Research On Cultivating Competitive Advantage Of Wuhan Garment Industry

Abstract: under the background of economic pformation, industrial upgrading and construction of the "two oriented" society, the labor cost, raw material cost and power cost of garment industry have risen sharply. In addition, the weakness of global economy and the appreciation of RMB against the US dollar have brought great challenges to the development of Wuhan's garment industry.

Drawing on the development experience of garment industry in Zhejiang and other regions, this paper analyzes the problems and causes of Wuhan apparel industry chain by using the theory of competitive advantage, and puts forward the measures taken to merge and reorganize as the main means, to reconstruct Wuhan's apparel industry chain and to enhance the competitiveness of Wuhan's garment industry.

In the layout of the domestic clothing market, Wuhan garment industry, which is famous for its charm of Chu and Han, has been rising rapidly, leading to the development of domestic regional garment economy. Even the relevant departments of the state have conceived that Wuhan should be built into the Chinese women's clothing center.

But with the passage of time, Han style clothing with profound cultural background and market base is not satisfactory.

Taking advantage of the favorable external environment created by the comprehensive reform pilot area policy, the merger and reorganization as the starting point to revive Wuhan's clothing has become the industry consensus.

1 the current situation of the clothing industry in Wuhan looks at the national clothing market. In recent years, compared with the rapid development of Wenzhou, Ningbo, Shishi, Shenzhen, Guangzhou, Shanghai and other places, the Wuhan clothing has experienced the glory of 90s twentieth Century, and has gradually subsided in the competitive and huge clothing market, and the aura of the past has gradually faded away.

In recent years, although there has been improvement, it is not satisfactory.

1.1 from the perspective of figures, there were more than forty thousand garment enterprises in China in 1998. The number of garment enterprises in Wuhan was basically stable from more than 2000 in the heyday to 1600 in 1998, and no major changes have taken place in recent years.

The total output value of the industry increased from about 6000000000 yuan in 1998 to about 10000000000 yuan in 2007, with an average annual growth of 7%, which is only equivalent to the annual output value of a YOUNGOR enterprise in Zhejiang. The total output value of the national garment industry increased from 184 billion 320 million yuan in 1997 to 596 billion 35 million yuan in 2006.

The number of employees increased from 150 thousand in 1998 to 200 thousand, an annual increase of about 3.8%. The number of employees in the whole country increased from about 3 million 590 thousand in 1998 to 10 million now.

In the survey of the top ten clothing sales of Wuhan billion yuan shopping mall in 2004 --2005, only ten of Wuhan's men's wear is in the spring sales list; the top ten of casual wear, trousers and children's wear can't find the shadow of Wuhan's clothing, while the Jiangsu and Zhejiang brands occupy the most part; Wuhan women's dress, Zoumei, Qiao Wanni, Ming Dian, Shun Tai, Yuan Tian and the red men defend their honor locally, and the cat and AI in Wuhan are also enduring.

From a national perspective, in the top 100 enterprises of China's garment enterprises in 2006, the top ten enterprises in Zhejiang accounted for seven, while only 5 enterprises in Hubei entered the list. In 2007, among the top 100 enterprises in China's garment enterprises, Zhejiang enterprises had eight places in the top ten, and only three in Hubei enterprises.

1.2 compare the benchmarks to find the gap in the clothing industry of Zhejiang. There are strong brands and their leading industry value chains.

Medium and high class men's clothing, such as YOUNGOR, has its own cotton textile production base, independently developed fabrics, independently designed, and has many branches throughout the country, achieving a complete industrial chain from fabric to manufacture to sales terminals, with an annual output value of more than 100 billion.

Leisure brands, such as Metersbonwe and Semir, implement virtual management, have their own core design capabilities and marketing networks, and take the development path of brand chain operation. Outsourcing of low-end services such as raw material procurement, production and manufacturing greatly improves the flexibility of enterprises, and also enhances the core competitiveness of enterprises. The annual output value has reached 4 billion.

Women's clothing brands, such as the unbroken body, the Jiangnan cloth dress, and so on, have different styles and unique characteristics. A colorful, full of youthful flavor, an implicit and simple, beautiful and intelligent, even if the trademark is concealed, it can make people identify the two different brands at a glance.

