A Long Way To Go Inventory, Garment Industry Urgently Needs To Strengthen Structural Reform Of Supply Side.

Only by reaching the terminal can we truly feel the pressure brought by the consumption outflow. Boosting domestic demand is not only an urgent task, but also an opportunity to emphasize quality and create internal strength.

The textile and garment industry pioneered the prelude to supply side reform, facing consumers directly.

The subdivision industry of home textiles is about to face the final exam.

Behind the downturn in terminal demand

After more than 30 years of rapid growth in China's economy, the consumption ability of the Chinese people has been developing rapidly with the trend of China's becoming the second largest economy in the world, especially in the context of the weak global economy.

During the Spring Festival of the monkey Festival, the Chinese rush to buy electric cookers and toilet seats abroad has not yet dissipated. In addition to daily necessities, fashion products such as clothing and cosmetics have also become a popular category of overseas consumption. Coupled with the rising trend of cross-border electricity providers and overseas purchasing, the domestic demand is relatively low compared with the trend of continuous consumption warming.

The contradiction between consumption outflow and domestic demand is behind the essence of local brands' failure to meet consumer demand.

Although the local clothing brand has never slowed down the pace of improving products combined with China's national conditions, consumer needs and aesthetics, it is even more embarrassing that the gold lettered signboards of China's high-end manufacturing have not been able to fully support the growth of Chinese high-end brands. As Tu Hongyan, chairman of the board of directors of Wan Shi Li group, regrets, "Silk originated in China, but in the current world famous silk luxury brands, the Chinese brand has not yet taken a place."

The era of online "price" and offline "volume" has long gone, the price advantage has been gradually lost, product homogeneity still exists, and the rising trend of labor costs is also irresistible. A number of factors have contributed to the worsening of business performance in 2015.

Jiangsu Susi silk Limited by Share Ltd sales revenue last year, 450 million yuan, an increase of 41.13% over the same period last year, and realized a profit of 8 million 343 thousand and 100 yuan.

General manager Liu Wencheng said, "the company suffered a serious loss last year, but realized a turnaround for the whole year."

Hangzhou Baicheng woolen garments Co., Ltd. sales increased by 15%~20% in 2015 compared with the same period last year. Liang Rong, chairman of the board, thinks that small and medium-sized enterprises are the main ones.

The overall situation is slow stabilization.

Liang Rong said, "in response to the supply side reform, textile and garment enterprises must first solve the problem of how to reduce costs and solve the problem of excess production capacity. How to strengthen management and improve production efficiency is a necessary stage for the survival and long-term development of enterprises."

In short, under the market environment of international brands, textile and garment enterprises are facing more and more "picky" consumers. If we want to impress customers and satisfy their needs, we must not only be able to improve the quality of products, technological upgrading, design innovation, and management upgrading.

Upgrading from inside to outside

The birth of high-end brands can not be separated from the basis of excellent products. Especially in the context of supply side reform, the entrepreneurs facing the terminal are "betting" on the quality of products without exception.

In the textile and garment industry, the supply side reform can be understood as how to develop consumer oriented products through pformation and upgrading.

Tu Hongyan said, "the supply side reform that I understand is a change in the product mix, not a cost reduction."

Therefore, Wan Shi Li will take the consumer as the starting point, expand from the B2B market to the Internet online marketing, from cultural creation to brand building, and make Wan Shi Li to become the international high-end fashion silk brand.

According to Tu Hongyan, the acquisition of the French silk brand Marc Rozier has been acquired by Wan Shi Li, and the former chief executive of Hermes is joining Paris. This is not only the first step toward the international market, but also lays a solid foundation for the brand to learn from the experience of international retail brand operation and enhance the strength of fashion design.

Jiangsu Susi silk Limited by Share Ltd is also adjusting its product structure. Its finished products cover home textiles and clothing and apparel products.

Guidance.

Liu Wencheng said, "if silk is compared to an eagle, silk spinning is the body, silk and finished products are two wings.

Two wings are strong and powerful.

In the view of Chen Zhuo, general manager of Yi ho Garments Co., Ltd., apart from improving the products, becoming a brand that appeals to culture is also a "killer weapon" to increase customer's viscosity.

Chen Zhuo said that enterprises should release the brand value through the performance of details.

