Shoes And Clothing Enterprises In Zhejiang: Calling For New Market Strategy

As in previous years, in late June, Hangzhou has been extremely hot, but for Hangzhou Hanlong Weier Garments Co., Ltd., deputy general manager Chen Ping, textile industry started from the second half of last year, the "severe winter" is still continuing.

"At the beginning of this year, many enterprises have opted out."

"It's hard to do this year," she said.

It is not only Chen Ping, but also Zhejiang's textile industry, who is very difficult.

When the era of high cost is coming, the market advantage of "made in Zhejiang" depends on achieving the first leap, and it also ushered in an unprecedented challenge.

"In the era of high cost, we must re-examine the traditional market model based on OEM and low volume.

To overcome the current difficulties and achieve greater development in the future, Zhejiang's economy must establish new market strategies and drive industrial innovation with market innovation.

Zhang Handong, director of Zhejiang international economic and Trade Research Center, said.

The inspiration of "PPG" is that it can "make" and "cry out". "Wenzhou's success is not technological success, but marketing success."

Ma Jinlong, who is famous for studying Wenzhou's economy, is also the president of Wenzhou Marketing Association. In his summary of the "Wenzhou model", marketing obviously plays a decisive role.

In many people's eyes, this conclusion is also applicable to a larger category of Zhejiang's economy.

"Zhejiang is a big province of the market", "where there are Zhejiang businessmen, where the market is active", although different statements, but these points all point to the same fact - in the "Zhejiang manufacturing" marketing global behind, Zheshang's market development ability commendable.

However, this marketing success is based on the low price of products.

After entering the era of high cost, the challenge of low price will be followed.

"Many enterprises in Zhejiang rely on foreign trade to start their businesses, and products can be done as ordered.

The so-called marketing is actually price marketing.

Over time, the development mode of heavy manufacturing and light marketing has been formed. "

Zhang Handong believes that the drawback of this model is that once the consumer market is depressed and the cost advantages weaken, the strong manufacturing capability will lead to "capital chain" tension.

The old mode is continuing, and the marketing challenge from the opponent has started.

In the domestic clothing industry, the star of 2007 is not a traditional clothing enterprise, but a "PPG" e-commerce enterprise: it has only been two years since its establishment. The annual sales of shirts not only dwarfs many shirts manufacturers in Zhejiang, but also directly affects the domestic shirt sales champion "YOUNGOR".

The latter has been in today's position for 14 years.

PPG myth is the victory of "marketing lead manufacturing".

PPG does not own a factory and does not produce a shirt. Its innovation lies in the successful introduction of the form of network and catalogue sales to the men's shirt industry. By outsourcing production and logistics, the cost of traditional clothing sales has been greatly reduced, so that consumers can get the ideal shirts at a lower price, thus creating a myth of about 10 thousand pieces of daily sales shirts.

It is gratifying to note that the challenge not only brings pressure to Zhejiang enterprises.

At the beginning of this year, the news bird group announced that it would invest 80 million yuan in its online direct sale website BONO and take a high profile on the "PPG road".

There is also AOKANG group to speed up the innovative marketing mode. At the beginning of this year, AOKANG signed a global strategic cooperation agreement with Italy's well-known shoe brand Wanli Wei, winning the latter's global brand management rights.

In the view of AOKANG boss Wang Zhentao, "this cooperation mode can accelerate the internationalization of AOKANG marketing".

Start selling its own brand: sell more, sell more, and sell for a long time. "A toy sword priced at 7 dollars in California shopping malls, Yiwu made only 1 yuan for each product, but dealers can earn 5 dollars after the OEM."

On the afternoon of June 12th, Ji Jingwen, general manager of Yiwu Zhong Lian FA import and Export Co., Ltd. in Yiwu International Commodity City, told reporters that this is the biggest problem facing Yiwu's small commodities.

This is, of course, not only the embarrassment of Yiwu's small commodities.

Statistics show that last year, in the total of US $128 billion 300 million of exports in our province, the proportion of private brand exports was less than 1/4. If foreign investment enterprises were excluded, the proportion of local brand exports was lower.

"OEM processing, running volume or" manufacturing in Zhejiang "is the basic state in the international market.

Zhang Handong said.

However, in the era of high cost, there is no brand that can be heard. Products are neither expensive nor sold soon.

