Serious Problems Faced By Domestic Casual Wear In China

According to a survey by the foresight Industry Research Institute, China's clothing enterprises, especially casual wear enterprises are encountering more and more prominent inventory problems. These enterprises include Lining, XTEP, Metersbonwe and other domestic front-line.

Brand, and part of the two or three line brand inventory crisis is even more serious.

The foresight industry research institute thinks that the traditional extensive production mode is facing the depressed market demand, and the pressure of inventory and capital chain suddenly rises.

How to adjust operation strategy and digest inventory to maintain healthy operation has become an urgent task for domestic garment enterprises, especially for casual wear enterprises.

Ten consecutive years of over 20% high-speed growth

Casual wear is a clothing worn by people in casual occasions. It includes public leisure, business and leisure, fashion leisure, sports and leisure products.

Since the 90s of last century, with the development of domestic economy and the influence of the world leisure trend, China's leisure clothing market has entered an unprecedented prosperity period.

Especially since 2000, with the increase of national income, the scale and market capacity of China's casual wear market have been expanding.

From 2001 to 2011, the sales revenue of China's casual wear industry maintained a compound growth rate of more than 20% per year, much higher than that of urban and rural residents in the same period.

In 2010, the market scale of casual wear industry reached 632 billion 196 million yuan, an increase of 27.61% over the same period last year, and the assets reached 403 billion 437 million yuan, an increase of 22.38% over the same period last year. In 2011 (the new statistical standard), the scale of leisure wear industry reached 748 billion 590 million yuan, accounting for 60% of the total domestic clothing market, and the assets scale reached 424 billion 906 million yuan.

Over the past two years, the size and scale of the leisure wear industry have maintained an increase of more than 20%.

According to the statistics of the National Bureau of statistics, as of the end of 2011, there were 6271 Enterprises above Designated Size in the leisure wear industry in China, and realized sales revenue of 748 billion 590 million yuan, an increase of 27.33% over the same period last year. The total industrial output value reached 768 billion 761 million yuan, an increase of 29.42% over the same period last year. The profit of product sales was 92 billion 271 million yuan, up 33.48% over the same period last year, and the total profit was 46 billion 157 million yuan, an increase of 32.92% over the same period last year.

According to China Customs data, the total import and export volume of China's leisure wear industry in 2011 was 71 billion 887 million US dollars, an increase of 18.90% over the same period last year, of which exports amounted to US $69 billion 970 million, an increase of 18.14% over the same period last year, achieving a trade surplus of US $68 billion 54 million, an increase of 17.35% over the same period last year.

After years of development, China's casual wear industry has formed a complete and penetrating industrial chain, with mature production technology, complete supporting links and rich production management experience. The Pearl River Delta, Yangtze River Delta and Bohai rim have formed many developed specialized industrial clusters, and a large number of suppliers of surface accessories and garment manufacturers have gathered, forming a relatively integrated and complete industry.

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In terms of brand, "Giordano", "JEANSWEST", "burger lion" and "Baleno" took the lead in the leisure wear market in the mainland, and gradually developed their leisure clothing stores to the whole country, becoming the leading brands of the casual wear market in the 90s of last century.

Since then, with the maturity of domestic consumers' consumption concept and the continuous expansion of domestic market space, the emerging leisure brands represented by "mats Bang Wei" and "Semir" have sprang up and quickly built a huge marketing network in the country in a short time.

Wu Zhaoyu, a researcher at the leisure industry of foresight Industry Research Institute, believes that the retail market of casual wear is expected to maintain a relatively fast growth in an advantageous environment of steady national economic development and stable national income. However, as the industry matures, market growth will stabilize.

It is estimated that in the 2012-2015 years, the growth rate of China's casual wear industry is expected to remain at around 20%. It is estimated that the industry market size will be close to 900 billion yuan in 2012 and one trillion yuan by 2015.

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Lack of quality and brand

In January this year, the Guangdong Quality Supervision Bureau announced the results of random sampling of 10 kinds of products, including casual wear, the sample pass rate was only 62.8%, the lowest rate of qualified products among the 10 products, and 6 batches of casual clothes were produced in Dongguan.

