Domestic Brand Clothing Industry: Export To Domestic Sale In 2011

domestic Clothing brand Relying on the international big OEM to make a living. times This is coming to an end. Yesterday, Beijing was known locally. Men's wear brand Xue Baojin, general manager of Shun Mei, said that from the beginning of this year, the proportion of domestic sales will increase to more than 70%. And the transformation of DKNY and other international large scale foundry is also the transformation of domestic clothing brands abroad. Order In a sudden decline, a microcosm of business models has been changing.

In the view of business experts, for domestic garment enterprises, although the profits of foundries are relatively low, they are only involved in the upstream, and the operation mode is simple. Clothing enterprises enter the domestic market, which means that the production of goods is only the first step. Enterprises should not only invest heavily in product development and brand promotion, but also deal with rather complex domestic retail stores. Despite the huge potential of the domestic market, it is a test of the adaptability of enterprises.

　　 The trend of export to domestic sales highlights

"30%-52%", this is Annual sales volume More than 400 million yuan. Export volume Reaching $200 million, Shun Mei. Domestic market A change in proportion. More than 20% of domestic growth has cost the company 25 years.

Just yesterday, Xue Baojin, general manager of Shun Mei fashion Limited by Share Ltd, announced that from the beginning of this year, the proportion of domestic clothing sales will increase from 52% to 70% in the United States. It also increases the proportion of domestic sales by 20%, which may take up to 5 years for the United States.

DKNY has been the famous international brand "OEM" as an important source of income in the United States, is also an important brand in the domestic men's wear market, its business model has become a major change in the domestic garment industry has been a microcosm of transformation.

Some insiders said that the brands such as 361 degree, Anta and other brands, which also own the international sports giant, have already increased their investment in the domestic market. However, this information has not been confirmed by the relevant enterprises.

According to the China Textile Industry Association, at present, more than 80% of the export enterprises in China's clothing industry have begun to "export to domestic sales".

In fact, the transformation of domestic clothing enterprises from the export route to the domestic market has already begun to emerge after the international financial crisis. In the view of the industry, after the international financial crisis, many European and American countries suffered severe economic losses and the market demand shrank, leading to a sharp reduction in international famous brands' orders for domestic foundry factories. In order to alleviate the losses, these garment enterprises began to find new ways of development through domestic sales channels.

Wu Zhize, vice chairman of the China clothing association and chairman of the newspaper bird bird Group Co., Ltd., said in an interview that clothing foreign trade enterprises would not succeed if they wanted to successfully transform into domestic sales without spending 10 years. Even if it takes a lot of effort, it may be unproductive.

Xue Baojin also believes that clothing brands need to continuously improve the quality of their products in order to survive. {page_break}

　　 Transformation from production to whole chain

The large volume of foreign trade started last year and the hot market of domestic large tail goods benefited from the favor of consumers to "export to domestic sales". But one problem followed. Despite the large volume of sales, the price of these commodities decreased significantly from export to domestic sales, and the profits of OEM companies were still not guaranteed. For example, when a domestic factory outfits a foreign outdoor brand, it will only sell 30% of the price of domestic similar products after being sold domestically.

In order to be able to find a long way to survive in the domestic marketing channel, domestic clothing traders began to take the road of brand, and similar to Shun Mei and other already well-known brands, they began to improve brand building.

As a matter of fact, the prospect of brand marketing for export enterprises is quite broad. However, the transition from simple production to the whole industry chain will take a lot of cost. Liu Hui, a commercial consultant, said that although the profits for the international brand foundry commodities were not high, they only needed to pull the order and put into production the two processes.

From the OEM to the domestic market, the garment companies that only had the production function in the past should not only spend a lot of money on product development, but also understand the needs of consumers. In other words, the main export sales only need to buy plant equipment, and to convert to domestic sales requires huge investment in marketing and sales channels.

And business experts say that products that are suitable for foreign consumers may not meet domestic needs. Analysis of the market, design style, calculation of inventory and capital flow, the establishment of sales channels requires a large number of professionals.

In addition, the productivity advantage of export oriented clothing brands may also be a burden to the domestic market. An insider who has been engaged in textile trade for a long time says that a brand's overseas orders can sometimes support several factories, and even a dozen or more domestic orders can feed an enterprise.

　　 Adapt to zero donor system and survive

In fact, for garment enterprises that export to domestic market, increasing capital investment may not be difficult for large enterprises. In contrast, whether the garment enterprises that are engaged in production for a long time can adapt to the complicated supply system at present is the key to their smooth transition.

Recently, disputes like Kangshifu, COFCO and Carrefour have been the real portrayal of the domestic zero supply market. The contradiction is nothing more than high entry fees, boarding fees, shop fees and advertising sponsorship fees. For garment enterprises aiming to expand domestic sales channels, even if a perfect operation team is established, it is necessary to gradually adapt to various "game rules" of domestic retail channels.