Competitive Strategies Of Textile And Garment Enterprises In The New Situation

Because of the appreciation of the renminbi and the decline of European and American economies, how can the foreign trade enterprises be pformed?

Do we have to make brands for domestic sales?

Is the competition of domestic clothing retail market becoming more intense? Is it necessary to rely on flagship stores or large stores?

What are the new trends in brand expansion?

The market has been listed, and many companies are planning. Is listing financing a panacea for this year's clothing business?

Will cheaper products win competition in the upgraded consumer goods market?

In view of these questions, Hongkong West flag business planning company gives exclusive views.

In the first few years, "predicament", "in the last few years, the market of Keqiao town was full of people, and motorcycles could not be opened. Africans, South Asians, Arabs, and South Americans were all crowding along this road.

But nowadays, fewer and fewer people are doing business. "

At the textile base and Keqiao town of Shaoxing City, Zhejiang Province, Zhang boss, who has been doing textile business for more than ten years, often speaks of the prosperity of the past. He always sighs, "raw material price rises, artificial price rises, RMB appreciation, foreign trade enterprises are not easy."

After 30 years of rapid development, China's economy has been greatly improved.

However, China's economic growth has been achieved in the context of huge resource costs.

Today, the traditional comparative advantage built on the basis of low cost will be eliminated by history. This is an irreversible trend of the times.

Wenzhou entrepreneur Ni Xueshan summed up the current situation of Wenzhou clothing enterprises: "in Wenzhou, if we still rely on labor-intensive production mode to survive, it is absolutely unrealistic."

In Shandong, a major textile industry province, although leading enterprises in some industries have entered the stage of modern large-scale production, the level of equipment and product quality has been improved rapidly. At present, the proportion of combed yarn, no knot yarn and no spun cloth machine has reached 30%, 60% and 62% respectively. However, as a whole, the textile industry is still hard to resist the impact of market risk due to its small profit margins.

In particular, influenced by factors such as RMB appreciation, rising raw material costs and increased labor costs, exports of some low value-added and resource-based industrial products are more difficult to export. Most textile and garment enterprises obviously feel the weakening of traditional export competitive advantage.

According to the statistics of relevant industry departments, the profit rate of cotton textile, wool textile and garment industry will drop by 3.19%, 2.27% and 6.18% respectively for each appreciation of 1%.

From the Spring Fair 2008, many orders have been prepared or ready to move to more cost - effective neighboring countries and regions.

In the face of the worsening foreign trade environment, a large number of foreign trade enterprises are trying to find a way out: enterprises shrink their scale and reduce risks; enterprises pfer costs and invest to maintain profits; some enterprises turn to domestic sales and attack domestic markets; some enterprises change their direction of operation and focus on brand building; while others are waiting and waiting.

Mr. Zhang chose the latter. - "everyone is having a bad time. As long as we stay up for a while, our competitors will become less and less. Whoever will endure until the end will be able to get through."

We are not only waiting for Zhang boss in Keqiao, Shaoxing. We look down on the map of China from Shaoxing to Fujian Quanzhou, once the world's largest seaport. It has also been an important base for the export of Chinese shoes and clothing.

With the flourishing development of the private economy, Fujian entrepreneurs with courage and courage have grasped the opportunity well, and have produced a large number of shoe and clothing enterprises of considerable size.

Although they have experienced many setbacks in the way of entrepreneurship and development, some people are still at a loss as to how to cope with today's difficulties. A large number of enterprises that have grown up with foreign trade shoes and clothing export as their main businesses have been losing money continuously.

Some enterprises mistakenly judged that "this is only a temporary change in strategy, and we will endure it."

There are also enterprises based on the idea of cost pfer, choose to "pfer to a lower cost area".

However, some enterprises have already realized the length and depth of the crisis. "Relying on foreign trade is hard to make a living, but the enterprise is sure to do it. When the competitor falls one by one, it will be our turn in the end."

Therefore, more and more enterprises began to choose the long-term development strategy of turning to the domestic market and making brand.

However, companies that are accustomed to the production and processing of foreign trade have chosen the original production family to choose the brand management road. In the difficult turn of creating brand, they often find themselves in a completely unfamiliar business field.

Compared with the foreign trade which is used to travel in a short, smooth and fast way, brand management requires long-term irrigation and great vision. Foreign trade can go straight to the end, while brands need to be a thousand fold; foreign trade can take products as the main point, but brands need to take consumers as the core; foreign trade can allow development setbacks, and the road of brand development can not be a bit of a loss.

Different business ideas and core elements make most foreign trade enterprises stand trial in the process of turning into brands.

Wang Ziqiang, like the Pu Zhou Industrial District in Longwan District of Wenzhou, said, "I know now that doing foreign trade and making brand are two different things.

Making foreign trade is extensive, making the brand must be intensive and intensive, making an office of foreign trade, less than ten employees can make hundreds of millions of bills a year, how many departments and how many people are required to make a brand?

Business is not the same thing, cost is not the same thing. I have to learn slowly.

The second section: the problems encountered by Chinese textile and garment enterprises, as early as more than ten years ago, has been staged in Korea.

Last century, at the beginning of 60~80, South Korea mainly took the advantage of low labor cost to undertake foreign importers' orders, which was similar to the initial state of China's textile industry.

In the early 90s, the Korean textile and garment industry underwent a major turn. In the face of the fierce competition in other Asian countries and regions, especially the rapid rise of China's textile industry, the international market share of the Korean textile and garment industry decreased, and the enterprises shifted their production to low cost areas.

