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    After The Pain Of Overcapacity, Quanzhou Shoes And Clothing Enterprises Welcome Recovery.

    2014/11/15 14:15:00 36

    OvercapacityQuanzhouShoes And Clothing Enterprises

    The Xiamen marathon will be held soon. As a sponsor, XTEP will continue to show its young fashion as always. PEAK can achieve two digit growth this year. At the fair, Qiqi shows the Chinese collar products with national characteristics, and introduces high-tech equipment such as 3D volume and interactive dressing glasses to attract participants to come to experience.

    The reporter learned from the recent 2014 annual Chinese economic leaders' celebration in Xiamen - approaching the Fujian business forum that after experiencing major trauma such as demographic dividend disappearance and closing shop rush, the pformation and upgrading of Quanzhou's brand shoes and clothing industry has achieved initial success, and signs of industrial recovery are obvious.

    Labor pains: overcapacity triggers shop closes

    Sports shoes account for 30% of the world's total production, jacket production accounts for 25% of the country's total, and 35% of the domestic first-line men's wear brands, and leisure wear capacity accounts for 20% nationwide.

    After years of rolling development, Quanzhou has become an important production base and brand base for the footwear industry of the whole country and even the whole world.

    Like other domestic traditional manufacturing industries, after the rapid development, in recent years, Quanzhou shoes and clothing industry ushered in a pition period.

    Last week in Xiamen, the 2014 Chinese economic leaders' celebration came to the Min business forum. The chairman of PEAK group, Xu Jing Nan, said that four years ago, when many shoe and clothing factories were still expanding blindly, he predicted that the difficulties were coming. On the one hand, the price of labor remained above 20% annually. The shoe and clothing industry was a labor-intensive industry. It would face more and more labor cost pressure, and the financing cost and marketing cost were also increasing year by year.

    He said that the entry threshold of footwear industry is not high. Under the background of slowing demand, the huge capacity accumulated over the years is hard to solve in a short period of time. By 2012, the situation worsened.

    Many clothing brands are facing a dilemma of rising inventory, shrinking channels and declining sales performance, resulting in high inventories.

    Coupled with rising costs and electric shocks, there has been a wave of closing stores.

      

    Transformation: from brand to wholesale

    Brand retail

    After the pain, Quanzhou shoes and clothing began to pform from brand wholesale to brand retail.

    Ye Qi, executive vice president of XTEP group, said that this pformation is, in short, a shift from a highly dependent wholesale business model to a retail and consumer oriented retail business mode. This is also the common direction for Quanzhou footwear industry to seek breakthroughs.

    Past,

    Quanzhou

    Shoes and clothing enterprises expand quickly through fast distribution and horse racing.

    The wholesale mode helped Quanzhou shoes and clothing brand achieve rapid growth, and completed the upgrading of capital level through listing.

    However, due to the large number of intermediate links, such as first tier agents, two level agents, franchisees and so on, the brand can not control the retail channel. There are several mountains between consumers and consumers. Information is not smooth, and sales depend on agents.

    For brands, as long as they go wholesale, sales have already been formed, but they can not feel the changes in the market and retail terminals.

    Finally, high inventory.

    After the attack on the shops, Quanzhou brand shoes and clothing shops began to compress channels, from wholesale to retail, reduce intermediate links, and get closer to consumers.

    Since 2012, the order pattern of Anta has been changed to single shop order. The original order is that wholesalers and franchisees order products from factories. Now every shop in the country orders separately.

    PEAK also "flatten" the channel, from the traditional "Brand Company - provincial distributor - Municipal distributor - franchisee" four level market sales system, reduced to "Brand Company - City (county) distributor - franchisee" three level distribution system.

    Xu Jingnan said: "reducing intermediate links and speeding up the decision-making process will enable companies to discover changes in the market and consumer spending habits in a timely manner, thus producing marketable products."

    The seven wolves also implement the strategy of "wholesale to retail", which is the key to the growth of single store performance which is promoted by product, supply chain and terminal management.

      

    Upgrade: Technology

    innovate

    Help new development

    Anta's first half annual report shows that Anta achieved 4 billion 100 million revenue, an increase of 22% over the same period, and net profit of 800 million, an increase of 28% over the same period last year, thus reversing the decline in the performance of 24 consecutive months.

    Ding Shizhong, chairman and CEO of Anta sports director, thinks that Anta's gross profit margin will rise this year, a large part of its contribution from new products.

    "In the past, Anta's R & D cost accounted for only one percent points of the cost of sales, reaching four percent points in the first half of this year, nearly 100 million yuan."

    Relevant information shows that at present, in Quanzhou traditional industries such as shoes and clothing, R & D funds accounted for more than 4% of the sales revenue of enterprises, 285, more than 5% of the 127.

    More and more shoe and clothing enterprises have changed from labor-intensive to technology intensive through technological pformation and equipment innovation.

    "The disappearing demographic dividend can be recovered from technological pformation."

    Xu Jingnan said.

    At present, in terms of 3D technology application, shoes and clothing enterprises in Quanzhou have been at the forefront.

    The seven wolves have made great efforts to improve the application of 3D digital 3D technology.

    Jordan, Anta, HOSA, 361 degree, Qipai and other enterprises also showed interest in this project.

    Management is also moving from extensive management to meticulous management.

    The traditional production of textile shoes and clothing, extensive management, all processes are separated, and there are disadvantages such as large land occupation, large inventory and low efficiency.

    In order to solve this problem, lean management has been introduced into 361 degrees, seven cards and seven wolves since last year.

    In the lean management mode, the wages of workers depend on the production time and quality, rather than quantity, which greatly improves the quality of products, said Mr. Ding Wu, President of the 361 degree company.

    At the same time, in the face of the impact of e-commerce on physical stores, Quanzhou shoe and clothing enterprises have set up a network marketing team.

    According to the statistics of Quanzhou Electronic Commerce Association, last year, online sales volume of Quanzhou sports shoes, casual shoes, cashmere and cotton wear accounted for 70%, 55% and 68% of the whole country respectively.

    Quanzhou has become the largest and most concentrated supply base for shoes and clothing business in the country, and is one of the four largest electricity supplier industrial bases in China.


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