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    Garment Enterprises Break Through &Nbsp, And Policy Support And Brand Building Are Indispensable.

    2011/3/28 14:51:00 54

    Breakout Policy Brand

    During the two sessions, the topic of the future development of China's textile and garment industry extended from the two sessions to the Internet.

    On March 12th, Wang Yongzheng, member of the CPPCC National Committee, Xia Hua, President of Beijing Yiwen enterprise group, and Wang Jun, Secretary General of China Fashion Forum, interviewed journalists to discuss the way of clothing breakthroughs and sustainable development of enterprises.

    We believe that in the coming period, more entrepreneurs and industry experts will enter into the network dialogue and share with our professional journalists the trend of the market and the future of the industry.


    Policy support


    Wang Yongzheng's view: the interests of small and medium-sized enterprises should be the most concerned; preferential tax policies should be formulated for small and medium-sized enterprises.


    Foreign businesses account for 60% of our orders, but our settlement with foreign enterprises is based on the RMB exchange rate on that day instead of US dollar settlement. Foreigners are required to increase orders with us. Therefore, the appreciation of the renminbi has little impact on us.

    However, since the international financial crisis, especially in recent two years, the impact of rising labor costs and labor shortage on enterprises has been greatly affected.


    Textile and garment enterprises are labor-intensive enterprises. Raw material prices have risen a little, and the RMB exchange rate has risen a little. Their living space has basically been reduced.

    In addition, the state calls for increasing the income of ordinary employees.

    State owned enterprises can follow the policies of the state, but as small businesses, especially as labor-intensive industries such as textiles and clothing, they do not have so much money and the state's policies are hard to put into practice.


    In recent years, I have called for greater rights and interests for small businesses.

    As a member of the CPPCC National Committee, the economic group where I am located is a giant enterprise with huge output value exceeding hundreds of billions of dollars, and their difficulties are completely out of line with the small and medium-sized enterprises.

    If we do not talk about small and medium-sized enterprises, the survival of SMEs will be more and more difficult.


    Many developed countries have small and medium-sized enterprises, especially small businesses, which has played a great role in supporting, helping and promoting small businesses in a country.

    The small and medium-sized enterprises in our country have solved the 70%-80% of the state's employment, and the total amount is more than 50%.


    Their interests are guaranteed and most of them benefit from the vast majority of the employed people.

    After all, the state emphasizes harmony and emphasizes happiness. If the development of SMEs is good, their employees will get higher incomes and be happier.

    Employees of small and medium-sized enterprises account for 70%-80% of the entire Chinese population, so that society will become more harmonious.


    Can the state formulate a policy for all small and medium-sized enterprises?

    As long as we are enjoying some preferential policies in this area, such as tax concessions, we can also ask small and medium-sized enterprises to make use of the state in their employees.

    In this case, the state requires a wage increase of 20% or 30% of wages, and these small and medium-sized enterprises can be realized immediately.

    The state's financial resources today can fully support our country to provide better development and survival environment for small and medium enterprises, and for the vast majority of employment groups.


    Xia Hua viewpoint: the core is to let small and medium-sized enterprises see the hope; the most anxious thing is that the factory is not working enough.


    From my point of view, I think this is a hamburger effect.

    If we compare the Chinese economy to a hamburger with very good quality, small and medium-sized enterprises are the "stuffing".

    A hamburger stuffing is very important.

    Now it is crowded on top, squeezed underneath, and finally the filling is getting thinner, and no one in this hamburger wants to eat.


    The textile and garment industry is undoubtedly China's livelihood industry. Now everyone agrees with this view.

    For a big textile and garment country like China, it solves a large part of the employment problem and solves the problem of "clothes" for people's livelihood.


    Yi Wen is an independent brand. I would like to say a few words about the representative enterprises of independent brands.

    The Chinese textile and garment enterprises that we have been thinking for the future must be branding.

    On the road of branding, the survival and development of independent brands is very important.

