The Competitive Thinking Of Textile And Garment Industry Needs To Be Overturned.

China

The industry has entered a turning point. With the sharp fluctuations in raw material prices and labor shortages, the era of cheap manufacturing has already ended. The garment industry has entered a high cost era. The original method of relying on increasing production capacity and expanding the channels to achieve growth targets is no longer a good solution to all problems. Once a little carelessness, it will fall into the mire of "increasing profits without increasing profits" and "high inventory".

In the turning point, we need to consider not only the production cost and labor cost, but also the marketing cost and the rental cost.

At the same time, we should pay attention to the changing trend of consumption demand and how to enhance our competitive power through innovation.

Only with a correct attitude can we achieve pragmatic results and achieve lofty ideals.

Loss of cost advantage

This emerging market in China is undoubtedly the fertile ground for international brands competing all over the world.

With the improvement of China's market internationalization and the acceleration of China's urbanization process, many international brands and a large number of international two or three line brands have entered China, which has objectively lifted the competitive pressure of Chinese clothing brands.

From the central business district of Beijing, Shanghai and Guangzhou, as a result of the large number of international brands, not only the cost of rent in the first tier cities has risen sharply, but also the cost of retail rents has increased significantly.

According to statistics, the rent level of clothing stores in China is the highest in the world. In the world's 10 most expensive high-end shopping malls, there are 8 in China.

The annual rent growth rate in hot areas has reached more than 15%, or even more.

Take Guangdong's past few active foreign brands as an example, with the acceleration of the listing process, these brands have surfaced.

Not only the name is foreign, but also the storefront decoration, product style and even brand image are very similar, this batch of brands take foreign brand as the object of study.

In the company's corporate investment report, the average cost of decoration spent on each store in the channel construction costs rose from more than 1000 yuan to more than 5000 yuan, showing a constant trend towards the level of international brands.

The high growth trend of rental cost and shop decoration costs, in fact, prompts brand enterprises on the other hand, needs to continuously improve the sense of spatial experience of shops, enhance the ability of single store operation, and enhance the brand premium capability.

New demand

The high-end market and low-end market of Chinese clothing are two days of ice and fire. There is a large number of international luxury brands in the high-end market, and Chinese brands do not have much room for survival.

Chinese brands are entrenched in the low-end market, but this does not mean that Chinese brands have completely occupied the low-end market, or that the dominant position of Chinese brands is not prominent in the low-end market.

With the entry of many international fast fashion parity brands such as ZARA and HM, the competition of Chinese brands in the low-end market is more intense, and the weakness is more prominent.

Neither high nor low, this seems to be the embarrassing situation of Chinese brands.

ZARA and HM can quickly occupy the Chinese market, and they can meet consumers' demand for fashion in a timely manner.

With the maturity of consumption concept, the new era has changed not only in cost competition, but also in consumer groups.

The consumption habits, consumption psychology and consumption concept of the 80's and 90's new generation are deeply affecting the development of the clothing industry.

Under the huge market demand, the clothing market has formed more subdivision areas, not only the traditional men's wear, women's wear, sportswear, sportswear and other subdivision, but also specialized development for a single field, such as golf apparel, baby products, outdoor products, mobile products and so on, and even the phenomenon of brand clothing "cross-border".

This kind of "doing fine and doing specialization" is realized on the basis of a deep understanding of the needs and changes of a specific consumer group. It not only meets the needs of individual consumption, but also adapts to diversified markets, and sells not only products, but also fashion, creativity and culture, and its brand premium will naturally be very high.

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Information warfare

One of the most obvious characteristics of international brands is the use of information to seize market resources.

This is a key point that many domestic garment Brand Company have not yet realized.

Many people believe that information technology is a matter of computer companies. It has nothing to do with traditional industries such as clothing. But in fact, it is based on ERP management to realize the modern management of "entering, selling and storing" products, so as to realize the "three streams and one in one" of logistics, human flow and cash flow.

An interesting example happens to us.

Spain's famous clothing brand ZARA, on the face of it is a clothing company, in fact, it can sell anything.

Because its information system is very strong.

To what extent is it strong enough? You can think of it as an information technology company.

What is more interesting is the old clothing of the United States.

In order to have a chance to compete with ZARA, Gap invested $1 billion 100 million in 2006 to cooperate with IBM in building an information system.

The $1 billion 100 million is the price it paid for its arrogance.

Looking from the recent A shares listed companies' fund-raising investment, it mainly focuses on five aspects: channel construction, production projects, information construction, design and research center and logistics storage base.

The direction of these investments is actually the competitiveness that Chinese companies need to strengthen.

Comparatively speaking, the fund-raising funds for information construction are still small, most of them are between 30 million yuan and 50 million yuan. In 2011, Semir clothing listed the largest investment in information construction, and more than 200000000, but even so, it still seems insignificant compared with ZARA, H&M and UNIQLO.

Some clothing companies have begun to pform to e-commerce, but e-commerce is not to say that there is no competition, but on the contrary, it may be even more brutal.

Because e-commerce has a larger cost to digest.

The cost includes supernormal marketing expenses and logistics system construction.

On the other hand, clothing companies choose e-commerce, and they do not have to be a company like fans. They can use e-commerce to speed up the construction of information technology and readjust their market positioning.

The development of the times has created a new consumer group, which is actually asking Chinese clothing enterprises to change their competitive strategies, and not simply rely on traditional price wars, because competition has become more three-dimensional.

And information construction especially highlights a short board of China's clothing brand.

Judging from the performance of ZARA and Gap, Chinese clothing enterprises want to fight this war in the future, in fact, they want to fight information warfare.

Raise the ceiling.

The size of a clothing company depends to a large extent on the decision level of the company.

An example shows that BELLE international started in women's shoes brand, but after a series of capital operation, it has achieved rapid expansion through brand acquisition. Not only do women shoes also make men's shoes, but also enter the field of sportswear, and promote the growth of channels, both strengthening independent brands and acting on International brands.

At present, its market value exceeds 100 billion, with more than 20 brands, and more than 1.6 direct retail terminals. In 2012, its revenue reached 16 billion 900 million yuan, and the annual revenue will exceed 30 billion yuan.

Looking back today, BELLE is no longer a simple shoe manufacturer.

Not only is it far ahead of the physical shops, but its excellent purchase network is second to none in the vertical field of e-commerce.

In leading the fashion trend, it is also in an advantageous position, forming a very effective multi brand strategy, which has more than 5 billion sales of leading brands, BELLE, 3 2 billion level brands, and 7 1 billion level brands, which can adapt to multi-level market demand.

To achieve a large enterprise needs sufficient business ideals and strategic thinking. It should not only have the ability of industrial operation, but also use the power of capital to integrate all kinds of resources effectively, so as to achieve the goal of maximizing enterprise value and maximizing the interests of shareholders.

This requires the boss of clothing enterprises not only to have industrial thinking but also to have capital consciousness, not only to consider the degree of standardization and growth before listing, but also to pay attention to the valuation and pricing ability in the listing, and to make the layout and system planning to the maximum extent possible.

Market capitalization management capabilities.