Circulation History Of Chinese Clothing And Its Trend In Twenty-First Century

China

Speech by Yang Jian, Deputy Secretary General of the designer association, at the 2004 China clothing wholesale market development forum

"China's circulation industry" is not unfamiliar to people engaged in the clothing industry.

Today, I am very glad to have the opportunity to discuss with you the Chinese clothing circulation industry.

After years of development, China's circulation industry has gradually formed a certain pattern.

1. The mode of Chinese clothing circulation industry

First of all, let's discuss and understand the channels of China's clothing circulation industry. There are three characteristics:

First, the long term planned economy in China has made the circulation industry lag behind obviously, which shows that the scale of clothing enterprises is small, the ability of commodity distribution is weak, the management level is poor, and the credibility is not enough.

Second, the development of circulation industry in China is backward, which can not be accepted by ordinary clothing enterprises. If enterprises want to deliver products to consumers smoothly, they can not stay in the original mode of commodity circulation.

Third, since clothing is a labor-intensive product,

Rapid change, short life cycle, high demand for value and capital, and small and medium-sized garment enterprises can not afford to build their own channels to develop the function of marketing network. Therefore, wholesale market is needed to realize the separation of production and sales, which is the embodiment of social division of labor.

It can be seen that the adjustment of China's clothing circulation industry is imminent.

With the development of China's garment industry, its circulation is developing at the same time and gradually showing several patterns. Here I would like to make a brief introduction to these models: first, the franchise and franchising mainly based on large and medium-sized cities, mainly by enterprises themselves; second, the agent system based on small and medium-sized cities and exotic foreign markets; third, the concept of big circulation is the main concept, and the major circulation here is mainly the wholesale market.

For consumers, their information acceptance rate is slower, consumption level is lower, and geographical distribution is wider (and dispersed), so the function of wholesale market circulation is especially needed.

After a brief understanding of China's fashion circulation mode, I will talk about several development stages of China's circulation history.

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Circulation history

After so many years of development, China's clothing circulation industry has seen its development history from her footsteps. According to the characteristics of this industry, I have divided the circulation history of China into three stages:

The first stage, in the middle of the 80-90 century, belongs to the era of commodity shortage.

In this era, there is a shortage of social commodities and a single channel of distribution. The supply and marketing section is the most typical term at that time.

The mode of operation is mainly the stalls of small commodity markets and farmers' markets.

The sales of clothing enterprises and the purchase of state-run shopping malls are mainly dependent on the rush of supply and sales staff, that is, the purchase and sale system in the traditional sense.

This stage of clothing production is mainly linked to the national plan, consumers do not have special requirements for clothing styles, mainly about clothing quality assurance, durable.

In the early days of this era, the purchase of commodities was basically purchased from state-run businesses and supply and marketing cooperatives.

With the development of the economy, wholesale markets and individual businesses are sprouting up. At the same time, under the premise of the state's advocacy of collective and individual economic development, the state business, supply and marketing cooperatives, wholesale markets and individual businesses will be cross managed.

The supply and marketing cooperatives were an important part of linking the urban and rural economies at that time.

We should give full play to its positive role in promoting rural commodity production, prospering urban and rural markets, and facilitating the masses.

On the one hand, it is responsible for the purchase and sale of national planned products, on the other hand, it promotes products for the people, supplies production and living materials, and provides services before and after production.

Because this stage is dominated by the planned economy, it is impossible to comply with the law of supply and demand in the market economy, and there is a phenomenon of disjointed production and demand.

The second stage, in the middle and late 90s, belongs to the era of pformation.

In the early 90s, the agency system in the Ministry of internal trade marked the beginning of the emergence of agency system in China.

During this period, commodities began to grow from shortage to abundance, or even a backlog of commodities. The main reason was that the awareness of commodity promotion at that time was not thorough enough and the promotion efforts were inadequate.

At the same time, the demand for circulation began to improve.

Some garment enterprises began to explore the mode of franchising. They set up marketing networks through recruiting dealers throughout the country and establishing outlets or outlets through distributors.

