Chinese Garment Enterprises Will Be Eliminated Half Of The Next Three Years

The first part: the four major problems facing the Chinese garment enterprises at present and in the future.

First, the overall capacity surplus, the total supply is greater than the total demand.

The entry threshold is low, the investment is small, and the whole supply chain is fast constructed, so it can form a large scale in a short time. Through over ten years of rapid development, the overcapacity situation has obviously appeared. With the increase of consumption level, the garment industry has developed rapidly, and the total supply of clothing products has been far greater than the total demand.

As the clothing market generally adopts the futures mode, the overcapacity has lagged behind.

Two, homogenization of goods is very competitive, and profitability is seriously declining.

After more than thirty years of development in product design, production, sales, brand and operation, garment enterprises are already quite mature in terms of overall process, talent and resources. Therefore, brand replication is quite easy. The homogeneous products of similar brands occupy the market, and competition from the blue sea rapidly enters the Red Sea, prompting a serious decline in the profitability of garment enterprises.

Three, the growth of market demand slowed down and the speed of enterprise development slowed down sharply.

As China's economic growth pattern is structured.

To solve the overcapacity of the whole economy and gradually reduce the economic growth rate, affect the growth of the income of the people, have a certain impact on the clothing consumption market, the growth of the consumption demand of the market is slowing down, and the speed of the development of the garment enterprises is greatly slowing down.

Four, the development mode of garment enterprises can not meet the needs of market changes.

After more than thirty years of development, garment enterprises have been in a stage of rapid development. Therefore, the development mode is single, and the ability to respond to changes in market demand is low. When the market is saturated, there is no innovation mode to meet the change of market demand, and enterprises are in a state of adjustment.

The second part: Chinese clothing enterprises have the following problems:

First, clothing enterprises do not really understand and meet the needs of consumers.

The "ordering system" model that clothing companies have been implementing for a long time predicts market demand rather than consumers.

There is no effective mechanism for consumers' understanding and satisfaction. Therefore, it is impossible to achieve mass production and market orientation, but to meet the demand of distributors. This leads to the formation of terminal VIP consumers. The consumption of these products has decreased year by year, and the network has formed a large number of stock products.

Two, the top and bottom of the value chain of garment enterprises can not achieve win-win results.

During the development of garment enterprises, the brand owners' profitability has been fully protected. However, because of the influence of factors such as rent, staff salaries, product inventory, and the increase in production costs of suppliers and manufacturers, the total profit level of the dealers in the market has been declining and even losing operation. Therefore, the upper and lower value chains of enterprises have failed to achieve a win-win situation and seriously affect the continuous profitability of enterprises.

Three, the innovation of garment enterprises is not enough, and their profitability is declining and losing competitiveness.

In recent years, the cost of human resources, taxes, raw materials and other materials in garment enterprises has been rising. The overall innovation level is not enough, and sales volume has not improved significantly.

Four, the integration of garment enterprises has not found a clear direction.

In the case of blocked market sales, we did not identify the focal point, did not clearly understand the enterprise's own problems, blindly invested a large amount of funds in the retail management to strengthen management and training, and failed to clearly realize that the integration of enterprises was integrated from the new positioning of the market, new product design, new product design, new supply chain innovation, new channel integration, and new retail adjustment.

The third part: which enterprises will be eliminated by the market in the next three years? 50%.

The first is the slow pformation of garment enterprises.

In the light of market changes, we should promptly reposition the market, pform the business mode and integrate the supply chain, instead of simply reducing the scale and streamlining the organization of garment enterprises.

Two, is the pformation of business mode too fast clothing enterprises.

According to the changes of the market, garment enterprises with new market positioning, new mode adjustment, and new supply chain integration, but too fast, too big, and can not keep up with the operation ability and level, can be carried out according to the market changes.

Three, supply chain breaking garment enterprises.

Due to the long-term cooperation of the strategic supply chain production system and supplier system, because of the decline in profitability, and the closure and rotation, thus affecting the normal development of clothing enterprises.

Four, a small scale, low-end market service clothing enterprises.

In the market competition, the small scale, the low and middle market demand of the service, because of the low ability to resist risks and the weak competitiveness, these enterprises will face the risk of being eliminated by the market in the future development.

Five, the domestic high-end brand clothing enterprises.

With the upgrading of domestic consumers' awareness of high-end brands, there is a new concept of de brand for high priced brands. At the same time, high-end consumer groups will face enormous market pressure for high-end brand clothing enterprises because of their income.

Author: Mao Jinhua, vice general manager of Fujian seven wolf Industrial Co., Ltd., general manager of Fujian Talent Group Co., Ltd., general manager of Fujian Jinyuan Garments Co., Ltd.