Generally speaking, in recent years, a number of Wuhan garment enterprises such as "Taihe", "jor Mei", "Ai Di" and "cat people" have made great achievements in brand cultivation, operation management and market development. The garment industry of Wuhan has begun to slowly get out of the trough under its pull. But compared with the advanced areas such as Zhejiang, many of them can be described with "many problems and great differences".

It is of great practical significance to explore the causes of the outdated status of Wuhan's garment industry and take measures to restore the splendor of Wuhan's pillar industries in the past and help build the two oriented society in Seoul city circle.

2 from the above data, we can see that the clothing industry in Wuhan has a certain gap with the excellent clothing cities in Wuhan.

Can't big Wuhan create a brand of ringing?

Is the production hardware not available, or is it too restrictive for software such as idea, mechanism and market environment?

Under the modern scale of industrial economy, more than 1000 small and medium-sized garment enterprises in Wuhan, part of the workshop style micro or ultra micro clothing enterprises, and its brand, capital, technology, equipment, talent, marketing channels and other advantages?

What is the continuous momentum of market discipline and industry reputation?

What is the resource endowment and environment of Wuhan's clothing industry's sustained and healthy growth?

The 2.1 industry chain is imperfect. From the perspective of industrial value chain, the apparel industry starts from the production of raw materials (cotton and chemical fiber products), and produces an industrial value chain through the production of intermediate products (yarns, grey fabrics, fabrics, accessories), and final products (clothing) to apparel circulation (packaging, pportation, distribution) and clothing consumption.

Although Hubei is a large province of cotton, ramie and silk production, the next process is mainly based on extensive initial processing. Most of the low grade and low price primary products are exported to the outside world, while the cotton textile and printing and dyeing fabrics with lower added value (such as printing and dyeing) have low output.

The survey shows that Wuhan clothing enterprises produce more than 300 million pieces of clothing annually, and they need to purchase fabric accessories for 2 billion 500 million yuan. 80% of the fabrics should be purchased from the coastal areas of Jiangsu, Zhejiang and Guangdong. Only 20% of them are supplied locally by Wuhan, and 90% of the accessories are purchased in the field, including sewing thread, zippers, buttons and accessories.

It is estimated that there will be at least 2 billion yuan a year for capital outflow.

The lack of industrial chain has become an important bottleneck restricting the development of Wuhan's clothing industry.

The breakup of garment supply chain not only increases the purchasing cost of enterprises, but also leads to the lagging behind of the design of clothing products in Wuhan.

After the new clothing products of the pioneer enterprises in the field came into being, they got the new design, process and fabric information. Next, they were hurriedly designing, printing, purchasing and processing of fabrics.

2.2 the technological innovation ability is not strong. The market demands the clothing variety, small batch, high quality and fast delivery to drive the development and innovation of high efficiency and high quality clothing machinery. Modern clothing equipment with high technology content and high efficiency is also constantly promoting the rapid development of garment production industry.

The quality of clothing technology and equipment is directly related to the quality of products.

Because of the difference in fund status, the advanced degree of clothing production machinery used by enterprises is uneven in the current clothing enterprises.

Data statistics show that around 70% of the total investment in the equipment of the national garment enterprises is concentrated on the coast, and about 20% in the central part.

The investment of garment enterprises in Wenzhou has been up to 3 billion yuan a year, and less than half of the equipment invested by more than 1600 garment enterprises in Wuhan has been invested.

Hubei's clothing enterprises have no capital to upgrade their equipment, which is inferior to that of Ningbo.

The famous three Di Trading Company in Wuhan, which represents 6 brands of international clothing equipment, has less than 50% of Wuhan's annual sales volume.

According to the general manager of the company, garment sewing equipment is changing from traditional mechanization to electromechanical integration: the general sewing machine is 3000 turns per minute, even if it is high-grade, the electromechanical integration product can reach 5000~8000 turn; the new lock buttonhole machine saves 2 workers than the simple mechanized equipment, and the enterprises in Jiangsu, Zhejiang, Fujian and Guangdong are basically equipped with these new machines.

Because of the limited degree of automation of equipment in Wuhan garment enterprises, the number of drivers is only tens of thousands or even hundreds of thousands of people.

