2012 Three Strategies For Garment Industry Development

Reporters in the Pearl River Delta research, learned that, by domestic demand, raw material prices fluctuate significantly, the external demand market downturn and other factors, the textile and garment industry growth slowed in the first quarter, high inventory, low exports, brand building lag has become the three major problems facing the apparel industry.

Many experts and insiders interviewed by reporters believe that 2012 is

Faced with three major problems, the garment industry has entered a "ready period".

The analysis of China's textile industry's operation situation in the first quarter of 2012 released by the Ministry of industry and Commerce shows that in 2012 1-2, China's clothing output was 3 billion 800 million, down 4.9% from the same period last year.

In 1-2 months, the retail sales of clothing and needles textiles above the limit were 172 billion 600 million yuan, an increase of 12.8% over the same period last year, and the growth rate dropped by 9.4 percentage points over the same period in 2011.

It is expected that the textile industry will continue to maintain steady growth in March, and exports are expected to rebound.

The head of China clothing association said that after the overheating in 2010 and the "undercooling" in 2011, China's clothing industry entered a "ready period", and the growth of various economic indicators dropped.

In the Pearl River Delta research, reporters learned that at present, the clothing industry is facing three major problems: high inventory, low export and lagging behind in brand building.

Puzzle 1: domestic demand is sluggish, and the high storage dilemma is the pain of the industry.

Pan Yongsen, President of Guangdong Wenzhou clothing trade association, said that "high inventory" is a common problem facing the garment industry.

Especially in 2012, affected by the "cold spring" climate, a large number of spring products were backlog and sales were poor.

Italy Hengsheng Trade Co., Ltd. is a clothing trade company integrating design, production and sales, and has its own garment production base in Wenzhou.

The company produced a large backlog of spring products in 2012, and the value of its stock clothing in the first quarter was as high as 100 million yuan.

Lin Hai, a textile and garment industry analyst at GF Securities, thinks that the inventory problem of garment enterprises mainly depends on the production of orders, so the inventory is mainly on the raw materials. The average stock of the brand clothing enterprises, which is dominated by the terminals, accounts for more than 50% of the total clothing. The inventory is mainly in the channels and dealers. The high inventory will lead the dealers to place their orders cautiously in the autumn and winter orders, thus affecting the growth of the company's revenue.

The European debt crisis continues to escalate. As the main body of the international market, the recovery of developed economies such as the US, Europe and other countries is weak, which restricts the demand for China's textile and clothing products.

According to the statistics of the Ministry of industry and commerce, the export volume of China's textile and clothing exports to the EU decreased by 12.7% in the 1-2 months of 2012, and exports to developed countries and regions such as Canada, Australia, Korea, Hong Kong, Macao and Taiwan also declined.

Although exports to the US and Japan have increased, their growth rates have dropped by 0.8 and 6.4 percentage points respectively.

Pan Yongsen said that the garment enterprises under the Wenzhou chamber of commerce were mainly exported to Europe and the United States. According to statistics, most enterprises' orders and export volume dropped by more than half in the first quarter of 2012.

Li En, deputy general manager of Guangzhou Chuangxing Garment Group Co., Ltd., said that in the first quarter of 2012, the company's orders fell by more than 20% over the same period in 2011.

In the domestic market, the profit space has been narrowed.

In order to develop new customers and increase orders, the company has to reduce the order.

In the past, the number of single order products did not reach 100 thousand, and the company did not receive orders. Now the number is 80 thousand.

The price is also down, and the price of jeans has been adjusted from a 15 US dollar to 14 US dollars.

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Problem three: brand building is lagging behind, and China's clothing world is "noisy."

"If I give you four hundred yuan to let you choose a pair of sneakers, will you choose the domestic brand or the international brand after the discount?" the same question asked 10 people, and the answer was surprisingly consistent. 9 of the 10 people chose the latter.

The embarrassment of domestic brands is never seen.

Pan Yongsen said that in a strict sense, China does not have its own clothing brand.

It takes a long time for a brand to form a brand, including the design style, design concept, corporate culture and so on.

The internationally recognized brands are all through centuries of cultural accumulation and accumulation.

However, the garment industry in China starts late and has a low starting point. At present, most of them are mainly processing and manufacturing, lacking their own cultural connotations, so the added value of the products is low.

Liu Yueping believes that international brands are more mature because of their cultural, historical, operational experience, capital, talents and many other advantages.

The establishment of enterprise brand is a systematic and scientific construction process. Many garment enterprises are free to change their original brand strategy because of the influence of market factors, so it is very difficult to establish a real brand.

