The Pformation Characteristics Of Ningbo'S Clothing: Upgrading Of The Small Innovators

Ningbo held the fifteenth session.

Xinhua News Channel reporters at the scene of the clothing festival, as Ningbo's clothing industry bigwigs, YOUNGOR's booth occupies half of the 1 hall, and its six brands also made their debut.

At the same time, this year's clothing festival has attracted many small and medium-sized garment enterprises that export to domestic market, many of which are also participating in this fashion exhibition for the first time, hoping to take this opportunity to find opportunities for opening domestic sales channels.

In the market of raw materials and labor costs continued to rise, exchange rate changes and so on, Ningbo garment enterprises have gone to the road of "export to domestic sales".

However, the road of pformation is not a smooth road.

For many small and medium-sized clothing enterprises in Ningbo, although manufacturing and manufacturing links are not a problem, how to brand and solve the retail problem of terminal is undoubtedly the most important thing in the current pformation.

In contrast, many large garment enterprises have opened their own brands because they first embarked on their own brand lines.

Small and medium-sized garment enterprises pformation road difficult road business expansion channels

Ningbo Haishu Ge Mei Garments Co., Ltd. is a small garment enterprise that has been doing foreign trade for many years. With the change of the trade environment, the company has to turn to the domestic market now.

"Before making OEM processing, our profits can be about 15%, but now the cost of raw materials is increasing, and the cost of labor is also increasing. With the appreciation of the renminbi, there are more and more trade barriers abroad, and the profit margins are getting smaller and smaller, so it is hard to continue to do so."

Haishu Ge Mei's purchasing manager, Miss Xu, is accepting the finance and economics of Sinop.

In order to gradually expand the domestic market, the company took part in the fifteenth international clothing festival held in Ningbo. This is also the first time that the company has participated in the domestic clothing festival.

However, the results do not seem to be ideal.

"Most of the people coming to the booth are members of the public, many of them are looking for foundry companies, and there are not many buyers."

Miss Xu said that the company is also actively contacting some trading companies, hoping to expand domestic sales channels as soon as possible.

Like the Haishu Ge Mei company, Fenghua's fan Sheng Jiye Garments Co., Ltd. is also a foreign trade processing enterprise ready to gradually turn to domestic sales.

The knitting enterprise, which has a history of 22 years, can produce 5 million pieces per year.

"Now doing foreign trade, profits can reach 5% is good.

The cost is rising, but the price of foreign buyers is not rising, but they still want to keep prices down. "

Fan Sheng Jiye staff told Xinhua Financial Channel reporter, in the current trading environment, continue to make foreign trade difficult, the company can only try to start domestic sales, has opened shop on Taobao.

With the deterioration of the foreign trade environment and the continuous compression of profit margins, more and more small and medium-sized garment enterprises like Haishu and Mei Sheng have been forced to turn from foreign trade to domestic sales.

For these enterprises, how to cultivate their own brands and quickly make up for deficiencies in design, terminal sales and other links has become the key to successful pformation.

Although many enterprises are beginning to form their own design teams, the cost of construction of sales channels is even greater.

In order to avoid early investment failure, many enterprises began to open online shops with the advantage of e-commerce.

Cao Lei, director of the China Electronic Commerce Research Center, pointed out that the development of e-commerce in the clothing industry has "natural advantages" to reduce costs and increase efficiency for profit.

With the acceleration of electronics in garment enterprises

Large garment enterprises are turning around, YOUNGOR wants to be an artistic and creative enterprise.

In Ningbo, although many clothing giants are also shrinking and leaving the OEM processing business, but when many small and medium-sized clothing enterprises are still making headaches for brands, YOUNGOR, Taiping bird and Luo Meng have built up the brand foundation of large enterprises, but they are already upgrading their clothing consumption to cultural consumption.

In June this year, YOUNGOR group sold a wholly owned subsidiary of "new horse clothing" in OEM processing business.

At the same time, Taiping bird has begun to gradually peel off manufacturing links, and the group has also pushed out OEM orders that are almost at a loss.

According to Li Rucheng, chairman of YOUNGOR group, YOUNGOR accounted for 50% of the total foreign trade and domestic sales, but YOUNGOR's foreign trade sales began to cut from the second half of last year.

The most important reason is that the profit of domestic sales is much higher than that of foreign trade.

Although the profit margins of the OEM business have been gradually reduced, the profit margins of these enterprises have increased substantially.

According to the information provided by YOUNGOR securities department, YOUNGOR in 2010

As one of the largest clothing enterprises in China, YOUNGOR was once dubbed "the most serious business" by Zhejiang's capital circles, because its investment proportion and income in the real estate industry and equity investment field have already surpassed that of the traditional clothing industry.

However, Xu Qigang, general manager of YOUNGOR group Limited by Share Ltd, told Xinhua in an interview with Xinhua news channel that although YOUNGOR has been involved in diversified operations in recent years, YOUNGOR has started to make clothes and will continue to develop apparel as its main business.

Not only that, at the recent media conference, Li Rucheng, chairman of YOUNGOR group, said that YOUNGOR is still considering a higher level of industrial upgrading, turning from technology intensive to art and creative enterprises, and pforming YOUNGOR from a garment factory to "creating a cultural and artistic world".

Li Rucheng believes that with the improvement of people's consumption level, the consumption of citizens has entered the era of individuation, and the demand for clothing is also more and more diversified. This provides the foundation for the development of multi brands.

This year, YOUNGOR accelerated the implementation of the brand development strategy of clothing. Its MAYOR, YOUNGOR, GY, hemp, CEO and Hart Schaffner Marx six brands further deepened and deepened, and completed the re distribution of sales channels.

Prior to this, YOUNGOR also set up the YOUNGOR creative arts and Design Co., Ltd. of Ningbo. The main function of the company is to refurbish the existing shops and decorate the new shops in the future according to the different product positioning and target consumers of the six brands.

According to Li Rucheng's plan, YOUNGOR will enhance its product structure and product mix through the introduction of brand new creative design, brand strategy, improvement and strengthening of channel construction and logistics construction.

Not only YOUNGOR, facing the traditional manufacturing industry's puzzle, but also for Ningbo's large-scale clothing enterprise, Taiping bird also proposed the industrial pformation fashion creativity idea.

Luo Meng group president Zhu Xulong also said that although YOUNGOR's "multi brand strategy" is different, but Luo Meng will also focus on the promotion of clothing brand value, to fashion apparel, further expand the domestic market.