Since 2006, after the European Union and the United States imposed export quotas on China's textiles, some European and American customers shifted their orders to Southeast Asia and South Asia, forcing some textile enterprises in the province to compress profits repeatedly for orders.

The fundamental reason for this passive situation is that "there is no private brand in the international market, and it is at the lowest value-added processing link in the global textile industry value chain.

Such a role can be replaced. "

Jiang Yimin, head of Zhejiang new great Group Co., Ltd.

A famous brand has its place.

In the past few years, a number of discerning Zhejiang enterprises have firmly embarked on the road of brand building: in January 2001, Kangnai group opened its first overseas store in Paris. At present, there are more than 100 overseas stores, and a pair of shoes sold for more than 60 dollars, far higher than the unit price of our province's exports of leather shoes to Europe less than 10 U. S. dollars.

With independent brands accepted by foreign businessmen, they also have the right to price.

Busen group now exports 70% of its own brand.

In the 103rd Canton Fair held in April this year, the average price of the group's clothing increased by 10% to 15%, while export orders did not decrease.

At present, Busen has established marketing networks and stores in Europe, Russia and other countries and regions, and plans to open an image store in the United States this year.

The evolution is also being staged in many professional markets.

In Yiwu International Commodity City, Ding Yunfeng, vice president of the group, told reporters that last year, the small commodity city began to attract investment and introduced brand enterprises and brand products. In October this year, the International Pavilion composed of the Japanese pavilion and the American pavilion should also be opened to the outside world.

"Small commodity city also needs pformation and upgrading."

Market diversification: put eggs in different baskets, "put eggs in different baskets."

For the foreign trade enterprises of our province, this old talk has fully shown fresh vitality.

In fact, "made in Zhejiang" is no stranger to market diversification.

Since 1999, our province has put forward the "four pluralism" policy of foreign trade development, and market diversification is one of them.

Since then, Zhejiang's foreign trade has entered the fastest development period in history. In 2005, foreign trade and import and export exceeded 100 billion US dollars for the first time.

In spite of the increasingly fierce competition in the international market, Zhejiang's foreign trade has always been in a high-speed and sustainable development trend due to the diversification of export markets.

"The biggest advantage of diversification in the export market is risk diversification."

The export dependency ratio of our province is more than 50%, which is considered safe by Zhang Handong.

He told reporters that at first glance the dependence was a bit high, but in recent years, the proportion of traditional trade partners such as the United States and the European Union in our province has been decreasing year by year, and the proportion of emerging markets such as South America and Southeast Asia is improving.

This increasingly diversified market structure has already digested the market risks arising from the appreciation of the RMB against the US dollar in recent years.

However, Zhejiang enterprises are also faced with another risk of market structure: Zhejiang's foreign trade enterprises generally focus on export sales and domestic sales, and the structure of imports and exports is obviously unbalanced for a long time.

The reason for this imbalance is not that domestic sales are unprofitable.

"To do foreign trade is simpler than doing domestic trade, so we don't need to take care of sales and get qualified products."

For exports, Chen Ping always has a kind of attachment, and her attachment has made many foreign trade enterprises have a strong resonance.

"Actually, everyone knows that walking on two legs is more stable. But for a long time, exports have become the only preference of many Zhejiang enterprises, and even lead to path dependence. Many enterprises will only export."

Zhang Handong said with a smile.

Now, this kind of sentiments began to reverse, to do domestic sales of the current Zhejiang foreign trade enterprises "popular language".

Chen Ping's Hanlong will began to focus on developing the domestic market last year. The proportion of domestic sales this year has accounted for about half of the sales.

At the end of last year, a "baby and children's products procurement fair" held in Hangzhou last year, Zhejiang enterprises, which had been looking overseas for the past, were actively participating in the exhibition and got nearly 1/3 of the booths.

Zhejiang's foreign trade structure, which exports much more than imports, has also begun to rectify its foreign trade structure.

"Before last year, we exported about $10 million a year, and imports were almost zero."

Ji Jingwen said that he really interested in imports last year, after analyzing the state's policy of encouraging imports and the appreciation of the renminbi, a group of pure foreign trade enterprises in Yiwu had changed from "not getting out of the way" to "coming in and coming out", forming a new profit growth point.

"My goal this year is to import and export" equal share. "

He said.