Channel Reform Of Clothing Industry In The New Economic Era

According to the statistics of the National Bureau of Statistics, the number of households in 2012 was more than 37000 spin The total industrial output value of the enterprise reached 5781 billion yuan, up 12.3% year on year. But textiles clothing Exports grew only 3.3% year on year, a new low in recent years. Under the current economic situation at home and abroad, there are two major puzzling factors for the development of textile enterprises, especially small and medium-sized textile enterprises. One is that the difference between the domestic cotton price and the international cotton price caused by the domestic cotton purchase and storage policy is too large, leading to the decline of the export competitiveness of enterprises; Second, the banking system tightened its financing policies for the textile industry, causing difficulties in enterprise financing. Faced with such a situation, the textile and clothing industry needs to actively respond. It has become a consensus to practice internal skills, and channel construction is particularly important in the practice of internal skills.

　　 Changes in the industrial environment

"Last year was not an easy year," said Wang Tiankai, president of the China Textile Industry Federation, at the conference on the economic operation of the textile industry in 2012 and the development trend in 2013 held this year.

In 2012, the economic growth rate of the textile industry slowed down, and the international market was depressed. From January to November, the total imports of textiles and clothing from the United States and the European Union fell by 0.9% and 5% respectively year on year, and domestic export enterprises were short of orders. According to the research report of several professional chambers of commerce in the industry, the clothing enterprises are still destocking, and the overall lack of obvious recovery power and driving force for the textile industry. Most clothing export enterprises report that they have few new orders. In addition, the research report of China Textile Confederation pointed out that the gap between domestic and foreign cotton prices continued to widen. Affected by domestic management policies, the domestic cotton price was significantly higher than the international market at the end of 2012, which seriously affected the competitiveness of the cotton textile industry chain. From January to November, China's cotton yarn export decreased by 8.9% year on year, while its import increased by 56.1%. Affected by this, the share of China's textile industry in the international market declined in 2012. From January to November, its share in the import market of the EU and Japan remained at a high of 73.2% and 40.1%, but decreased by 1.8 and 1.1 percentage points respectively compared with the same period last year.

In the face of changes in the international and domestic economic environment, we have clearly recognized that the "12th Five Year Plan" period is an important adjustment period for China's economic and social development, and we will no longer continue the rapid and beneficial growth of China's economy in the past 30 years. The "12th Five Year Plan" period is the transition period of the entire economic and social transformation, during which the economic development will be at a moderate or sub high speed. The speed index is 7% - 8%. When China's national economic GDP growth rate is 7%, the industrial development rate cannot be lower than 11%. Now because the proportion of the tertiary industry is larger, as long as the development rate exceeds 11%, it can basically support the development rate of the national economy of 7% - 7.5%. The growth rate of 12.3% in textile industry is a relatively rational development rate.

From the perspective of system, the transformation of textile and clothing should complete the transformation from "individual competition" to "systematic competition". It is no longer the market competition faced by a single enterprise, but the problem that the supply chain plays an integrated role in the supply chain, industry university research collaborative innovation mechanism and market mechanism. Secondly, the systematic advantage also needs to change from "closed" to "open", from relying on their own strength in the past to integrating social resources with an open mind to form the resultant force of integrated innovation. From focusing on the development of tangible products to focusing on intangible marketing and management innovation, business model innovation.

In the Outline of Building a Textile Power (2011-2020) issued by the China Textile Industry Federation, these development suggestions are specifically reflected: science and technology, brand, talents, and sustainable development. This is the next textile development strategy. Transform technological advantages into endogenous driving forces, take talent advantages as an important resource support for industry growth, build the consumption centripetal force of brand advantages, and the future competitiveness of sustainable development advantages. Channel construction is an important part of the whole "system competition".

　　 The channel reform of clothing industry is coming

Recently, at the 8th China Retailers Conference Summit Forum, Wang Yao, Vice President of the China Federation of Commerce and Director of the China National Business Information Center, made a report on the development of China's top 100 retailers. Different from the previous rankings, online retailers were also included in this Top 100 ranking for the first time. According to the data, the sales of the eight online retailers shortlisted contributed 49.6% to the sales growth of the Top 100.

According to the statistics released by the China Federation of Commerce and the China National Business Information Center, the sales of China's top 100 retail enterprises in 2012 reached 2378.65 billion yuan, up 20.2% year on year, 0.7 percentage points slower than that of 2011. Wang Yao, director of the China National Business Information Center, said that since 2012, China's economy, consumer goods market and retail industry have undergone significant changes. First, the economic slowdown and downward trend are obvious; The second is the rapid growth of online shopping, which has further enhanced its influence on physical stores; Third, under the national policy environment of restricting "three public consumption" and the central "eight regulations", the consumption of public funds and shopping cards has declined significantly. Affected by the above factors, the sales growth of large retail enterprises in China has declined significantly. "One of the highlights of retail in 2012 is online sales." Wang Yao said that this time, the top 100 retailers joined online retailers for the first time. A total of 8 online retail enterprises entered this time, including Tmall, JD Mall, Tencent b2c, Amazon China, Dangdang, Vipshop, No. 1 Store and Vancl. The total sales scale of the above eight online retail enterprises is 345.96 billion yuan, accounting for 14.5% of the top 100. The average growth rate of online sales reached 134.1%, 113.9% higher than the overall sales growth rate of Top 100. Among them, Tmall ranked second in the Top 100, with a sales scale of 210 billion yuan, 20 billion yuan lower than Suning, the "No. 1 player".

"If eight online retail enterprises are not included in the top 100, the sales scale of the top 100 retail enterprises (all of which are retail enterprises in physical stores) in 2012 only increased by 11.0% year-on-year, 9.9 percentage points slower than that in 2011, even lower than the growth rate during the financial crisis in 2009, hitting a new low since 2005." Wang Yao said.