"For example, there are some brands that focus on maintaining VIP customers, hoping to achieve a virtuous circle. In the final analysis, they are also the internal performance of" product + image ".

Therefore, in 2016, the company will make good efforts to interact with customers and invest more energy in the training of agent franchisees.

On the other hand, some clothing brands also seize the opportunity of intelligent manufacturing, and enhance interaction with buyers and consumers from the perspective of technology and channel.

Xie Feng, chairman and design director of Beijing Jifen fashion Tsukito design Inc, said, "the supply side reform is also emphasizing digitalization, networking and intellectualization. This is a problem that all industries and ports are facing."

Last year, Jifen used touch-screen interactive technology at the China International Fashion Week show to enable users to "watch and buy". The evolution from "Ji Fen design" to "Jifen technology" is a bold attempt of the brand.

"Decisive battle" middle class consumer group

How to release the consumption potential of Chinese consumers? As far as clothing industry is concerned, Du Lijiang, founder of clothing Tiancheng, put forward two ways: first, creating and innovating, such as wearable devices, 3D printing technology and new material application in recent years, which can be seen as new achievements of clothing brand; and two, through the reconstruction of industrial chain, we can achieve the purpose of supply side reform.

To restructure the industry chain, the first thing to do is to analyze the users, especially the middle and high-end customers with the middle consumption group as the main force.

Data show that in the next 10 years, the number of middle class in China will rise from 200 million to 500 million ~6 billion.

These consumers have always preferred light luxury products, and in the future, "the best single product" may also be a major direction.

However, Du Lijiang stressed that "the ultimate single product" is by no means a Taobao explosion, but an extreme product in a subdivision area.

Chen Zhuoye believes that clothing brands need to create an overall sense of beauty, and express their personal qualities as a carrier to harvest loyal customers.

"Because in the middle consumer's mind, taste is not equal to popularity."

It is obvious that in the future, if the brand can serve the group well, it will seize the opportunity.

Luo Xue, founder of Guangzhou clothing, said that as a key link in the coordinated development of the supply side and the consumer demand side of the traction market, correctly guiding the middle class's fashion lifestyle and letting the clothing brand enterprises attach importance to and correctly understand the connotation and rules of the new fashion lifestyle will greatly connect the aesthetic cognitive gap between the designers, producers and consumers.

In the field of home textiles, clothing and other fields, many enterprises have begun to adjust strategies to this consumer group.

If Luo Lai's life came from the home of Luo Lai, and faced with the demand of soft clothing of the new middle class family, in 2015, Luo Lai's life long years of research and exploration eventually found a new model suitable for modern young families -- the overall soft clothing customization.

Yang Ziming, chairman and art director of CABBEEN fashion, said that CABBEEN positioning designer men's wear brand is forward-looking, and with the rise of the middle class, especially the rise of the middle class of the two or three tier cities in China, CABBEEN will pay more attention to original design and operation efficiency, and focus more on shopping malls and middle class population increasing cities, and further expand e-commerce.

How to integrate inventory into new trend, display added value and win favor of the market has become an important topic.

Only by dealing with these problems can we optimize individual businesses and optimize the whole industry at the same time.

Of course, this also requires policy support, industry guidance and enterprise efforts.

A long way to inventory

"Strengthening the structural reform of supply side" has not only become the hottest word in China's economic field, but also a new direction for the reform of all sectors of China's economy in the future.

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Zhu Qinghua, a light industry researcher at CIC, proposed that after the release of the supply side policy, large and medium-sized garment and textile enterprises will benefit from this, because there will be many backward production capacity will be eliminated.

With the change of consumption trend and the upgrading of personalization and quality demand, many small businesses can only choose to be merged or eliminated if they can not guarantee the quality and design innovation.

At the same time, strengthening the structural reform of the supply side, and promoting the upgrading of enterprises at the same time requires sharp grasp of the market, docking with the market, and establish a sound management system, in order to consume inventory, avoid overcapacity, adapt to the market, and win the development.

From the overall performance of textile and garment industry in recent years, we can see that due to the fierce competition of homogeneous products and the excessive growth of production scale, the whole industry is generally overstock, capital turnover is difficult, and even the boss of a company runs or goes bankrupt.

