Dongguan Textile, Clothing, Shoes And Hats Explore New Growth Points, Attack Multiple Ways To Strengthen Confidence

Opening remarks: On August 2, Dongguan held the city's Mid Year Review and Summary Conference. Xu Jianhua, Secretary of the Municipal Party Committee and Director of the Standing Committee of the Municipal People's Congress, proposed to "go all out to stabilize economic growth" in the second half of the year. As for the economic situation this year, Yuan Baocheng, Deputy Secretary of the Municipal Party Committee and Mayor, put forward the judgment of "low, medium and high first". Through the efforts of the whole city, under the impact of the European debt crisis and the downturn of the American market on exports, Dongguan's economy still maintained an overall stable development in the first half of the year, and achieved a GDP growth of 2.5% when the growth in the first quarter was very unsatisfactory.

In the second half of the year, Dongguan should not only dare to face the reality, but also greatly boost confidence, be optimistic about the prospects of economic development, and vigorously break through the current growth dilemma. So, as the most direct market body of the economy, what are the growth highlights of the major industries? Where does the confidence of stable growth come from? What is the development expectation? Please pay attention to the series of reports on "improving confidence and stabilizing growth". The report will be based on the spirit and work deployment of the city's mid year review and summary conference, face the reality of various industries, seek new growth points, and create a public opinion environment and social benefits to boost confidence for the economic work of "stabilizing growth and promoting development" in the second half of the year.

In the first half of the year, Dongguan's gross domestic product (GDP) grew by 2.5%. Compared with years of being accustomed to rapid economic growth, 2.5 percentage points inevitably made people pessimistic. But is it really pessimistic? The answer is clearly no.

On the basis of 1.3 percentage points growth in the first quarter, 2.5% growth was achieved in the first half of the year. As Yuan Baocheng accurately predicted, the economic situation in Dongguan is showing the track of "first low, middle flat and then high", which is low at the beginning of the year, stable in the middle of the year and high at the end of the year. 2.5% is the performance of stabilizing and recovering.

Dongguan's traditional advantageous pillar industry -- textile Clothing shoes and hats The industry is also experiencing a similar trend. The continuous downturn in the European and American markets has made the "shoes, clothing and hats" in Dongguan, which is mainly exported, no less impacted than in 2008. However, Dongguan manufacturing owners, who are good at adapting to the situation, have not been overly obsessed with the gains and losses of the European and American markets, but have made the industry find new growth space by increasing efforts to transfer to domestic sales and other ways, changing the past "flower inside the wall and fragrance outside the wall" to "fragrance inside the wall".

Premier Wen Jiabao's belief that "confidence is more important than gold and currency" is more applicable and necessary for the major industries in Dongguan under the current economic situation.

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There are many highlights in the active adjustment of stable growth and recovery

Dongguan textile, clothing, shoes and hats industry is a typical traditional export oriented industry.

According to the statistics recently released by the Guangdong Branch of the Customs, the export of Guangdong's traditional labor-intensive products fluctuated significantly in the first half of this year. Among them, the export volume of clothing and clothing accessories, footwear and textile yarn fabrics and products was US $14.61 billion, US $6.81 billion and US $5.51 billion, respectively, down 0.7%, 1.8% and 2.4% year on year.

At present, the export data of Dongguan's textile, clothing, shoes and hats products in the first half of the year has not yet been released, and it will be known soon from past experience. As a processing trade developed area, Dongguan's export fluctuations are also obvious, and the export data of textile, clothing, shoes and hats in the first half of the year are more or less expected. In addition, from the cumulative growth rate of Dongguan's pillar industries in the first half of the year, from January to June, the growth rate of textile, clothing, shoes and hats manufacturing industry was - 6.7%. It is conceivable that the possibility of good export figures is naturally very small.

However, for the textile, clothing, shoes and hats manufacturing industry, the figures also show a steady recovery, and the overall situation of the industry is improving. In fact, this group of figures is the acceleration of the active or passive adjustment of the textile, clothing, shoes and hats industry in the past six months, leaving many points to be highlighted, showing a bright spot of positive transformation and upgrading.