Faced with the grim situation, many domestic garment enterprises are seeking to upgrade, and the strategy of brand building and extension has achieved initial success.

Strategy 1: strengthen data analysis and carry out channel reform.

In order to digest inventory, many enterprises have made positive and beneficial explorations.

Lin Zhendong, deputy general manager of Zhuhai Wiseman apparel Co., Ltd., said the company set up a special data center to control inventory, so its inventory is far below the national average.

Li Ning Co put forward the idea of channel reform earlier, including improving operational efficiency at retail terminals and building channels for clearing goods.

Lining said in the annual report that in 2011, the wholesale discounts for distributors were increased, and 136 factory shops and 178 discount stores were added to clean up inventory.

In 2012, the company will continue to promote channel pformation, enhance the retail efficiency of the two to four line market, further clean up the retail terminal inventory, and speed up cash turnover.

Strategy two: grasp the order and choose the market correctly.

In the international economic environment with low external demand, accurately grasping the flow of orders and choosing the market wisely are the winning magic weapon for export "counter trend" growth.

Lin Zhendong said that the choice of export sites is crucial.

When choosing exporting countries, we should have a preliminary judgement on the international political and economic situation.

The company was robust in the first quarter of 2012, and its exports increased by more than 50%.

This is largely due to the choice of export markets in the oil exporting countries, Russia, so that the company's exports have not been negatively affected by rising oil prices.

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Strategy three: grasp the fashion pulse and innovate the marketing mode.

In order to change the awkward predicament of "silent and silent" of Chinese clothing brands in the world, many enterprises began to broaden their international perspectives and seek

Lu Xiuhuai, assistant director of the Guangdong apparel and apparel industry association, told reporters that the company has hired the world's top fashion designer JeanPaul Knott as its global design consultant; the left bank costumes are collaborate with the international fashion and Lifestyle Research Institute of Paris neli Luo Di; XTEP (China) Limited has introduced the chief designer from Korea to boldly match the colors and styles of its fashion sports products.

"It's not enough to build a closed door.

We must master the pulse of world fashion and innovate with our own advantages and unique brand culture.

Guo Donglin, chairman of YISHION company, said.

YISHION has several design centers in China, and has set up its own design studio in London to facilitate docking with international fashion.

In addition, quality marketing strategy is also a good strategy to boost the development of China's clothing brand.

Li Ning Co responsible person said, "Lining" and the United States joint venture set up a "digital Lining", through e-commerce website to open up the U.S. market.

Pan Yongsen said that the domestic well-known women's clothing brand Europe time force company has developed the agent in Southeast Asia many countries, positively develops the local market.

Industry reshuffle intensified in 2012 to accelerate the pace of upgrading.

Liu Yueping and other experts believe that 2012 is the key year for the garment industry to survive the fittest and continue to shuffle cards.

In terms of external demand, what we need to pay attention to at present is the control right of orders. The flow of orders is very important for the industry at this stage.

"On the one hand, the high cost of processing in our country makes overseas customers tentatively seek new sources of goods, while low value-added orders also make the domestic enterprises that cost rigidly rise unsustainable. On the other hand, the competitive countries have been promoted rapidly under the promotion of overseas investment and domestic industrial policies.

With the deepening of international division of labor, order pfer is inevitable, but the new balance has not yet been reached.

The pfer speed, direction and way of order in the next one or two years will be the main points for our garment industry to pay close attention to.

Liu Yueping said.

A number of reporters told reporters that the development of the industry in 2012 is not optimistic.

Pan Yongsen said that in China's garment industry, in addition to the relatively large number of large enterprises operating more robust, other small and medium enterprises, only 1/3 enterprises are slightly profitable, 1/3 enterprises are hard to maintain capital, 1/3 enterprises have been or are being eliminated.

"The company is experiencing the most difficult time in the past 10 years, and it is expected that 2012 will still be the" winter period "of the clothing industry.

The company has doubled its R & D investment and imported the world's most advanced water washing equipment from Turkey.

In addition, the company also participates in international exhibitions as much as possible to strengthen contacts with overseas customers.

Li En said.

The head of the Guangdong clothing and Apparel Industry Association believes that Guangdong's clothing output occupies half of China, and it should create a famous brand.

Facing the impact of international fast fashion brands such as ZARA, H&M and UNIQLO in recent years, the clothing industry should improve R & D design level, deepen brand building, increase technology application, develop capital operation and innovate marketing mode, so as to realize the overall pformation and upgrading of the industry.