Textile Industry: How To Get Out Of The Low End Industry Chain

The Bobbi doll, which is popular with children, is almost entirely produced and processed in China.

As a big manufacturing country in the world, how to build a core competitive brand? How to get out of the low-end industrial chain has become the focus of attention.

Lack of independent brand, "made in China" for others.

The "brand pain" made in China is so real.

One of the brands of China's clothing industry is the red bean group, which deals with Armani's OEM. The price of each suit is 50 dollars, but in Armani's exclusive store, the price of each set is 500-800 dollars, and the price difference is as high as 10-15 times.

"This is the value of the brand, and it is also a brand bottleneck commonly faced by Chinese garment enterprises."

Zhou Haijiang, President of the red bean group.

According to a survey conducted by Shanghai customs, the price of the HP laptop exported to the United States is about $1000, of which US companies earn 169.6 dollars in the sales link, and the processing fees of Chinese enterprises are only 30.3 dollars.

According to statistics from China, from clothing to steel, China exports $100 million worth of "made in China" to the world every hour.

But most of these products are

"The game rule of global production is like this. The low-end manufacturers engaged in" three to one supplement "foundry production have no pricing power and no profit distribution voice.

Zhang Yansheng, director of the Foreign Economic Research Institute of the national development and Reform Commission, said.

Zhang Yansheng said that the manufacturing industry is an industrial chain, including product design, raw material procurement, warehousing and pportation, order processing, production, wholesale business and terminal retail.

In the entire global division of labor industry chain, China lacks the core technology, lacks its own brand, lacks its own marketing channel and service management system, and often can only "dress for others".

This processing trade led to a swelling foreign trade figure for China: in the first half of 2010, the import and export volume of China's processing trade reached US $5 trillion and 277 billion 760 million, while the processing trade of foreign invested enterprises achieved a trade surplus of US $137 billion 300 million, which is more than 2 times of China's trade surplus over the same period.

Sheng Guangzu, director of the General Administration of customs, said that foreign investment enterprises are the main source of China's trade surplus and the main beneficiaries of the trade surplus. They make use of China's cheap labor force and other production factors to engage in processing trade and get most of the profits.

Huo Jianguo, President of the Ministry of Commerce, said that the lack of independent brands in China's foreign trade has much to do with the lack of China's well-known multinational enterprises.

Despite the progress made in the independent brands of foreign trade these years, progress in the construction of well known brands and famous products is still slow.

He believes that the establishment and expansion of brands need support from the group objectively, and SMEs have great difficulties in R & D investment, brand marketing and network construction.

Therefore, to set up the "made in China" brand and reverse the passive situation of various kinds of people controlled by foreign trade, China needs to cultivate a large number of multinational enterprises with international competitiveness and popularity.

Creating independent brands is easier said than done. "Made in China" needs pformation.

"The creation of independent brands and pformation of enterprises must undergo short-term pains."

Zhuang Jianhua, vice president of household cleaning and electrical appliances manufacturing company in Suzhou, said frankly.

Zhuang Jianhua described the "pain" of enterprises in creating their own brands: a large amount of capital and resources must be faced with competition from production capacity, technological R & D, and brand marketing capabilities. In the short term, the profitability of enterprises may be weakened.

However, "facts have proved that our efforts to develop our own brand have gone the right way."

Zhuang Jianhua said.

With more than ten years of accumulated experience in the field of OEM for international famous enterprises, Suzhou household cleaning and electrical appliances manufacturing company invested nearly ten million yuan in technology research and development in recent years. Since 2008, it has consciously built its own brand in the domestic and foreign markets, and has recruited local brand agents in France, Italy, Malaysia and Czech.

Through years of brand cultivation, the domestic sales volume of domestic brands in the first half of the year increased by 200% compared with the same period last year, and international sales are starting from zero, and the market is expected to exceed 10 million dollars in 2010.

"The outlook for the US and Europe is still uncertain, but our independent brand sales are expected to account for 15%-20% of the total business, which greatly reduces the reliance on OEM orders."

The sudden international financial crisis made China's foreign trade face severe winter, and foreign trade enterprises that relied on cheap labor and cost advantages went bankrupt.

The external demand is uncertain, and the pressure of rising domestic raw materials and manpower costs will create an upside down trend for enterprises. Enterprises must pfer to the high-end industrial chain with higher profit margins and higher profit margins.

Foreign trade experts said, "the value of Chinese brands is promoted at the right time".

Huo Jianguo said that from a global perspective, whether it is traders or manufacturing enterprises, from manufacturing links to the upstream and downstream industries to expand or even reach the entire industry chain coverage has become a trend.

After years of development, China has obvious advantages in manufacturing links, and is now in the process of extending to the two ends of the manufacturing chain, namely, upstream R & D, raw material procurement, downstream logistics and sales network.

"When labor resources are overconsumed and labor prices are no longer cheap, such trade mode of processing trade will be difficult to continue in China."

Zhang Yansheng said.

At present, about 100 million of the labor force in rural China has not been pferred. "According to this figure, the pition period to China's foreign trade is only 10 years".

Zhang Yansheng said that under the background of global competition, if China's small businesses can only survive in the manufacturing sector, large and ambitious enterprises must consider the strategy of brand expansion, enhance their control ability and influence on the industry chain, otherwise they will be in a passive situation in the global fierce market competition.

Government enterprises go hand in hand, "made in China" to create first-class brand.

"Brand allows us to go further in international competition."

Suzhou newei valve Limited by Share Ltd deputy general manager Yao Jiong said.

The company is the largest industrial valve manufacturer in the country. It has been independent research and development and independent brand for many years. Its products have been recognized and recognized by the top ten energy companies in the world.

Yao Jiong depicted the trilogy of the company's future development: industrial products from the lowest part to make parts, to OEM, to the second level of single product export, the future direction is to sell the overall system plan, including a package of project contracting, involving the selection of product mix, late stage construction, installation and commissioning, post operation; and then from a single physical paction, to the combination of products and technical services.

This is also the core competitiveness of the "made in China" future.

For many enterprises, it is a difficult process to create their own brands and take the initiative to participate in international competition.

But one thing is certain: China is no longer satisfied with the status of manufacturing factories in the world, and has no division of labor. It is trying to promote the pformation and upgrading of processing trade and realize the three pformations of China's foreign trade: from the low level of international division of labor to the high end, from the acceptance of established rules to more active participation in the formulation of rules, from the expansion of quantity to the upgrading of quality.

Huo Jianguo said that the government needs to release more visible signals to the enterprises in the direction of foreign trade policy, and guide enterprises to develop towards high-end and high added value through credit support, information services, technical support and examination and approval.

"If the upper reaches of the industry have larger profit margins, enterprises will have the power to move upward, and the investment restrictions on the upstream will be more, which will naturally have the opposite effect."

The Ministry of Commerce pointed out that in the study of China's foreign trade development strategy in the post crisis era, in order to promote economic growth, China's foreign trade development should double the total import and export trade in the next 20 years in the next ten years and become the target of a trade power for twenty years.

CNN (CNN) last year broadcast an advertisement with the theme of "making China hand in hand".

This is the first time that "made in China" has appeared overseas in the overall image of the industry. "China makes the world cooperation". China's confidence in this period is most vividly displayed in the new era.