Ya Po Road Clothing Market Entered The "Post Shuffle" Era

After nearly 20 years of development, the Beijing Ya Po Road has developed from the dozens of small stalls at the beginning to the largest Sino Russian. clothing One of the trading centers. Facing Russia market The huge demand of China's textile and apparel, which dominated the market at a low price, embarked on the road of high-end positioning and independent brand development.

Whether it is in a luxury building style commercial building in Eastern Europe or in a simple Street shop, it can feel the strong trade atmosphere of the business road. After nearly 20 years of development, Ya Po Road has developed from dozens of small stalls at the beginning to become one of the largest distribution centers for Sino Russian clothing trade. In the face of Russia's huge consumption of $600 per person per year in import clothing, China's textiles and clothing won by price. Nowadays, businesses here have embarked on the development path of their own brands, so as to meet the challenges of the new era of "shuffle" in positioning high-end products.

　　 Small profit competition turned into brand War

With the gradual improvement of living standards, the consumption concept of the Russian people has also undergone great changes. Consumers no longer pursue the products of low price blindly, but pay more attention to brand and product quality. On the other hand, the meager profits of OEM orders also prompted the company to seek new breakthroughs. "A T-shirt produced in China sells 220 rubles (about 51 yuan) in the Russian wholesale market, and sells more than 400 rubles in the shopping mall. It can even sell 4000 rubles to other stores in the store." Mr. Yang, a permanent representative in Moscow, described the added value of the brand.

It is precisely seen that the strength of brands in foreign trade, a group of innovative spirit of the company has changed the idea of "win the price", and began to try to develop their own brands, and seek profit growth points in the high-end market.

As for this market change, Mr. Kong, who started his career at "Ya booth road", realized that "in 1990s, no merchant had an independent brand. Almost all those sold in the market are clothes from southern enterprises, like we also get goods from the wholesale market of Beijing zoo. After entering the 2000, when he went to Guangzhou and Zhejiang, he found that in the south, no matter how small the clothing factories were, they were making their own brands. At the same time, the colleagues of Ya Po Road began to look for foundry factories with design drawings. "In the past few years, although the business is getting better and better, everyone feels that there is no future for OEM alone. After all, there is no brand, no design and R & D capability, and bargaining with foreign investors is not enough.

It is understood that 80% of the businesses in the market now have their own brands, and each brand has its own characteristics and culture. "Our products are not only sold in the Russian wholesale market, but also through some Russian distributors to some large department stores." Mr. Kong said that in recent years, Russian businessmen have gradually increased their recognition of Chinese brands. After communicating with some buyers who have never dealt with each other, he found that Russians are now looking for suppliers according to their brands, which is quite different from the way they used to look for processing factories in the past.

Market abrupt accelerate "shuffle"

"Before the outbreak of the financial crisis, business is still well done." Lee Po manager, who runs a women's clothing brand, recalled that at that time there were many foreigners on the Po Po Road, and the voice of buyers could be heard at any time in the corridor. A financial crisis in 2008 brought a fatal blow to many businessmen who are obsessed with brand management. Mr. Kong also felt deeply about this. "In 2000, selling 3000 pieces a day and selling one million pieces a year is very common. But after the financial crisis, the market is much worse than before.

Recalling the business situation in 2009, Mr. Kong shook his head repeatedly. "The Russian businessmen who came to ya Bao road suddenly suffered a lot less, and the streets and corridors were much quieter than before." "Not only customers who come to the store are significantly reduced, but basically every week, buyers who have ordered goods return. A Russian guest suddenly returned all the goods he ordered after the financial crisis, and he only paid more than 4000 dollars for the order. After the return, no matter how to contact the customer, there is no news. Manager Li said.

After the outbreak of the financial crisis, many of the businesses of Ya Bao road have suffered from the loss of orders and the default of payment. For a time, without business, the market did not know when to get better. Some merchants chose to switch careers after struggling for a year or so.

Compared with ordinary foreign trade companies, most of the businesses of Ya Bao road are more focused on the Russian market, but it is precisely because the export market is too single that their business is highly vulnerable to the economic fluctuations and market changes in Eastern Europe. Especially under the influence of the subprime mortgage crisis in the United States, the demand for the Russian terminal market was tired, which led to some of the poor businesses that could resist the risk to be difficult to continue, and were eliminated in the "shuffle".

　 Diligent in research and development, but not in battle.

However, the law of "leftover is king" has played a role in screening and promoting this seemingly financial crisis. Nowadays, the market of the Po Po Road not only complements new blood, but also has become the backbone of the market after the crisis has been tempered.

Jing Zhu Shengshi group is one of the powerful representatives. In 2008, the sales volume of the company still increased slightly in the same industry. That year, the company entered the Yizhuang Economic Development Zone in Beijing. After three years of rapid development, the sales volume of the three distinctive brands of "Decently", "JEPEN.SUN" and "THINKPACE" increased year by year. In 2010, the sales volume increased by 20%, creating a remarkable achievement in the total sales volume of 600 thousand.

"If you don't know where your business will be 5 years from now, it will be sooner or later to be eliminated by the market. It's not important to be busy or busy at the moment. The key is to see what your competitive edge is when comparing with your peers. Liu Liansheng, the general manager of the company, has put forward the elimination rule of the "shuffle" era. "10 years ago, everyone was doing OEM, and you were making a brand. This is your competitive advantage. After 10 years, everyone is chasing European and American big design styles, and you are working hard on R & D, which is the key to your success now and even in the next 10 years."

According to the introduction, Jing Zhu Sheng Shi Group has nearly 100 people's design team. The design department of the women's clothing brand "Decently" is divided into two groups. According to the different positioning of the product target group, the R & D team for middle-aged women and fashion women is set up respectively. Every year, the company will send foreign designers to Italy, France and other places to conduct first-hand market research and collect first-hand information.

"The demand for Russian market is quite different from before. In 1995, the introduction of a new down jacket, matching 3 medium colors, selling 500 thousand pieces is not a problem at all. Speaking of product changes, Liu Liansheng said that Russian businessmen now have higher requirements for product styles and fashion sense. To this end, the company is also increasing the proportion of investment in the design of products. "Today's labor costs are very high, designers can earn more than 10 thousand yuan per month, and sample workers can get 4000~5000 yuan a month. But for the future development of enterprises and brands, this part of the expenditure is very necessary.

"Although our design will be imitated by some peers, their products are hard to achieve the same quality." Liu Liansheng pointed out that the selection criteria from raw materials to design and R & D capabilities are the key to ensuring the quality of products and winning the right to speak in the market. "As long as the quality of products is recognized and the brand image is built up in the eyes of foreign investors, no matter how the external situation changes, products will occupy a place in the market."