Textile And Garment Industry Leveraging B2B Electricity Supplier Brings Three Advantages

Recent textile fabrics

On the salon industry, Tobey research team launched the first industry development analysis report of B2B textile industry.

Mode and Industry Supply Chain

Three aspects of development were interpreted.

This article is a series of articles by Tobey research team, based on the industry report, to dig deep into the subdivision points in order to have a deeper understanding and help to the industry.

The core of textile industry: the three types of terminal consumption industries, such as yarn industry, billet industry and textile industry.

Textile industry is a very important industry in the industrial field, which is related to its strong correlation with other industries in the whole industry chain process.

Why do we say that the textile industry has strong links with other industries? The three terminal consumption industries of the yarn industry, the bloom industry, and the textile industry constitute a core of the entire textile industry. Taking them as the core, the upstream involves the farming and aquaculture industry of the big agriculture until the petrochemical industry, and even involves the refining industry of the national economic lifeline; taking them as the core, not only the fashionable and elegant entertainment industry but also the real estate industry closely related to us are seen in the downstream; in the whole, logistics and finance are also indispensable in the industrial chain.

In the yarn industry, it can be roughly divided into three parts: raw material supply, yarn supply and yarn demand.

Raw materials can be divided into chemical fibers and natural fibers.

Among them, natural fibers are mainly cotton, linen, wool and silk. They have a longer distribution link from the output of origin to the acquisition of buyers, and the quality is not guaranteed.

Because of the different raw materials, the production process is different, such as fiber processing, cotton spinning and weaving, hemp spinning, wool spinning, silk spinning and weaving, and yarn is mainly distributed through hierarchical distributors.

In terms of yarn demand, yarn purchasers include applications for both civilian and industrial fabrics, including direct sales terminals.

In the fabric industry, it can be roughly divided into textile raw material suppliers, fabric manufacturers, and fabric buyers.

There are different pain points in different links.

Among them, there is a problem of non-standard fabric between the grey fabric manufacturer and the finished fabric supplier, which requires the standardization and labelling technology development of the production process, and serious pollution problems in the printing and dyeing links.

On the one hand, the distribution links of the finished fabrics will be diluted, and the traditional distribution way is not easy for buyers to find the cloth they want accurately, which also makes the finished fabric suppliers have the pressure of inventory.

The whole industry formed the situation of finding cloth and buying cloth. Besides, the existence of cloth intermediary also explained the serious information asymmetry of the cloth industry under the line.

As the representative industry of the three main categories of consumer goods in the textile industry, the clothing industry is mainly divided into raw materials market, clothing production and clothing companies.

The raw material market is equivalent to the traditional fabric manufacturer. The clothing manufacturer is equivalent to the garment factory, and the clothing brand is equivalent to the clothing company.

Clothing companies have different modes of light and weight. Heavy clothing companies have their own garment technology teams and garment processing plants. The clothing companies of light mode mainly run clothing brands.

In the whole apparel industry chain, the information asymmetry between the apparel producers and the fabric market leads to the difficulty in selling cloth and buying cloth. Besides, the distribution channel of clothing is long and the links are many, so the cost is increased and the profit is increased.

B communication pain points in traditional textile industry need to be solved urgently

The long chain of textile enterprises and strong correlation with other industries have also led to the complexity and diversity of the industry, and the pain in the industry is also very obvious.

Yarn industry.

Upstream is chemical fiber plant, cotton and linen growers and farmers, downstream is the fabric supplier.

In traditional industries, yarn raw material procurement and finished product distribution chain are long, middle cost is high, raw material price of cotton and other raw materials fluctuate greatly, affecting raw material purchase quantity, raising inventory and management cost. Yarn has obvious information asymmetry with the two periods before and after, and the precise matching is difficult.

Cloth industry.

Upstream carries on the yarn, the downstream docking textile clothing supplier, the traditional pattern exists that the manufacturing business is far from the market, the decision is slow, causes the stock to be overabundant, the bargaining power is weak; the textile production capacity is surplus, the homogenization is serious, the product localization and the user localization need to be upgraded urgently; the product added value is low, is difficult to standardize, the order fragment has the big contradiction with the production scale.

Garment industry.

The upper and lower reaches are surface accessories and consumers. On this chain, clothing products are difficult to standardize, the procurement side has strong personalized demand, the supply and demand sides are hard to match efficiently, the middle links are many, the profits are pressed, and profits are exploited by middlemen.

Generally speaking, the characteristics of the whole textile industry can be summarized as four points: the product SKU is many; the information asymmetry, the decision cost is high; the circulation chain is long, the efficiency is low; has already fully marketed, the competition is big.

These four points coincided with the development conditions of B2B business.

Tobey research team believes that the B2B electricity supplier has brought three benefits to the textile industry:

First, B2B electricity providers reduce the number of textile industry pactions and logistics times, and create flexible supply chain to improve supply chain efficiency.

Second, B2B electricity suppliers solve the difficult problem of finding goods in the textile industry, provide front-end buyers, provide back-end suppliers, and break the information island situation.

Third, the B2B electricity supplier cut through the service, leading the textile industry's new business mode and profit mode.

There are also multiple sites linked to B2B pactions in the industrial chain of the entire textile industry. Raw materials suppliers and raw materials processors, raw materials processors and manufacturers, brands and franchises / agents, brands to sales terminals are all suitable for B2B entry.