At the same time, the clothing wholesale market has been further upgraded and begun to play a leading role.

The performance is changed from roadside stall to enter the greenhouse operation, thus concentrating small garment businesses and guiding by * * unified planning.

That is to say, the wholesale market in the whole country is mainly the * * sector (business, materials, local * * *) and so on as the main body of investment.

In coastal areas (such as Shenzhen), individual investors have begun to become new investors in building wholesale markets.

The wholesale market has always been the biggest hub for the development of China's clothing industry. By the year 90s, it began to become more and more large-scale. There appeared a wholesale clothing market represented by Guangzhou white horse, Dongguan Humen rich people, Wuhan Hanzheng Street, Shenyang five love, Jiangsu Changshu merchants City, etc., they played a decisive role in the clothing industry of China. Its wide network coverage capability stimulated the rapid development of garment enterprises.

But with the development of the market, many large domestic clothing wholesale markets are going downhill.

During this period, the wholesale market and the agent system developed in parallel in the garment industry. At the same time, the wholesale market had a wide range of radiation, which also led to the phenomenon of agents fleeing goods. This is a serious problem.

This shows that the early agency system has serious irregularities. With the deepening of the agency system, more and more problems are exposed.

Until the late 90s, the agency system was widely applied and matured, and agents entered the wholesale market.

That is to say, China's clothing circulation industry gradually moves towards standardization in solving its own problems.

The third stage, entering the twenty-first Century, clothing circulation entered the era of commodity diversification.

At this stage, personalized consumption begins to rise, and consumers' demand for commodities is rising and becoming the leading force.

The styles of commodities are changing faster, and the life cycle of commodities is shortened.

Individuation demands the diversification of commodities, and franchising arises at the historic moment.

Franchising started in the early 1990s, and appeared in the late 90s. It was widely used in major cities as a representative of McDonald's and KFC.

Subsequently

Industry has gained popularity.

The original establishment of marketing network system can no longer satisfy the expansion intention of many garment enterprises, so they began to rely on franchising and recruit large number of franchisees to establish a national network.

The original production, supply and marketing of the apparel industry's branches is a continuous push operation, which is easy to generate inventory.

In this mode of operation, the enterprise's pursuit of sales volume will inevitably lead to a vicious cycle of rising cost, cost and profit.

Some enterprises carry out a thorough reform of the sales system and carry out the marketing mode of franchising in an all-round way, that is, to pfer the sales market of the branch to distributors and agents.

By cutting the leading branches in various places, the brand and the franchiser are tied together, and the franchisee is "pressurized" through the operation of the market, so as to make the brand "decompression".

After the implementation of franchising, the management cost and service cost of the head office were greatly reduced, and the efficiency was improved.

The enhancement of consumer personalization has also promoted the emergence of a new market for high fashion custom (a special market for small consumers.) in this era, e-commerce has emerged and more and more circulation patterns have emerged.

The entry of WTO has brought China into the tide of global economic integration. Chinese clothing has begun to move towards the international market and combined with international fashion elements to produce goods that are suitable for consumers.

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With the awakening of consciousness, some wholesale clothing wholesale markets are trying to get out of the wholesale market in order to seek long-term development, so as to realize the pformation from wholesale to brand management, but the road to pformation is always full of hardship and suffering.

Guangzhou white horse clothing wholesale market is the best example.

Transformation means adjusting the original channel.

There are two ways of adjustment: one is to guide the original wholesale customers and dealers to change their ideas and ways of operation to make brands.

The other is to replace customers and rebuild channels.

No matter what way it is, there are too many historical problems to be solved. We must reclaim the money that we have to pay, regulate the price system, and recover some outdated products which are always in the hands of dealers, and bear the responsibility of violating the contract.

At the same time, part of the wholesale market began upgrading and upgrading, the construction grade is higher and higher, content, function, service is perfect and rich.

The sprouting industry of personalized consumption leads to shorter life cycle and higher development ability of wholesale market products, reflecting a significant fashion culture.