Highlight 1: More yuan for export growth.

In the downturn of the European and American markets, Dongguan manufacturing owners have always grasped the European and American markets, actively adjusted their marketing ideas, changed from focusing on products regardless of the market to actively creating brands, expanding marketing channels, and enhancing the voice of the export market. According to an industry source who did not want to be named, Yuanmeng Home Textile was exported in the US market through local e-commerce enterprises, "with very good results".

Emerging markets have become a new growth point of textile, clothing, shoes and hats manufacturing industry. According to the latest statistics of Dongguan Inspection and Quarantine Bureau, in the first half of the year, the batch and value of light textile products exported from Dongguan to Africa and emerging markets increased by 43% and 141% year on year. The growth of emerging export markets is undoubtedly unique in the case of weak economies in Europe and the United States.

Highlight 2: Try channel innovation to promote domestic sales.

At the end of June, more than 20 Dongguan manufacturing enterprises, including clothing brand Banna Piglet and Kiss Me, entered the Guangzhou Online Goods Fair. Although most export enterprises are still in the stage of product display, one thing is certain that these enterprises are trying to sell in e-commerce and other channels. The above people in the clothing industry said that increasing domestic sales is a fact that the clothing industry must face at present, and the export boom in terms of containers in the past is likely to be gone.

Highlight 3: upgrading the operation mode of department peripherals.

The relocation of the headquarters of Humen Garment Enterprises, which was so noisy in May, was later proved to be a misunderstanding. Some functional offices of garment enterprises moved to Shenzhen just for the convenience of market distribution and talent attraction. In fact, this is also the need for garment enterprises to comply with the development trend. Dongguan is in a downwind position due to the relatively large talent pool in Shenzhen and Guangzhou. If the design and marketing departments are located in Guangzhou and Shenzhen, it is easier to attract talents to join the Dongguan garment industry. Some analysts pointed out that this is the upgrading of the operation mode of garment enterprises, and it is no longer an OEM enterprise engaged in products. The famous clothing enterprise Yichun once set up relevant functional departments in Guangzhou and other places to meet the needs of the stage, and finally withdrew after realizing the company's development intention.

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Clear advantages and stamina The domestic market is optimistic

At this year's Mid Year Review and Summary Conference, Yuan Baocheng expressed with confidence that as long as the whole city worked together, the economic prospects in the second half of the year would not be too bad. The same is true for the textile, clothing, shoes and hats manufacturing industry. Even if the cumulative growth rate from January to June is - 6.7%, in fact, this rate has increased by more than 10 percentage points compared with the growth rate from January to February.

The complicated and changeable international economic situation, the trade barriers led by European and American countries and followed by emerging markets, and the global siege of Chinese goods are clearly the main reasons for the restricted growth of export oriented Dongguan. Under the influence of multiple factors, the export and domestic sales of the textile, clothing, shoes and hats manufacturing industry are constrained. In addition to external reasons, accelerating the transformation and upgrading will inevitably sacrifice the growth rate. After holding back the pain, the quality of growth will be improved. Therefore, it is expected that the domestic sales process of the textile, clothing, shoes and hats manufacturing industry will be relatively slow at present.

According to the latest statistics of the Municipal Bureau of Economy and Information Technology, in the first half of the year, the domestic sales value of industries above designated size, including textile, clothing, shoes and hats enterprises, was 193.133 billion yuan, up 1.2 percentage points year on year. Conclusion: "The growth of the domestic market is not ideal." The analysis shows that, on the one hand, it is affected by the economic downturn and the macro-control policies of real estate, resulting in insufficient domestic demand and a cooling market. On the other hand, there are also problems such as high cost of creating brands and insufficient protection of intellectual property rights, which lead to increased resistance to further expanding domestic sales. Objectively speaking, although Dongguan's manufacturing industry has known "walking on two legs" since 2008, it has not fully adapted to the domestic sales routine: product inertia led to insufficient market strategy. It is also related to the fact that some enterprises have a stopgap mentality when exports are depressed.

