80% For Private Brand Stores, The Market Share Is As High As 60%. Why Is Shenzhen Women'S Clothing So Profitable?

"In the past two years, raw materials have gone up and down, and labor has increased by 20% every year, and the profits of enterprises are still growing."

It develops at an amazing speed.

In the past 20 years, the proportion of industrial output value of Shenzhen's own brand has risen from less than 5% to over 80%; in the past 10 years, its private brand has increased from less than 200 to 1200; in the past 5 years, the total economic growth of the industry has increased by 25% per year, which is higher than the average annual growth rate of 10 GDP in Shenzhen.

Its "helmsman" is unhurried.

Leading enterprises are not concerned about the scale of expansion, and industry associations are "not worried" about rising manufacturing costs.

It is in the extreme perseverance of speed and scale and the extreme persistence in quality and efficiency that Shenzhen clothing brands occupy 60% of the domestic shopping malls and monopolize three yuan in the ten sales profit margin of China's garment industry in 2010.

At the beginning of this year, China's manufacturing industry suffered from the "three shortage" dilemma of electricity shortage, shortage of money and shortage of human resources.

However, the "first step" of Shenzhen

"Raw materials for enterprises may be produced in Dongguan, products are processed in Suqian, and channels are all over the country. Processing enterprises account for less than 20% of Shenzhen's clothing industry. Most enterprises will not worry about" three wastes ".

Shen Yongfang, President of Shenzhen garment industry association, said.

In the 80s of last century, more than 1000 garment enterprises and 400 thousand workers in Shenzhen were engaged in processing export.

With the rapid growth of China's garment industry capacity, Shenzhen garment industry, which is at the forefront of industrial pfer, is the first to feel the urgency of pformation.

"At that time there was no market, no design. The fate of the enterprise was pinched in the hands of others, like duckweed.

Finally, exporting a shirt will earn 7 yuan for processing fees, and pay for rent and labor.

Zhu Chongyun, chairman of Limited by Share Ltd in Shenzhen, recalled.

Reducing the proportion of manufacturing links and upgrading to the two sides of the "smile curve" has become the first choice for garment processing enterprises to pform their own brands.

In 1993, Zhu Chongyun founded "Marisfrolg" and gradually withdrew from the "OEM" industry in.

Today, "far away from the manufacturing industry," more than half of the products have been produced by others, and 200 employees at headquarters are engaged in design and management.

"Design is our core competitiveness.

Good design makes people do not want to take off, so the design is superior to others, and the price is superior to others.

In 2010, the sale of "manasfield" was about 2 billion yuan, with a net profit of 600 million yuan, ranking the first in China's clothing industry sales profit margin.

Zhu Chongyun confessed, "now to make a brand, to export a garment can make a few thousand yuan.

To earn the brand money of the fashion industry and to make the sweaty money processed by the OEM is really not the same day.

Even the garment trade enterprises that have never been engaged in processing and manufacturing have quickened the pace of cultivating their own brands.

In 1996, Cao Zhang, general manager of Shenzhen City Fu Fu Garments Co., Ltd. opened a children's clothing store and poured children's clothing from the wholesale market.

Slowly, Cao Zhang found that a shop followed him every day, and each piece of clothing could always be 5 yuan cheaper than him.

"Although the difference is only 5 yuan, the business is much worse.

Without their own design and brand, it's hard to build a foundation.

Cao Zhang, who saw the direction, founded the "angel" brand in 1998, developed his own design and commissioned others to produce.

Today, "sales" has ranked the top five in children's clothing nationwide.

"Over the past two years, raw materials have gone up sharply, labor costs have risen by 20% every year, and manufacturing enterprises are under great pressure.

But my brand is in the upper reaches of the industry chain with pricing power, and the profit margin is growing.

The brand awareness of Shenzhen clothing enterprises extends from clothing to fashion derivatives, from product design to sales service.

Founded in 1995, Shenzhen ELLASSAY sells and sells clothing, shoes, bags, accessories and other fashion products. Designers are not limited to clothing development, but also engage in accessories, packaging, advertising, display windows, storefront space, and even customers' head to toe image design.

"The proportion of manufacturing links in enterprises is getting lower and lower. Clothing prices have long been measured without cost."

Xia Guoxin, chairman of Shenzhen Ellassay Apparel Industrial Co, said that the international high-end brands such as Chanel and Hermes are using a single brand to provide diversified products and create a fashion industry chain.

