Jiang Hengjie: Understanding The Future Direction Of Down Industry

In the face of industry shuffling, enterprises need not be bewildered, but on the basis of calm analysis, market segmentation and innovation for development.

"There will be more than 300 people attending the annual Specialized Committee conference, and only more than 100 people attend this two-year meeting. What does this mean?" in June 8th, in China clothing Jiang Hengjie, director of the China Fashion Association and director of the China clothing association's down garments and products Specialized Committee, asked the guests at the Specialized Committee annual work conference on feather clothing and products.

He pointed out that this indicates that the industry is carrying out a major reshuffle, and those innovative, management and market adaptability are poor. Enterprises that only rely on price advantage to carry out "price war" are gradually being eliminated by the market, and the resources of the industry are being concentrated on the dominant enterprises.

In the face of industry shuffling, enterprises need not be bewildered, but on the basis of "objective review, calm analysis and rational choice", market segmentation, dislocation competition, innovation and development, and cultural consumption and corporate social responsibility. Jiang Hengjie said that the feather and down enterprises should have a further understanding of the current industrial chain environment, market environment and social environment of the down industry. We should have a sense of crisis and have an objective understanding of the current environment.

"The winter of 2012 is earlier than the previous years, the average temperature is lower than the previous years, and the duration is longer, which brings opportunities to the domestic down garment enterprises. In the past, the stock is almost sold, so many enterprises are relying on courage instead of intelligence to prepare to enter the down garment industry again, or increase the output of down garments. This is very undesirable, and we have to accept 2005. The lesson is, a little bit blind and impulsive, do not repeat the same mistakes. " Jiang Hengjie emphasized.

As a matter of fact, in 2012, both the number of Chinese down garments and the number of domestic sales declined.

　　 Volume reduction

According to statistics of the General Administration of customs, China in 2012 Down garments Exports continued to grow, but the growth rate slowed sharply. A total of 69 million 790 thousand down coats were exported year-on-year, an increase of 3.03% over the same period last year. The growth rate dropped by 24 percentage points over the previous year, and the export volume was 2 billion 109 million US dollars, up 2.86% over the same period last year. The growth rate decreased by 47 percentage points compared with that of last year. The average price of exports was 30.21 dollars / piece, up 17.89% over the same period last year.

In terms of domestic sales, in 2012, the sales of down garments in major national retail enterprises decreased by 1.5% compared with the same period last year. After 2008, sales for fifth consecutive years increased year by year. From the comparison of the annual sales growth between the quarter and the off-season, the down season sales in 2012 showed a very prominent sales pattern. According to statistics, the sales of down top clothing in the key large retail enterprises increased by 5.4% in the 3 to October 2012, while the growth rate in the 1 to February period was -9.7%, and the 11-12 month growth rate was 1.7%.

"We should clearly realize that whether export or domestic sales, a large part of the growth of the down garment industry in recent two years is achieved through raising the unit price of the products. But can we always rely on price increases to achieve growth? Can consumers accept? What is the value of your clothing brand? "Jiang Hengjie believes that this way to increase growth through product price increase is not sustainable and is the product of a specific period. In the future, enterprises must rely on intelligence, innovation and talent to achieve value growth.

He said that the down garment enterprises should "make a point", and the era of eating the whole market in the past has passed. Now the consumption segmentation is becoming more and more obvious. Personalized demand is becoming more and more prominent. Enterprises must understand the market and know themselves, and find their core competitive advantages and corresponding consumer groups.

In order to maintain the market share and brand reputation, enterprises should pursue brand value and brand style to form a unique and loyal consumer group. We should have new, scientific, objective and rational understanding and action. Enterprises should actively use information technology to open up the industrial chain and achieve rapid response. They must adapt to the needs of the market and consumers, and change from "meeting consumer demand" to "guiding consumption demand".

