Leisure Wear Famous City Yueqing Enterprises Pformation And Upgrading To Seize The Initiative

Yesterday, Shanghai,

The heads of two garment processing factories went to Yueqing to discuss the cooperation with Chen Jianhua, chairman of "China leisure wear city", Yueqing's times Mongolia Garments Co., Ltd.

Chen Jianhua said that in recent years, the company has opened up the US channel and saved the cost of intermediate links, so that processing factories can directly connect with merchants, so they can have their own pricing power, ensure their own profit margins, and gradually choose cooperation factories outside their processing plants, and send out some orders.

It is reported that the number of enterprises in Yueqing based on OEM is reduced from 425 in 2004 to less than 150 currently.

The main reason is that Yueqing's clothing enterprises fail to control the "pricing power".

In recent years, some clothing enterprises such as Bei Meng, Sfat, and Guinea have set up platforms overseas to expand international trade, or increase design and research and development, turn to ODM, or do independent brands, and fight for retail market.

Sitting in a warehouse in Losangeles doing business

In the second half of this year,

We are going to turn off its more than 400 square meter store in Losangeles, the United States.

The store opened two years ago and used to be the most important trade window in the United States.

But now, this store has fulfilled its mission.

Chen Jianhua said, "now, I can sit in the warehouse and do business."

According to the briefing, now there are more than 2000 square meters of warehouses in Losangeles, with about 20000000 yuan in stock all year round, and customers can directly place orders in this warehouse.

If the warehouse is out of stock, it will take only 15 days to replenish the goods from Yueqing to the US.

Chen Jianhua reveals that no matter how the US exchange rate changes, no matter what happens.

How unstable the crisis is, however, it is always able to maintain a considerable profit margin, and the pricing power is completely in its own hands.

Chen Jianhua said, in fact, foreign orders are not tens of thousands of orders, but thousands of pieces, hundreds or even dozens of orders.

Many guests will place orders directly at some exhibitions and get goods directly from the warehouse.

Therefore, every year, we have to participate in seven or eight large and small exhibitions, and get first-hand customer resources at these exhibitions.

Bei Meng clothing was once an old brand OEM manufacturer in Yueqing. Since 1998, it has made OEM for garment brands all over the country.

At that time, Chen Jianhua, like many processing plants, was often worried about the fact that the off-season was too long and the workers could not be recruited in the busy season.

Although international trade can make up for the demand for off-season orders, profits have almost been squeezed to zero by trading orders taken by trading companies.

In July of 2006, he went to the United States to bypass all the intermediate links and sell the goods directly to the US market.

Although there are many detours in the middle, Chen Jianhua always believes that "foreign retailers directly order from processing factories" have absolute advantages.

Painful memories of "China's famous leisure wear city"

In 2004, Yueqing was selected as "China's famous leisure clothing city". At that time, the statistics showed that there were 425 clothing enterprises in Yueqing, with 165 annual sales income of more than 5 million yuan, and the annual sales revenue exceeded 15 yuan.

By the end of 2011, the clothing association statistics of Yueqing showed that there were less than 150 garment enterprises in Yueqing and the total output value was 2 billion 600 million yuan.

Chen Jianhua is one of the many pformation enterprises in Yueqing.

For Yueqing, a "famous Chinese leisure clothing city", the whole industry experienced a big shuffle in the large and low price OEM process, which is a painful memory for many enterprises.

"The price is so low that you can only earn a little profit by tax evasion. The price is calculated to allow you how much money you can afford."

Mr. Zhang, a veteran of Yueqing leisure clothing company who made an early order in Fujian, used this to describe his low price order.

Since 2002, Fujian has become the largest source of orders for processing enterprises in Yueqing.

It was revealed that only 13 yuan and 15 yuan were needed for processing a pair of trousers at that time.

Plus a variety of factors such as rebate with a single person.

Almost zero.

Today, he has refused low price orders, only for some of the domestic first-line brand processing.

He said that processing prices for the first tier brands is the price of their own.

That period of time can not be recalled, many enterprises are hard to support in this process.

Today, garment enterprises continue to operate in their own way, refuse to buy low order, want to grasp the pricing power.

Chen Hanchun, Secretary General of Yueqing clothing association, said that most of the nearly 150 enterprises of Yueqing clothing were mainly OEM, but the difference was from the full processing in the past to ODM (original design manufacturer).

Clothing companies like Sfat have their own R & D capabilities, and many brands are willing to cooperate with such enterprises.

It is reported that at present, Yueqing's enterprises are mostly cooperating with the domestic high-end clothing brands. The clothing produced by the modern Mongolian clothing can be sold to seven thousand or eight thousand yuan in the shopping mall and become a designated supplier of the brand enterprise.

In 2009, nearly 10 Yueqing garment enterprises, such as Yueqing Emma Garments Co., Ltd., Wenzhou SFT shirt Co., Ltd., Wenzhou St. Kroraina Fashion Co., Ltd. were collectively assigned to Wenzhou garment development building.

According to the relevant person in charge of Wenzhou garment development building, these enterprises have set the key R & D and marketing departments here, especially in the design and R & D industry, and have a good momentum of development.

In addition, some enterprises in Yueqing are pforming into independent brands.

Beware of the slogan trap

This year, a leading clothing enterprise in Yueqing had suffered a major crisis and is facing the door of life and death.

In response, Chen Hanchun said with emotion: "for all kinds of slogans nowadays, enterprises must be seated, rather than blindly following."

It is reported that the original business of the enterprise is relatively stable, and the overall strength is good.

However, since last year, the company has chosen the slogan which is popular and called louder nowadays to make the brand. As a result, the brand awareness has not yet been opened, and the subsequent funds are hard to keep up with, leading to a major crisis.

Wang Tiankai, President of China Textile Industry Federation, recently participated in the new regional advantages of "Wenzhou clothing".

"Frankly speaking, there are many pitfalls in the so-called pformation and upgrading. Enterprises should do their best according to their own circumstances instead of rushing headlong into mass action.

For example, at present, many enterprises make brands, and 100 enterprises make brands as if they are cooking. When 99 enterprises burn up to half of their rice, firewood (capital) is gone, so that only 1 can really cook the rice.

Wang Tiankai believes that whether it is OEM or brand, in clothing this big "ecological circle", find the most suitable position for yourself, so that you can succeed.

People in the industry say that there are no special leading enterprises in Yueqing, but if there are a large number of enterprises such as Bei Meng, Sfat, kynya, Jingmeng and other costumes, finding their suitable locations can be regarded as a regional feature to make this famous city renamed Fu Qishi.

In addition, Yueqing clothing also needs to strengthen teamwork spirit and enhance the external influence of the whole industry.