There is no doubt that the current difficulties are temporary. The source of confidence lies in the advantages of the industry, as well as the strengthening industrial adjustment potential.

Chen Zhuo, the general manager of Yizhuo Garments Co., Ltd., said in an interview that one of the reasons for moving the company from Guangzhou to Humen is that Dongguan can find the raw materials needed for production, and the complete logistics facilities also bring great convenience to the company. "It only takes half an hour to get to the center of Zhongda Cloth Market".

Traditional advantages are only one aspect of confidence. In June this year, the number of Dongguan enterprises participating in the Guangzhou Online Fair increased to 41, while the number of Dongguan enterprises participating in 2010 and 2011 was more than 10 and 34 respectively. The growth data shows that the domestic sales mentality of Dongguan's manufacturing industry is strengthening, and it is indeed determined to sell domestically. Pan Rihui, secretary-general of the Municipal Textile and Garment Industry Association, told our reporter that Dongguan garment export enterprises have continuously increased the proportion of domestic sales in the current downturn in the export market, so they have tried domestic sales channels in many ways.

The above analysts said that the traditional advantage is the most powerful weapon. If the complete change of domestic sales mentality is added, the textile, clothing, shoes and hats enterprises will have more stamina after the transformation and upgrading.

Explore new growth points and attack multiple ways to strengthen confidence

In the long run, Dongguan is at the basic level of "stabilizing growth and adjusting structure", and the pain of transformation will not disappear in a short time. Then, how should textile, clothing, shoes and hats enterprises look for new growth points in the second half of the year?

It should be said that this is also a period of opportunity for the traditional competitive industry - textile, clothing, shoes and hats manufacturing industry. By actively exploring the domestic sales model, we can find our own domestic sales advantages before the arrival of a new round of rapid economic development in the country.

At the policy level, in the second half of this year, under the international business environment of "business cost plus one, comprehensive cost minus one" in Dongguan, various industries are supported and encouraged by various policies to varying degrees. The newly issued Dongguan Implementation Measures for Promoting the Development of Small, Medium and Micro Enterprises will be of great benefit to small, medium and micro enterprises in the textile, clothing, shoes and hats manufacturing industry in terms of tax, burden reduction and market development. It plays an important role in promoting the development of garment enterprises for domestic sales. In addition, the industry access threshold for enterprises that intend to go domestic through e-commerce is also lowering. The Several Opinions on Encouraging and Supporting the Healthy Development of Online Commodity Trading and Related Services in our Province issued at the end of July will accelerate the pace of traditional enterprises to use e-commerce.

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In fact, in the process of transferring to domestic sales, some enterprises boldly began to try new businesses. Children's wear market is a pilot project for some of the garment enterprises.

Relevant information shows that the domestic children's wear market has not yet formed a national brand or leader brand. It is widely recognized in the industry that the market share of children's wear in China will reach 100 billion yuan by 2013. Jiang Shiqiong, a famous clothing marketing expert, predicted that children's clothing is the last cake for domestic clothing enterprises.

It can be found that whether it is trying e-commerce, or trying to develop the children's clothing market, or even adjusting and innovating the internal business model, it is the upgrading of the textile, clothing, shoes and hats enterprises in the complex and changing situation. This multi punch model in the industry will give Dongguan another shot of strength when growth picks up.

It is worth noting that in the past, when the export market was good, the textile, clothing, shoes and hats manufacturing industry was used to fighting alone, but when developing the domestic market, it rarely had a group attack. Whether participating in the "National Tour of Dongguan Goods", "Online Goods Fair", or other domestic exhibitions, there are scenes of Dongguan shoe and clothing enterprises swarming together.

As the city's Mid Year Review and Summary Conference said, there are still many practical problems in the growth of the domestic market, which cannot be achieved overnight. However, it is not without trace to find and lay a good channel for domestic sales. Pan Rihui believes that the export market will not change its sluggish state in a short time. In order to ensure the survival and development of garment export enterprises, they must turn to domestic sales, and the orders they receive are just to maintain their survival. "Domestic sales is a more appropriate channel, and e-commerce will be the appropriate channel."