    For upstream, it supports the development of numerous factories.

    In China, there are hundreds of raw materials suppliers and processors in the upper reaches of every good clothing brand. In their eyes, this is the most important support.

    The response we made during the financial crisis is that this is a win-win industry chain, so we have to pay first.

    Our upstream cannot sustain, which is a very anxious issue for Chinese brands.

    We should first consider the upstream raw materials suppliers, so that raw materials can not be broken down to the processors, so that production can not stop production.

    Only in this way can we compete with international brands.


    At this point, the government must consider how to give support to such an independent brand enterprise that plays a supporting role in the people's livelihood industry.

    I very much agree with the happiness index of the future. The word "happiness" of the people's Congress has made all the people smile, at least to think about the level of national policy.

    Small and medium-sized enterprises are the most dynamic in this development sector, and they can thrive if they have a good overall economy.


    Therefore, I said to Wang Yongzheng, this proposal must be persisted.

    I believe the government is also having difficulties, but we must consider the problem at this level if we want to solve the problem of a country's long-term stability.

    What is the most important thing now?

    For the economy, no matter how fast China develops, we are still a developing country.

    For economic development, the core sector is small and medium-sized enterprises. Their vitality, vitality and passion are very important.

    There is no relationship between rising raw materials and rising labor costs. These enterprises still have passion to go on.

    The core is what policies the government uses to enable these enterprises to constantly see hope in the process of development.

    This problem is not less than raising the income of grassroots employees.

    This must be placed in a very important position to think.


    To a certain extent, the cost is very sensitive.

    I say this is a spiral effect. In fact, the rise of staff costs has also brought a particularly strong superposition effect on the rise of raw materials.

    Fortunately, Yiwen has begun to realize the globalization of supply chain. The change of RMB exchange rate is a good thing for us.

    We have 47 suppliers of raw materials abroad, so we are a little cheaper in exchange rate changes.

    But a large part of the products are still processed in China, and the government is also very much in favor of improving the wages of workers.

    Most importantly, the implementation of this policy and the process of propaganda will change the mindset of the grass-roots staff.

    This is the most concerned issue for enterprises, and we will have instability.


    This year, though all kinds of costs have been raised, we still raise it in the budget range. We can accept the rise in the cost of 15%-20%, which is already a threshold.

    But now our most anxious thing is the underemployment. From the end of the year to the present, most of the garment factories start to operate at 60% to 70%. This is the rate of work they have made with all kinds of policies and all kinds of incentives.

    The shortage of operating rate will have a great impact on autumn and winter products and the spring and summer products that will be listed soon.


    Brand building


    Xia Hua's point of view: no brand core competitiveness can lead to cost sensitivity. The closest thing to consumers is the best thing a brand should do.


    I think logically, the first is not experience, but belief.

    I have always said that entrepreneurs who make brand in China can be divided into two categories: one is that profit is the goal and the other is brand process.

    Maybe today's brand will be profitable, they will make brand; tomorrow they may invest in the market better, so they will invest.

    They start from the profits of enterprises.


    Another is that brand is faith, and capital and profit are processes.

    I also hope that there will be such a force in the Chinese clothing brand industry. Only with this belief, can Chinese brands really hope that they can firmly go towards our dream goal, let the brand really produce a sense of value, and let the brand really burst its influence.


    Because our own core competitiveness and value support has not been fully constructed, only today we are so sensitive to cost. The cost of raw materials will rise by 15%-20%. We will be very sensitive.

    International brand Chanel, no matter how expensive the raw material is, is going up by 25% every year. This is the belief brought to consumers.

    We must have faith in the road of brand. Our goal in the future is to let the brand have the real core value, so that our price can not be directly dialogues with the cost. This is very important.


    Second is experience.

    In the construction of brand, products are only part, and more importantly, marketing and design.

    The products of Chinese brands have basically come to this point. Otherwise, the international market will not be able to see the processing power of the market, and it is impossible to produce quality products on this land.

