Exploring The Endogenous Driving Force Of Garment Industry

"The right way is the vicissitudes of life. The next one or two years are Garment industry In the important period of development, the turning point has really arrived. If clothing companies do not think about change, they will be forced to withdraw from the market. This will be a real problem. We must now advocate the new industrial values and rational thinking of the industry. In this period, enterprises should recognize clearly: where am I? What do I have? What kind of market do I have to face? What are my qualifications? How can I go on the path of future development more objectively and rationally? "Chen Dapeng, executive vice president of the China clothing association, said in an interview.

　 Garment enterprises bid farewell to the era of low cost and rapid growth

In 2012, the textile and garment industry suffered great difficulties under the influence of the international economic environment, and export orders were greatly reduced. Following the impact of the US subprime mortgage crisis on the global financial industry in 2007, the European debt crisis erupted in 2009 led to the continued weakening of the global real economy, resulting in a depressed market demand for developed economies in Europe, America and Japan. The change of consumption concept is mainly due to the demand for high-end and high priced clothing to turn to the demand for low-end and low price garments, from buying many garments to buying a few clothes. The decline in demand has directly led to a decline in the number of orders in major markets.

At the same time, domestic apparel enterprises are facing the biggest difficulty in 30 years, in the face of the upgrading of the cost of various elements of the industry.

During the interview, when it comes to changes in the various external environments, Chen Dapeng said: "in the past 30 years since China's reform and opening up, the textile and garment industry has been ups and downs, but the great thread is still developing rapidly. Now, at the turning point, we have changed the conditions, the foundation and the environment that we rely on. "

Nowadays, the apparel industry has relied on the rapid growth of the economy, the growth of rigid demand for consumption has changed, the whole development environment has been different, and the era of speed, scale, low cost and other factors endowments is already over. Chen Dapeng also gave a very vivid example. He said: "if we say that in the past 30 years, the development of our clothing industry is like a junior high school student who grows to 185 centimeters, grows very fast, but is thin and has no muscles. So the next time our clothing industry will not be faced with the problem of" growing taller ", it is time to think about muscle training.

An important problem facing the textile and garment enterprises is the rising cost. The textile and garment industry is a labor-intensive industry. Labor cost accounts for a larger proportion of the total cost of the enterprise, and small and medium-sized garment enterprises are even more.

Turning to the problem of rising labor costs, Chen Dapeng said: "30 years of reform and opening up, the treatment of workers must be improved. Social development, economic development and building a well-off society are aimed at improving the overall income level and living standards of the people. Therefore, the promotion of labor costs is a major trend. He believes that the key to the thinking of textile and garment enterprises is how to do it after the cost increase. If the cost is increased and the enterprises can not do it, it shows that our competitiveness is gone. According to this logic, the clothing industry in Europe and the United States should not exist.

This logic is obviously not true. Europe and America are still strong countries in clothing. The labor cost in Europe is 10 times that of China, but at the same time, the added value of the product is several times, ten times or even dozens of times. The clothing industry in Europe and the United States is the direction of our future development. He also said: "the rise of comprehensive costs is irreversible in general direction and trend. We need to soberly realize that the era of low cost is over."

How can we adjust the mode of production, the way of operation and the way of industrial development? How to face the changes of industrial factors and market changes? How to improve the creativity and creativity? Chen Dapeng pointed out: "every enterprise has different production and operation situations. The important thing is whether you can build your own competitiveness and continuous innovation." Last year and this year, many orders were transferred to Southeast Asia. Because of our cost increase, orders with low added value could not be made. However, China's garment industry is so large that its industrial system has been withdrawn from the international market because of the cost increase. This is certainly not the future direction of our clothing industry. Our exports account for 1/3 of global exports, and export comparative advantage does not mean that competitiveness is gone. Indeed, we have no advantage in manufacturing products with low cost and low added value, but foreign trade enterprises will have a comparative advantage in manufacturing market as long as we upgrade manufacturing to creative manufacturing. This is the direction of our industrial upgrading.

This is the age of market economy. Maybe this is the worst time, but it is also the best era. The crisis has brought great difficulties to our industry and provided opportunities for upgrading our industrial transformation and upgrading to a new level. Chinese clothing enterprises should realize that enterprises can no longer be promoted by 20%-30% or even 50% per year, and this era is over.

