Discard The "Low Price List" And Seek The Entry Point Of Pformation Through Innovation

Experts point out that Chinese suppliers are large and uncooperative. They are vulnerable to being defeated in the price competition with international buyers, and are always in a weak position.

To this end, Chinese enterprises should unite and enhance their competitiveness and grasp the right to speak the price in their own hands.

Lin Lili, who specializes in exporting costumes to foreign trade, has complained about the current survival of foreign trade clothing enterprises.

The rise of labor costs, the relocation of factories to Southeast Asia, and European and American buyers continue to drive down procurement costs in China.

The following is the "collapse" and "shutting down" tide, and the upgrading of industrial structure is imperative.

However, the process of upgrading is not easy, which has led some companies to "suspend their lives" with low profit orders.

In the industry view, it is more terrible than the "collapse tide".

"In order to maintain the customers and guarantee the order quantity, some manufacturers are willing to take the form of" guaranteed capital ", so many export enterprises are plunged into the Red Sea price.

This makes the whole industry in a vicious circle and is not alive. "

One analyst said with no worry.

At the price of the wind

It is reported that export enterprises' habit of "price fixing" is also attributed to the initial order pattern of European and American merchants.

"Foreign purchasers are very smart.

For example, my Japanese customers will cooperate with a single factory when ordering, and if they cooperate well, they will continue to increase the size of the order.

As a manufacturing enterprise, in order to retain such a large customer, enterprises will continue to expand production capacity to meet their production needs.

But the problem is that once the domestic production enterprises expand their scale to a certain extent and are highly dependent on large orders, buyers will often ask for price reduction.

Lin Lili said, at this time, if we do not cut prices, the company will face the risk of losing major customers, and its expanded capacity will become a burden on the company.

"Foreign customers are aware of this, so they often ask for price reduction after a period of cooperation.

We are passive parties.

Obviously, if the company can not find new customers in a short time, it can only continue to cooperate with the old customers on the basis of low price orders.

"To put it simply, foreign orders do not work, and capacity is idle.

Therefore, enterprises can either buy low orders or shelve part of their capacity. "

Lin Lili said helplessly.

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Usually, the international purchasing Institute looks for suitable suppliers according to cost and quality planning.

As China's demographic dividend has gradually disappeared in recent years, and international sales have been sluggish, international buyers have become increasingly stringent in terms of cost control. Some Chinese manufacturers receive price cuts every year.

Once such a request is accepted, the damage to the enterprise is enormous.

According to a survey by McKinsey, an international consultancy, by analyzing the 1000 big enterprises in the US Standard & Poor's, the profit margin decreased by 7.1% to 8.1% per price point.

Therefore, unless the cost structure of an enterprise has a significant advantage compared with its competitors, it is not a good way to reduce prices by lowering prices.

Experts point out that Chinese suppliers are large and uncooperative, and are vulnerable to being broken down one by one in the price game with international buyers, and are always in a weak position.

For this reason, Chinese exporters should unite and take a long-term view.

The most important point is to enhance the competitiveness of enterprises and grasp the right to speak of prices in their own hands, so as not to weaken the overall interests of the industry.

The key is innovation.

Of course, if we want to grasp the right to speak of price, the pformation and upgrading of enterprises is the key.

Only by improving their own technology and changing the form of rough machining can the processing enterprises have a way to live.

In the view of the industry, whether traditional or emerging markets, although some orders are being pferred to Southeast Asia, the dependence of international buyers on the Chinese market has not changed.

In the game of price war, Chinese export enterprises can fully exploit their own advantages and gain more benefits by enhancing their R & D capabilities.

"If China only hover around the world" clothing manufacturing field "and" clothing consumption country ", it can not create a nation that gallops around the world.

Then the revival of China's garment industry can only become a good vision.

Jin Jianhua, general manager of the National Committee of CPPCC and Shanghai Pei Luo Meng Western clothing company, said that the key to brand building is innovation.

Jin Jianhua said that over the past 30 years since reform and opening up, Chinese textile and garment enterprises have gone from scratch to more than others. Some enterprises have also created a number of successful brands.

However, as a whole, China is still a big garment manufacturer in the whole international market, and is still in the pursuit and subordinate position in the international competition.

Jin Jianhua believes that in addition to the global economic slowdown caused by rising costs and other reasons, China's clothing industry is facing deep-seated problems and innovation is not enough.

"Design is the core value of clothing."

Jin Jianhua said that in China's clothing industry, most enterprises still remain.

The design is still in the backward stage of paper lofting, which takes much time and the cost of trial production is high, and the development cycle of new products is very long.

In the developed countries of clothing industry, the average period is two weeks, and the United States can reach 4 days as fast as possible, while China averages 10 weeks. The gap is very obvious.

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"The important prerequisite for creating a brand requires a group of designers with strong brand awareness and advanced ideas, who are passionate and creative at the same time. They integrate personality styles into products so that they can have cultural identity and win consumers."

Jin Jianhua said that there are not many designers in China who really can be called fashion designers. Designers with unique personality and who can grasp the cultural psychology of consumers both at home and abroad need to be trained.

Looking for pition entry points

In fact, pformation is also the consensus of the industry, and some garment enterprises have made some achievements in this respect.

Statistics show that as of October 7th, 48 listed companies in the textile and garment industry released the three quarterly performance forecast in 2015. Among them, 11 listed companies increased their performance in advance, 14 listed companies increased slightly, 4 listed companies continued to make profits, and 4 listed companies turned around.

Some enterprises' performance improvement has benefited from the success of business pformation.

In addition to business pformation, the pformation of marketing mode is also a new way for garment foreign trade enterprises.

Analysts pointed out that

We should speed up the comprehensive promotion of the "Internet +" whole industrial chain.

The comprehensive promotion of the whole industrial chain is not only about the links of R & D, production, processing and marketing, but also the construction of new infrastructure, new production factors and new division of labor system.

In particular, changes in the organizational system of industrial enterprises include the cloud of organizational structure, the opening of organizational boundaries, and the small scale of organizational scale.

To sum up, clothing enterprises should combine their own characteristics to determine the entry point of "Internet +".

Lin Lili revealed that now she is thinking about an online customization platform.

Prior to that, her factory has taken many large orders, and has many experience in the material processing technology. She intends to learn some ways to customize the brand online, and create various details such as fabric, heel and so on, which are selected by the customers themselves and eventually realize the customized platform.

"Through the launch of WeChat and website platform, combining customization with our offline factory is my hope for Future Ltd development".