The First China Children'S Wear Industry Summit Forum Wang Zhuo Answered Reporters' Questions.

Address: conference room M602, convention and Exhibition Centre, Shanghai (Convention and Exhibition Centre)

Time: 10:00 a.m. on March 19, 2015 - 12:00

Moderator: distinguished leaders, ladies and gentlemen, good morning, I am very fortunate to be here with you. I am Yang Song, the host from Hangzhou TV station. Although the weather is drizzle outside, the atmosphere in our venue is quite warm. It should be said that the first Chinese children's Clothing Industry Summit Forum is surging up. Today we invite you to join this forum and share the successful experience on this platform. industry The development indicates a bright light.

It should be said that in 2014, the scale of children's clothing production reached 140 billion in China. It was really amazing. Many friends said that in the 14 years, it is very difficult for us to make clothes, especially those in the front line. But on the other hand, the scale of children's clothing industry has reached 140 billion in the whole 14 years. Besides, there are very good positive news. Therefore, this era is an era of opportunities and challenges. No challenge, no good opportunities, and so on. We must grasp the more difficult times.

Today's China textile industry exhibition is moved to Shanghai. Today, this forum is also the first summit forum for Chinese children's clothing industry after we moved to Shanghai. It is close to our most direct market close to our consumers, and it is also the healthy growth of children. We hope to help our children's clothing enterprises to comprehensively enhance the creation of brand and market value.

Today, I am very fortunate to have talked about the leaders and representatives of all enterprises in the field of children's clothing from the Internet. I hope they will be rewarding in today's forum. Next, please allow me to introduce the distinguished guests of today's forum, Mr. Wang Zhuo, the full-time vice president of the China Fashion Association, Jia Wei, the Secretary General of the China clothing association Specialized Committee, the editor in chief of the magazine of Chinese clothing magazine, Xu Hong, and the general manager of Barbara, deputy director general of Semir Clothing Co., Ltd., China Fashion Association's children's wear magazine, Specialized Committee deputy director general, Xu Bo, and Zhang Zheng, chief strategist Zhang Zheng of Zhejiang smart Shanghai, Wu Fangfang, general manager of Shanghai green box Network Technology Co., Ltd., Mr. Barbara, chairman of Shanghai Toyama Pml Precision Mechanism Ltd, President of Liaoning Business Department Store Co., Ltd., welcome!

Today is really a gathering of guests. Today we invite you all to come to our forum to collide with the advanced ideas. First, we invite the vice president of China Fashion Association Wang Zhuo to bring the speech of the conference.

Wang Zhuo: Thank you for your colleagues in the clothing industry. Thank you, Mr. Xu. Thank you, Wu. Thank you! Let me begin with some polite remarks. On behalf of the China Apparel Association, I would like to thank all the colleagues in the clothing industry here for taking the time to observe our annual clothing festival. It can be said that China's garment industry has entered a critical period of adjustment and transformation until now. It has been communicating with Xu General Hu just now. In fact, our clothing retail business has gone through a very difficult and severe situation in 2014. But from our comprehensive statistics, all of our indicators, no matter the total production volume, total sales, profit margins, enterprise benefits and so on, all have a single digit growth. So far, there has been no negative growth from the industry average.

Why is it so difficult to do retail business? From the 80s of last century to the second half of 2007, we had 27 years of rapid development. After experiencing the rapid development of two or three line cities and the GDP per capita of over 3 thousand US dollars, in the three times, the sales of our clothing brands increased by 20% per year on average. At the same time, our brands even had nearly 20% of the price increase. How can business be so good in the world?

It is inappropriate to say that "a typhoon comes, and an old mother can go to heaven." We have gone through 27 years to complete our original stage, brand creative stage and market expansion stage. Today, we are entering a new normal mode. What is new normal is that we have to enter a moderate and slow growth period under the background of GDP growth. In 2015, when we look back at 2014 at the end of the year, we will say that 2014 is a good day. Looking back in 2016, we will definitely say that the days of 2015 are better. The reason is very simple. We will surely enter a long-term stable and slow growth period. In the popular words, even later it is like this, a gentle growth stage. During the two sessions of the Central Committee, Keqiang reported that it still insisted on the development of GDP index, reaching 7%. By promoting the development of the industry, especially in our basic manufacturing terminal consumer goods industry, we entered a barrier of middle-income development. In any case, it is a very good opportunity for our garment development industry.

How to face the critical period of adjustment and transformation? To meet from the mindset, and from the rapid growth to the long-term growth, we must face the agenda in the long run and high speed growth environment. The debt we owe in the past 27 years, the neglect of the colleagues in the dry clothing industry, or the essence of various industries must be mentioned. What can be concluded at this stage?

First, when we return to the product era, we rely on the products we produce to speak to consumers.

