Clothing Industry "Shuangcheng Ji": The Brand Gap Between Pinghu And Jinjiang

Huang Gu Town, where A De's second hand sewing equipment is located, is estimated to have 300~400 clothing processing plant, which is the most concentrated town in Pinghu's clothing industry. In the first half of 2011, the entire Pinghu garment industry, including Huanggu Town, fell into a loss of ice.

Pinghu's clothing dilemma

Zhu Juhong, the landlady of the Pinghu Ya Yi garment factory, is 50 years old. She is holding a bench at the gate of the family factory. She is cutting off the thread on the top of the dress. She told the newspaper reporter that the processing fee for each piece of clothing produced by the customer last year was more than 20 yuan, down to more than 10 yuan this year. A local official said that if the processing cost of a garment was only a dozen or so, the cost of workers' wages and other costs could be eliminated, and the boss was actually in a state of loss.

Complain about not making money, and the boss of the garment factory of Ya Yi, "please pay the highest wages of workers to 170~180 yuan / day, up 20%~30%, the wages will go up, and the processing fees will not rise. Now we can get rid of workers' wages, water and electricity charges, water charges, and basically make no money."

When Gu Jianping, general manager of Yusheng enterprise, was still glad that he had about 5% of the profits, an accident made him very upset. In the first half of this year, Yusheng enterprise received a total of 18 thousand pieces of clothing list, the total amount of about 2 million 700 thousand yuan. Just when delivery, the foreign customers thought that the wool of their clothes had peculiar smell and refused to accept this batch of clothes. Gu Jianping's annual sales volume of the company was only 40 million yuan, and the list of 2 million 700 thousand yuan in the hand was an unbearable loss. After some negotiations, the customer agreed to accept the goods, the premise is to remove odor. However, after Yu Sheng Enterprise removed the peculiar smell, the customer proposed to modify the label on the garment, then put forward the requirement that the goods should be changed to air freight because of the delay in the work. The average cost of a garment airlift is 30 yuan, and the cost of 18 thousand airfreight is 540 thousand yuan, exceeding the profit brought by this list. Gu Jianping proposed half of the air transportation and the other half took the conventional channel, and the client reluctantly agreed. Nevertheless, the list received by Gu Jianping is already a loss.

In the first quarter of this year, the total profit of Pinghu's garment industry was 36 million 600 thousand yuan due to factors such as insufficient order, rising labor costs and rising raw material prices. The second quarter is also not optimistic. In the first 5 months of this year, the whole garment industry in Pinghu accumulated a total loss of 21 million 770 thousand yuan.

It did not change until June. According to the data provided by relevant government departments in Pinghu recently, in June this year, the Pinghu Statistical Bureau has counted out that the garment industry above designated size has achieved a profit of 10 million 850 thousand yuan in the first half of this year, turning losses into profits.

According to the first half of this year, the output value of Pinghu garment industry is 6 billion 66 million yuan, and the profit of 10 million 850 thousand yuan is 0.18%.

70 year old woman sewing buttons

There are about 1600 garment enterprises registered by Pinghu's industrial and commercial enterprises, most of which are processing modes of raw materials processing and export oriented. The sharp rise in wages has made the profits of these garment factories almost wiped out.

Gu Jianping, who opened the garment factory in 2001, regrets that in 2003~2004, the maximum wage of workers is about 17 thousand yuan / year. At that time, the figure seemed to be very high, and now the annual salary of 35 thousand yuan is not high. At present, the average annual salary of garment workers in Pinghu is around 30 thousand yuan.

In the workshop of the upper and lower two floors of the garment factory, the 10 floors of the workers on the first floor are working, and the workshop is empty. 5 of the old women with white hair are sewing and the oldest old lady is 70 years old. The old lady with a pair of old glasses said that sewing a dress button could earn 4 cents, 50 pieces per day, and 20 yuan per day, compared with the daily wage of 170~180 yuan per day, which could save a lot of money for the landlady.

The staff apartment of Pinghu jiangmao clothing company has four floors, which can accommodate 500~600 people while the actual workers only have 200 people. As a preferential treatment, as long as one spouse works in jiangmao company, he can stay in a dormitory, and the monthly management fee is 30 yuan. Each dormitory is equipped with air conditioners, with separate bathrooms and hot water baths.

Despite this, Jiang Mao is still facing difficulties in recruitment. Jiang Mao's newly opened factory in Huaian, northern Jiangsu, has been put into operation this year. A person who does not want to be named said that the Huaian factory could accommodate 500~600 workers.

A local entrepreneur is not optimistic about the problem of labor shortage and wage increase in Pinghu garment processing enterprises. He said that after 3~4, the trend of wage rise will spread to other central and western regions. The mode of simple order processing in Pinghu's clothing industry has come to an end. Processing enterprises must build their own clothing brands and take the initiative of their business in their own hands.

Brand gap between the two places

Although there are more than 1600 registered clothing enterprises in Pinghu, but in the vicinity of the core business circle of Guan Yu Temple, Pinghu's local clothing brands are almost invisible. Fujian's "nine shepherd", "seven wolves" and the transnational brand "Adidas" occupy the most prominent position. Even in Huanggu Town, which is about 20 kilometers away from Pinghu City, Wenzhou's Metersbonwe and Fujian XTEP brand also occupy the core position in the main street. "Pinghu"

The industry said that more than 1600 garment enterprises in Pinghu, the registered brand and the actual operation of only about 10 enterprises, and can be nationally known brands are few. A government department in Pinghu disagreed with this statement, saying that the Pinghu clothing industry has 1 Chinese brands (sweater brand "Yuelai Chun"), 4 well-known trademarks in China, 4 famous brand products in Zhejiang, and 5 famous trademarks in Zhejiang.

