In Order To Reduce Production Costs, The Company Pferred Some Of Its Production Lines To Southeast Asia.

Since 2012, the decline of clothing brand profits has prompted many garment enterprises in Southern China to visit southeast Asia and plan to pfer production centers.

After Nike and Adi have closed their factories in China, van customer's product, the largest B2C clothing brand in China, has pferred some of its production lines to

In order to reduce production costs and develop overseas markets.

This Act seems to be different from other clothing companies, but it also includes the huge thrust of the collective sinking of the clothing B2C.

August 2012, chairman of the company

It is said that in the future, the production of some orders will be pferred overseas. By the year 2015, 50% of the capacity will be pferred to Vietnam. More than 20% of them will move to India or Sri Lanka, and may remain less than 30% in China.

This is undoubtedly a heavy bomb in the bleak domestic garment industry.

In fact, as early as the second half of 2010, Fan Cheng pin had tried water in Bangladesh and the cost dropped by 5%-10%, of which 3% was manpower cost.

Since 2012, the profits of China's garment enterprises have generally declined. In order to reduce production costs, many enterprises will shift production centers to Southeast Asia into consideration.

Unlike many foreign trade clothing companies, apart from the increase in production costs, the main reason for the pfer of capacity to Southeast Asia is the sinking of China's clothing B2C and narrowing of its profit margins.

In August 2012, the latest B2C vitality data showed that the vitality of well-known clothing companies such as fans, Mcglaughlin, Meng bazaar and Masa Marceau declined, and some even showed signs of bottom up.

In 2011, van customer continued to maintain a very high traffic data, and set off two waves of climax in the two peak season in 2011. After entering 2012, its overall traffic volume showed a downward trend, and 7 and August fell to a new low in two years. The overall flow rate of 2011 and Marceau in 2012 was obviously in the two box's concussion operation; the trend of Mcglaughlin traffic continued its embarrassment last year, and it started to go down from the beginning of 2012, but it still did not go out of track.

The clothing industry research group of the foresight industry research institute thinks that there are three main reasons behind the sinking of domestic clothing B2C:

Van cerpin and Martha Marceau quickly accumulated many users due to their clear positioning and obvious style in the market explosion process of the first two years. However, Tmall, Jingdong and other department store platforms, with the improvement of user experience and diversification of products, unpolitely diverted the Internet users.

The vertical platform such as Mcglaughlin and dream bazaar is more difficult to avoid the aggression of the Department Store Department.

For traditional clothing enterprises, new products will be faced with high cost if they only rely on offline stores to shop.

Backlog risk.

In 2012, these traditional clothing brands took the brand and workmanship that they had formed for many years to enter the Internet.

The traditional way of network distribution is mainly to set up the official flagship store and enter the large department store platform, which makes the two level platform such as dream bazaar and Mcglaughlin suffer embarrassment.

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As of June 2012, there were about 100 million tons of fabric inventory in major textile and textile markets nationwide, and it would take more than 1 years to completely digest them.

In addition, many clothing enterprises' inventory commodities will not be fully digested even if they do not start production for two years.

For the Internet clothing enterprises, whether they have a serious backlog of stocks, they are caught up in the dilemma of keeping up with the traditional brands online and offline.

Since the beginning of 2012, many brands have strictly controlled advertising on the grounds of strategic contraction or pursuit of profits, including advertisements for private brands such as van cask and Martha Maso.

2012 China

The scale of brand online advertising has been declining since June, compared with 55.4% in August 2012.

Among them, the amount of online retail apparel and brand image advertising decreased by 67.6%, and its proportion decreased from 52.7% in July to 38.2% in August.

In August, the sales volume of van customer's products dropped from 70 million 988 thousand yuan in July to 8 million 197 thousand yuan, a drop of 88.5%, and the traffic volume also dropped sharply, which was more than half of the peak value in 2011.