China'S Apparel Industry Is At The Low End Of The Global Value Chain.

China clothing Enterprises do not lack manufacturing capability and imitation ability, but they have always been in a disadvantageous position in the value chain.

In the clothing value chain, the recognized profit distribution structure is: Design accounts for 40%. Marketing Accounted for 50%, production accounted for 10%. That is to say, design and marketing are at the high end of the value chain, production and processing are at the low end of the value chain, and those who are in the value chain control the value chain.

At present, China's clothing industry is at the low end of the global value chain.

Obviously, China's garment industry needs strategic transformation, which needs to be molded from the industrial chain to the value chain. China's clothing brand needs butterfly change and needs the sublimation of the soul.

But the apparel industry chain is relatively long, so we need to break through many links to better build the cost chain. What are the perplexities and problems of Chinese clothing enterprises in the value chain? brand Why does it always make people feel worthless? Chinese garment enterprises have been working hard, why has their status in the value chain has not fundamentally changed?

The most lack of brand value

What is the most lacking of clothing brand and enterprises in China?

"Soft power! Our comprehensive hard power is not bad. The core of value creation is soft power, that is, brand value. Chen Dapeng, executive vice president of the China clothing association, said, "what support does it rely on? The most important thing is culture, and culture depends on historical accumulation."

"Fashion industry needs time to accumulate, and brand needs cultural accumulation." Miao Hongbing, chairman of Beijing white collar Fashion Co. Ltd., said that foreign high-end brands had at least eighty or ninety years of history, and the concept of fashion in Chinese clothing industry was less than 20 years ago. So there must be many problems in brands and so on.

The core problem is that the brand lacks value support. "China's clothing brand has not yet formed the root value support, and the core of supporting value is unique brand culture, which wins the respect in people's hearts, which is the most important symbol of brand value." Xia Hua, chairman of Beijing Yiwen group.

This is related to the growth background of Chinese garment enterprises.

In the view of Xia Hua, Chinese clothing enterprises had problems at the beginning of their development, because most entrepreneurs made clothes with the mentality of survival. The goal was to change their destinies, and to make money is the result. The brand is only a process and a path. This is exactly the opposite of European practitioners, so what we are seeing now is luxury in Europe.

Out of global value chain

China's garment industry has developed under the background of the undertaking and transfer of big industries in the world, and the industrial system has been established. Chen Dapeng said: "but now facing transformation and upgrading, we should move from manufacturing power to powerful country, from quantity manufacturing to value creation. Through the value creation of the industrial chain, the garment industry will go to the top of the value chain. This is the upgrading process of the industrial chain, as well as the process of improving and building the value chain. "

From the perspective of the layout and structure of the domestic garment industry, it is concentrated in the eastern coastal areas. Among them, five provinces in Shandong, Fujian, Zhejiang, Jiangsu and Guangdong account for 80% of the total garment industry in China. More than 10 thousand enterprises above Designated Size account for 70% of the total industry output, but exports account for only 30%, and 70% of the exports are borne by 90% small and medium-sized enterprises. With the increase of comprehensive cost, the transfer of industry to the central and western parts of the country is a major trend, and some of them may be transferred to other developing countries.

Although China's clothing industry has the characteristics of industrial clusters, the associated resource clusters are also conducive to maximizing efficiency, while the latter advantages have not yet been fully realized, but this has not fundamentally changed our collapse in the global value chain. YOUNGOR (600177, stock bar) and other major domestic brand manufacturers began to control the clothing value chain in the domestic market, but these private brands are still difficult to stand in the international market and have little control over the global value chain.

Collective lack of self-confidence

There is a common phenomenon in China's clothing industry: foreign names are rampant. Many Chinese clothing brands always want domestic consumers to not recognize that they are Chinese brands.

Behind this phenomenon, it reflects the overall self confidence of practitioners and consumers. The unconfidence of enterprises stems from the helpless choice of market competition. If we say that we are foreign brands, "competitiveness" seems to improve immediately; conversely, if we want to say that we are local brands, not only will our partners put pressure on them, but consumers will not buy them. Designers are also not confident, do not dare to let go of their feet and bold designs. But in the final analysis, these self doubt is largely due to the consumer's lack of self-confidence. "When Chinese people wear a very bad dress, they have no problems. Chinese people are very confident." Miao Hongbing said.

Another important reason is that in the past, we overemphasized China as a big manufacturing country, resulting in the country's external image without the concept of fashion. Is a country without a fashion concept capable of making fashions? It is also reasonable for others to be suspicious.

Therefore, if we want to get our due position in the value chain, Chinese clothing brands can not simply imitate, we must make their own personality. Miao Hongbing said: "imitation will drown individuality. In the long term development, this is equivalent to chronic suicide. We need time to cultivate self-confidence. "

No fashion discourse right.

The embarrassment of Chinese garment enterprises is that there is no right to speak at the end of the brand, and can not speak at the end of design. China's garment industry almost loses its voice in the world fashion industry.