In order to accelerate the creation of domestic brands, Tao Mingfang, vice mayor of Pinghu, led the team to Jinjiang, Fujian. Jinjiang and Pinghu are both county-level cities, and the Pinghu garment industry has started almost the same time, but today's development is quite different. Jinjiang clothing listed companies have been listed as "Li Lang", "seven wolves" and "nine shepherd", plus Anta, XTEP, and 360 degrees in sportswear. The total number of clothing listed companies is more than 6.

In 2010, the output value of Jinjiang's textile and garment industry reached 44 billion 460 million yuan. In the same period, the output value of garment industry in Pinghu above scale was 15 billion 761 million yuan. In terms of figures, Jinjiang was 2.82 times the number of Pinghu, and the difference between the two places was quite large.

Since 1990s, garment enterprises in Jinjiang of Fujian have chosen to build their own brands. The advertising time of CCTV sports channel is almost covered by Anta brands such as Anta and XTEP, and is nicknamed "Jinjiang channel".

In 1999, Anta boss Ding Shizhong decided to invite world champion Kong Linghui to become the brand spokesperson. At that time, Anta's efficiency was less than one million, and advertising production and broadcasting had spent 800 thousand. Even inside and outside Anta, there was a strong concern that the money was going to be wasted, and the market share of Anta rose to about 10% in about 2 years. Kong Linghui brought fire to Anta, while Chen Daoming and Nicholas Tse let Lee Lang and XTEP thrive. Anta and other brand Jinjiang clothing promotional expenses have accounted for more than 10% of revenue.

At the same time, the Jinjiang clothing enterprises have been bypassing Beijing, Shanghai and other tier cities in the layout of sales channels. In the two or three tier cities of China, they rely on local distributors to build franchised stores, take the road of "rural encircling the city", and quickly occupy the Chinese grassroots Market with transnational brands and a large number of brands that can not be taken care of at a low price and acceptable quality. Now, 31d, XTEP and Anta have more than 7000 stores in the country, and 3000 of the terminal stores such as leilang and seven wolves.

"Brand =" celebrity endorsement + CCTV advertising + channel expansion "was once a brand marketing mode that Jinjiang enterprises imitate each other. This mode is considered by some people in the industry that the lack of brand details and serious homogenization make it difficult for consumers to establish long-term brand loyalty. As a matter of fact, many Jinjiang clothing enterprises have been upgrading rapidly after brand recognition has been promoted, and once again achieved continuous development through transformation and upgrading, so as to get new development opportunities in their own way.

By contrast, Pinghu has missed a golden opportunity to develop its domestic brand. Pinghu claims to be the "back garden" of Shanghai, which can not only promote the development of Pinghu's garment manufacturing industry, but also drag up the rise of Pinghu's clothing brand. A Pinghu clothing entrepreneur said: "at that time, Shanghai clothing company, Shanghai garments import and export company, Shanghai clothing trade company had a large number of garment export orders to Pinghu's enterprises to complete. My company worked with Shanghai fourth garment factories to process the foreign trade orders from this factory. The business is very good. Almost 80% of Pinghu's enterprises are like this. They do not worry about orders. They do not need to worry about the design. They only need to follow the sample processing, and they do not need a lot of capital and do not need to take any risks.

Pinghu, the largest clothing company in the past, has been dying on its own clothing brand. Mo Hua was once the largest garment processing enterprise in Pinghu. Li Qinfu, general manager, tried to make his own brand and opened about 200 stores. In 2001, Shanghai was listed in Shanghai under the name of "600555.SH" in 2001. But the pace of expansion was too fast to succeed. In 2005, the company announced that because of the declining profitability of the garment industry, the clothing industry assets were sold to real estate development as the main industry, and the name of the listed company was changed to "Jiulong Mountain".

Local people in Pinghu said that when Pinghu explored and established its own brand, the export orders of the clothing enterprises in the country were still many, and the benefits were good. Even if the Chinese textile mills failed, they even felt that it was not necessary to risk their own brands. There are many garment enterprises above the scale of the Pinghu clothing association. If we all set up our own brands at that time, 100 enterprises should have about 30 enterprises to succeed.

Meng baosha's chairman, she Xin, admitted that the manufacturing capacity of Chinese clothing has already exceeded the actual demand, and that the overloaded clothing of some enterprises is enough to sell for 2 years, and the rising price of labor has made fashion order processing impossible. In China, a large number of manufacturing plants need to be integrated through brand so as to reduce invalid production and find new way to survive.

Jiaxing Meng st Garment Co., Ltd. began to engage in garment processing in 1985, with an annual revenue of about 100 million yuan. Li Shilin, chairman of the board of directors, said that the profit margin has dropped from 15% to 5%. Only by making the brand can the profit decline be changed. In 2008, Jiaxing launched the women's clothing brand "Lai Lai Ya". Now its own brand business achieves 10 million ~2000 a year, and stores in two or three cities, such as Jiaxing, Wuxi and Suzhou. Li Shilin's plan is to make the brand of growth triangle first, take Pinghu as the core, gradually spread to the four corners, and find out the profit mode, and then spread it to the whole country.

In October 1st this year, Pinghu's large garment market with a construction area of nearly 15 square meters is about to open. Relevant government departments said that Pinghu will take a series of measures to promote the transformation and upgrading of the garment industry.