The Game Between Brands Of Domestic Apparel Industry Has Brought About Metamorphosis.
With more and more foreign brands entering China, there is bound to be more fierce competition between Chinese independent brands and foreign brands, or between Chinese independent brands.
However, we should be optimistic about the process of competition, which may be an excellent opportunity for Chinese brands to learn and improve.
Let us first look at a group of data released by the world's luxury brands in 2008: Sales of Armani in the Chinese region maintained a 24% growth rate, far exceeding its 7% growth in the US; PPR luxury goods business grew 8.8% in the second quarter, while increased 83% in China; the Geneva hand traders visited 7 countries in two months, and sold the Titanic -DNA series watches to the rich in the world, and found that Chinese people had the greatest interest.
According to a report released by the World Luxury Association, China's share of global luxury goods consumption has increased year by year, accounting for 18% of the global market share. It has become the third largest luxury consumer after the United States and Japan.
Let's look at this group of facts again: in November 13, 2008, Versace China's first fashion show was released in Beijing. In November 15, 2008, in November 13, 2008, Lian Crawford launched the Kate Moss Topshop dress in Beijing exclusively. In November 16, 2008, in the 8000 square meter modern art and Design Museum adjacent to the "bird's nest", the theme exhibition of "Dior and Chinese artists" was held at the Museum of contemporary art, which is built by the international brand Dior.
It is not hard to see that under the influence of the economic crisis, the interest of the world's clothing brands has not diminished with the interest of the Chinese market.
This seems to imply such a message: foreign clothing brands (not just luxury goods) will increase the popularity of the Chinese market in the future, and their sales growth will enable them to see confidence in the Chinese market.
At the same time, this also shows that as more and more foreign brands enter China, no matter between Chinese independent brands and foreign brands, or between Chinese independent brands, there will be more fierce competition.
7 years ago, China joined the WTO.
In fact, since then, all kinds of Chinese independent brands, including textiles and garments, have been faced with a game of foreign brands, and the cry of "wolf coming" has been heard all the time.
7 years later, the difference is simply that the emergence of the economic crisis has added a "fire" to the game.
To a certain extent, this kind of game is not a bad thing for Chinese clothing brand: in the game, the brand with genuine core competitiveness will be retained, and it will help build a high-quality clothing brand team.
In the face of economic depression and market slump, the famous luxury brand Burberry also failed to escape the "cold current" invasion. Since its selling price in London in October 2008, its market value of 160 million pounds equivalent to 240 million US dollars has evaporated.
CEO Angela Ahrendts of Burberry said, "I have been in the industry for 30 years, but I have never been so concerned about the market environment.
But at the same time, I have never been so optimistic about the company's future. "
In addition, Burberry began to plan for the development of shoes, children's clothing and other emerging markets, and put emphasis on the Internet in advertising investment.
The example of Burberry gives us the inspiration: does the crisis indicate that the brand pays more attention to the research of the market environment, so as to formulate a development strategy suitable for the current market environment?
A proper strategy may have taken the first step for crisis breakout.
The current situation has made many foreign brands reduce or even cancel the plan for opening stores, although opening stores can help boost sales.
However, the reality has made the major brands have to write down a more pressing agenda for cutting costs, reducing costs and controlling sales prices.
Michel Nossa, executive director of Ferla Gem, said: "although there must be some capital investment at this stage, it does not mean buying a huge flagship store, even if this is one of the important ways.
Instead of relying on the business area to get the turnover, it is to earn profits through trading volume. "
The measures adopted by these international brands are worthy of reference from Chinese brands under certain conditions.
Just as a coin has two sides, the crisis will enable strong foreign brands to fight in the Chinese market, and some brands that can not withstand pressure will retire.
This brings opportunities for Chinese brands to develop.
For some Chinese clothing brands, it is not that they are not doing well, but in the competitive environment of high intensity, they have no chance to enter large department stores and reduce their chances of being recognized and familiar by the public.
However, the withdrawal of foreign brands enables excellent Chinese brands to have access to department stores and market reviews.
Is this not an opportunity to enrich Chinese brand teams?
In the economic crisis, we should not let responsibility fall into the "crisis" and the brink of the economic crisis.
Big brands have to emphasize their responsibilities no matter how much they lower their wages, reduce their expenses, or even strengthen the relationship between suppliers and consumers.
And this "very" period of responsibility is more important than any time.
It is the responsibility of all enterprises to take measures to get the industry out of the crisis as soon as possible. It is also a responsibility to continue to provide good service to consumers, and to ensure product quality is also a responsibility.
As Sandro Veronec, President of Calzedonia group, said, "we are brave enough to face the crisis.
We have always focused on the intrinsic quality of products, and set a reasonable price for products.
We guarantee that customers must buy goods of high value. "
Especially now, we must guard against such a situation: in order to get rid of the crisis, the brand war between the brands has even spared no expense at all, trying to increase market share at an unreasonable price.
It is undeniable that a certain degree of discount is undoubtedly conducive to brand sales, but we must master the "degree", otherwise the result of "too much" will only be malicious competition, disrupting the unpeaceful market.
Xia Guoxin, chairman of the company, once said, "do not think that the market will be able to occupy the market if the price is cheap. The real brand itself represents high added value.
Facing the decline of consumption and the shrinking of sales, many enterprises are fighting price war, especially in the way of "low price discount".
I don't think that discount will eventually bring down other businesses, but only hurt yourself and loyal customers.
