The Way Out When Old Clothing Brands Encounter New Difficulties

　　 Telemarketing cannot be completely solved Clothing industry dilemma

The current clothing inventory cannot be sold out even if production is stopped for two years. Overproduction and export to domestic sales aggravate the difficulty of inventory digestion in the industry. The sharp contraction of exports has prompted some garment OEM enterprises to switch to domestic sales and brand creation mode. Some domestic brand products are too optimistic about their own sales estimates, and their own inventory pressure is great. However, as the reform of sales channels, e-marketing can only alleviate the current pressure of clothing sales, and cannot completely solve the dilemma faced by the entire clothing enterprise.

It is worth noting that the national data shows that the retail sales of clothing in the first half of this year only increased by 0.99%. From January to June this year, the retail sales of clothing products grew by 9.82% in total. Although the growth slowed by about 12 percentage points compared with 21.81% in the same period last year, it has narrowed significantly compared with January to February this year. This means that most of the increase in retail sales of clothing products is driven by the rise in clothing prices.

In fact, the difficulties faced by garment enterprises at present have many levels, one is the excess production capacity, the other is the serious homogenization of garment products, and the third is the high inventory. A particularly prominent feature of this year is that clothing manufacturing enterprises used to only do production or retail, but now many enterprises do multiple ports. Under the influence of the overall economic environment, the overall demand of consumers is not so strong. From manufacturing to wholesale to terminal retail, each level has been affected to varying degrees.

Clothing enterprises may face a big transformation. Taking several major FMCG brands in Europe and the United States as examples, their application of fast supply chains and flat channels will greatly reduce the cost of circulation, while the circulation cost of domestic clothing enterprises is far higher than the production cost, If it is developed according to its flat channel or e-commerce channel, the intermediate circulation link can be greatly reduced.

　　 Clothing enterprises Need to transform and actively develop domestic sales to solve difficulties

Affected by the international economic situation, the clothing industry has suffered from high inventory, high labor costs and low order quantity in recent years. Under heavy pressure, how should garment enterprises break through?

Influenced by unstable international economic situation, sluggish foreign demand market, slowing domestic economic growth, sluggish growth of actual consumption due to rising unit price, and rising labor costs and raw material costs, the clothing industry has entered a complex period of development. In a series of surveys, more than 60% of garment enterprises believe that the market in the second half of this year is not very optimistic.

High inventory, high labor cost, low order quantity and external international economic environment directly affect the living environment of domestic garment export enterprises. Many enterprises report that clothing is difficult to do this year, and the growth is sluggish. Data shows that, compared with the same period last year, 70% of garment enterprises said that their sales revenue and profits had declined significantly, and the number of orders of many foreign trade processing enterprises exporting to European and American markets had shrunk significantly, because many orders were short, small, and scattered, and enterprises simply dared not take them.

Nearly 2/3 of the enterprises said that compared with the same period last year, the output dropped significantly. The main reason for the decline in output was the reduction of orders and labor shortage. The average operating rate was about 75%, and nearly 20% of the enterprises had operating rates less than 50%.

On the other hand, the difficulty in recruiting workers has always been a major problem puzzling garment enterprises. There is a shortage of workers. The average operating rate of the whole Guangdong garment enterprises is about 75%.

At present, there has been a phenomenon of moving garment factories to Southeast Asia in the Pearl River Delta region, and there is a trend of gradual expansion. At present, the labor cost in the Pearl River Delta region has increased significantly, with an average of 2500 to 3000 yuan per person per month. However, in Cambodia and other places, the labor cost is only 80 to 110 dollars, less than half of the labor cost in China, and enterprises do not need to consider their social security, accommodation and other issues, which is very attractive to enterprises. Therefore, many international multinational enterprises will also make choices and adjustments.

In fact, many garment enterprises are actively transforming and upgrading. We have learned that some large enterprises will actively explore the domestic market, while processing for domestic well-known brands, they will also cultivate their own designers and develop some of their own brands to get out of the predicament, while some small garment enterprises still mainly focus on the processing of domestic brands.

　　 "Old" Clothing Enterprises Brew "New"

Under the situation of difficult development of the industry, "How to go in the future? How to transform?" has become a must topic for countless textile and clothing export enterprises.

Last year, China's textile and clothing import market share in the three major economies fell for the first time after China's accession to the WTO. Since this year, China's share in the international market has continued to show a downward trend. Both the quantity and amount of exports hit the lowest level since 2007.

In the face of the new situation and new situation of export, Zhejiang Hangzhou Inspection and Quarantine Bureau, taking stock of the situation, plays a role in guiding enterprises to effectively respond to foreign technical trade measures, improving the level of trade facilitation, implementing preferential policies for enterprises and people, and increases service to enterprises to help them overcome difficulties and leap forward development, To contribute to the sustainable and healthy development of Zhejiang's open economy.

"It's not just taking orders for big name OEM, but its own positioning should be very clear. Armani has many OEM manufacturers in the world, but our products can't be made in other countries. Silk products are our characteristics," said the boss of a garment processing factory, "The company's products all have certain technological difficulties, so the added value of the products is high, which generally shows the characteristics that most of the order styles are few in quantity." The high-grade silk women's clothes produced by their enterprises have certain technological difficulties in terms of both fabric and design details, so the overall added value of the products is high, and also has certain irreplaceable, Over the years, cooperation with big brands has been relatively stable.

Another example is washing, which is mainly to prevent cashmere sweaters from shrinking, pilling and fading. The chemicals used for washing are all imported from abroad, nearly 700 yuan per kilogram, and the requirements for washing workers are particularly high. The poor proportion of water mixing may make the washing effect of cashmere sweaters very different, leading to the return of goods.

"The ultimate goal of learning from first-line brands is to create their own brands." Industry insiders revealed that OEM enterprises are quite different from self owned brand enterprises in terms of production, technology and equipment, and changing from OEM to self owned brand can make enterprises no longer subject to the price restrictions of other brands and have their own absolute market pricing power, Several current "Xinyuan" garments Original brand It has been sold in many large stores.

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