Jiang Hengjie believes that market demand is always right, and enterprises are constantly changing. In the process of reform and transformation, enterprises should have their own way of thinking, rely on scientific progress to constantly transform our productive forces, and transform our development trajectory. We should transform products as the starting point to transform products into commodities, so as to enhance market share. The product research and development of enterprises should be based on comfort and health, and do not blindly innovate. In the future, talent is also the key to enterprise competition, and enterprises should learn to know, employ and retain people.

At the same time, he pointed out that the development of e-commerce in China is very fast now. Down enterprises should adapt to the needs of the times and innovate business models, but they should not blindly enter. They should analyze their own positioning, strength and advantages, and make corresponding adjustments.

And all of this requires enterprises to be calm and rational in understanding the market. They must be accurate. Targeted measures should be taken, planning should be implemented to action, and must be verified in the market.

Finally, he pointed out that in order to achieve "common prosperity" in the down industry, we need to realize differentiation, avoid copying and price war to emerge again. We must have a good market competition environment, and enterprises must shape their core competitiveness. Only in this way can enterprises develop for a long time and become a centennial enterprise. {page_break}

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　 Rational view Down Price increase

Since the outbreak of H7N9 avian influenza at the end of March 2013, the sale of poultry, chicken, eggs and other poultry products has been severely damaged, and the relevant processing enterprises have returned to "winter" in early summer.

Despite the outbreak, in order to protect the poultry production capacity and stabilize the market supply of poultry products, the central government allocated 600 million yuan to deal with the adverse effects of H7N9 avian flu on poultry industry and help enterprises overcome the difficulties. However, due to the killing of live birds everywhere, many goose and duck farms have been closed, resulting in a shortage of duck feather and goose.

According to statistics, in March this year, 90% white eiderdown per ton of 350 thousand -36 million yuan, each ton has risen to 550 thousand -56 yuan, and it may not necessarily be bought.

In view of the current rise in the price of eiderdown due to bird flu, Jiang Hengjie said that feather down is only a filling material for Down garments. The raw wool needs to be washed for several times, and then dried and sterilized at 120-130 C under high temperature and high pressure for 30 minutes. Therefore, it is impossible to carry out the avian influenza virus in accordance with the standard technology.

And the current global experts on avian flu research also say that the "bird flu" pathogen comes from chickens, not ducks and geese, and the filling material of down clothing is urban duck down and goose down, so consumers can rest assured.

In his view, there is also a possibility that some businesses will take the opportunity to hoard their stocks. But with the normal breeding and killing of ducks, the supply of duck feeds will soon return to normal. Enterprises should treat them with a common heart and do not rush to hoard down eiderdown.

"This kind of supply is in short supply, and the market situation of the rising price of the down products is only an interactive adjustment process. The down period is going to rise, and there will be a fall." Jiang Hengjie said.

At the same time, he warned that enterprises should further strengthen industry self-discipline, avoid malicious competition in the industry, and blindly increase prices. They should deal with this dilemma through new product development and upgrading supporting services.

It is gratifying that our down garment industry is guided by big enterprises to transform and upgrade through innovation.

Foreign trade processing enterprises are changing from OEM to ODM. ODM enterprises are not only products, but also core technology and value service. At present, ODM is very common in Zhejiang, Jiangsu and Shanghai.

Brand down garment enterprises increase investment in research and development, and the concept of autumn down has spread to more brands. Some feather and down enterprises break through the original fabrics, combine the concept of down and leather, and print more and more fabrics. In style, adding Chiffon lotus leaf, bright diamond and shoulder badges and other elements are very popular with consumers after 80 and 90.

"Domestic demand is becoming the main driving force for China's economic development. Urbanization is the historical task of China's modernization drive, and the biggest strength of expanding domestic demand." urban-rural integration "will bring new opportunities for the down jacket Market. Professor Huang Weiping of Renmin University of China said at the Specialized Committee annual meeting.

In his view, the core of the future development mode of enterprises should change to the quality, efficiency and sustainable development, and strive to enhance the development of new channels for innovation channels.