China'S Clothing Market Is Weak And More Than Half Of Enterprises Are Closing Down.

In the past 2015, the domestic garment market showed a weak state and overcapacity in the market. During this difficult period, more than half of the enterprises will be faced with bankruptcy.

The first part: the four major problems facing the Chinese garment enterprises at present and in the future.

First, the overall capacity surplus, the total supply is greater than the total demand.

Enterprises have low entry threshold, less investment and fast construction of the whole supply chain, so they can form a large scale in a short time. Over the past ten years, the overcapacity situation has obviously appeared. With the increase of consumption level, the garment industry has developed rapidly, and the total supply of clothing products has been far greater than the total demand.

As the clothing market generally adopts the futures mode, the overcapacity has lagged behind.

Two, homogenization of goods is very competitive, and profitability is seriously declining.

After more than thirty years of development in product design, production, sales, brand and operation, garment enterprises are already quite mature in terms of overall process, talent and resources. Therefore, brand replication is quite easy. The homogeneous products of similar brands occupy the market, and competition from the blue sea rapidly enters the Red Sea, prompting a serious decline in the profitability of garment enterprises.

Three, the growth of market demand slowed down and the speed of enterprise development slowed down sharply.

With the structural adjustment of China's economic growth mode, the overcapacity of the whole economy and the gradual decline of economic growth will affect the growth of people's income, which will have a certain impact on the clothing consumption market, and the growth of consumption demand in the market will slow down, and the speed of the development of garment enterprises will greatly decelerate.

Four, the development mode of garment enterprises can not meet the needs of market changes.

After more than thirty years of development, garment enterprises have been in a stage of rapid development. Therefore, the development mode is single, and the ability to respond to changes in market demand is low. When the market is saturated, there is no innovation mode to meet the change of market demand, and enterprises are in a state of adjustment.

The second part: Chinese clothing enterprises have the following problems:

Overcapacity in garment market or welcome wave of elimination

First, clothing enterprises do not really understand and meet the needs of consumers.

The "ordering system" model that has been implemented for a long time in clothing enterprises, which predicts market demand instead of real demand of consumers, has not formed an effective mechanism for consumers' understanding and satisfaction. Therefore, it can not achieve mass production and market orientation, but is guided by the demand of dealers. Thus, the consumption of VIP consumers has been decreasing year by year, and the network has formed a large number of stock products.

Two, the top and bottom of the value chain of garment enterprises can not achieve win-win results.

During the development of garment enterprises, the brand owners' profitability has been fully protected. However, because of the influence of factors such as rent, staff salaries, product inventory, and the increase in production costs of suppliers and manufacturers, the total profit level of the dealers in the market has been declining and even losing operation. Therefore, the upper and lower value chains of enterprises have failed to achieve a win-win situation and seriously affect the continuous profitability of enterprises.

Three, the innovation of garment enterprises is not enough, and their profitability is declining and losing competitiveness.

Clothing enterprises in recent years, manpower,

As the cost of the raw materials is rising, the overall innovation is not enough and the sales volume has not been improved obviously, its profit level is also declining, and the competitiveness is lost.

Four, the integration of garment enterprises has not found a clear direction.

In the case of blocked market sales, we did not identify the focal point, did not clearly understand the enterprise's own problems, blindly invested a large amount of funds in the retail management to strengthen management and training, and failed to clearly realize that the integration of enterprises was integrated from the new positioning of the market, new product design, new product design, new supply chain innovation, new channel integration, and new retail adjustment.

The third part: which enterprises will be eliminated by the market in the next three years? 50%.

The first is the slow pformation of garment enterprises.

In the light of market changes, we should promptly reposition the market, pform the business mode and integrate the supply chain, instead of simply reducing the scale and streamlining the organization of garment enterprises.

Two, is the pformation of business mode too fast clothing enterprises.

According to the change of the market, new market positioning, new mode adjustment and new integration of supply chain are carried out for the enterprise's own characteristics, but the speed is too fast, the pace is too big, the business ability and the level can't keep up with the garment enterprises.

Three, supply chain breaking garment enterprises.

Due to the long-term cooperation of the strategic supply chain production system and supplier system, because of the decline in profitability, and the closure and rotation, thus affecting the normal development of clothing enterprises.

Four, a small scale, low-end market service clothing enterprises.

In the market competition, the small scale, the low and middle market demand of the service, because of the low ability to resist risks and the weak competitiveness, these enterprises will face the risk of being eliminated by the market in the future development.

Overcapacity in garment market or welcome wave of elimination

Five, the domestic high-end brand clothing enterprises.

With the improvement of domestic consumers' awareness of high-end brands, there is a new concept of de brand for high priced brands, while high-end consumers are influenced by income.

Brand clothing enterprises will face enormous market pressure.