As one of the most important leisure wear production bases in China, the quality of casual clothes in Dongguan also represents the level of domestic production to some extent. The quality of Chinese casual clothing is also worrying.

The statistics of the foresight Industry Research Institute show that in 2011, the number of small and medium enterprises in China's leisure wear industry was 5343, accounting for 85.20% of the total number of enterprises, 890 of medium-sized enterprises, accounting for 14.19% of the total number of enterprises, while 38 large enterprises accounted for only 0.61% of the total.

Wu Zhaoyu, a researcher at the leisure industry of foresight Industry Research Institute, pointed out that China's casual wear industry is dominated by small and medium-sized enterprises, which directly leads to disorder competition in the industry. A large number of small and medium-sized enterprises are generally low in technology level, lack of independent innovation ability, and have not formed strong.

The products are mainly low-grade and low value-added products. Market competition mainly depends on price competition, and directly leads to the low competitiveness of the industry.

In addition to its own strength, foreign brands are strong enough to enter the Chinese market, which poses severe threats to domestic casual wear enterprises.

As one of the most potential garment markets, China has become a battleground for the global strategy of international famous clothing brands. From luxury brands to popular brands, the international famous clothing brands have made great efforts to catch up with the Chinese market, making use of the advantages of brand, capital, technology, information and management, increasing the strength of channel development and product marketing, and gaining market share.

At the same time, affected by the international financial crisis, the demand for international garment market is weak, and a large number of export garment production enterprises in China have sharply increased inventories and tight capital chains.

The sharp increase in inventories and inflexibility in capital flow also led to the lack of domestic enterprises to take care of R & D and innovation and form a vicious circle system.

Compared with the famous international clothing brands, the R & D and innovation ability of our leisure wear enterprises is obviously lagging behind, especially the R & D capability of the surface and accessories, the innovative ability of the new fashion style, the developing ability of the manufacturing process and the upgrading ability of the brand value.

In the international casual wear market, the leisure wear market in the United States, Italy and Germany ranks the top three in the world. However, because of its market advantages, Europe and the United States have concentrated on many brands of leisure wear in the world, including the US Gap, Levi 's, LEE, Denmark's Jack&Jones, Bestseller, Spain's Inditex, ZARA, Sweden's H&M and so on.

In contrast, many domestic casual wear brands have become a flash in the pan due to the lack of brand awareness or the maintenance of brand image.

According to a survey, about more than 2000 brands are eliminated every year in China's clothing market, with an average of 6 brands being eliminated every day, while the average life expectancy of each brand is only 4 hours.

In 2000 -2010, China's top 500 clothing brands had an average life expectancy of only about 1.5 years.

Wu Zhaoyu, a researcher at the leisure industry of foresight Industry Research Institute, pointed out that the excessive profits created by excellent brands to enterprises are enormous, but the profits of domestic processing enterprises are very low at present. For example, the average shirts of China's processing export are only 30 cents to 40 cents, which results in the gradual expansion of the scale of China's garment manufacturing industry while the profit margins are lingering low.

In 2012, the Ministry of industry and information technology released the "12th Five-Year" development plan of the textile industry (hereinafter referred to as "planning").

In the aspect of textile brand construction, the plan put forward that, at the end of 12th Five-Year, efforts should be made to form 5-10 brands with international influence, 100 well-known brands with high recognition in the domestic market, and 50 brand enterprises with annual sales revenue exceeding 10 billion, and the proportion of brand products exported to 25%.

Wu Zhaoyu, a researcher at the leisure industry of foresight Industry Research Institute, believes that although China's leisure wear industry has made great progress in output and quantity after many years of rapid development, there still exist obvious deficiencies in quality and brand. While the "12th Five-Year" country continues to promote the development trend of the textile industry, the leisure wear industry can still take the opportunity to carry out structural adjustment and industrial upgrading, strengthen brand building, establish and perfect the technological innovation system, and effectively improve the market competitiveness of China's casual wear industry.