How Does China'S Textile Go From OEM To Licensing?

At present, the price of domestic manufactured goods presents a general inflation pattern, and only a few products such as textiles and garments are reduced in large quantities, many of which are exported to domestic products by OEM processing.

As a big textile country, China's textile and clothing brands are like the isolated poplar trees in the desert.

How to get rid of the current plight of China's textile industry and realize the leap from OEM to licensing as soon as possible has become a very urgent realistic proposition.

OEM processing makes it difficult for enterprises to bear the cost. After decades of development, China's textile industry has entered a period of rapid development.

Reporters in the textile industry province of Shandong see that some industries leading enterprises have entered the stage of modern large-scale production, regardless of the level of equipment or product quality has been rapidly promoted.

In the textile industry of Shandong, the proportion of combed yarn, no knot yarn and shuttle less machine is 30%, 60% and 62% respectively.

But on the whole, China's textile industry, which has long been exported by OEM processing, is still hard to resist the impact of market risk because of its small profit margins.

This year, since the RMB appreciation, the adjustment of export tax rebate rate, the rising cost of raw materials, and the increase in labor costs, the export of some low value-added and resource-based industrial products has become more difficult. Most textile and garment enterprises obviously feel the weakening of traditional export competitive advantage.

It is estimated that the profit rate of cotton textile, wool textile and garment industry will drop by 3.19%, 2.27% and 6.18%, respectively, for every 1% appreciation of the RMB.

From the Canton Fair, we can see that many of the orders have been or are prepared to shift to more cost - effective neighboring countries and regions.

"Whoever can jump out of the low price competition will win the opportunity."

Jia Huaijun, general manager of the company's import and export company, said that although the company had adjusted its product structure early and gradually abandoned some orders for low-end products, there were still some products that could not keep up with the rapid growth of the expenses.

China's textile industry, which has long been dominated by OEM, has shown a weak trend of profit growth.

Du Yuzhou, President of China Textile Industry Association, recently said in Shandong that the rising cost of textile industry has made the product profit space constantly squeezed.

This is a competition between the speed and speed of industrial upgrading in textile industry.

Among them, only a few enterprises can catch up with them. Most enterprises fail to keep up with the increase of cost and result in a decrease in profits.

The brand of textile and apparel is breaking through in the predicament. "Compared with the global top brand products, our technology and equipment and product quality are not bad.

The real gap between design and brand is the key factor that restricts the competitiveness of China's textile industry.

Sun Rigui, chairman of Fu's home textile Co. Ltd.

Fu Fu home textile is currently the largest home textile company in Asia. It has earned 10 consecutive years of foreign exchange in its domestic textile industry.

In 2007, exports in Japan and the US market were close to US $100 million and the European market was close to US $70 million.

In the first quarter of this year, the company's profit increased by 5%, and its export grew steadily.

It is worth mentioning that the export products of home textiles are gradually changing from OEM to independent brand.

At present, the "SUNVIM" trademark has been registered in 38 countries and regions such as the United States, Japan and so on.

It is understood that there are 20% dozen independent brands exported to Italy, Australia, Russia and other countries, with a profit margin of more than 30%.

In the clothing industry, the company has nearly 1 / 3 of its export products affixed to its own brand.

Liu Wenjun, vice president of the group, said that having its own brand means pricing power.

It is reported that in 2004, the group had abandoned some small and medium profit orders, concentrated on high-end suits, and gradually increased the brand value of "Ya Ya".

Facing the industry predicament, Du Yuzhou said: "we hope that the export tax rebate rate will be callback and the cotton slip tax will be abolished, but this can not solve the fundamental problem of the development of the industry.

The most fundamental thing is how to improve labour productivity within the industry and increase profits through technological innovation and brand value innovation.

Continuous innovation creates the "brand oasis" of Chinese goods. Despite the fact that the brand building of Chinese enterprises has started, there is no brand that is truly internationally known at present.

Du Yuzhou believes that to cultivate a brand, it is necessary to maintain good quality for twenty or thirty years.

To change the isolated poplar tree into desert oasis in the desert, we need to make more efforts at the cultural level of the brand.

"From a cultural perspective, China's brand culture is not enough, and its internal quality needs to be improved," said Du Yu Zhou.

For example, the color of Chinese designers is different from modern fashion in terms of color and contrast.

Some foreign designers have been nurtured in a culture since childhood, and our colors have not yet been liberated. It is not bold to open up.

No wonder, at present, 80% of China's top shopping malls are imported brands.

Sun Rigui, chairman of Fu Fu home textile Co., Ltd. believes that the brand of Chinese industrial products is closely related to China's international status and the overall strength of the country, and is unlikely to achieve much breakthroughs in the short term.

For example, Chinese enterprises are more successful in making brand in the Russian market, which is related to a recognition between the two countries.

And to Europe, the United States, Japan and other countries to promote their brand is very difficult, even playing their own brand prices are often not up, the profit is not as high as OEM.

Therefore, enterprises can only do their own brand in a well established market, but it needs strength and time.

The industry believes that it is necessary to design as a breakthrough to create from China to China.

Jia Huaijun, general manager of the import and export company of the group, believes that at present, international brand enterprises are creating demand, while domestic production is mostly based on demand.

Like mobile phones, new models are often the most popular and profitable.

The weakness of China's textile and garment industry is the lack of design innovation capability.

In order to solve the problem of thinking, the company sends people abroad for training every year, and continues to invite foreign first-class designers to train and guide.

Before hiring Korean experts, a Japanese expert was hired at a high salary.

To build a production line, the Italy expert hired by the company was one of the five famous designers in Europe, and was the chief designer of Pierre Cardin.

It is revealed that the designer pays $1500 a day.

Now, it's time for Chinese enterprises to become ambitious.

In this regard, textile enterprises must break through the rules and regulations, and dare to compete with overseas enterprises for intelligence and innovation.

Du Yuzhou said, "a tree cannot become a forest.

All enterprises must have creative thinking and decision-making to create a brand ecosystem together.