Ye Xie Town: The Way To Break Through The Traditional Clothing Town

Talking about the first impression of Songjiang's Ye Xie Town, it was once a famous "clothing town" on the outskirts of town.

As early as in 1997, it was selected as "Shanghai clothing town". At its height, the town had hundreds of knitted and garment enterprises.

However, like other clothing towns, for many years, most garment enterprises in Ye Xie town have three weaknesses, that is, over reliance on cheap labor, lack of professional talents and low level of specialization.

Facing the urgent need for pformation in 12th Five-Year, what is the way of "breakout" in Ye Xie town?

Cost and profit: "like a tight string".

"The RMB has been revalued over the years, and the profit of the textile industry is not high enough. If we live for 10 million dollars, every appreciation of one percentage point means that we will earn less than 100 thousand dollars. This is a very small number."

Gao Bohua, chairman of Shanghai Tong Feng Fashion Co. Ltd. in Ye Xie Town, sighed.

A few years ago, Mr Gao described his company's status as "struggling on the edge". Now he has given a more clear figure: "according to this state, enterprises can withstand up to 3 years at most."

Gao Bohua manages the company mainly produces all kinds of casual wear, annual net

"The profit margin of the whole industry is around 3%. Think about the impact of RMB appreciation on us. If we don't ask customers for a little price, the impact of RMB appreciation will almost offset our profits."

Gao Bohua said.

Under pressure, many enterprises use the way of raising prices to counteract the impact. When talking with foreign businessmen on the list, the general accountant enters a part of the advance quantity, first raises about 2%.

"We can only rely on increasing the price of our customers, or else what else can we do? But the cost can not be completely digested by the customers." Gao Bohua said, "the cost of appreciation will increase by a little bit, and it will probably take about 50% of them. If I can't make money in the end, I will not do this business."

In fact, many clothing enterprises of Ye Xie are like Gao Bohua's enterprises. "All kinds of rising costs are irresistible factors, and we can change very little.

RMB appreciation, workers' wages are higher and higher, is this what our enterprises can change? "Many owners said," fortunately, our old enterprises have accumulated a certain amount. By reducing profits, lowering thresholds and lowering demands, they can still support for a period of time, and then increase labor productivity, improve mechanization and automation, expand production capacity and reduce labor costs. "

Another enterprise in Ye Xie Town, which deals with an international brand.

It is understood that in the past few years, many small factories were closing down in Ye Xie, and soon a lot of new small factories would emerge, but now this phenomenon is much less.

In response, many local business executives said, "before many people think that the industry is making money, but now we find it is no longer possible. Some small factories are even working for others. Now we have to" cage for birds ". Who will dare to go? For our garment enterprises, the cost and profit are just like a tight string, when we do not know when it will be broken.

Active change: from processing to innovation

It is precisely so called poverty that leads to change.

In recent years, Ye Xie town has been committed to building an internationally famous garment town.

The core is to integrate the fragmented clothing industry chain into a small town, and to form a virtuous circle in the professional field through the professionalization and socialization of different levels of garment enterprises.

Insiders pointed out that the positioning and planning of Ye Xie town is an accurate grasp of the trend of the world and domestic garment industry.

It is understood that at present, excessive investment in textile and garment industry in some parts of China has caused a lot of disorderly competition among small and medium-sized enterprises, which has increased the cost of industry and weakened competitiveness.

The Yangtze River Delta is taking advantage of the upstream and downstream supporting functions of garment industry cluster and optimizing the industrial process, which is taking a larger share of the market and bringing great pressure to the garment enterprises in other regions.

As the Yangtze River Delta region is rapidly forming the social service system of the garment industry, the demand for specialized division of labor in the industrial cluster is getting higher and higher. This area has gradually become the focus of international textile industry and capital pfer.

As far as Ye Xie is concerned, in recent years, the town has turned investment into investment and increased the threshold for entry. Most of the sales centers and service centers such as the Chinese general agent of Montagut cashmere sweater and the general agent of the US POLO leisure wear China have been introduced to become a truly international famous clothing Town, not only competing with those garment towns that are heavily processed, but also helping themselves to cross the extensive economic development stage.