"Hundreds of dollars of LV leather bags can be sold for tens of thousands of dollars, which shows that the added value of fashion industry has already surpassed the high-tech industry."

2. active control scale, high quality instead of high speed.

"Stores only increase by less than 10% a year, but sales increase by 40%, and profits increase by 30%."

This is a very interesting thing: on the list of top 100 clothing companies in 2010, none of the top 70 clothing companies in Shenzhen ranked top ten in the list of sales revenue. However, in the top ten sales profit margins, Shenzhen apparel enterprises occupied the first, fourth and tenth positions.

"The upside down of this kind of scale and efficiency reflects exactly that Shenzhen's clothing brand enterprises have changed their development mode, replacing the" high speed "with" high quality ", and promoting the high-end of traditional industries.

Zhang Bei, mayor of Baoan District District of Shenzhen, said frankly.

In order to replace "high speed" with "high quality", sometimes we must sacrifice the scale voluntarily.

In 2010, the sales revenue of "Song Li Si" did not enter the top 100, but its total profit was fifty-fourth, and its sales profit margin ranked fourth.

"Controlling speed, focusing on quality and pforming epitaxial growth into connotative growth is the secret of making money by the singer."

Xia Guoxin introduced that the store of George's only increased by less than 10% a year, but sales increased by 40% and profits increased by 30%.

Xia Guoxin frankly said that some brands spend a lot of money and open four thousand or five thousand stores in a short time.

However, a slight downturn in the macro environment, coupled with poor management, will trigger a chain reaction and a devastating blow to the brand.

"Running volume" of enterprises, gross profit margin may be only 20% to 30%, now manufacturing costs, store rents are doubled, low-end customers do not accept price increases, the result of blind expansion can only be closed down.

As a high-end brand, the gross margin is 80%, so long as the quality is maintained, customers will accept it even if the price is raised.

Coincidentally, in the past 7 years, the total volume of "store" has not changed much, and has remained at around 500.

Many shopping malls promise "no rent, send decoration fees, help digestion inventory", but Zhu Chongyun "refused to open shop".

"If the location of the mall is not accurate, or the location is not good, I will not do it, and do not want to repeat those old roads with scale and efficiency."

Although the total volume has not changed, the store structure of "Ma Fei Fei" has been adjusting.

Shops that sell less than 200 thousand yuan a year are being turned off one by one.

At present, the old counters maintain monthly sales of 700 thousand to 1 million yuan, and the monthly sales of new counters reach 400 thousand to 500 thousand yuan. The annual sales of 500 square meters of clubs are 70 million yuan.

"This is not going to expand the store.

In the first half of this year, our sales volume is increasing at a rate of 30%, which can be said to tap the potential of every square meter at the counter.

The use of "high quality" instead of "high speed" can also resist the temptation of price war.

"Masfield" clothing in the season does not bargain, not discount within two years, do not participate in the discount activities in the mall, in order to maintain brand value, avoid price interference, so that consumers at any time, any shopping malls can not hesitate to spend.

"Just like this insistence, in recent years, our sales volume has maintained an average annual growth rate of 30%, and has maintained a net profit margin of more than 30%, and this level can be maintained for at least 10 years."

Zhu Chongyun said.

"Singer" is also not good at playing "discount card".

Xia Guoxin said frankly that easy discounts would destroy the brand image, so although "Song Si Si" also held a special sale, it was only limited to the old money two years ago.

Even in April of this year, the "water price" was known for online shopping.

"E-commerce is not simply cheap."

Xia kingdom said that it has invested 10 million yuan to start the construction of e-commerce platform, but it is not in a hurry to form a scale.

"For this new channel, we do not want to repeat the low price model of others.

We want to fully tap the convenience and timesaving characteristics of e-commerce, and create high-end services corresponding to high-end brands. "

3., attracting foreign investment and borrowing the brain to integrate global resources.

"We are not short of money, but we need more standardized corporate governance structure, more global talents and channel resources."

In April 2009, when the international financial crisis was the most serious, the US equity investment giant Carlyle's Asian Growth Fund went against the market and injected 150 million yuan into "guris".

Many people think this move is "thirst" for the "Song Si Si" fund, and also pave the way for its listing.

However, Xia Guoxin, a designer, said, "I have never been bad money and I am not in a hurry to go public.

The introduction of international capital is actually to introduce more standardized corporate governance structure, more global talents and channel resources, so that brand value can be further improved.

"Song Li Si" is only a microcosm of Shenzhen clothing enterprises moving from traditional "couple shops" to modern enterprises.