For example, the Guangzhou Sha Dong advantageous clothing wholesale market, uses the spiral rise type construction structure, realized the vehicle may directly enter the top level from the bottom floor, at present this building design is unique in China, is also few in the world.

At the same time, in the pursuit of product quality, Sha Dong's clothing wholesale market also leads the world fashion and becomes the publisher of fashion information.

It can be seen that Sha Tung is a good example of the internationalization and fashion of the wholesale market in twenty-first Century.

All in all, personalization, diversification and internationalization.

This is the characteristic of this era.

Looking at the circulation characteristics of the three stages, we find that the clothing wholesale market has been running through the three development stages of the garment circulation industry, playing a mainstay role.

Trend of clothing circulation in three and twenty-first Century

1., clothing wholesale market is deepening.

With the further development of China's clothing industry, the clothing economy is in a mixed state of sensibility and rationality.

People's demand for clothing is no longer just about the basic functions of shame and warmth. More often, they pursue the added value of goods. They hope that products can provide satisfaction in spirit, taste and taste. They not only require the fabric and color of clothing, but also suit their own physiological and age characteristics, and also require styles and styles to suit their careers, identities and fashion pursuits. They are eager to make clothes become their silent language and accurately express their individuality and appeal, values and so on.

Therefore, under the mixture of perceptual and rational consumption psychology, the clothing market is becoming more and more complicated and difficult to grasp.

Coupled with the rapid rise of many brands of clothing brands in China, foreign brands are flocking in, and the clothing market is becoming more and more volatile.

To solve the problem of market share, we need to solve the problem of circulation channels.

The clothing wholesale market in twenty-first Century has been upgraded again and diversified business models are mixed.

That is, wholesale, agent, franchise and other business models used interactively.

For example, wholesalers and agents of a country wholesale the Chinese clothing to the country market (this is wholesale), and then agent the agent to the country (this is the agent), or he will build another affiliate network.

At the same time, the products in the wholesale market are upgrading, and the service is also strengthened when emphasizing product quality.

The convenience of pportation, advanced information technology, the release of fashion trends, environmental improvement and many other services enhance the image of the wholesale clothing market.

This is represented by the Guangzhou Sha Dong favorable clothing wholesale market.

The promotion of image has expanded the scope of pactions and achieved international exchanges.

At the same time, personalized demand enhances the development ability of the wholesale market for fashion products, and is more sensitive to fashion elements.

In the past, the market of clothing wholesale was no longer there.

That is to say, entering the twenty-first Century, the wholesale market of clothing is gradually deepening, international.

Sex continues to strengthen

2. the impact of economic globalization and e-commerce on garment circulation industry

Economic globalization

With the strengthening of global economic integration, the entry of WTO and the construction of information technology have also been strengthened.

By raising the level of standardization and intensification of information, enterprises can improve the level and efficiency of information resources development and utilization of circulation enterprises.

The realization of economic globalization shortens the trade between countries and facilitates the circulation of commodities faster to foreign markets.

China's clothing wholesale market is increasing year by year.

With the entry of WTO, garment circulation industry has formed a new pattern of opening to the outside world, expanding the whole process of distribution services, including wholesale services and retail services, including sales related agency services, and other sales services such as franchise services and after sales services; expanding the scope of access enterprises, and the competition in the domestic market will become more intense and increasingly internationalized.

Joining the WTO is conducive to attracting foreign investment, introducing new business formats and modern enterprise management methods and advanced management concepts.

At the same time, China's clothing circulation industry will also face new challenges.

The rise of e-commerce

At the same time, China's garment industry began to move towards the operation of e-commerce.

In order to carry out e-commerce effectively, we must speed up the data based social service platform.

Began to conduct e-commerce experiments on the garment industry.

Through optimizing supply chain management, establishing online purchasing of upstream and downstream customers, exploring the mode of combining garment industry with electronic commerce, establishing a professional network system in the clothing wholesale market, exploring the mode of combining e-commerce with e-commerce, exploring the mode of developing electronic business affairs of chain enterprises, utilizing the visible network of chain stores, expanding the variety and scope of business by setting up online stores, exploring the mode of combining logistics enterprises with e-commerce, and exploring different modes of development of e-commerce.