Wang Yao pointed out that online sales, especially mobile Internet, will become the future development trend, and the gap between online commodity prices and physical commodity prices will gradually narrow. However, online retail does not rely solely on low price competition, but more on providing convenience, time saving and abundance of goods to attract shopping.

The top 100 report released by the China Federation of Commerce also shows that the influence of foreign retail is declining in 2012. In 2012, 22 foreign-funded enterprises entered the top 100, with a total sales of 408.95 billion yuan, accounting for 17.2% of the total sales of the top 100, down 2.4 percentage points from 2011; The average single store sales of 22 foreign-funded retail enterprises was 129 million yuan, down 9.1% compared with 2011.

After analyzing a lot of data, we come to the conclusion that channel reform has come. We also clearly realize that channel changes are often accompanied by changes in consumer demand. At the end of 2000, after the post-80s generation gradually became the mainstream consumer group, consumers paid more attention to the brand itself and began to enter the stage where the value of the commodity brand itself determines the value of the brand. Today, China's "post-80s" generation has about 280 million potential consumers. The consumption ability and desire of this generation are very different from those of the "post-60s" and "post-70s" in the past. They are quietly changing our consumption environment. "Like" is becoming a more and more important consumption impulse of the post-80s generation; Consumption is their main purpose of making money; Cheap and affordable are no longer favored, and the generation of "post-80s" who grew up with the Internet has become the main group of online consumers. It is also because of this change in consumer spending habits that e-commerce has become a channel of rapid growth.

　　{page_break}

　　 Traditional channels and new channels go hand in hand

Channel construction has always been the key link that garment enterprises or operators attach great importance to. With the development of the clothing industry today, whoever has channel advantages will win the market as soon as possible. However, the traditional marketing modes, such as franchise and self support, have gradually lost their advantages in the market competition. These operating modes cannot break through many problems such as high operating costs, poor information, and the inability to achieve a highly unified brand image, which restrict the development of enterprises. In this case, many garment enterprises or operators are thinking about finding a more suitable channel construction model for the market and enterprises to complete the mission of enterprise development and growth.

But even so, traditional channels still occupy the main position of channel construction of clothing enterprises, When talking about traditional channels and e-commerce, Yang Dayun, a well-known expert in the clothing industry, said, "There are no IT enterprises that have survived 20 years, but there are many traditional retail clothing brands that have survived 100 years. Technical updates cannot be continuously inherited in the development of an enterprise, but brand innovation and continuity can be measured by time." He said that traditional enterprises should not be frightened by online channels, The development and growth of every enterprise must have its essence. If it is very good offline, it will not be particularly bad online. In the future, e-commerce and traditional channels will coexist.

He said that in the future, traditional channels must be changed to develop with the development of the times. First, in the future, in store sales should consider how to use mobile Internet, how to use big data, and how to use cloud computing technology. Second, the pressure of channel reform on many enterprises is the operating cost, such as the per capita labor cost, which increases at an average rate of more than 12% every year, and the store rent, especially the rent of key areas, increases at an annual rate of more than 30%. The two growth rates together exceed 40%, while the annual turnover of many enterprises increases by more than 20%, which is the reason for the slow development of enterprises. He also said that there are three ways for enterprises to cope with these two costs: flattening the first channel, giving profits to the terminal channel. After flattening, we should improve the supply chain and turn the push mode into the pull mode. Second, improve the channel contribution rate and improve the enterprise supply chain. No matter how fast the Internet and new theories develop, enterprises choose these technologies to improve their leading ability at different stages of development. Many enterprises are in the traditional marketing mode. After R&D, they hold an order meeting, which accounts for a large proportion. The competition in the big futures market is fierce, and the requirements for dealers' operating status are high. This mode is easy to form a large inventory in the end. An enterprise's ultimate goal is to meet the needs of consumers. Whether the styles consumers need can be produced at the shortest and lowest cost is the basis for smooth channels.

For traditional channels, under the condition that the number of stores in the first and second tier cities is gradually saturated and urbanization brings market dividends, the third and fourth tier cities are becoming a blue ocean for the expansion of traditional large-scale retail enterprises. The research finds that the overall disposable income of residents in the second, third and fourth tier cities is about 7 times that of the first tier cities; The development of e-commerce in the first and second tier cities is relatively mature, while the third and fourth tier markets are still dominated by traditional retail. The channel of traditional retail industry will sink into the inevitable stage of continuous development. There are great differences between the development models of foreign giants and local enterprises when they sink channels. The "supermarket+department store" created by domestic retail channel enterprises, including supermarkets, department stores, catering and electrical appliances, has a small shopping center model of 30000 to 50000 square meters, which basically meets the needs of customers in small cities. However, the purchase system of unified mode, unified standard and "centralized" that foreign enterprises have repeatedly adhered to is "anti localization", which makes its supply chain unable to reach small cities. At the same time, local retail enterprises must have certain qualifications and capabilities to survive in the face of the expansion of national chain enterprises. Local retail enterprises should develop the best local attributes and special models, establish some unique local supply chain manufacturer groups, introduce some local brand food chain systems, jointly create strategic alliance partners, and distinguish from the national chain system.

As a brand in the industry, in the current new economic era, the connotation of brand is also changing. There are two categories of brands in the industry, namely, manufacturing and terminal consumption. As a brand value innovation, it can actually be described by three points: first, homing. Quality and quality are the foundation. Second, dislocation. It is about differentiated competition. Third, the upper position. It's about how to improve from recognition to reputation. As a brand, it is not an expression of product price, but a manifestation of consumption value. The choice of channels depends on which channels match the needs of the brand. Therefore, both traditional channels and new channels will become the choices of brand channels in different situations.