A Large Number Of German Garment Manufacturers Are Bogged Down In The Mire.

As early as 2009, another senior German women's clothing brand, Escada, was also declared bankrupt. It was later changed to be taken over by Megha Mittal, the daughter-in-law of Lakshmi Niwas Mittal, India's richest. The Joop brand, which was sold by its founder Wolfgang Joop in 1998, has temporarily held the post of chief designer of the company until 2001. It did not release all the remaining shares until 2001, and formally bid farewell to Joop. At present, the Hugo Boss company, which only hired Wu Jigang as the chief designer, is still performing well, and many other garment manufacturers are in poor condition. Recently, market experts have said that in the coming years, hundreds of garment manufacturers in Germany will be unable to repay their debts.

In fact, German garment manufacturers are in a bad position for one or two days. As early as 2010-2012, the average profit of manufacturers before paying interest has dropped from 7.5% to 4.2%. In addition, 20% of garment manufacturers have suffered business losses, and the situation in 2013 is not so good.

Generally speaking, German garment manufacturers are not big enough to operate. In price competition, it is difficult to compete with large enterprises such as Zara or H&M. These large enterprises usually own their own chain stores, and in addition, their output is much larger than that of small manufacturers. Therefore, they not only have high price competitiveness, but also earn much higher interest rates.

According to a recent market report released by Kreutzer Fischer & Partner, an enterprise management and consulting firm in Vienna, Strenesse has gone into bankruptcy and has not been in the niche market at the time of its successful operation. Instead, it has gone too far to expand the product range. In the clothing industry, this case is endless. Strenesse's clothing is a high priced product, while many other small and medium-sized garment manufacturers who belong to the middle priced products face many problems. Clothing market Over the past 12 years, the German share price chain stores such as Aldi and Lidl plus cheap clothing suppliers Kik have expanded from 27% to 35% in the past 12 years. During the same period, the market share of high priced clothing suppliers has expanded from 9% to 12%. In the past, when German people spent about $35% on clothing, they spent all the money on the middle priced products. Now the expenditure has shrunk to 50%, and the current market polarization has not changed, but it has become more and more intense. Has been developing towards price polarization. In this case, experts estimate that the total current number is around 1000. Medium priced clothing There will be only 600 to 700 manufacturers in the future, which will affect 50 thousand jobs.

In the past 10 years, Germany The annual expenditure of the public on clothing has been maintained at 42 billion euro, no longer growing, and in 2013 it has even declined. According to experts, the wardrobe of ordinary people has already been covered with various kinds of costumes, and they are not willing to spend more money on new clothes, and the market is fighting for war when supplies are available.

Traditionally, department stores and clothing stores have been playing a very important role in the German mid priced clothing sales market. Since 2001, the two sales channels have been operating poorly, which has lost about 7 billion euros, while some manufacturers who sell products exclusively through these two outlets will naturally be in trouble. According to the BTE, the total number of clothing retailers in Germany has decreased from 2409 to 26789 in 2009-2012 years. In terms of department stores, Karstadt, the largest department store in Germany, has been bogged down in the past, and there are about 30 outlets to be disposed of. If these stores are closed, it will bring a lot of damage to many garment manufacturers. After all, some garment manufacturers who sell 20 million to 100 million Euro dollars have always sold their products to Karstadt, while Karstadt accounts for 14% in the German garment market. Therefore, the future destiny of the company has many manufacturers' future prospects. According to a small number of manufacturers, if Karstadt fails, they will not be able to afford this loss, because if a chain store sells products that require a large sum of money, some manufacturers will start looking for investors while other manufacturers choose to sell the company. However, in the eyes of Kreutzer Fischer & Partner experts, about 20% of the garment manufacturers in Germany are worth a lot of money, so if these manufacturers really sell the company, they will eventually return empty handed.