The head of the Wuhan clothing trade association said that some clothing enterprises along the coast have been able to fully produce automatically, that is to say, similar to the automobile assembly plant, the clothing is half hanging in the air, each process adds one part, finally makes the clothing directly out of the warehouse, such an enterprise Wuhan still can not find one.

If garment enterprises in Wuhan fail to attach importance to hardware again, many efforts will be eliminated because of the limitations of the processing technology level.

Therefore, the disadvantage of technological level is a major drawback of small and medium-sized garment enterprises in Wuhan.

2.3, no good soft environment has been formed. Most of the entrepreneurs in Wuhan's clothing industry have made a fortune selling clothes in Hanzheng Street. After decades of climbing and rolling, they have made the Wuhan costumes. Most of these bosses are satisfied with the status quo, and do not want to be strong and big on the basis of the original.

Coupled with the severe export situation of clothing in recent two years, resulting in overproduction of clothing, many garment enterprises have reduced the size and proportion of the original clothing industry, and have engaged in sideline industries such as real estate development, stock speculation and investment. This has scattered the energy and attention of enterprises to a certain extent, and is not conducive to the healthy development of clothing enterprises.

In addition, because most of the clothing enterprises in Wuhan are engaged in wholesale and manufacturing, and do not have their own brands, even the brand enterprises do not attach special importance to design and management, so the products produced are also lack of distinct personality and characteristics.

From the government's point of view, the government has always adhered to the principle of "grasp the big and let the small".

However, as far as Wuhan clothing is concerned, most of them are private enterprises, with a small scale. Some enterprises even rely on leasing for their factory buildings and equipment, and their financial strength is not strong enough, and their ability to resist risks is weak.

Therefore, if the government implements "grasping big and supporting small", it can better promote the development of Wuhan's clothing.

In short, the lack of self-developed and nurtured product brands, such as flour and accessories, has led to the breakage of the upstream industry chain of the garment industry in Wuhan. The direct consequence of the industrial chain fracture is to increase the production cost of enterprises and affect the economic benefits of enterprises. Compared with the production capacity of clothing industry enterprises, the sales channels of clothing business enterprises are very narrow, the marketing network is not perfect, and there is no reciprocal benefit and win-win situation between industry and commerce.

Therefore, how to improve the apparel industry chain in Wuhan and optimize the integration of clothing brands has become a top priority for revitalizing Wuhan's clothing industry.

3 the measures to cultivate Wuhan's clothing brand reinforce the weak links of Wuhan's clothing. We need to accelerate the reform and restructuring of state-owned textile enterprises, reduce the threshold of private capital entry, create conditions and optimize the environment, encourage enterprises to invest in garment design and innovation, and promote Wuhan's clothing to become bigger and stronger, and change the current situation of Wuhan's clothing brand, which is "too many and mixed" and has a low reputation.

Aiming at the weak links of deep processing of fabrics, accessories, ornaments, dyeing and finishing in Wuhan textile and garment industry, we should do well in the extension and matching work of the industrial chain and expand the industrial scale.

Once we break through the broken industry chain and cooperate with relevant hardware and software, Wuhan's clothing industry can break through the shackles of "growth and development".

3.1, the merger and reorganization of specialized large garment groups will help Wuhan's garment enterprises to compete and realize the pformation from "single fight" to "win-win cooperation".

After experiencing the baptism of the clothing market, the enterprises realized that relying on their own strength and loose cooperation through some unstable ties can not maintain the sustained and healthy development of enterprises. Only with substantial integration can we optimize the resources and strengthen the garment industry.

With the weakening of the global economy, the garment industry in Wuhan will usher in a comprehensive integration era between brand and brand, enterprise and brand, and between enterprises and upstream and downstream enterprises starting in 2008.

A number of garment enterprises have been eliminated or merged, and a number of powerful garment enterprises have been developing opportunities through mergers and acquisitions. A number of enterprises have even been integrated by other enterprises' capital.

Among them, clothing enterprises integrate downstream business enterprises or will become the highlight of industry innovation.

In accordance with the requirements of the market economic law, through the merger and reorganization of capital as a link, the Wuhan garment enterprise group is formed, and a specialized large garment group based on backbone enterprises and brand products is formed to aggregate the dominant garment enterprises in the city to realize the organic chain of the upstream and downstream industrial chains.