Impact Of Electricity Suppliers And Other Factors On How To Deal With Closing Shop Tide

The economy is slowing and demand is weak.

Impact and other factors, clothing enterprises closed shop tide intensified, even Bosideng, Giordano and other big clothing business is also difficult to escape the fate of the shop.

Recently,

The release of the interim results as of September 30, 2014 shows that in the half year of this year, Bosideng has closed 3436 stores, and its net profit has dropped by 22.5%.

Meanwhile, Giordano's three quarter earnings report also showed that in the third quarter, there were 74 retail outlets closed in single season.

In fact, it is not new for clothing brands to shrink in China.

Metersbonwe's 2013 annual report shows that the company has more than 200 direct and franchise stores in the country, which is reduced by more than more than 200 in 2012, because "the domestic market is almost saturated and it is difficult to accommodate too many stores".

At the same time, as consumer demand becomes more and more personalized, the speed of textile and garment products update is faster and faster, resulting in the shorter life cycle of some fashion products, and even some clothing from selling to shelves for only 1 to 2 months.

Statistics show that at present, 80% of China's garment industry profits are declining.

How should clothing enterprises cope with the tide of shutting down stores and how to reverse the trend of profit decline?

According to the analysis of some people in the industry, the reason why some domestic garment enterprises are facing difficulties in survival is that many garment enterprises do not attach importance to the mining and analysis of the potential market demand, as well as R & D investment in technology and design, but only depend on the marketing process of market goods to decide the production plan of enterprises, which leads enterprises to keep pace with the changes of the market. On the other hand, with the full coverage of the Internet, convenient, fast and affordable online shopping modes are increasingly favored and recognized by consumers. This has also become a key factor leading to the closing of the clothing enterprises.

In addition, with the end of the demographic dividend era, the human cost advantage of China's textile industry in international competition has basically ceased to exist. The rising labor cost pressure is just as bad for some of the struggling garment enterprises.

It is understood that since 2011, the total scale growth of China's textile industry has obviously slowed down compared with the first 10 years of this century, while the cost of production factor of textile industry has been continuously raised, and the per capita wage has increased at an annual rate of over 10%, making China's human cost far higher than that of developing neighboring countries.

At the same time, China's textile raw materials are increasingly restricted, and the supply of high quality cotton is seriously insufficient. Cotton prices in recent 3 years are also higher than 30% of the international market. The development and application of chemical fiber is insufficient, and the processing technology of recycled fiber and the development of recycling channels are lagging behind.

In addition, the Chinese government, in the face of the prominent contradiction between resources and environment, is also more stringent in terms of monitoring standards and tasks in low-carbon and environmental protection.

Regarding this, Wang Tiankai, President of the China Textile Industry Federation, said at the first "ten as" forum held recently. Under the new normal, accelerating the pformation and upgrading of the textile and garment industry, enhancing the capacity of total factor productivity and sustainable development, effectively breaking the bottleneck of resources and environment, and better participating in international market competition and global industrial division of labor are urgent tasks facing the development of China's textile industry.

In the future, the textile and garment industry will vigorously promote the "going out" of Chinese enterprises, overseas investment and construction of textile raw material bases, processing bases, R & D centers and marketing channels, effectively making up the weak links of the domestic industrial system, and promoting the division of global industrial distribution by optimizing the allocation of pnational resources.

It is noteworthy that in the face of the new Internet market,

To pform and upgrade and achieve better and faster development, we must speed up channel innovation and industrial integration under the new normal, strengthen the close integration of clothing and technology, and enhance the reaction speed and efficiency of enterprises through the introduction of new technologies.

Industry experts also said that in the era of Internet business, the pformation and upgrading of garment enterprises has become inevitable. But to keep a firm foothold, we must continue to research and innovate, and take technological progress as the primary focus of enterprise pformation and upgrading.