables and experience

The clothing industry is not only the livelihood industry, but also the clothing industry.

During the five years of 11th Five-Year, China's garment industry encountered the biggest challenge in 30 years of reform and opening up. These 5 years are full of variables and experiences.

In the past 30 years since reform and opening up, the development of our industry has been as smooth as a whole.

However, from the trade friction after the 2005 global trade integration to the turbulent financial crisis in 2008, China's industry has undergone unprecedented tests from the constant adjustment of China's economic policies, especially the exchange rate, to the continuous rise of basic resources, raw material costs and labor costs.

Chen Dapeng, executive vice president of China Apparel Association, admitted that the past 5 years are the most difficult and challenging five years in the overall development of the industry.

However, after sorting out the development track of the industry during the "11th Five-Year" period, it is not difficult to find that despite the complex development environment, the garment industry has achieved a healthy and sustained development trend in the past 5 years, and the ability of international competitiveness and sustainable development has been constantly enhanced, and the quality of the industry has been continuously improving.

After the financial crisis, many industrial revitalization plans were introduced. The textile and garment industry has been positioned as a traditional pillar industry and an important livelihood industry in China's national economy. It is also an obvious industry with international competitive advantages.

Today, the post crisis era has become a hot word.

There is a view that the impact of the economic crisis on the world economy, especially on the developed countries, will not dissipate rapidly. It will be a process of slow recovery for ten years.

In the past two years, although the export volume of China's garment industry has seen a slowdown or even decline, in fact, China's exports of clothing products still maintain a considerable share in the international market.

This shows that the international competitiveness of China's garment industry still exists.

According to the data released by the General Administration of customs, China's textile and apparel exports totaled US $206 billion 530 million in 1~12 months in 2010, an increase of 23.59% over the same period last year.

Among them, clothing and accessories exported $129 billion 478 million, an increase of 20.88% over the same period.

Facing the vast international and domestic markets, facing the huge supply chain system, China's garment industry should take a sense of mission to welcome a promising strategic opportunity and a rare historical opportunity.

Transformation and upgrading of an industry will inevitably undergo a painful process.

China's clothing industry does not need to be self belittling because of some current problems.

The emergence of some phenomena and problems is not the loss of the competitive advantage of the industry. It is precisely the backwardness and comparative advantage that have not yet been brought into full play.

Chen Dapeng believes that we must soberly see that we are faced with a rapidly changing era, a new technology, new culture, new marketing era, production methods, exchange methods and consumption patterns are always undergoing profound changes.

In such an era, we must keep pace with the times and plan and realize industrial upgrading with a sense of urgency.

In such an era, the clothing industry is not only a livelihood industry, but also a fashion industry, a cultural and creative industry, a modern urban industry and a high-tech application industry.

In such an era, Chinese clothing people should fully realize that the way of industrial development should be driven from cost advantage to value innovation.

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Three door to pformation and upgrading

On the road of pformation and upgrading from "big to strong", we need to face three adjustments: the adjustment of industrial structure, the adjustment of product structure, and the adjustment of regional structure.

2010 has passed, it not only declares the pformation from "11th Five-Year" to "12th Five-Year", but also shows that the low value-added primary competition stage has come to an end.

2011 has arrived. It has opened a new prelude to the dream of China's clothing power.

From cost competition to value competition, it has become a new historical mission of China's garment industry.

Chen Dapeng said that in the pformation and upgrading of China's garment industry from "big to strong", we need to face three adjustments: the adjustment of industrial structure, the adjustment of product structure and the adjustment of regional structure.

First is the adjustment of industrial structure, that is, the concept of industrial diversification.

The clothing industry is a diversified industry. Brand innovation is not only born in the sales terminal, but every link in the value chain is a world of achievement brand.

In the industrial chain, every position and every market segment will become an excellent brand by focusing and professionally.

Large to the whole industry chain clothing group company, small audience group very narrow fashion trend card, each existence has its reason and value.

The core issue of different enterprises is no longer the size and quantity, but how to do the best and then go to the high end.

How to do more professional and meticulous, I am afraid that our enterprises need to really learn from overseas excellent enterprises, and create a top-notch and first-class brand with the efforts of generations.

The second is the adjustment of product structure, which means that products need to be differentiated constantly.

Therefore, the adjustment of product structure reflects the importance of R & D.

In the widely distributed Chinese market, the consumption group is very different.

At present, the capacity of R & D and design of Chinese garment enterprises is not enough to meet the changing demand of consumers. This requires us to concentrate resources on product R & D and increase R & D efforts.

The third is the adjustment of regional structure, which is reflected in the process of industrial pfer.

This trend was very clear in 2010.

The output of garment industry in coastal provinces occupies 80% of the total output of the country, but in the future, such industry will surely change.

The clothing industry is a fully competitive industry, and the industrial resources will flow to the best allocation area. Therefore, the production and processing links will gradually shift to the central and western regions, and even to other countries.

From the perspective of globalization, the garment industry of developed countries such as Italy and Spain has been relying on strong R & D power and strong value creativity to form industrial advantages.

The path they have taken is of great significance to our industry.

Diversification, product and structure will become the path of structural adjustment, pformation and upgrading of China's garment industry.

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Brand matrix in value chain

On the road of industrial upgrading, not all enterprises must squeeze in the "terminal brand" this single timber bridge.

"Brand is the core of value creation in garment industry. The characteristics of the garment industry determine that the core strategy of industrial pformation and upgrading is brand strategy."

Chen Dapeng believes that brand strategy will be the top priority of the industry development in the next five to ten years. "Brand is not limited to terminal brand, but also includes regional brand, supplier brand and distributor brand."

