Advantages And Disadvantages Of The Development Of Men'S Clothing Retail Industry

The global financial crisis has led many textile enterprises to go bankrupt.

Since 2009,

The main factors contributing to the growth of China's men's wear market include the support of industrial policies, the rapid development of China's economy, the accelerating process of urbanization, the popularization of men's fashion, the rising disposable income and the changing consumption pattern of increasingly wealthy Chinese urban consumers.

Favorable factors:

Industrial policy support

As the largest textile and garment producer, consumer and exporter in the world, the textile and garment industry, as an important livelihood industry in China, has become an industry encouraged by the state to focus on development.

In April 2009, the national development and Reform Commission promulgated the outline for the development of the textile industry in 11th Five-Year. It points out that it is necessary to cultivate original brands with international influence. The implementation of brand strategy should stabilize the low-end product market, expand the mid end product market, and break through the high-end product market.

We should establish and improve the intellectual property rights and brand protection mechanisms, strengthen the brand building of textiles, strengthen the brand awareness of enterprises, absorb international design talents, improve product design capabilities, increase investment in product design, market development and advertising, encourage enterprises to actively carry out trademark registration at home and abroad, carry out international quality management system and environmental management system certification, encourage textile industries and key areas to strengthen industry brand and regional brand construction, and focus on supporting and nurturing a number of advantageous enterprises in brand design, technology research and development, marketing network construction, establish and expand international marketing channels, and enhance the international competitiveness of China's own brands.

In the circular issued by the ten ministries and commissions of the national development and Reform Commission, the Ministry of Finance and the State Administration of Taxation, on accelerating the adjustment of the textile industry and promoting industrial upgrading, it was pointed out that we should speed up the research and popularization of ERP, e-commerce platform and online control technology, enhance the level of information and market rapid reaction capability of enterprises, strengthen the integration of upstream and downstream industrial chains, and combine production, teaching and research, innovate business models, improve the position of Chinese enterprises in the international textile and apparel supply chain, and increase the added value of products.

We should focus on supporting and vigorously developing a number of advantageous enterprises in brand design, technology research and development, and marketing channel construction, and strive to form some well-known brands with international influence by 2010, so that the proportion of textile and garment independent brand products has increased significantly.

The rapid development of the national economy and the rising disposable income

From 2001 to 2009, GDP increased from 109655 billion yuan in 2001 to 335353 billion yuan in 2009, with an average annual compound growth rate of 15%.

With the rapid growth of China's economy, the income level of urban families has increased correspondingly and their living standard has been improved.

The increase in total retail sales of consumer goods mainly comes from consumption in cities and towns.

In 2001 -2009, the average annual compound growth rate of per capita disposable income of urban residents in China reached 12.1%, reaching 17175 yuan in 2009.

The per capita disposable income of urban households continued to grow, and the consumer confidence index remained stable. The living standards of urban and rural residents were further improved and improved, and the total retail sales of social consumer goods changed from "steady growth" to "steady enhancement".

Steady increase in consumer demand will lead to steady growth in department stores.

With the sustained and stable development of China's macro-economy, residents' income level has been rising steadily, and the consumption structure of residents has gradually escalated. The consumption of urban and rural residents has gradually expanded from the needs of survival to the enjoyment of needs and development needs, and the proportion of high-end consumption of development and enjoyment has been increasing.

According to the statistics of the National Bureau of statistics, in 2006 -2009, the demand for clothing, textiles, gold and silver jewelry, automobiles and other categories of commodities has maintained a relatively high growth rate, and the consumption structure has been constantly upgrading.

The rapid urbanization process has created a broad fashion market for men's wear.

From the consumption data of urban residents and rural residents on clothing, we can see that in 2008, the average per capita clothing expenditure of urban residents was 1165 yuan, while the average per capita clothing expenditure of rural residents was only 211 yuan.

At present, the annual growth rate of urbanization is about 1.5%, and the sales of clothing brought about by urbanization is about 12 billion yuan / year, resulting in an annual growth rate of 4% of clothing sales.

Compared with the rural population, the urban population is more sensitive to the fashion trend and pays more attention to the brand choice of clothing.

In all clothing products, the price of popular fashion is relatively low, and it can also meet the consumers' affordability of two or three line cities or even four line cities.

China's rapid urbanization brings a broader market space for the brand of popular fashion men's clothing, especially the domestic fashion of men's fashion.

The change of consumption pattern of Chinese urban consumers

At present, the consumption pattern of Chinese urban consumers has shifted from the main concern price to the comprehensive cost performance of commodities.

In addition, consumers tend to be more rational in terms of brand consumption, which is a favorable driving factor for the sale of brand popular fashion men's wear.