　　 Enterprises should enhance their core competitiveness.

"If we say that the international and domestic environment of our industrial development in the past was a plain plain, then we are climbing now. The state of mountaineering and plain going will be very different. Mountaineering must have good physique, equipment and scientific methods. Chen Dapeng said so in the interview. How to find a suitable development path for enterprises? This is a problem that every enterprise must consider now.

At present, the apparel foreign trade enterprises are facing the transformation problem. Many foreign trade transformation starts to do the domestic market, but in fact, the transformation of foreign trade to domestic sales is the transformation of the two business systems. Exports rely on the upgrading of manufacturing scale and management links as the main channel for profit value acquisition, while domestic brands rely mainly on R & D and terminal management to make profits. This is entirely a different system. The two systems will be different in design and research, talent team, terminal, business mode, capital and so on.

In this special period, how to locate the new development period objectively, the position of the enterprise in the market and the industry is very important for the development of the enterprise. Chen Dapeng's view is that the transformation of foreign trade enterprises is not always a terminal brand. After transformation, we can become a creative manufacturer brand. Our manufacturing advantages are far from being played out, not only in the international market, but also in the domestic market.

In the interview, Chen Dapeng said that all kinds of foreign trade enterprises should work hard in the field of specialization and enhance their own R & D capability. Chinese enterprises have great potential in this respect. Now we are not only far from the R & D design in Europe, but there is still a gap between Korea and China. In the past stage of rapid development, we are mainly following the R & D design, and the investment in R & D is not enough. In the transformation of export oriented enterprises, it is not necessary to simply switch to the domestic market simply, but to think clearly about how to face the new pattern of market changes and how to improve their R & D capability, this is an important issue that enterprises need to think about.

"Our foreign trade enterprises have good production and processing capabilities, and have quality assurance. If they match and cooperate with domestic brand enterprises, they will be a good way to develop. How to develop in the professional direction and transform into a professional supplier with better design and R & D capability and supporting services for brand enterprises, which is a more pragmatic transformation for foreign trade enterprises. Chen Dapeng said.

Undoubtedly, the key problem for Chinese garment enterprises to solve in the future is how to do fine and deep problems. For foreign trade enterprises, the same is true for listed companies. Now many listed companies get capital from the capital market, and they do not have a clear understanding of their next development. The more obvious performance is the inventory crisis currently encountered by sports and leisure brands. This is the bad consequence caused by the blind expansion of capital drive. A lot of sports and leisure brands expand because of blind and rapid expansion, resulting in a large number of inventory, resulting in waste of resources.

Chen Dapeng said that the core of clothing enterprises is to make products well, which is the problem of industrial values. The most important thing for an enterprise is to make profits. The main industry itself is not good enough to achieve personal wealth through other ways. This is not helpful to the development of enterprises, but is not benign.

"Enterprises must consider before listing. Are you suitable for listing? Do you need capital market funds to support your next development? If not, then the listing must be double-edged sword." Chen Dapeng also said that the development of multi brands may not be suitable for many Chinese enterprises. If China's brand has been developing for 20 years, there are some brands that have developed very well because the entrepreneur's attention. This part of the entrepreneur has made great efforts in enterprise development, R & D design, internal management system and so on.

He also said that China's future development has great potential, and garment enterprises should have full confidence in this. Now we are in an economic cycle, facing many difficulties and problems, but China's GDP growth remained at 7.8 in the first half of this year, and this huge demand market is still there. The main problem is that the conditions of our industry's rapid development have changed. Our consumption market and demand have also undergone many changes.

"But in this period, the crisis has made us remove the original impetuous things in the depths of our minds, and look at it more rationally and objectively. Where am I? What do I have? What kind of market do I face and what conditions do I face? How can I go further and objectively and rationally on the road of my development? Therefore, our difficulties are not bad now. We must recognize that this is a phased one." Chen Dapeng said.

This stage of the enterprise must embark on a new road of development, then we need to stress not external environmental factors, but more importantly, enterprises should clearly understand that they should look inside and find their own gaps. "Of course, enterprises are different in form and way of doing things. We can not tell enterprises what to do, and enterprises are real practitioners. In terms of products and brands, it is expanding the scale and spreading the pie. Now we should change the way of development, and there is still a lot of room for improvement. Chen Dapeng said.