At the same time, Ye Xie also actively supports independent brands, so as to synchronize the development of independent brands and international brands.

Ye Xie town responsible person said, these are the French Montagut.

The official also told reporters: "there are more clothing enterprises in our town now, but the scale is not the biggest, and the brand benefit is not the most obvious.

In the strategic positioning of this brand, we have set the overall goal of "creating an international garment town and taking the road of independent brand".

After thorough investigation, we have already confirmed that the garment industry is the dominant industry in our town. Although there are many external constraints and unfavorable factors, we must go out of the development path of our own brand.

Through the integration of the more than 200 garment industry resources in the whole town, we can form a virtuous circle mechanism that can be bigger and stronger in the professional field.

What is the significance of innovation to clothing enterprises? Wang Cengjing, Vice Minister of the Ministry of textiles, said in an interview with the media: to improve the quality of clothing brands, we must resolutely avoid further development of the processing type, focusing on market development and product development.

We should make the garment industry develop from follow up to innovation.

"Now the best cashmere is not in China, the best silk is not in China, and the best linen products are not in China, because our innovation is too bad."

Competition is fundamental: the road to independent brand needs to be more stable.

Now there are many problems in attracting investment everywhere, and many regions will fall into a strange circle in the way of "jumping prices".

So where is the way out for Ye Xie?

Insiders pointed out that how to consciously cultivate some advanced production elements is an important factor for Ye Xie to attract international brands.

For example, some enterprises in the locality are doing fabric washing. Some enterprises are specialized in processing. If these teams are trained very professionally, they are not the same brand, but taking them out is a complete team. No one can compete with you.

It is understood that the reserve of clothing talents has become a magic weapon for Ye Xie to attract international brands to settle down.

Because the garment industry needs not only a large number of mature workers, but also clothing management and design talents.

The general manager of Mickey Mouse, who is located in Ye Xie, is a Taiwan businessman. He said he chose to settle down and hoped that the other side could provide mature clothing series talents. Of course, the hostels and cafeteria needed by these clothing talents should also be solved together.

In this respect, Ye Xie has already taken the lead.

At present, Ye Xie has set up an international fashion dress design and management major in consultation with the Shanghai Lida full-time college, which is located in the town, so as to train more professionals.

Moreover, at present, Ye Xie town has initially built a clothing product exhibition center, a clothing and knitwear inspection center and a clothing knitting research and development center, which can effectively reduce the various operating costs of small and medium-sized garment enterprises.

As these centers further exert their functions, the garment industry chain integrated by Ye Xie town will really make the garment enterprises of different sizes and levels get what they want.

However, insiders also pointed out that Ye Xie's strategy of taking the road of independent brand needs further in-depth.

Regarding this, Ai Feng, deputy director of the China Famous Brand Strategy Promotion Committee, once said: the common point between Ye Xie and Shanghai urban area is that the merit is to attach importance to the introduction, and the disadvantage is that they often neglect their brand.

For Ye Xie, Ai Feng recommends the use of the advantages of absorbing industrial clusters at home and abroad, and taking advantage of the industrial chain to create two brands, one is carrier brand, the other is to build a brand that can be used by many enterprises. Now most of the enterprises are using a brand, so the scale of each enterprise is very small.

For example, a brand of wool spinning, we can expand to more than just wool spinning, expand the brand into the brand of many kinds of clothing textiles, many enterprises use this.

Or make a common brand, if the product is qualified, let it be used. Maybe this brand will play an important role in upgrading.

Specifically, Ye Xie can register and build a common brand through a general chamber of Commerce or clothing and Textile Association, because businesses are in use, and everyone is investing in it. The popularity of this shared brand may soon be built, not by the strength of an enterprise, but by the collective strength of the small brands.

In addition, Ai Feng also stressed the autonomy

At this point, the town of Ye has passed a welcome signal.

The spring bamboo group, which is mainly attacking the domestic market, relies on the strength of its own brand and the in-depth study of the domestic market. At a recent order meeting, it launched seven hundred or eight hundred newly developed clothing products at one time, and was well received by more than 400 dealers throughout the country.