Industry Trends In 2012

Before analyzing the year 2012, we will first analyze the characteristics and main problems of the industry development in 2011.

　　 (1) structural changes in international demand, and the traditional export mode is in urgent need of transformation.

In 2011, "order transfer" became one of the main problems facing the industry. In 2011, Chinese clothing Manufacturing costs continue to rise sharply, domestic cotton and other raw material prices fluctuate sharply, raw materials supply quality, price, delivery time and other problems frequently occur; international economic downturn has led to the international clothing procurement industry to raise the sensitivity of cost and price; worry about China's trade protectionism head up; and international processing industry competitive countries to accumulate strength, and so on, the superposition of these factors, leading to the transfer of orders to other countries, the outbreak of the phenomenon, the industry export situation is turning rapidly.

In fact, the transfer of international processing orders is only a part of the adjustment of the international demand pattern.

From the demand of traditional export market in Europe, America and Japan, as the necessities of consumption, the demand elasticity of clothing commodities in developed countries is relatively small, and the total demand and demand structure are basically stable. The large-scale transfer of orders in developed countries is based on cost and quality considerations, as well as the development of China's competitive countries, thereby reducing dependence on China. The rapid development of these competitive countries has shown a stronger cost price advantage in the low-end processing area. Some of them also make full use of geopolitical advantages to enhance their rapid response capability, which poses severe challenges to China's export mode, which relies mainly on absolute cost advantages and supply advantages of the complete industrial chain.

From the perspective of emerging markets, China's exports to emerging markets are still in the ascendant, and there is still plenty of market space. However, macroeconomic fluctuations and partial political turmoil in developing economies have made China's exports less stable, and its steady position in emerging markets has not yet been established.

Although order transfer is an inevitable result of international division of labor, from another point of view, international orders have changed since the financial crisis. Short lists, small bills and quick orders have become normal. At present, China's garment processing industry has not yet fully adapted to this change in demand. In addition, after China's absolute cost advantage has been gradually lost, it has not yet made use of improving labor productivity to enhance the comparative advantage in the international division of labor, nor has it provided the additional value of R & D, services and so on, so that it has lost some relatively high quality orders.

　　 (two) the restructuring of the domestic market will be more severe.

In 2011, the domestic market adjustment was obvious. The urban-rural market structure of two yuan has been broken, and the three or four line cities and township markets have springing up, providing a more continuous guarantee for the growth of domestic demand. The pace of urbanization in rural areas has accelerated, the number of non-agricultural population has increased, the gap between urban and rural areas has been narrowed, the impact of Internet and TV media popularization on the lifestyle of villages and towns, and the continuous role of the state's three rural policies and the promotion of rural consumption policies have made the township market and the rural market inevitably grow fast without a period of time. The two or three tier city market is still growing well, becoming the fertile ground for China's brand growth and the most intense market competition for brand competition. The second tier market remains stable. international brand Competing with domestic brands, many superior brands in China have established a competitive position through their excellent performance at this level. A three-dimensional and diversified market structure is taking shape.

Under the opportunity of market expansion, brand The trend of change is bound to accelerate. In 2011, China's clothing enterprises exported to domestic market, wholesale to retail, low end to high-end, online business development and online brand building were extremely active. The expansion of market brand numbers also aggravated the industry competition.

Firmly established, the overseas brands of China's second tier market will accelerate their channel sinking with their advantages such as capital and brand reputation. The challenge of domestic brands in the low-level market is bound to increase.

　　 (three) transformation and upgrading are becoming conscious actions of enterprises.

In an environment of internal and external difficulties, in 2011, the transformation of enterprises has shifted from passive to active, and the direction of transformation is more clear. Many technological revoluties are still being carried out: technological transformation with the aim of improving labor productivity has become popular in the industry; the combination of information technology aiming at improving rapid response capability has been widely recognized; joint research and development of production, teaching and research aimed at improving quality and service capabilities is very common in large enterprises.

Industrial transformation is also being actively promoted. Although the pace of gradient transfer in 2011 was hindered by the economic downturn, the formation of a three-dimensional industrial regional pattern of East West linkage is still the most widespread demand of the industry. The domestic demand market has broken the two dimensional pattern of urban and rural development and laid the foreshadowing for the stereoscopic industrial structure. The vigorous development of the domestic market has become the most powerful driving force for the transformation of the garment industry. At the same time, exports are also facing transformation and upgrading. "Order transfer" has eliminated some backward high consumption and low profit export patterns to a certain extent. High value-added, high input output ratio, difficult to duplicate and replace the new export mode is ready to come out. ODM has replaced OEM as the mainstream mode of export.

In 2012, the trend forecast is based on 2011. What trends will the industry have in 2012?

　　 (1) the industry has entered a period of gentle development.

After ten years of rapid development, China's garment industry has entered a period of adjustment. The economic performance indicators will no longer maintain the growth rate of the past two digits or even higher, especially the export growth rate will inevitably fall to the low level. The profit distribution pattern of garment industry will also be further improved. The industry will once again undergo the evolution process of adjustment, accumulation, elimination and force after the ten year cycle development of the Asian financial crisis in 2000. Despite the index data, the development speed of China's garment industry will slow down in the coming period, but the construction of industrial system, the reconstruction of value system and the perfection of market system will radically change the internal quality of the garment industry, so as to complete the upgrading of the industrial status of China's garment industry in the international division of labor and win the chance of future development.

　　 (two) industry enters intensive development stage.

The industry will enter the intensive development stage, and the large industrial groups such as enterprise groups, industrial chain groups, brand groups and multinational groups will grow rapidly. The "galaxy" development model with the core of large industrial groups will play a significant role in promoting and regulating the future development and restructuring of the industry. The impetus and guidance of large industrial groups to small and medium-sized enterprises will even influence the pattern of industrial clusters and the development mode of industrial clusters. Further deepening of the division of labor and further subdivision of the market will really provide room for the healthy development of SMEs.

　　 (three) accelerating the pace of industrial internationalization

The internationalization of industry will enter the stage of practice. Internationalization will go deep into all sectors and fields of the industry, and will change subversive. Chinese clothing Industry form. Internationalization will be diversified. Supply chain internationalization, R & D design internationalization, manufacturing internationalization, market internationalization, channel internationalization, brand internationalization, capital internationalization, extension service internationalization, and talent internationalization will all become an international means and mode in the explosive growth of the industry. In particular, the internationalization of supply chain will become the key point for the industry to break through for a period of time. In an open mind, controlling, distributing and making full use of international resources is the inevitable choice for the sustainable development of China's garment industry in the future.