Garment Industry: Integration And Optimization Of Industrial Chain &Nbsp; Welcome New Trade Trends

This year is China's formal accession to the World Trade Organization 10th anniversary.

For most Chinese people, the most direct impact of China's entry into the WTO is the consumption of imported goods (services).

Globalized

Since China's accession to the WTO, according to the public information of China's tax network, about 3000 tax items involving import and foreign investment have been adjusted in China.

China's apparel industry also enjoys preferential policies such as "trade reciprocity" and "national treatment" in the global free market.

However, 10 years after China's accession to the WTO, the global financial crisis struck.

Manufacturing industry, the "big brother" of China's foreign trade market, is the first to be affected.

Coupled with the rise of ASEAN countries and manufacturing industries such as Turkey and Pakistan, China's garment industry is bound to suffer setbacks.

Faced with these unfavorable factors, China's clothing industry must find countermeasures as soon as possible.

Integration and optimization is imminent.

The price fluctuation of clothing materials is one of the main reasons leading to the drop in profits of garment enterprises.

This year, the price of cotton has been "doubled first and the waist is chopped".

Li Shengzhi, executive director of Guangzhou garment trade association and executive director of the company, said that the increase in raw material prices and labor costs this year has led to an increase of 20%~30% in business expenditure and a decrease in the profits of most businesses.

Businesses "tacit" to raise the price of goods, to a certain extent, affect the consumption power of customers. In the long run, the profitability of enterprises will also decline.

Expensive logistics costs are also increasing sharply.

According to the national logistics operation bulletin published by the national development and Reform Commission in 2010, the total logistics cost in China accounted for about 18% of GDP in 2010, which is twice as high as that in developed countries.

Raw materials and logistics are the basic link of the industrial chain, which objectively determines the business cost and marketing strategy of the enterprises. Only by integrating the industrial chain, can the garment enterprises try to optimize and upgrade the industrial chain so as to reverse the disadvantages and create new opportunities in the predicament.

Integrating the horizontal industry resources at home and abroad and optimizing the vertical industrial chain allocation of enterprises become the best solution for domestic enterprises to meet the new round of Global trade competition.

Integrating the industrial chain, exploring new business opportunities in an international perspective and making good use of overseas resources to make up for deficiencies will help speed up the integration of China's garment industry and fashion industry and revitalize the international trade position of China's apparel industry.

The optimization of industrial chain will help enterprises to lower production costs and increase added value of products, further stimulate consumption and improve enterprise efficiency.

Expand production, capital first

The optimization and integration of the industrial chain can not be separated from the smooth coordination of the "three streams" of the industrial chain: capital flow, information flow and logistics.

Lu Tai Group is using the typical case of capital flow skillfully, its complete industrial chain to cotton breeding, cotton cultivation, to spinning, bleaching and dyeing, weaving, finishing, clothing, down to brand building, marketing.

At the beginning of Lu Tai's establishment, it was only a spinning plant of more than 20000 spindles. At that time, Chinese textile enterprises were struggling because of low grade and poor quality.

After listing and financing, Lu Tai upgraded the original domestic equipment to import equipment, and produced high quality yarn across the sea and exported to Japan.

With the increasingly abundant capital, Lu Tai began to expand the scale of production, extending from the past single spinning to the two ends, extending to weaving and clothing, and the industrial chain was diversified.

Highly shared information

According to information flow, Otsuka Takeji, chairman of Itochu fiber Trading (China) Co., Ltd. suggests that Chinese enterprises should integrate information with marketing as the basis and share information and producers. Combined with raw materials, fabrics and other links, the added value of products will be enhanced with professional characteristics, so as to stimulate the consumer market.

YOUNGOR group took the lead in adopting the strategic mode of "whole industry chain". It not only owned raw material production base, printing and dyeing plant, cotton mill, garment manufacturing plant, logistics center and sales entity shop, but also controlled the circulation of information in the industrial chain.

YOUNGOR cultivated its own cotton field in Xinjiang, producing the top Xinjiang long staple cotton, meeting its 95% raw material demand, avoiding the severe fluctuation of cotton prices and ensuring quality and quantity.

At present, YOUNGOR has more than 2000 retail terminals. With the penetration of upstream and downstream industries, the fabric and design have been differentiated.

YOUNGOR highly shares information of all sectors, improves the speed of reflecting to the upstream industry, so as to control the terminal and stabilize market sales.

Logistics, industrial conveyor belt

China's clothing industry has obvious regional characteristics, and logistics has naturally become an important part of the industrial chain.

The managers of some enterprises lack the ability to expand channels and manage logistics, and fail to recognize the advantages of establishing an independent logistics distribution center.

Garment enterprises' export trade is also easy to lose fast market because of high logistics cost and long pportation time.

With the rapid development of e-commerce in garment industry, the importance of logistics has become increasingly prominent.

In November 11th, the 16 hour trading in Taobao mall broke 2 billion.

Netizens "buy crazy", merchants sell crazy, but the courier is busy.

Taobao mall public and customer communication department Zhao Nige said that in order to avoid serious problems such as the explosion of warehouse and the rapid backlog of goods, Taobao's major e-commerce providers have made advance arrangements in logistics, and the speed of logistics Express is an important index to enhance the customer experience of the online shopping carnival.

Logistics is the conveyor belt in the apparel industry chain. The continuous improvement of logistics links is becoming more and more important for garment enterprises.