It seems justifiable that enterprises should reduce their staff and increase efficiency after the crisis.
However, even under the condition of a very bad external environment, a number of enterprises have proved by their actions that the economic crisis does not mean responsibility is also facing "crisis".
In December 6, 2008, the Wuxi red bean group joined 17 enterprises and issued the "proposal for enterprises in the whole city". The purpose is to face the adverse effects of the financial crisis on employment, and to change "reduce staff and increase efficiency" to "stabilize personnel and increase efficiency", so that enterprises can strengthen their confidence and actively respond to challenges.
Zhou Haijiang, President of the red bean group, said that while stabilizing the existing workforce, red beans will recruit a number of high-level talents to accelerate the development, pformation and upgrading of enterprises.
Enterprises like the red bean group are very few. Their behavior coincides with the logic: "the more difficult times, the more obvious the responsibility is."
Sun Ruizhe, vice president of China Textile Industry Association, also said that under the financial crisis, the social responsibility of the macro level industry is the first to promote employment.
Case study case 1 China, a big foreign haven?
Burberry (Chinese name Burberry), the British Thomas Burberry was founded in 1856, and later became the Royal royalty brand in the United Kingdom.
At the end of August 2008, the Yitian Holiday Plaza opened in Shenzhen. The proportion of international brands entering the store reached 80%, of which 30% were the first international brands in China or Southern China, including Burberry, CARTIER, ARMANI COLLEZIONI and HUGO BOSS.
Among them, Burberry has opened the largest flagship store in Asia.
Due to the impact of the economic crisis, in October 2008, Burberry fell below its 2002 listing price in London stock market, and the pace of her branch opening had to slow down.
In order to save the Chinese market, Burberry resorted to a big discount.
In the early December 2008, before the Burberry of Zhongshan Park spring store in Paris, Shanghai, there was a long queue in the early morning. The reason was that the shop launched a "Burberry full court 1-4 fold" posters.
In order to maintain order at the scene, the store had to take the batch by number method, allowing consumers to enter the store in batches.
Burberry's London headquarters said that the average sales area of the brand will grow by less than 10% in 2009, which is also far below the expansion in the first half of 2008.
Moreover, the company has now replaced 1/3 of the air pport by sea to save costs.
In order to attract customers, it will also speed up the development and production of new products on the basis of traditional grid patterns.
For example, Burberry plans to produce a "Nepal" handbag, which will cost around 125 pounds to attract people who are prepared to control the budget.
In the face of the economic crisis, it is difficult for any country to be "independent", let alone the type of clothing brand.
Burberry is just one example.
Looking at other international brands, LVHM announced in November 2008 that it lowered the retail price of products in the Japanese market, with an average drop of 7%.
LVHM also cancelled plans to open a new global flagship store in Ginza, Tokyo.
Cacharel (Cashel), Donna Karan (Donna Karen) and other brands have cancelled the February world fashion center release show.
The Chinese market has been on the upswing in the big international market.
On the 21~23 day of November 2008, the second TOP ESSENCE Beijing international top private goods exhibition was held in China World Trade Center exhibition hall in Beijing. More than 300 rare products including Hennessy, Armani, Bentley and other more than 60 international brands (including clothing, food and shelter, entertainment and entertainment) were exhibited. Over 1/3 exhibits appeared in China and Asia for the first time.
Showing the brand's "magnanimity" and rarity can be seen as a shadow of the economic crisis.
According to a study released by Bain in October 2008, luxury consumption in emerging markets such as China, Russia, India and Brazil is expected to grow by 20% to 35% over the next 5 years, which will help offset the shrinking of luxury consumption in developed countries.
Relatively speaking, luxury goods are growing so strongly in China. How can even the economic crisis stop them and other international brands in the Chinese market?
Perhaps different from the past, the current economic situation has prompted them to adjust their development strategies and take various measures to minimize the impact of the crisis rather than abandon the market.
The way international brands respond to crises is a learning opportunity for Chinese brands. At the same time, competition with international brands in the local market during the crisis is also a time to highlight the strength of Chinese brands.
As for how they learn?
How to compete?
What is the result?
We do not make unnecessary guesses or wait for facts to speak.
Case 2, "lead the big brother" Bosideng, "we have tens of thousands of employees without one laid-off. Not only that, but we have also increased the number of Posts set up, and absorbed as many managers, marketers, technicians as possible from other financial crisis enterprises into our enterprises.
Because the development of Bosideng has not slowed down because of the financial crisis, but it has accelerated even faster, and we need to reserve early talent. "
In November 2008, a representative of textile and garment enterprises held in Changshu, Jiangsu, the manager of Human Resources Department of Bosideng said.
In September 2007, Bosideng won the honor of "world famous brand".
In September 23, 2008, Bosideng men's clothing opened two stores in the UK, selling products with its own brand "Bosideng".
In November 6, 2008, Bosideng put the top prize of the National Quality Award "National Quality Award" in our quality field, and the quality of its products was not affected by the economic crisis.
According to the relevant data, in the first 10 months of 2008, Bosideng achieved sales revenue of 5 billion 989 million yuan.
Since the outbreak of the economic crisis, Bosideng has been very concerned about the trend of the industry even though its negative impact is very small, and invited experts and scholars to conduct detailed analysis and research.
In response to the crisis, Gao Dekang, President of Bosideng, contributed "unreservedly": Bosideng is developing towards diversification, opening up new economic growth points by relying on two trump cards of brand and technology.
I am glad that there is Bosideng in this situation.
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