However, Korean enterprises immediately carried out major reforms. They resolutely adjusted the product mix, focused on the development of high value-added products, implemented the strategy of "differentiation", and separated the competitors from quality, technology and price. Finally, the Korean textile and garment industry went to a higher level. Now it continues to occupy an important position in the national economy.

In Humen, "the first town in China" and the clothing industry has become a pillar industry, the most popular patronage country is South Korea.

South Korea is actually doing this in front of us.

Lin boss, who has been in the garment industry for more than ten years, goes to Korea five or six times a year.

His remarks represent many Chinese costumes' views and show the achievements made by the Korean textile and garment industry after their efforts to pform in 90s.

Then let us "warm up" a variety of strategies for Korean textile and garment enterprises in the face of the crisis, and see what are worth reviewing and drawing lessons from today.

One means: build up high-end brands and avoid low price competition.

Since the 1998 financial crisis, the South Korean government has begun to examine the economic structure of the country. In the textile and garment industry, it has actively encouraged the emergence of domestic high-end high-end brands and created favorable objective conditions for other Asian countries.

Now in many shopping malls in China, Korean clothing brands have gradually gained a firm foothold. These brands are generally known for decades, and the price is between 200~1800 yuan, such as: Rapido, EXR, Bean Pole, Galaxy, etc., which occupy a large share in the high-end market of China's clothing market.

In fact, since the 90s of last century, the Korean clothing brand has sprouted, and has been reduced by the end of 90s, and the growth momentum has been resumed at the beginning of 2002.

Statistics show that in the landmark 2002, there were 1730 clothing brands in Korea, an increase of 5.6% over the previous year, of which 1171 were domestic brands, while 993 were national brands and 178 were design brands.

The establishment and perfection of high and middle end brands have opened up the competition gap between China and Vietnam, and India, and effectively solved the cost of high cost of human resources, so that Korean brands can have enough profit margins to survive and develop.

In the mainland of China, the original brand is better at running in the field of low-grade public leisure wear. Maatus bond, Semir and YISHION have firmly controlled the low-end consumers, but the advantage is not obvious in the high-end brand.

According to the law of brand operation, the production and operation cost of the high-end brand is 1~3 times of the low-end brand, and the gross profit margin is 3~6 times.

According to the survey, China's well-to-do population has reached 400 million. Under the influence of the wealth effect of the comprehensive national strength growth, the population will expand. At the same time, there is no doubt that a large middle class population will soon emerge in China. These will undoubtedly give the middle and high-end brands unlimited growth with a good imagination.

The Matthew effect of the mass leisure clothing market has made the stronger stronger and the weaker weaker, and the huge growth space in the high-end market has made more Chinese brands see the hope of development.

At this point, we have no reason to feel inferior to Koreans who only have more than 20 years of original brand history.

What is even more controversial is that our market space is more promising and attractive than South Korea.

Two means: promote brand by culture.

Similarly, after the 1998 financial crisis, Koreans began to develop cultural and creative industries and export cultural values in order to improve their economic institutions.

With the cultural invasion of "Korean wave", Koreans have launched their own cultural output throughout Asia: "Dae Jang Geum" is a propaganda film for Korean cuisine. "Journey" has caused the Chinese people to have a temporary illusion that Korean online games are equal to quality products. "Romantic house" and "winter love song" have become direct ambassadors for tourism and clothing in Korea.

Now the mother of a clothing shop on the side of the road has closed their mouths. The Korean version of Korean Edition is largely due to excellent Korean packaging.

"Korean exports" have become synonymous with boutique, and jewelry, clothing, makeup and even weight loss products are all very elegant with South Korean hooks.

Three means: diversification of sales channels.

To expand market sales, Koreans have extended their stores to the end of the market. There are 1863 large stores in the South Korean clothing store with an area of 3000 square meters or more, including 1458 general stores, 238 discount stores, 98 department stores, 46 shopping centers and 5 wholesale centers.

Large discount stores and shopping centers increased by 174% and 48% over the past 3 years, the largest increase.

In addition, no store outlets such as TV shopping and online shopping have developed rapidly. Last year, sales of non shop market such as online shopping, TV shopping and mail order accounted for 39%, 36% and 24% respectively.

In China, B2C electronic sales have matured, and foreign trade enterprises have succeeded in relying on Alibaba B2B website. However, because of lack of credibility and supervision, the market of TV shopping and mail order has caused bad reputation.

At present, the proportion of TV shopping in the national sales volume is less than 1%, while in developed countries, this proportion is as high as 8~10%.

Four means: enhance upstream construction.

South Korea has already formulated the strategic plan of clothing, and decided to concentrate on textile materials, dyeing processing and costume design as the three major strategic departments.

To this end, we plan to set up research centers and quality assessment centers for the development of materials, strengthen the research and development of advanced dyeing technologies and production centers, and play a leading role in fashion design innovation in the "fashion center" of Daegu, a textile city.

At the same time, we should vigorously promote the internationalization process, actively participate in international fashion exhibitions, fashion festivals and so on, and strive to train internationally renowned designers and Korean brands to expand overseas markets and expand garment exports in many ways.

At present, our original links in the upper reaches of clothing are relatively weak. For example, the average fiber composition of China's export fabrics is 1.3, while the average fiber composition of imported foreign fabrics is 5.6.

Five means: absorbing European and American fashion and creating Korean style.

The history of Korean clothing is very short, and they have also been puzzled in the creation of brand style. But in the end, they adopted the strategy of "going out and copying". In the end, a large number of students went deep into the core of fashion design in France, Italy and other countries to learn Korean packaging, which was based on the plagiarism of Europe and America.

At the same time, unified promotion and borrowing in the entire garment industry.