Second, improve the efficiency of operation, we all say that children's clothing is also such a performance. The price performance of our clothing is getting worse and worse. Why? Actually, it is not the complexity of the intermediary agency mechanism, the number of people who share the profits among different levels of sales system, what is more important is that our operation efficiency is relatively low.

When a product comes public in March, it may still be on sale in October, with an average turnover rate of 1.2% to 1.8%. On the basis of such efficiency, the same area of personnel efficiency is paid. Overseas 3 to 4, they sell two rounds, we only sell one round, they are surely twice as high as us under the same profit. This is the goal of improving the core.

Third, to create the core competitiveness of our enterprises, from the breakdown of categories, why the recent years of children's clothing industry so attracted everyone's attention, so in the state of high growth, is nothing more than a subdivision of the category of an individual competitiveness of the embodiment. So we have to build the core competitiveness of our single enterprise and single brand as a whole, subdivide categories to determine product style and brand style, and to choke off the trend of market consumption. Whether you are a brand enterprise or a sales enterprise, we can make a processing enterprise to hold a small category, which can create a full competitive edge.

Fourth, we must cater to the Internet age thinking. The Internet's thinking is not Internet sales, and how much electricity supplier gets. Regardless of whether you are on Taobao platform or Tmall platform, the real profits are Ma Yun's classmates. Our colleagues who make electricity providers have an average profit margin hovering around 5%. If we see the data in double 11, it is very terrible, selling tens of millions a day, and finally we calculate the labor intensive type, the Fasthotel pack to pack, and finally make hundreds of millions of sales in the hundreds of millions of profits, low cost performance.

What does Internet thinking bring to us? It brings convenience to people while giving us more high value services. No matter the earliest examples of instant noodle delivery and door-to-door shopping, some examples can illustrate this truth. Such thinking can be successfully applied to tradition. For example, the success of UNIQLO, and all the SKO of our brand or SKO of other brands, besides the good quality, it also gives consumers a different feeling. Consumers know that I wear uniforms, and I can still wear Armani outside, which is still very harmonious. This is the inspiration from the Internet, all of which are based on the accumulation of talents and talents.

At the critical stage of entering the new normal period, we must deal with such a challenge at any time in the crucial period of China's garment industry to meet a new challenge. Now is a time of blind and blind. It is a painful era, an era of hope, an era of uplink, and an era of miracles. As long as we make good products, improve our operational efficiency, and keep pace with the times and build a more harmonious team, we will be able to stand out in this era.

Some people asked me when President Wang entered the clothing industry is the best period. When I say it is all the time, especially now, the opportunities for those who are prepared, motivated and strong, and finally thank CHIC 2015 China clothing business forum, is that it creates such a platform, let us have a great potential for clothing industry specialized categories, for clothing, and at the same time clothing industry in the field of eye-catching in-depth discussion.

I wish this forum a complete success. Thank you!

Moderator: Thank you very much for the wonderful speech of President Wang, though not loud, but full of passion. First of all, thank you, President Wang. Why? Because there are many forums in the 3 day exhibition, chaired by President Wang. Today, this opportunity is given to me so that I can have more opportunities to learn. How to improve our core competitiveness has given us a lot of insights. Let's give the applause to President Wang again here. Thank you!

Next, we will take part in our keynote speech today. Next, we invite HAVAS Zhang Zhi, chief strategist of Shanghai Lingzhi, to give us a keynote speech on brand building in the social networking era.

Moderator: Thank you, and thank Xu for giving us such an opportunity to cooperate for many years. Come here, don't treat me as a lecturer, I am here to learn.

Since it's called Internet thinking, it's quite an interesting thing. This morning, I read a report that many people in China do not want to study. In fact, the power of communication is not forcing you to read. Internet thinking is the best power for every brand to arm itself. That is to say, if every brand wants to be everyone, this is the worst and the best era, because in this era, your brain can really absorb things and make every brand more competitive.

In the past two years, we mentioned fewer and fewer brands, and the most frequent ones were search, digital marketing and Internet thinking. What I am going to talk about today will inspire everyone in future work to help you find any clues in this changing day.

Speaking of the social Internet era, what should the brand do? In fact, we do the brand only by completing several problems. First, what do you want from your brand? Our Barbara, all of our brands want to tell consumers what benefits we can provide to him. What should we do in the Internet age? I can help you become stronger. Brand is nothing more than wanting more people to know it, understand it, like it, and how to make our brand reach the crowd we want to reach in the Internet age.

In fact, AY is not very high. How to think about the more efficient method of brand in this era is our reward.

Finally, a valuable question, many brands will study not how much profit I can get, but what the value equivalent of consumers can think of, and how to think about these 5 problems under the Internet thinking. Each section shows you a video. I hope this video will inspire you all here.

Let's first talk about brand appeal. It's interesting. In previous studies, a very realistic and practical person is only a small part. When 80 and 90's rise, they are not only the appearance Association, they change.