With the rational consumption concept and consumption mode shifting to personality, leisure, fashion and brand, we expect the growth of the fashion market for men's fashion will be faster.

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Unfavorable factors

Popular fashion men's wear market competition is fierce

Domestic fashion men's clothing enterprises must face both domestic and foreign competition.

China's clothing industry has a low threshold, a large number of production enterprises, and most enterprises are small in scale, low in product quality and quality, limited in marketing and product development capabilities, low level duplicated construction is serious, production capacity of medium and low grade products is surplus, and some products are beginning to stagnant.

Many small and medium-sized enterprises do not think about how to innovate from the business mode. In order to maintain their survival and development, they merely copy and imitate the famous brand enterprises and the popular market product design, and adopt the way that the price is not allowed to the market. These irregular behaviors aggravate the market competition in the industry, and at the same time, affect the overall level of the industry.

In addition, with the liberalization of China's garment market, many foreign fashion apparel brands have entered the Chinese market. Although foreign brand clothing has entered the domestic market due to factors such as culture, marketing and other factors, it has occupied some of the domestic fashion men's clothing market by virtue of its capital, market, brand, fashion, customer service and information technology.

In addition, as China's economy continues to grow, consumers' purchasing power is generally enhanced, and more and more foreign brands will continue to enter the Chinese market.

Brand awareness is weak, and innovation ability is not strong.

Although mainstream fashion men's clothing enterprises have begun to attach importance to brand building and gradually increase the intensity of product design and development, but overall, the brand awareness and promotion ability of Chinese clothing enterprises are not strong enough, product design and innovation ability are not high enough, R & D investment is relatively insufficient, industry imitation is relatively common, and a few enterprises even embezzle famous brands, which seriously restrict the development of China's garment industry.

Exports to domestic sales have intensified competition in the domestic market.

On the one hand, due to the impact of the international financial crisis, China's clothing exports have dropped sharply, making clothing exports face greater pressure. On the other hand, in recent years Vietnam, Thailand, Malaysia, India and other neighboring countries have developed rapidly, and export has increased rapidly. The share of garment exports in Mexico and Canada is also gradually expanding, and the competition in the international market is becoming increasingly fierce.

Many export oriented enterprises began to seek the development of the domestic market, and some enterprises began to turn from exports to domestic sales, which will further intensify the competition in the domestic market.

Information management system is relatively backward.

At present, the demand of Chinese consumers for the fashion of men's clothing is increasing. This means that the enterprises in the industry need to promptly organize the production, pportation, distribution and sale of products on the basis of timely perception of market and trend changes, which requires that enterprises have advanced information management system.

China's current men's clothing industry is characterized by outsourcing, business models with franchisees and agents, in this mode, enterprises want to get the consumer preferences and habits of terminal consumers in a timely manner, and timely launch new products to the market to seize the opportunity. Information management system plays a very important role in it.

However, as far as the current industry is concerned, most of the enterprises are deficient in the input, management and talent of information management system.

Therefore, for the traditional clothing enterprises, it is a great challenge to develop or develop the information management system suitable for their own business needs with the help of their own strength or the two time.

Correlation between popular fashion men's retail industry and upstream and downstream industries

Influenced by the global financial crisis in 2008, many textile enterprises are facing a crisis of bankruptcy.

Since 2009, the price of raw materials in textile and garment industry has been on the rise. For example, in the first half of 2009, domestic cotton prices climbed from 11000 yuan / ton to 13000 yuan / ton, and import cotton prices were also rising.

In addition, the rebound in oil prices also pushed up the prices of chemical fiber products.

Cost pressure has become a tremendous pressure for the development of garment enterprises.

In addition, textile enterprises will also face the risk of increasing international trade friction.

All of these bring some pressure to Chinese fashion men's clothing manufacturers. At present, domestic fashion men's clothing enterprises mainly reduce production costs by outsourcing production mode.

From the perspective of product performance and quality, with the progress of urbanization in China and the continuous upgrading of consumption, the demand for garment surface and accessories is gradually improving.

Fashion design has entered the era of boutique. Small batch and multi color are inevitable trends. At present, domestic research and development of fabrics are moving towards high technology content and high comfort.

For the mass fashion men's wear manufacturing industry, which is a labor-intensive industry, because the production technology content of the industry is relatively low, the scale economy and the advanced level of production equipment continue to be developed to scale economy.

The downstream of popular fashion men's clothing retail industry is directly oriented to apparel retail customers.

The huge population base, the continuous increase of per capita disposable income, the rapid development of urbanization, and the increasingly casual, fashionable and branding of clothing consumption ensure that the mass fashion men's retail industry has a broad and expanding consumer group.