    This is a confidence we should give to all brand people.

    But the core competitiveness of Chinese brands must be brand design capability.

    This design power is not only reflected in the product, but also to the LOGO and details of brand, every process of enterprise operation and every process of sales.

    Making brand is the whole design process. It is not simply a need to design in a certain link. It is a process of whole process and full design.

    Yi Wen has set up a design studio in Milan and Paris.


    Another is marketing power, and we just started in marketing power.

    So in the whole brand marketing process, this year insisted on 17 years, I insist on starting from the birth of the brand, has been doing marketing, I have been calling culture marketing, emotional marketing.

    At that time, I just started shouting that many people in this industry felt that they had run away, and that they were selling clothes for clothing. How do you tell these stories?

    Today we all realize the importance of this story.

    The most explosive force of brand is brand power, that is, how many people you can influence, from the process of buying love, from love to respect.

    In this process, if we have a little experience, when we have just made some achievements in product and design, do not think how good our brand is, because we have just started thinking about the high level of marketing in all directions, and let the hearts of consumers be closer to you. I think this is the most important thing for a brand to do well, and is a good thing for a brand person to do all his life.


    Wang Jun's view: Chinese clothing brands need to consider how to enter the brand competition from product competition.


    Just now, the two bosses talked very well, and I could see that Chinese clothing entrepreneurs are a group of entrepreneurs who are very striving, explorable and fully marketed.

    But on the other hand, Chinese clothing brands are facing great challenges and pressures.


    Increasing the contribution rate of the brand is definitely the fundamental problem in the development of China's garment industry.

    The development time of Chinese clothing brand is very short, but the result is very proud.

    We may still have a long way to go, but we all agree that brand building is a key issue.

    Many of them are doing well, such as white-collar, love, Metersbonwe, Lining and seven wolves. All kinds of brands are exploring and trying their own way.


    At present, the Chinese clothing brand must consider how to really enter the big market competition and brand competition from the stage of product competition.

    With the support of national policies and business environment and the efforts of enterprises, I think the development of Chinese brands will be very promising.


    The marketing level of Chinese clothing brand just mentioned by Xia general has just begun.

    When he interviewed Jifen Xie Feng, he said, what is the difference between marketing and sales?

    Marketing is to let people in the street walk to your store, and sales are to let people in the shop buy your clothes.

    Speaking of the brand contribution rate just now, if you are still in the stage of product competition, what brand contribution rate do you talk about?

    Really entering the stage of brand competition, cost is not a big problem.

    Now many enterprises do the job of letting people in the shop buy things.

    How to get more people in the street to enter the shop is a problem that practitioners need to think more about and solve.


    Wang Yongzheng point of view: improving consumer tastes, personalized custom shop has a strong vitality.


    After more than 20 years of hard work, the Yongzheng tailor shop has come to this day. Although there is a long and distant process in the hundred years, we are confident that we will continue to go on.

    Yongzheng's efforts over the past years have made the public aware of a problem. Tailor shops are not very cheap and cheap roadside small workshops, but are very noble and very tasteful. They are occasions where I can turn my thoughts into reality.

    Ever since the beginning of reform and opening up, Yongzheng company has been established.

    In those years, we might have embarked on large-scale garment development.

    But by summing up the advantages of so many years, our technological superiority and enterprise advantage are tailors, and have accumulated a lot of old customers. They buy Yongzheng products with the money of world famous brand, which is related to the gradual improvement of Chinese consumers' taste.


    The truly successful people in the world, like the Royal, noble and royalty of other countries, go to one place, that is, the tailor's shop.

    Therefore, tailoring shops should be the most personalized and high-grade consumption occasions.

    As Chinese consumers are getting more and more mature, people are becoming more and more interested in their clothes. This industry will have strong vitality.

    Therefore, I am confident that Yongzheng can carry forward the tailor's shop and promote it, and believe that there will be a hundred years' future.

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