Traditional Home Textile Market Predicament Sample: Electricity Supplier Fierce

from industry Statistics show that sales of home textiles reached 53 billion yuan in the first 10 months of 2013, and is expected to exceed 60 billion yuan in the whole year.

On the one hand, the electricity supplier of home textile is like a duck to water, but on the other hand, it is the fire of the traditional home textile enterprise.

As the largest home textile production and wholesale base in China, there are more than 3000 home textile enterprises in Haimen, accounting for nearly 50% of the market share. Permian bridge area, Haimen City, Nantong, Jiangsu, is one of the three major home textile industrial bases in the world.

Recently, field visits revealed that under the influence of the economic environment and the impact of electricity suppliers, not only the owners of home textile products shop said they were having a bad day, but also considering whether they had changed careers. Even the upstream enterprises also said that many enterprises could not pay even the normal workers' wages.

The traditional home textile market has been in the doldrums, which has become a fact. How to break the situation is a problem that businesses and local governments need to think about.

Home textile industry profit is only 6%

On the afternoon of July 16th, the reporter visited the home textile market of the Permian bridge on the spot. In the three phase of the overlapping bridge, the reporter noticed that most stores closed the door, and the whole market did not have much popularity. "The more difficult the business is, the bigger the impact of the electricity supplier on the traditional market. Our three phase of the market is now the weakest season in the whole year, especially in the afternoon. The three phase shop owner Chen told reporters.

There are also a number of owners told reporters that the home textile industry is not good now, a bit of money is also considering whether to switch careers, or some want to invest in some valuable shops or property in the bridge, the rent can also be nearly a million yuan a year.

In the interview, most owners mentioned that the impact of e-commerce on traditional home textile stores is too great. Nantong Haimen overlapping stone bridge administrative committee staff also told reporters: "online shopping crowd continues to expand, urges the home textile e-commerce industry's rapid development. In recent years, consumers' purchase of home textile channels has also shifted from offline terminals to online e-business, especially the mainstream users of online shopping -- fashionable women and white-collar workers, who constantly improve their quality of life, and attach more importance to family soft decoration.

list company Meng Jie home textile (002397, SZ), fuanna (002327, SZ), Luo Lai home textile (002293, SZ) in the 2013 annual report, without exception, mentioned the positive impact of the electricity supplier on the performance. Last year's "double eleven" electricity supplier war, Luo Lai home textile sales reached 155 million yuan a day, ranked first in the home textile industry, sales grew 50% year-on-year. Fuanna network sales reached 131 million yuan, an increase of 70% over the same period last year.

Pi Shiming, director of public relations of Meng Jie home textile, told the daily economic news reporter that the company attaches great importance to channel transformation, vigorously develops e-commerce, and actively develops online channels. The introduction of professional professional managers in the operation of electricity providers, the establishment of professional electricity supplier team. In the future, we will integrate channels on line and offline, and we need to step up the construction of O2O system besides developing electricity providers.

So, how big did the electricity supplier grab the share of the traditional home textile market? Last year's home textile conference showed that the total sales volume of the home textile line reached 53 billion yuan in the first 10 months of 2013, of which the Tmall platform accounted for 26 billion yuan. Guo Da Lu, vice president of Tmall mall, said sales of home textiles accounted for 10% of the sales of cats and 20% of clothing categories. As a standardized product, the future sales volume of home textiles is expected to exceed that of clothing categories. In all sectors of Tmall, home textile sales rank the top 10. "How much will the home textile business share in the future? I think it's 50%." Guo Da Lu said.

"Home textile industry is facing the inevitable impact of development, and we must learn to face it. We are also actively guiding and building an electronic platform for the market in the bridge. Haimen Haimen Industrial Park Management Committee Deputy Director Cao Zhengping said.

The "physical store" of the market is still expanding. "But some departments are not thinking about the connotation of products, cultivating a number of well-known home textile enterprises to go out to the international market, or to integrate the entire home textile industry into the capital market, but blindly build the market. The market of the bridge has already been built for three periods. It is understood that there are still several phases to be built. At the same time, there are many markets such as Nantong spinning capital. The owner of Xu Shi, the three phase of the market, said to reporters.

Then, how much profit can the electricity supplier bring to home textile enterprises? Zhu Wenzhong, Secretary General of the Haimen Bridge Home Textile Association, said that the profit of the home textile industry has been very low now. Around 6%, most of the profit margins are occupied by the sales channel, which is very fatal to a small profit industry. Low profit can not quickly make the brand bigger and stronger, and no brand will further affect the profits of the industry, which is a vicious circle. Although Nantong home textile has a large share in the domestic market, how to grasp the sales terminals and directly face consumers has always been one of the important topics of Nantong home textiles exploration.

Sales are slowing down and manufacturing companies are having a hard time. Nantong Rudong County several enterprises in the upper reaches of home textiles grey cloth told the "daily economic news" reporter, business is very bad now, many enterprises have gone bankrupt, domestic raw materials have risen, but the price of cloth has not risen, the export situation is not ideal, so that many enterprises can not pay even the normal workers' wages, sometimes a month can not run several times, many enterprises. The industry has sold machines to other industries.

What is lacking in Nantong home textiles?

Turning to the current downturn in the traditional textile market in Nantong, the Nantong Textile Association's responsible person told the daily economic news reporter that the reason is that the product is not innovative, and that innovation and R & D lacks funds. In addition, it is also related to the international and domestic environment.

The responsible person said that for every home textile enterprise, product design should be the most important production link. However, for most enterprises, attention is not equal to investment. Compared with the vast majority of home textile enterprises, the investment in marketing is far greater than the investment in design. Internationally, enterprises with fashionable brands generally invest in product R & D, accounting for 5%~15% of their output value. Compared with domestic textile enterprises, the number of products developed by the domestic textile enterprises is 5%. In Haimen, in the past few years, when the business was doing well, most enterprises did not even think of product research and development and brand promotion. When the market became serious, they did not have the capital and confidence to do so, and survival became a top priority.

