Why Are Large Textile Groups Involved In The Clothing Industry?

Guests of this session:

Shandong Dai Yin Textile Group

Xu Bin, deputy general manager of Shanghai textile fashion industry development company

At the just concluded China International Clothing and accessories fair, the large textile group, Ruyi and Nanshan first carried

In recent years, large textile groups have been involved.

Zhao Huanchen: first, in the era of meager profits, upstream enterprises need to find new profit growth points.

In recent years, with the change of macro environment, the textile industry has entered a meager profit era.

First of all, cotton prices and oil prices continue to rise, resulting in cotton spinning and chemical fiber and other fields have been greatly affected.

Second, the policy of expanding domestic demand and the macroeconomic impact of RMB appreciation and monetary tightening further reduced the profitability of the industry.

In this case, in addition to controlling upstream raw materials and opening up trade links, the industrial chain extends to garment production and terminal operation, becoming one of the ways to increase profits for textile enterprises.

Second, trade barriers in Europe and America are becoming increasingly stringent, which has a great impact on China's textile exports and industrial efficiency.

For example, in December 2010, the European Union's REACH regulations (the "chemical registration, assessment, licensing and restriction regulations") also added 8 lists of highly concerned substances, while 13 of the 15 highly concerned substances published in 2008 were related to textiles.

There is a recent rumor that the EU is considering the "origin label" system.

If the bill is finally approved, it will increase the cost of textiles exported to Europe, and the profit margins of textile enterprises will be further compressed.

Third, the clothing industry is a sunrise industry.

Clothing is a must for the ordinary people. With the awakening of consumers' brand awareness and the mature rationality of consumer behavior, people pay more attention to dress and taste, and pay more attention to cost performance.

At the same time, the two or three tier cities in China are rising rapidly, and broader market space has been developed.

After experiencing the development of industrialization and branding, China's garment industry will usher in new opportunities.

Xu Bin: Shanghai Textile Holding Group has been involved in the field of clothing before. Its three gun underwear and conch shirt are all old brands, but they are facing the masses of consumers.

The introduction of pro - Li Wen is intended to further elevate the brand level and create a brand positioning high-end and high-end people.

In recent years, the Shanghai municipal government has been very concerned about the fashion industry.

Last year, Shanghai proposed that it should become a brand incubator center, a brand aggregation and radiation center and a brand trade operation center, and strive to cultivate famous brands with independent intellectual property rights in Shanghai.

Moreover, as a large state-owned textile enterprise, Shanghai textile holding company will launch a number of clothing brands that can represent Shanghai.

There are many areas of clothing segmentation. Why do you have a liking for high-end business brands?

Zhao Huanchen: the traditional men's wear market is fiercely competitive, and the growth space is limited. But with the change of consumer dress concept and the improvement of consumption ability, business men's clothing has quickly become one of the most dynamic plates in the market. Therefore, business men's clothing is attractive and the market scale will continue to expand.

We are launching the Renault brand based on this situation.

Xu Bin: at present, Shanghai has gathered a number of international brands. Some domestic garment enterprises have moved their headquarters to Shanghai, but they can not truly represent Shanghai's local culture.

Shanghai Textile Holding Group has also done OEM processing with large volume and low profit. Now the group needs strategic pformation. It puts forward a new concept of "technology plus fashion", and creates high-end brand in line with Shanghai's goal of building a fashion capital and the interests of group development.

After market research, we find that today's consumers are more rational. Moreover, the consumption power of Shanghai can also support a high-end brand, and it has a Shanghai style. So we think there is room for survival at this time.

It is not easy to cultivate brands. Some spinning companies directly buy brands, and what kind of considerations do you choose to create?

Zhao Huanchen: at the moment, most of the brands that are active in the domestic men's wear market are in the two or three line market. The brand development time is relatively short, no matter in the operation of the brand, or in the historical deposition of the brand, there is a gap with the foreign high-end brands.

Some experts say, "like Shanshan and other enterprises, when they develop high-end men's clothing market in China, they adopt the way of acquiring foreign high-end brands to do the domestic market.

Because high-end brands can be recognized by the consumer market with rich history.

Therefore, it is more difficult to expand the high-end market with local brands.

And I think 20 years ago, Italy was also a big processing power, and now they occupy a larger share of the global men's wear market.

The status of senior men's wear brands in China will not be so long. The key to breaking through the local men's wear brands is to be confident.

Shandong's Dai Yin group is confident that through long-term cultivation, Renault will become an influential brand.

Xu Bin: if it's a takeover, then the brand is already well-known, and the market incubation period can be shorter, and the licensing process will be even more difficult.

However, for the time being, the acquisition of domestic enterprises basically belongs to the international two or three line brand, which has little strategic significance to Shanghai Textile Holding Group. We want to build a clothing brand rooted in Shanghai style culture.

On the one hand, Shanghai Textile Holding Group has considerable industrial chain resources and policy resources, such as Shanghai fashion week and Shanghai clothing festival, which are led by Shanghai Textile Holding Group. We can use this platform to carry out brand promotion; on the other hand, we have many years of operation experience in the field of clothing.

So we chose to create brand instead of buying it.

Some people say that the textile group is involved in the clothing business and is faced with the problem of backward brand idea and short talent. What do you think?

Zhao Huanchen: in the human resources module of clothing enterprises, there are four kinds of talents, management talents, core technical talents, creative talents and reserve talents.

Training talents is not overnight. We adopt the method of combining internal training with external recruitment.

On the one hand, we should strengthen communication and exchanges with well-known universities and colleges, and actively promote the joint operation of schools and enterprises. On the other hand, the company will send outstanding employees to universities for further study, so as to provide a good platform for sustainable development for employees.

Xu Bin: Nowadays, a large number of foreign brands have opened their stores to Shanghai. For us, learning models are in sight, and we can learn their brand operation concepts and techniques.

The operation of brand and talent is the first factor. Many employees in our team have switched from these big names.

Of course, in the long run, it is very important to form an internal talent training mechanism.