How Should The Garment Industry Enter The Last Ten Years On The Road Of Clothing Power?

The clothing industry is China.

In 2011, the garment industry entered the last ten years on the road of garment power. In order to achieve the goal of a strong garment country in 2020, it was not enough to just sit on the domestic market, but also to do something in the international market.

At present, China's clothing industry is only in the initial stage of "going out". It wants to import technology, brand and even corporate culture into other parts of the world, just like KFC, apple and other companies. Our clothing enterprises have a long way to go.

Then, how should we go about the internationalization of China's garment industry?

Export of capital westbound

In early 2008, YOUNGOR announced that it had completed the merger and acquisition of the new Malaysia clothing group, the core business department of Kellwood, the famous clothing company of the United States, which is the first overseas merger and acquisition of Chinese textile and garment enterprises in KWD.

Through this acquisition, YOUNGOR has improved its own industrial chain and its layout in the global market.

YOUNGOR's peers realized that today's textile and garment industry is not only the competition of products and channels, but also the competition ability of the whole industry chain integration.

After the outbreak of the financial crisis in 2008, the value of overseas garment enterprises shrank, and some powerful textile and garment enterprises in China launched a wave of "overseas copying".

Entering the 2009, it was first announced that two private enterprises in China were willing to invest heavily in the acquisition of "Pierre Cardan".

Not long after that, two textile companies in Shandong quietly bought several European clothing brands, which surprised the industry.

After that, more enterprises are ready to move.

When the seven wolves, nine shepherd, Anta, Qipai, XTEP and other min faction enterprises expressed their overseas acquisitions, Wenzhou's clothing companies had gone to Italy to investigate investment markets and potential acquisition brands. Chinese textile and garment enterprises looked at overseas brands like shopping, as if acquisitions were everything.

Some experts pointed out that although the "ship to sea" can effectively reduce costs and risks, it is a reference for the whole industry to "go out". However, the risk of this move should be vigilant.

Tan Zhiqiang, President of the Humen apparel industry association, said that in recent years, overseas acquisitions of brands have made fewer successful failures, and foreign assets acquired are almost all bad assets. Chinese enterprises do not understand each other, so it is difficult to improve their operating conditions.

In 2009, after Anta acquired Anta's high-end sports brand FILA from BELLE, Ding Shizhong, President frankly, said: "while harvesting opportunities, it also faces enormous challenges."

He said that enterprises should do their best in order to avoid indigestion.

"The most important thing is to train a management team who is familiar with foreign markets, has international brand operation management experience, and is familiar with the corporate culture. At the same time, we should also guard against the trap of brand acquisition."

Insiders pointed out that mergers and acquisitions will not become the main way for Chinese enterprises to go out. China is not yet strong enough to export capital to a large extent. In the coming period, the export of capital to Europe and the United States will continue to be in the exploratory stage.

Production pfer - down south

After the financial crisis, trade protectionism intensified, and labor costs increased, the appreciation of the renminbi and the price of raw materials increased. The textile and garment industry accelerated the pace of pferring to low cost areas.

In 2010, China ASEAN free trade area was launched. ASEAN, which has low labor and land cost, is attracting more and more attention from domestic textile and garment enterprises.

"The labor costs of China are rising now. Compared to the factories we have opened here, China's brand clothing has been shipped back to the mainland of China for sale," he said.

In addition to low cost, avoiding trade barriers is also a very important reason.

Pan Yaoquan, President of the Singapore textile and clothing association, said: "China's clothing enterprises set up factories in ASEAN, on the one hand, they can directly sell products locally; on the other hand, because ASEAN has signed FTA agreements with Japan, South Korea, India and some European and American countries, Chinese Enterprises can take ASEAN as a pit point to avoid trade barriers between the European and American countries and thus sell to a broader market."

Nowadays, many Chinese textile and garment enterprises have poured into ASEAN to establish production bases.

According to relevant information, only about 60 Chinese entrepreneurs have landed 200 hectares in the Indonesian galajuan region to build factories for textiles and clothing industries. Besides, Chinese textile and garment enterprises are also looking for investment and construction sites in many parts of Indonesia.

However, despite the various benefits of ASEAN, the Chinese enterprises still face potential risks such as unregulated local market and unstable political situation in some ASEAN countries.

Xu Ningning, Deputy Secretary General of the China ASEAN Business Council, said that Philippines, Indonesia and other ASEAN countries were generally short of funds. Local enterprises had difficulty in obtaining loans or loans at the high cost, unstable exchange rate, unpredictable import and export costs, and difficult to make profits in import and export business. Therefore, Chinese enterprises should conduct adequate risk assessment when investing in cooperation.

Wang Yuzhu, a researcher at the Asia Pacific Economic Research Institute of the Chinese Academy of Social Sciences, said that the policies adopted by some countries in foreign trade and economic cooperation are hard to predict, such as default, political violence and exchange restrictions in Thailand, Burma and Kampuchea.

In response, experts said that the government should take active measures to standardize and guide enterprises to explore ASEAN market, and at the same time increase support for "going out" enterprises. At the same time, enterprises themselves should also pay attention to avoid potential risks.

The industry said that overseas factories will not become the mainstream of Chinese clothing enterprises in the short term. The political and economic instability of ASEAN countries and the lack of a complete industrial chain need more care and patience for Chinese enterprises to build factories overseas.

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Cluster investment -- New Perspective

Entering the 2011, "westbound" and "southbound" are still the state of watching while walking. The clothing industry in China is still in the initial stage of "going out".

How to surpass the primary stage of "going out" in the five years of "12th Five-Year" planning has become a problem that all practitioners in the textile and garment industry must think about.

In this regard, Wang Liping, chairman of Zhejiang Guang Bo group, suggested that the model of "Suzhou Industrial Park" established by China and Singapore can be followed by the government and relevant departments. In less developed countries such as labor, resources, electricity and other relative advantages, the industrial park will be established in cooperation with the local government to improve the efficiency through planning, management and rights protection.

In fact, Wenzhou enterprises have begun similar explorations.

The Chinese industrial and Trade Park in Costa Rica is the first industrial and trade park built in Costa Rica by the mainland of China.

Chen Lesheng, founder partner of Wenzhou Hua Ge venture capital company, said that the local market is very compatible with Wenzhou products. "We can provide more investment and financing platform for SMEs to help them go abroad."

It is understood that the park also provides special investment funds and guarantee services for the enterprises in the park.

By the end of April 2010, 575 enterprises and institutions in Wenzhou had been approved to go out by government departments, covering 67 countries and regions in the world.

In addition to the more than 100 China Mall, Wenzhou private enterprises have established 5 state-level and provincial economic and trade cooperation zones overseas.

Zhao Yide, mayor of Wenzhou, said that in the past, Wenzhou people "went out" to take the overseas market and overseas institutions as the main body. Now they have developed into overseas investment factories, overseas resources development, overseas mergers and acquisitions, overseas listing financing, and overseas leading economic and trade cooperation zones.

According to the insiders, most industrial clusters have complete industrial chains and strong supporting capabilities, and the government has given great support to them. They can provide assistance in understanding overseas investment policies, risk assessment and environmental inspection.

Therefore, in the form of cluster attack, the establishment of overseas textile industrial parks or cluster production bases, complementary advantages and competitive advantages are likely to become a major attraction for the industry in 2011.