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    Garment Industry Will Turn Around Early Next Year

    2012/10/30 16:42:00 27

    Clothing IndustryOEMClothing Materials

    China classics

    clothing

    Industry boom index shows that the three quarter, the garment industry trend stabilized, but from the late development trend, the short-term prosperity of the clothing industry is still in the bottom search process, early next year or a turning point, but there are still some uncertainties.

    There are three main reasons:


    First, market demand is still weak.

    Since the beginning of this year, world economic growth has slowed down, international trade growth has slowed down, and various risks have increased significantly.

    The overall downturn in the international market and the decline in external demand have led to insufficient orders for export enterprises, which has become an important factor affecting the operation of the apparel industry.

    It is estimated that in the four quarter of 2012, the international market will continue to be sluggish, and external demand will continue to weaken and raw material prices fluctuate.


    Domestic demand is still the main market to support the growth of the garment industry.

    With the deepening of macroeconomic regulation and control, the domestic economy will maintain steady growth, and the income of urban and rural residents will continue to increase steadily, so as to provide impetus for domestic demand growth.

    However, a large number of domestic enterprises and new enterprises have been gradually saturated and the competition pressure has increased.


    Second, the cost of production links continues to rise, and the operating pressure of the industry continues to increase.

    First, the difference between domestic and foreign cotton prices has great impact on the industry; two, labor costs, environmental resources costs and other elements will continue to rise; three, next year, although the credit policy has been loose, the problem of corporate financing has not yet been fundamentally solved, and the pressure of financial stress on enterprises is still relatively large. Four, the demand for energy saving and emission reduction continues to improve, and enterprises are still in the process of increasing the number of enterprises.

    Conserve energy,reduce emissions

    It will cost more.


    Third, enterprise technology remains to be improved.

    At present, the endogenous driven development mode has not become the mainstream of the whole industry development. Most enterprises rely mainly on quantity to win, relying on cost competition, and the speed of technological progress and development mode can not adapt to changes in the external environment.


    Overall, with the support of the domestic demand market, the main production and sales targets of the garment industry will continue to increase, but the growth rate of production and marketing will slow down.


    In this regard, garment industry enterprises should actively change the way of development, seize the opportunity, accurately judge the market and accelerate the pace of pformation.


    Sharp grasp of market opportunities.

    During the economic slowdown, new technologies and new business models are often spawned.

    These new technologies and business models will bring excellent opportunities for the development of enterprises and the whole industry.


    Accurate market positioning.

    When judging the overall demand of the two markets at home and abroad, we should better grasp the specific positioning of the products.

    The blind expansion of some brands and the lack of rational allocation of industrial chains make the market "time" positioning invalid.

    It should be reminded that in the market environment where demand is weakening, the apparel industry's "fast fashion" products and industrial models need to be treated with caution.


    Accelerate the pace of pformation.

    The grasp of opportunities and the judgement of the market require the initiative and positive actions of enterprises and the whole industry.

    In practice, many enterprises have already taken the lead, and quite a few enterprises have

    OEM

    The export-oriented shift pays attention to the cultivation of private brand and the development of domestic market, which is a positive way of pformation and upgrading.

    But as mentioned earlier, the saturation of the domestic market has increased the difficulty.

    Nowadays, industrial competition has changed from inter industry (product to product) competition to intra industry (intra product) competition, and even to competition in industrial sectors.

    Therefore, pformation and upgrading should adopt a pluralistic path.


     

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