Mass Phil, movie, Yi Hui...

A group of Shenzhen famous clothing brands that once rely entirely on designers and couples to start their own businesses have established a perfect modern enterprise management system with the development and growth, and have recruits all over the world to attract talents.

Founded in 1998, EITIE is the leader of small and medium-sized garment enterprises in Shenzhen.

Sales reached 500 million yuan last year, and 200 stores opened in Singapore, Kuala Lumpur and Moscow.

Li Xiutu, chairman of attire clothing (Shenzhen) Co., Ltd., revealed that his own way of success was "borrowing French brains to design Chinese fashion".

Since 2003, "Ai Tai AI" has spent tens of millions of dollars every year. The team of French designers has introduced the European fabric, designed according to the shape and skin color of the Chinese people, to create a fashionable product with "French quality and Chinese price".

"Over the past 9 years, the annual sales volume of AI Tai AI has increased by 30%, and its profit has increased by 30%. The scale and efficiency have increased synchronously, indicating that" borrow the brain "is right.

Li Xiutu said.

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4. the government will only play the stage instead of the Longmen opera.

"The government wants to build a Longmen. Only a good company can jump and jump into a better and deeper water."

Shen Yongfang believes that with the processing or entrustment or relocation, Shenzhen's clothing industry has long since won by "manpower".

However, to achieve the second upgrading of the industry, more high-end talents are still needed.

"To go further, it is not enough to rely solely on the efforts of enterprises. We hope that the government can push forward the integration of resources and public services and create an atmosphere for the gathering of fashion industries."

In 2003, Shenzhen city planning and construction of Shenzhen garment industry gathering base in Baoan District Dalong street, provided a new breakthrough for the high-end development of garment industry.

According to the plan, the big wave clothing industry gathering base integrates production, R & D, procurement, sales, exhibition, learning and other industrial chain links. It will provide industrial service platform and life service platform for garment enterprises. It will also undertake high-end cultural exchanges such as personnel training, business forum and fashion publishing, so as to maximize the integration of industry resources and reduce the R & D and logistics costs of enterprises.

"Industrial gathering base is not a superposition of traditional industrial parks, but a public service platform to provide industrial services that enterprises urgently need but can not independently complete, and achieve the effect of 1+1>2."

He Jiahong, director of the big wave clothing industry gathering base, and director of the big wave Street office in Baoan District, Shenzhen, said that the "garment industry aircraft carrier", which covers an area of about 1400000 square meters, has now entered 22 large enterprises, and more than 200 enterprises have submitted applications.

After receiving the telephone consultation from enterprises, He Jiahong's answer always has such a sentence: "if you want to collect land and improve the assets structure, don't think about it.

Our industrial base does not consider processing enterprises, does not undertake simple pfer of production capacity, does not engage in homogeneous competition, nor does it engage in wholesale markets.

Zhang Bei also pointed out that the government did not need to earn the fast money of those one or two lands, but to seek the comprehensive feedback from the industrial added value to the whole region.

This includes the higher production and tax revenue brought by the upgrading of the industrial chain, and the improvement of the living quality and cultural quality of the surrounding residents after the accumulation of high-end talents.

"Industrial gathering base is not a fishing hook issued by the government. What kind of fish is caught?"

Industrial gathering base is to build a Longmen. Only a good company can jump over and jump into a better and deeper water to grow.

In fact, big wave industrial gathering base has become a platform for urging enterprises to adjust their structure.

Li Yuchang, chairman of Shenzhen Huaxing Garments Co., Ltd., who first entered the base, first tasted the sweetness.

Production efficiency has been improved: Huaxing's factory has been integrated from Futian and Longhua to the base, and production and warehousing links have been integrated. The number of managers has been reduced by 10%, while sales volume has increased by 19%.

Career vision is long: the main trend of high-end fashion label processing Huaxing, in the big waves feel the vitality of other independent brands, resolutely invested 20 million yuan in 2010 to build their own brand "La Fu Ni", and decided to increase the proportion of domestic sales from 20% to 40% in the next two years.

"The profit margin of high-end processing export has dropped from 20% in the past year to 8% this year, and every RMB appreciation has lost 1 million yuan.

And those who engage in brand domestic sales have been increasing profits.

Li Yuchang, 54, regrets that his pace of pformation must be accelerated.

"The industry that has not been eliminated, only the products and enterprises that have been eliminated, hope that with the help of the public service platform of the base, my R & D design ability can catch up quickly."