E-commerce has blurred the division of labor in the garment industry, and the production and marketing mode of production, marketing and integration has emerged.

E-commerce has a better grasp of the demand for clothing industry.

Thus deciding how much we produce, what we produce and whom we produce for it can be accurately solved and highlight its leading role in social reproduction.

E-commerce has increased clothing related industries, such as pportation, packaging, processing, and enhance employment opportunities in the apparel industry.

E-commerce expands the scope of the clothing market and accelerates the internationalization of the clothing trade.

Not only has the consumer's shopping selectivity greatly enhanced, but also the garment industry has become more competitive.

From the perspective of future development, the globalization of production and business activities in garment industry is the product of international division of labor, international trade and pnational production of enterprises.

The use of e-commerce has opened an open network for the apparel industry, opened management to its own supply chain, developed online ordering for small and medium enterprises, and provided channels for SMEs to develop international operations, and has gained more business opportunities.

3.**'s planning for garment circulation industry

National Planning

The circulation industry has been playing an important role in the national economy. The establishment and development of the leading commodity circulation structure is the inevitable trend of the development of the socialist market economy and the inherent requirement of the development of the socialist market economy law.

However, there is still something wrong with commodity circulation nowadays: first, the development is lagging behind.

Two, the system is imperfect and the market competition is not standardized.

Three, the overall level of commodity market and commercial network construction is not high, and the competitive strength is not strong.

In order to adapt to the changing consumer demand and respond to the new situation of joining the WTO and meet international competition and challenges, according to the spirit of the fifteen fourth and fifth plenary session of the party's fourth Central Committee and the outline of the Tenth Five Year Plan of People's Republic of China's national economic and social development, the outline of the structural adjustment plan for the commodity circulation industry in the period of fifteen years is put forward. It clearly stipulates that the macro guidance should be strengthened, the modernization of commodity circulation in China should be accelerated, and the contribution rate of the commodity circulation industry to the national economic growth can be improved, which will provide good conditions for the development of China's circulation industry.

Only by speeding up the strategic adjustment of China's circulation industry structure and striving to improve the modernization level of the circulation industry and the level of international competition can we quickly change the backward situation of our circulation, adapt to the changes in the structure of domestic consumption demand, reduce the circulation cost, effectively expand domestic demand, better play the guiding role of circulation in production and the pulling effect on the national economy.

District Planning

The improvement of the external environment of the wholesale market, in addition to the national * * planning, owes to the planning of local * * and the realization of the wholesale market.

Take Guangzhou Shahe clothing wholesale market as an example, under the leadership of Guangzhou * *, the wholesale market of Shahe clothing has been upgraded from the past chaotic mess to the top clothing wholesale market, which is now shunted by people and vehicles, and regulated by management.

The development of circulation industry has led to the shift of the circulation business circle from the urban center to the urban fringe area, and promoted the pformation and construction of the urban area.

Combined with urban renewal and construction, we should speed up the construction of various markets, improve functions and improve service quality.

Further standardize the wholesale market and enliven the retail market.

We should adjust the ownership structure and format of circulation enterprises.

We should encourage and guide non-public enterprises to participate in the competition and development of the service industry in a wider range and deeper level, and give full play to their leading role in the catering and retail industries.

At the same time, * * also advocated the introduction of advanced technology.

Methods and technologies to continuously improve the technological content of the commodity circulation industry, accelerate the development of new circulation formats, and promote the rapid pformation of traditional business to modern commerce.

Gradually formed by relying on large retail stores, small supermarkets, chain stores, convenience stores into the community, supplemented by agency, distribution, e-commerce and other non store style sales, constitute a new circulation pattern.

We should explore various ways to realize credit consumption and advocate residents to implement advanced credit support such as automobiles and housing.

The improvement of circulation industry has improved the environment of the wholesale clothing market, standardized the management of the wholesale market, and promoted the rapid development of the local economy.

Summary: circulation industry will inevitably develop towards intensification, linkage, informationization, standardization and internationalization.