How Do Chinese Clothing Enterprises Get New Students In "Shuffling"?

Just released in the three quarter of 2011, the clothing industry prosperity index report shows that the overall climate of clothing industry has picked up, and a number of indicators are better than expected.

However, due to the dual influence of both subjective and objective reasons, the whole industry still has some problems such as the partial cold production, the decline in the level of industry profitability and the sharp increase in the deficit of deficit companies.

Because of the low concentration degree of China's clothing market and the large number of small and medium-sized enterprises, the efficiency of enterprises is showing a downward trend.

According to statistics, the sales profit margin of garment manufacturing industry has dropped from 5.9% in the first quarter to 4.5%, lower than that of all industrial sales margins (5.9%).

Meanwhile, the total loss of garment enterprises also hit 1 billion 240 million yuan, an increase of 124.7% over the same period last year.

More importantly, due to the problems of production and marketing links, the capital expenditure of manufactured goods is also rising. By the end of the three quarter, the capital expenditure of finished products has reached 67 billion 500 million yuan, an increase of 28.7% over the same period. It is estimated that the total annual clothing inventory will reach 17 billion, exceeding 20% of the total production.

On the contrary, garment enterprises with a certain scale and independent brand have not only maintained a relatively fast growth rate in terms of production and sales, but also have not been affected by their profits.

The clothing industry is showing the pattern of "stronger Yu Qiang and weaker weaker". Shuffling has become an irreversible trend in the garment industry. The small and medium-sized garment enterprises that have relied on the advantages of labor force will face the situation of being eliminated and merged.

In fact, this phenomenon appeared a few years ago.

At that time, most enterprises were engaged in the production and processing of low-grade clothing. There was no market competitive brand and no intensive production. The profit margins were very limited. If there was a slight carelessness, they would lose money. At the same time, due to the excessive growth of garment enterprises, the demand for labor force was also very tight. "Labor shortage" has appeared in many areas.

With the continuous expansion of labor shortage, labor costs continue to rise, and most SMEs are unable to afford it.

However, because many small and medium-sized enterprises produce clothing mainly to meet the needs of exports, they can barely survive.

With the outbreak of the financial crisis, the export of clothing products is seriously hindered, and the backlog is increasing. In addition, under the tightening policy, most enterprises are unable to get financing from normal channels.

It can be said that the apparel industry is one of the industries that are closed and closed.

China's clothing industry (000902) is in crisis when the "leaky room is caught in the rain." at that time, the external pressure suddenly increased.

For a long time, costumes are the most competitive industry between China and South Korea. After that, China can maintain a leading position with the advantage of labor force. However, with the signing of the free trade agreement between South Korea and the European Union and the United States, China's clothing industry will face more severe challenges.

According to a survey of 182 US purchasers by the Korea trade and investment promotion commune, 69% of us purchasers will expand their imports from Korea after the US Korea agreement comes into effect, and 36% of the US purchasers who have trade relations with China will also shift their purchasing direction from China to Korea, which will undoubtedly have a very negative impact on China's garment industry.

Changing the current situation of the garment industry, so that the garment industry can continue to maintain a good momentum of development, at least three directions of efforts can be done:

First of all, we must establish the national independent well-known brand as the highest goal of the development of China's garment industry.

The Chinese clothing industry is not competitive and the profit level is not high. One of the important reasons is that the brand awareness is not strong, and the enterprises with brand competitiveness are not many.

In contrast, garment enterprises in the developed countries in Europe and the United States have high profitability and strong competitiveness, and even a small number of labor force is needed. The core advantage is that they have their own brands.

How to put the brand in the most prominent position, even as the highest goal, is a problem that must be seriously studied and solved.

Second, we should speed up resource integration and technological research.

Too dispersed, too satisfied with simple processing and manufacturing is not only a common problem in China's clothing industry, but also a common problem in China's manufacturing industry.

Such a result is not only difficult to form market competitiveness, but also makes production resources too dispersed and inefficient.

Therefore, it is an important step for Chinese garment enterprises to change the current phenomenon of excessive dispersion of garment enterprises through resource integration, to make clothing enterprises more concentrated and intensive, and from simple processing production to R & D and technological innovation.

Third, we should speed up negotiations with the US and Europe on the signing of a free trade agreement.

To deal with the status quo of the free trade agreement between South Korea and the United States and Europe, the parties concerned should speed up the negotiation and signing of the free trade agreement with the United States and the European Union in order to adapt to the changes in the international market.

At the same time, we must speed up the signing of a free trade agreement with Japan and South Korea, so as to avoid the export of Chinese enterprises' products because of the lagging behind in this area.

In short, clothing enterprises must adapt to the changes of the new situation and make strategic adjustments.

The core issue is to have brand awareness, adjust the industrial structure with brand, and enhance the competitiveness of Chinese garment enterprises with brand.