Since the financial crisis, many foreign trade enterprises that have done their best to create brands have been pformed into domestic market.

Faced with the brand planning of management consulting companies, many foreign trade enterprises are at a loss as to the complex market channels and consumer demand.

In fact, on the road of industrial upgrading, not all enterprises must squeeze in the "terminal brand" this single timber bridge.

Many foreign trade enterprises that have been pformed from OEM to ODM have good R & D capability and quick and effective processing management response system.

They are fully qualified for the high-end suppliers of domestic clothing brands, and become the supplier brand in the industry with differentiated products and services.

In Italy, there are too many "supplier brands". The core of their value is strong R & D strength, and can produce products that are differentiated and high value-added in line with the needs of brand enterprises.

For the dream of creating a world brand, we should be aware of our weakness in the right to cultural discourse.

Objectively speaking, go to any market in the world, Tokyo, Milan, Paris, New York, London...

Those high-end brands and luxury brands that can stand on the cusp of Pyramid are always the few.

In the trapezium position of Pyramid, there are many brands with excellent quality, rich cultural connotations, and recognized by consumers. Their level is not lost to those top brands.

For China's clothing brand, what we need to do is not to challenge the brand of Pyramid's top, but to keep pace with those high level international brands in the trapezium position.

In Chen Dapeng's view, the growth path of China's clothing brand is to first become a brand that can be heard in the province, slowly develop into a famous brand in the north or south, then become a national brand, and finally become a world-class brand.

It is worth noting that when overseas brands come to China and face such a wide market, what they do is to take a province's market as a European country to make strategies.

This can not but cause the reflection of Chinese clothing brand.

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Technology and culture build brand heights

Technology is the cornerstone of the clothing industry, culture is the support, and brand is the embodiment of value.

During the "11th Five-Year" period, Du Yuzhou, President of the China Textile Industry Association, refined the very clear "four in one" brand values, namely quality, innovation, rapid response and social responsibility.

Chen Dapeng believes that in implementing this brand value concept, the clothing industry should also highlight two basic points: scientific and technological progress and cultural creation.

Technology is the cornerstone of the clothing industry, culture is the support, and brand is the embodiment of value.

Both terminal brand and supplier brand need to enhance brand value from these two aspects.

The integration of information technology and industrial technology is changing and will pform the industrial form and brand mode in a larger scope and degree.

The creation of cultural creativity is a more urgent and arduous task.

If we can not attach importance to the application of cultural creativity, China's clothing industry will remain a traditional industry.

With the integration of culture, the garment industry can gradually take the road of pformation and upgrading.

Actually, learning international advanced technology is not difficult in itself, but it is not easy to really learn the cultural system of innovation.

Over the past five years, a number of Chinese brands have grown luxuriant.

How to make the brand tree move to a higher space, what they need to focus on is cultural creation.

Culture, as the spirit and soul of the brand, comes from the in-depth understanding of the target consumers, the constant adaptation to the upgrading and change of consumption, and the continuous satisfaction of the pursuit of multicultural aesthetic experience.

Cultural creation should be integrated into the entire operation system of enterprises and brands, and materialized in products, so that consumers can feel it.

Soft power builds strong dream

The yardstick of soft power is whether the image of Chinese clothing brand can make a qualitative leap in the international and domestic markets.

The China Textile Industry Association has put forward that it will strive to pform China from a big textile nation to a strong textile country before and after 2020, and build a strong textile and technology power country, a strong textile and garment brand, a strong textile and garment talents, and a strong textile and garment sustainable development country.

Technology, brand, talent and sustainable development are four important elements for China to realize the strong textile power.

Chen Dapeng believes that in order to achieve "big changes" in China's clothing industry, the first thing to do is: when people mention Chinese brands, the first thing they associate is that they are sometimes educated, cultural and valuable.

To become stronger in brand associations is not self recognition, but recognition from all over the world.

On the road of great power's dream, China's garment industry should not only create hard power, but also build soft power.

At present, the comprehensive soft power of China's garment industry and Chinese clothing brand is constantly improving, and the measurement standard of soft power is whether the Chinese clothing brand image can make a qualitative leap in the international and domestic market.

The construction of clothing brand, especially cultural construction, needs to stand on the national cultural strategy.

The development level of fashion is actually a reflection of the national cultural strength.

Of course, the accumulation of brand culture takes time. The clothing industry will continue to accumulate brand culture in the 5 years of 12th Five-Year.

The dream of a powerful country requires us to create a brand innovation system in an all-round way.

The key to the construction of this system is resource integration, which includes the integration of international and domestic resources, and the integration of cross-border resources within and outside the industry.

We must seize the opportunity to enhance the ability to integrate resources such as capital, talents and commerce with the vision and thinking of globalization and the spirit of continuous innovation. We will strive to build a complete brand innovation system with a broad global perspective and open and innovative thinking.

Summary

In the next five years or even ten years, we must be soberly aware that the current level of development of the industry is not enough to meet the objective requirement of increasing its own cost and competing for the high point of the international industrial supply chain. We are faced with an era of great changes. New technologies, new culture and new marketing have led the industry to keep pace with the times and plan and realize industrial upgrading with a sense of urgency.

In the next five years or even ten years, we must raise the brand flag and take the brand strategy as the top priority. We should constantly mold every brand in the industrial chain around value innovation. We must actively seek new paths for brand development, set up a brand new four in one brand value concept, and highlight the two basic points of "scientific and technological progress and cultural creation" in the clothing industry.

In the next five years or even ten years, the China Apparel Association will face new situations and new demands. In response to the new functions, we should further improve the service system, strengthen the team and cultural construction, and enhance the service with the innovation of ideas, ideas, work contents and working methods, so as to better promote the healthy development of the industry.