Zhou Zhanxian, chairman of Jiangsu Kelly Embroidery Co., Ltd., who has been engaged in embroidery business for 25 years, believes that Haimen home textile industry needs cultural support. Haimen home textile industry still has huge space in its creative design. Haimen home textile industry is now unable to keep up with its famous brands, and the government departments are also trying to support them. The publicity links in the marketing process have not been highly valued. The products have been struggling at the low and middle levels and lack of "high-end consciousness". The main reason is Haimen home textile industry and enterprises need to be supported by culture. It is said that Haimen home textile culture accounts for about 20% of the industry, which is a reluctant data, even if there is not enough.

Zhou Zhanxian said that as far as Haimen is concerned, there is too much distance from the so-called industry and culture. Haimen has two or three hundred Shenhua three or four generations of descendants, but none of them has a well deserved "craftsmen", much less provincial or state level masters. No matter the development of industry and culture, no talent, this "bottom" can only be empty talk.

For Nantong Haimen Bridge home textile market products follow suit, lack of culture and innovation, in the research and development also exist deficiencies, Zhu Wenzhong expressed disapproval. Zhu Wenzhong said that it is the absolute principle that enterprises can make profits and survive for a long time. How many companies that really understand Nantong's home textile market can not survive any culture. Haimen's home textile enterprises are also very effective in designing and developing. "But we will investigate and track consumer demand, adjust product mix in time to adapt to market demand and make marketing plans so that products can sell well."

　　 Way out: developing high value-added products

Jiang Xin, Deputy Secretary General of the home textile association of Haimen City, believes that at present, China's home textile market has several characteristics in terms of trend: first, centralization and innovation are the driving force for the development of the home textile brand in the future. Subdivision is the symbol of the maturity of the home textile industry, and integration is the ultimate trend of the development of the home textile industry. With the increasing homogenization of brand building competition and the accelerated pace of original brand innovation, leading brands such as rolls, Meng Jie, mercury and fuanna will gradually expand in the industry, and the trend of brand concentration will become more and more obvious. The two is the trend of brand upgrading. At present, the low-grade products in the home textile market are mainly made in China, and high-end products are mainly imported. Consumers are more and more popular with famous brand products. The potential of home textile high-end market is larger than that of the middle and low grade market. Some famous enterprises in China have improved their capability of independent innovation and design, and have been developing high value-added brand products to seize the market.

Haimen home textile will face the competition in the future. "In the first ten years, the home textile industry is a stage of rapid development. This stage is the golden rush period for the home textile industry, and everyone can make home textiles and make money. As the market matures and competition intensifies, the industry enters the shuffle stage, and has entered the "gold rush period". The industry space is still promising or even huge. Cao Zhengping is optimistic about the future of home textiles.

"As a pillar industry of Haimen, the home textile industry is upgrading through transformation and upgrading. Although many small businesses solve the employment problem, they occupy a certain amount of resources at the same time, which affects the progress of transformation and upgrading of large industries. For labor-intensive industries, it is necessary to make scale for enterprises to improve profitability. Making brands is an inevitable choice for enterprises to grow from small to large. Nantong textile industry association responsible person said.

Cao Zhengping said: "now is the critical period for the household textile industry to grow from strength to strength. Home textile enterprises have made many changes in channel construction, marketing mode innovation, product design and R & D. We are also focusing on building an e-commerce platform. Nantong textile capital is already a test area for e-commerce.

Haimen municipal Party committee responsible person in an interview with "daily economic news" reporter said: "at present, Jieshi Bridge International Textile City is promoting the integration of domestic and foreign trade development, declare" market procurement trade mode "pilot. Haimen Industrial Park takes the highlights and characteristics of the development of the overlapping bridge area as the breakthrough point. It is dedicated to build the characteristic tourism industry of the Permian bridge. At present, it has successfully declared the national 4A scenic spot. The full-time centralized service area in the international trade service center of the overlapping stone bridge home textile market is also completed and will be put into operation.

Tao Wensheng, a consulting management partner of Beijing University, believes that the Yangtze River Delta region is an important industrial cluster of China's home textiles and garments. These clusters have at least two characteristics: one is the distinctive industrial characteristics; the two is the professional market. The specialized market is the inevitable outcome of the development of industrial clusters to a certain extent. Specialized and distributed industrial clusters almost depend on the relevant professional market, and form a wider industrial chain through the corresponding professional market network, thus promoting the continuous development of various specialized industrial clusters.

In the coastal areas of home textile and garment industry cluster, some local characteristic industrial clusters are growing rapidly. We quickly established a professional market with local characteristics, changing the passive situation of raw material purchase and product sales right in the hands of others. In a sense, the professional market is also an industrial cluster, which is the industrial cluster with the circulation industry as the main body.

He believes that from the perspective of the whole industry chain, the traditional Chinese textile market is mostly a "push" type industrial chain, which is actually a "storehouse" warehouse mode. Besides production enterprises, there are no other interested parties concerned about the brand. As a result, apart from a part of enterprises that have the ability to control the whole process, the brand operation of most enterprises is gradually weakening. With the advent of the modern network economy and the era of experience economy, the traditional industrial structure not only centered on production and manufacturing is changing, but also the industry resources have been effectively integrated by the strength of the home textile market, making the home textile market a new industrial entity. In addition, it is hard to guarantee the further development of industrial clusters by simply winning the price, and to become more characteristic and fragmented becomes a more powerful "magic weapon". Home textile industry cluster can focus on these development trends and combine with its own characteristics, focusing on planning the future development direction.