"The prevailing trend in fashion is based on information released in Europe and America." Cheng Weixiong, vice president of American Apparel (002269, stock bar), said: "it is not yet possible for us to go beyond the original ability of Europe and America. China has not really formed its own clothing culture, and is still under the control of Europe and the United States.

This is the cruelty of the Chinese clothing industry. The competitive pattern of the fashionable world has long been established, and the European and American countries such as France, Italy, Britain and the United States are in a monopoly position. This is history.

"There is no world-class talent, no world-class design master, no people who can influence the voice of world fashion, this is not the sadness of China's clothing industry, but the tragedy of the country." Miao Hongbing said, "China is really influential in the fashion industry. Our generation is unlikely to achieve it. It can only be seen after the two or three generation. Therefore, do not give the Chinese fashion so much pressure, it takes time to change. {page_break}

Design ability is bruising.

If the product quality is no problem, then the design and development is the soul of the product and brand.

"The design and development of China's clothing industry still stays in the stage of plagiarism and imitation. Well done enterprises are just beginning to have a little bit of their own style. " Wang Jianjun, general manager of Busen apparel Limited by Share Ltd, said: "the market has changed so fast that the environment has made everyone impetuous. It is hard for us to concentrate on the changes in the whole garment industry. It is even harder to let the brand sink. No one wants to spend too much time polishing the value chain."

Xia Hua also believes that the Chinese clothing industry's original original subversive design is too little, and its design is micro innovation. Obviously, the new minimally invasive can not really affect the world fashion world, nor can we change our position in the design end of the value chain.

In fact, we have not only the lack of original ability, but also the ability to transform. "A lot of things are purely plagiarism and imitation. They are led by the European and American winds and the Japanese and Japanese wind. They do not have their own design personalities, nor do they have their own brand names. If they remove the trademarks, they will not know who they are." Cheng Weixiong said, "the transformation ability is not enough, and the rapid reaction to the market will not be in place. Transformation is not simply copying and copying, but integrating into some of its own things.

In the final analysis, it's human's problem.

Xia Hua believes that our designers lack stamina, can not settle down to do things, and lack the basic skills to integrate their ancestors' culture into their own thoughts and integrate into the experience. What's more, they don't have the life experience of high-end customers, just like those who have never played golf to design clothes for golfer. In Miao Hongbing's view, Chinese culture is quite conventional. This way of thinking is quite different from the creation of fashion art, and it also limits people's creative power.

In fact, the design of domestic clothing brand pays more attention to the single design of running volume, and it can only stay in local thinking. The internationalization design pays more attention to the preliminary planning and overall thinking, because it can provide a direction for subsequent design projects.

Brands can hardly be respected.

Marketing is also a short board for Chinese garment enterprises.

The short board finally appeared in the brand building that insisted on details. Wang Jianjun said: "improving and paying attention to details is an attitude of making brand, and we often think: almost do it."

Brand positioning is broad, not professional and lacks depth. Homogenization is a serious problem for Chinese clothing brands. In the realm of brand operation, the gap between us and world-class brands is very obvious. For example, the exhibition of Louis Vuitton's art trip in National Museum is a way of promotion. It is no longer standing in the perspective of a brand, but standing on the top of the fashion industry to make a brand trip. China's clothing brands dare not spend so much money doing such things, and more still want to spend money on major events. But high-end brands need long-term investment and need comprehensive strength to support them.

In terminal management, we still stay in the clothing enterprise state, not rising to the clothing brand state. Miao Hongbing said: "many domestic brands do not care about the image of the terminal. Even if they have done something, they can not afford to torture. For example, visiting famous stores and visiting ordinary stores bring different experiences. A famous brand shop will give you a sense of oppression and force you not to indulge. This atmosphere gives you a sense of respect for it. And ordinary shops make you feel indulgent. It's hard for you to respect it. China's brand is really difficult for consumers to respect at the terminal. This should cause enough attention in our industry.

The supply chain is fragmented.

Many of China's garment enterprises are far apart from the large international enterprises in terms of quick response capability of supply chain. This has much to do with the fragmentation of our supply chain.

"This is not because Chinese clothing enterprises do not work hard, but are restricted by the great environment, and are also related to the market operation system of the enterprises. Domestic enterprises take more forms of joining agents, while foreign brands do more. Cheng Weixiong said, "we should have done the value chain according to the market demand, but we are still doing more value chain or supply chain from our own needs. Production, design, procurement and other supply chain are fragmented in their respective operations.

In reality, the process flow of domestic garment enterprises is still top-down, which belongs to the traditional planned operation process, and has not really played a role in the transformation of the entire value chain or supply chain. Obviously, this is not conducive to the rapid reaction of enterprises to the market. For example, the domestic clothing brands usually finish the order in half a year, and quickly convert all the products to the retailers, resulting in more regular goods and less popular products, resulting in a shortage of goods, resulting in the uncoordinated supply and demand between the market. Cheng Weixiong said, "do you think this can make the products popular? It is very difficult for an enterprise to solve this problem. It takes time to change. "