Jiangsu Yangzhou: Garment Enterprises Must Go Out Of The "Foundry" Embarrassment

Under the current complex and changeable economic situation, the garment industry has encountered many difficulties: the narrower the road of foreign trade, the more intense competition in domestic market, the rising price of raw materials and the increase of labor costs.

How to deal with this "internal and external difficulties" of the era of profit, won the "China famous trademark" Yangzhou spring clothing through exhibition.

The twentieth China International Clothing and Fashion Fair was closed in Beijing recently. The Yangzhou Ying Chun Garment Co., Ltd., located in Shi Qiao Town, Yangzhou economic and Technological Development Zone, has more than 100 money.

With joy, we have also revealed the embarrassment of brand building in our city's clothing industry. As the highest level clothing exhibition in China, there are more than 20 garment enterprises exhibiting in Jiangsu, while Yangzhou has only a small private enterprise exhibiting.

Some experts have appealed that in the current situation of tight foreign trade and declining industry profits, Yangzhou garment enterprises need to pform from "processing in the past" to "creating brands", and enhance profits and market share through private brand building.

Phenomenon

"Spring Fair" is the only way to dress up.

"The exhibition will last for 4 days, every day is full of visitors."

Kong Jinchan, who has just returned from Beijing, told reporters that he had rented a booth of 54 square meters for the spring garment, and 100 new styles of children's clothing were concentrated on the show, attracting the attention of consumers and dealers.

Several companies such as Yong Wang business in Japan signed an order contract with Ying Chun clothing.

As a matter of fact, this year's clothing industry has been participating in the "clothing Expo" for 6 consecutive years.

Why did he like to participate in the exhibition? Kong Jin cicada calculated to reporters that the company took part in the exhibition, and the cost of booth rentals, decorations and artificial travel costs was about 250 thousand yuan.

But the order signed directly by the exhibition is 1 million 500 thousand yuan, plus some cooperation intention, the direct benefit exceeds the exhibition cost several times.

Kong Jinchan believes that compared with on-site sales, the company is more concerned about brand display opportunities. "Xuan Ze" brand with YOUNGOR, Bosideng and other well-known brands at home and abroad in the same arena, greatly enhance the brand awareness and reputation.

"Cotton yarn is now 36 thousand yuan per ton, which has increased by 50% over the past year, and the labor cost is rising every month."

Kong Jinchan said that through the brand building, Ying Chun's clothing has successively created the famous brand of Jiangsu and China, becoming the leading brand in the children's underwear market. The profit of the product has increased by 5 to 7 percentage points along with the rise of the brand, which has successfully digested the business and has doubled the turnover and profit margins.

Analysis

"Two reasons" reflect the embarrassment of garment industry

The largest industry exhibition, coupled with such considerable benefits, should have a strong attraction for garment enterprises.

However, reporters interviewed learned that in Yangzhou, nearly 1000 exhibitors at home and abroad, only one garment company in spring.

The "Clothing Fair" is not too high a threshold for ordinary clothing enterprises to enter? Kong Jin Chan said that this clothing exhibition is basically open the door to do the exhibition, and did not set any special threshold, as long as the enterprise voluntarily declared, and the brand has a certain degree of market visibility, generally can debut.

Why is the enthusiasm of our city's clothing enterprises not high? "Two reasons led to the cold clothing business in Yangzhou.

A clothing industry research expert has put forward the following reasons: first, the brand awareness of our clothing enterprises is not strong enough to spend money on brand promotion; two, Yangzhou's own clothing brands are few, mostly for "processing", and lack of qualification and necessity for exhibitors.

Reporters interviewed found that many garment enterprises in our city are accustomed to "close doors", reluctant to invest in brand promotion, all exhibitions, media promotion and other publicity and exhibition opportunities will be shut out.

Although the textile and garment industry in Yangzhou has a good foundation, most of them are "processing enterprises", and their own brands are relatively few. However, some of the original well-known brands are less influential because of their neglect for a long time.

The responsible person of the relevant departments is not worried that many clothing enterprises in Yangzhou are quite numerous, but there are few brands that can really win fame. Most of them can only rely on "foundry" and "support their families".

Appeal

"Bridal dress" urgently needs to be pformed to create brand.

The exhibition reveals some new information: China's garment industry is not only affected by the international environment, but also because domestic competition is increasingly fierce.

Reporters interviewed several garment enterprises in Yangcheng, confirming this view.

Many garment enterprises have admitted that the prices of raw materials and labor costs have increased, and garment enterprises are facing tremendous pressure of survival.

Since last year, the world economic plight caused by the European debt crisis has led to a decline in Yangzhou's clothing orders which rely on export trade for a long time.

Turning to the domestic market, the garment industry is also not optimistic.

With the foreign trade being blocked, a large number of Chinese garment enterprises export to domestic market, and the competition in the domestic market is extremely fierce. In a small field, there are hundreds of thousands of enterprises competing, and the phenomenon of homogenization is very serious.

"Chinese brand has a" two and a half years "phenomenon, that is, many brands have a very short life span, and fewer brands are over 10 years or 15 years.

Li Chunlai, an associate professor at the University of Commerce, said that there is a "smile curve" theory in economics, especially in the clothing industry. The top of the curve is brand and design, and the profit is the most abundant, while garment processing is in the depressed part, and the profit margin is very low.

He appealed that, whether it is the law of the clothing industry or the current industrial development environment, the garment enterprises in our city must make changes, pform from the past "processing" to "creating brands", and change the past simple practice of price fixing through brand building, and extend to the two sides of the "smile curve" bravely. Only in this way can we gain a firm foothold and stand out in the fierce market competition.