And how to control excessive inventory and promote consumption has become a major concern for the textile and garment industry.

At the end of last year, the central economic work conference put forward the five major tasks of 2016, namely, capacity production, inventory elimination, deleveraging, cost reduction and compensation, which is undoubtedly a good news for textile enterprises.

Since 2015, due to the weakness of downstream consumption, upstream funds have mostly been pformed into downstream stocks, and textile mills have been struggling.

For spinning enterprises, there are two meanings to inventory, one is the inventory of finished products, and the other is the withdrawal of funds from the stock market. Two.

The textile and garment industry is experiencing the most difficult year in history. The impact of the cold wave is only short-term good. How to achieve breakthroughs in winter is the need for the textile and garment industry to actively explore various ways and channels from product innovation, mode innovation, and so on.

It is understood that when the season changes, some brand clothing enterprises will buy climate forecasts ahead of schedule.

People in the industry say that the forecast for six months ahead of time is not always accurate. It is hard for anyone to make clear what changes will happen in the future.

If we predict that the next winter will be very long and very cold, we will prepare a lot of cold resistant raw materials and organize the production of cold clothing. Once the weather is not as good as expected, especially large enterprises will be in a huge inventory crisis, and the risk of capital is too great.

Before the cold wave struck, many textile and garment enterprises in Quanzhou jointly organized a lot of local sales, which would wait for clearance and discount activities, but the results were not good, and some of them could not even be collected.

In the field, in order to protect the interests of dealers, the discount offered by these enterprises is rather limited.

In addition, the additional consumption is weak, especially for textile and garment exports.

Customs statistics show that in 2015, China's total exports of textiles and clothing were 283 billion 979 million US dollars, down 4.86% from the same period last year. In January 2016, China's total exports of textiles and clothing were about 24 billion 131 million US dollars, down 5.53% from the same period last year.

Changing pressure into power

Spinning enterprises to go inventory road even though difficult, but in 2016 facing the pressure of inventory, enterprises are not discouraged, no matter is the advantage of the Internet, the development of O2O sales mode, or in the winter market to lay a good foundation, good internal strength, opportunistic to find a breakthrough, Wu Yi is really different.

"The company has always focused on product research and development, and the added value of new products developed is often higher than that of previous products."

Interdepartmental Group officials said that in order to control inventory, the company is currently taking orders according to the way of production, to avoid excessive inventory.

American Apparel is currently launching a fixed increase plan for the "intelligent manufacturing" industry supply chain platform, O2O all channel platform and the construction of the Internet big data cloud platform center.

The company's secretaries, Mr Tu Ke, said that the company will launch online and offline interaction in the future to strive to better satisfy consumers.

Wu Erde, deputy general manager of the great group, said that in order to reduce operating costs and increase profits, the great group has now launched the overall solution of the business figures, through private customized services, on the one hand, to reduce inventory pressure, and on the other hand, to increase profits through value-added services.

Dragon Lion DELL is also making product innovations.

The brand responsible person said that dragon lion DELL down jacket increased many functional expansion, such as down jacket can become a pillow.

Future products will help the wearer achieve better experience in detail, including feathers and down garments.

In recent years, Xinshen flax has been continuously innovating, developing, pforming and upgrading.

In the early stage, it mainly started from the pformation of old equipment, invested funds to introduce new equipment, and introduced "meticulous" management to upgrade the previous 5S management system.

We need to benefit from meticulous management and develop the potential of every employee to upgrade our profitability.

In terms of digitalization and intellectualization, Shin Shen is also actively joining the outside world, participating in various summit forums, interacting with experts, exchanging, learning and drawing lessons, hoping to introduce more advanced management modes as early as possible to upgrade brand intelligence.

In the view of Li Jianfeng, chairman of the new Shen linen group, the textile industry needs to focus more on how to innovate and promote consumption while focusing on "strengthening the structural reform of the supply side".

He talked about three aspects: first, the rational allocation of resources, the market is the basis of demand customization, data can be targeted, to avoid targeted resources, and to avoid blind, impulsive development of the waste of resources; two is industrial upgrading, eliminate backward production capacity, which involves enterprises need to upgrade hardware and equipment, three is innovative ideas, innovative products, marketing and so on.