Problems And Innovations Of Chinese Enterprises In Brand Business Mode And Supply Chain Management

Since 2008, the subprime mortgage crisis in the United States and the sovereign debt crisis in Europe have put pressure on Chinese enterprises. The rise in labor prices and costs, the continuous appreciation of the US dollar and the rising price of land in China have brought greater challenges to China's textile supply chain.

Under such circumstances, China's textile industry

Where is the competitiveness of the supply chain? How should the brand business mode and supply chain innovation be changed, how to improve and how to break through?

After comparison, we can see China's happiness.

"Disassemble the 5 letters of CHINA, C represents changes (change), H stands for hope (hope), I stands for innovation (innovation), N represents nature (environment), A is anticipation (expectation).

The separation of the 5 letters is a new image of China, which represents the strength of China.

The consumption power of the Chinese market is growing, and China has gradually become a target pursued by other countries.

China

Sun Ruizhe, the vice president of the Federation, has a very creative image analysis, just in line with China's current situation.

In 2012, many enterprises reflected that the export and domestic sales situation of the whole industry was not optimistic this year. Sun Ruizhe believed that enterprises should be confident that such a state of depression is not only in China.

The "uncomfortable" in 2012 came from the environmental changes in the external market of the EU. China's textile and garment exports to the EU have decreased in terms of volume and quantity, and export pressure has been great.

But is this problem only in China?

Many other countries are faced with this situation, such as BRICs, Brazil, Russia, China, India, South Africa and other countries are facing such pressure, China as a whole is still better.

From the overall trend analysis, the industry situation in the second half of the year should be relatively stable, but the fundamental change is still to look at the domestic demand market. We should see how the policies of the national macroeconomic regulation and control should not only protect growth but also prevent inflation, thus promoting the development of the industry.

Three factors affect supply chain competition

Because of the importance of the domestic market, Sun Ruizhe also pointed out some problems in the domestic market.

"The business environment of the domestic market is lagging behind the development of the industry.

The price of clothing is high in many department stores, which is a price bubble.

Behind this price bubble is the business link and even the whole operation mode.

To expand domestic demand, we must break through the disadvantages of the current business environment.

We also need our textile and garment brands to create new business models on the basis of tradition.

The export market is also important to the domestic market.

In the past, the main export areas of China's textile and clothing products were the United States, the European Union and Japan. But now, because of the economic depression in these regions, Chinese enterprises are gradually expanding their export share to other countries and regions, thereby reducing the interference caused by the change of the main economic market cycle in domestic enterprises.

But Sun Ruizhe stressed that one thing must see the bad side when it sees the good side. "Often some developing countries have more trade frictions than developed countries and regions. Therefore, enterprises should also be prepared to face new challenges when exporting to these countries."

In addition to the impact of internal and external sales, Sun Ruizhe also said that the labor issue is also an important factor affecting the supply chain competition of Chinese enterprises.

"We all say that China is a large populous country with sufficient labor force.

But now the labor force is undergoing subtle changes, and many new generation of labor force is reluctant to enter the manufacturing industry.

Of the about twenty million workers in the textile industry, 80% come from the countryside.

The first generation of migrant workers love this industry and get their reward in their manufacturing field through their hard work.

But the second generation and the third generation of young rural labor force have new living standards and life values. Most of them reject the first line jobs.

Nowadays, many industrial clusters are short of employment, and one of the influencing factors is this. At the same time, the rise of labor costs has also caused great pressure on enterprises. "

Looking back five years ago, the average labor wage in the entire textile industry was 70% of the average level of manufacturing industry. But today, the average wage level of the textile industry has basically been tied. It can be said that the textile industry is one of the fastest rising industries in the whole manufacturing industry. "In the first quarter of this year, the average wage of the entire textile and garment industry increased by 17.5%."

"Today's brands are broadly divided into two types: Industrial and consumer brands, and the two brands have different audiences and different characteristics.

At present, in China, many areas, such as Ningbo and Wenzhou, which are famous for their consumer clothing brands, how to establish a consumption pattern that is popular with Chinese consumers, and how other clusters of famous brands of manufacturing brands are promoting the growth of industrial brand are worthy of our consideration.

Sun Ruizhe is particularly concerned about the competition of Chinese brands in the supply chain. "The current competition is not the competition between enterprises and enterprises, but the competition of the supply chain system. The former competition is individual behavior, and the current competition is systematic behavior.

The most important thing for Chinese enterprises to supply chain management is to form an organic combination rather than to be selected.

Many Chinese brands have grown up from the three line and four line cities, so they are nicknamed "rural encircling the cities", and now these brands are gradually upgrading themselves to the first tier cities.

Foreign brands often enter the first tier cities in China, but now they are extending to the second tier, three line and four line cities.

In Sun Ruizhe's view, the competition faced by Chinese local brands is not only a competition in the first-line market, but also a new challenge to the brand business mode.

"Chinese textile

The cost of cards should be reduced.

It is also a madeinChina garment, and the same goods sold in foreign department stores are actually cheaper than China.

How to make breakthroughs in circulation from production, manufacturing to circulation? It is gratifying to note that many enterprises are now seeking new modes of business circulation, such as breakthroughs in online and offline e-commerce, and the establishment of brand integrated stores, which can reduce the commercial cost of circulation and benefit consumers, which are part of the supply chain.

In addition to the commercial circulation mode, Sun Ruizhe believes that the third party detection of domestic brand enterprises is also weak in the supply chain links.

"In the aspect of internationalization, the third party inspection should be an important part of supply chain management, but some domestic enterprises do not attach importance to it, resulting in some undesirable consequences."

Supply chain management will be a symbol of brand strength in the future. Effective management of supply chain will control cost and quality, provide consumers with high quality and reassurance products, form a fair and orderly competition mechanism, and bring great impetus to brand building.