China'S Clothing Industry Has Significant Competition Both At Home And Abroad.

In 2015, a large number of domestic enterprises

Enterprises appear

The international big card is compressed in China.

In 2016, the central economic work conference put forward five major tasks, namely, capacity production, inventory elimination, deleveraging, cost reduction and compensation.

The conference listed the "capacity to go" as the top five tasks of structural reform in 2016, and made clear the idea of "multiple mergers and reorganization, less bankruptcy and liquidation".

For garment manufacturing industry, in 2016 as the first year of the 13th Five-Year plan, how to take the first step in industrial innovation will play a crucial role in the fierce market competition.

China's clothing industry has significant competition both at home and abroad.

China's textile and garment exports continue to decline. In the face of competition from Vietnam, Kampuchea and other countries, the advantage of cheap labor is no longer, and the domestic economy has entered a new normal.

Industry competition intensified, a large number of factories closed down, some excellent workers were unemployed, and orders went out.

The clothing industry is a labor-intensive industry. China's population aging problem is serious, and the labor force population is declining year by year. The pressure of labor cost and resource price is obviously higher than that of most garment producing countries. Enterprises need to bear the dual pressure of insufficient demand and rising cost.

According to the statistics of China Customs, the total export value of China's textile and clothing (including textile yarn, fabrics and products, clothing and clothing accessories) in 2015 was 283 billion 850 million US dollars, down by about 4.9% compared with the previous year.

The implementation of the TPP agreement also has some adverse effects on the export of China's textile and garment industry.

In order to cope with the pressure of rising costs and the differences in tax policies among importing countries, more production enterprises choose to set up production bases overseas. The development of domestic garment industry is mainly to fine management and technological innovation, and the competition pressure of industries has increased significantly.

Garment manufacturing is an important livelihood industry. It is an integration of modern technology and fashion culture.

In the face of the current multiple challenges, whether the production enterprises or the circulation enterprises, China's garment manufacturing industry is generally facing the problems of rising costs, intensified market competition and shortage of funds.

During the "12th Five-Year" period, the garment manufacturing industry experienced a complex and difficult period.

In the early 5 years, with the momentum of "11th Five-Year", the whole industry maintained a high speed development.

But since 2012, the domestic market consumption growth has been sluggish. Many clothing brands have experienced the cold winter market. High storage has led to the closing of stores, and sales performance has declined sharply.

During the 2015, the textile industry went bankrupt. The unemployment population in the upstream and downstream industrial chain is huge. It is expected that a large number of thousands of factories will continue to fail this year.

Some experts say that even if our garment enterprises do not manufacture or produce in the next ten years, the existing inventory will also be sufficient to meet the needs of the whole nation.

For a long time, the clothing industry is chaotic.

Clothing is a non-standard product, and the industry has failed to establish a unified management standard.

The price war, the signing of production contracts, the difficulty of payment, the owner's running, the pick-up of goods and so on are serious. The whole industry lacks order and falls into a vicious circle of bad money driving good money.

The traditional large factory has a long production cycle, and the factory owner will order 3 months or even six months ahead of schedule in order to ensure sufficient orders and maintain stability.

In the case of manpower, time and material cost, the average cost of small orders to single garments is slightly higher, so the overall profit is lower than that of large orders.

Combined with the instability of small single sources, most factories are reluctant to pick up small bills.

For brands, too early to place orders can not accurately grasp the popularity of the season, bad sales will become a stock, leading to serious difficulties in the flow of funds.

Large factories do not pick up small bills, and small factories are unstable.

If the factory can produce goods in small quantities and quickly, the seller can place orders on demand, quickly turn over the bill, create explosive funds, reduce inventory pressure or even zero inventory.

Present situation and evolution trend of domestic capacity

We can divide domestic capacity into four categories according to scale.

The first type: the super large factory represented by Shenzhou International at the top.

These super factories only serve top brands, and their capacity is also occupied by international brands such as Adidas and Nike.

With the gradual decline of the domestic demographic dividend and the intense competition in the textile industry, Shenzhou International has been advancing all the way, drawing a beautiful "smile curve": the market value is about HK $52 billion 742 million. As of December 31, 2015, the annual sales volume reached HK $14905918184, up 13.5% over the 2014 year.

The gross profit margin in 2015 was 30.5%, up 1.5 percentage points over the same period last year.

Maori run up to HK $4539134425 in December 31, 2015, an increase of 19.3% over 2014.

Net profit reached HK $2777131116 as of December 31, 2015, with a net profit margin of 18.79%, an increase of about 13.9% over 2014.

The second category: large factories, the number of more than 5000 people.

This kind of factory went bankrupt from 2013 to 2015; the textile giant Zang Ji group declared bankruptcy from 3 billion to May 2015; August 2015, the East China textile big crocodile, Bao Li Jia group declared bankruptcy, the boss was in debt running. In the same period, the one hundred year textile old factory in Southern China was declared bankrupt, and the Zhejiang Red Sword Group Co., Ltd., the 500 strong Chinese private enterprise and the total assets exceeding 2 billion, was officially stopped, and more than 1000 employees asked for a salary arrears for three months on the street.

A large number of clothing owners are in arrears with their wages and a large number of orders to cheaper countries such as Southeast Asia.

UNIQLO, Muji, Castle Peak commercial, Li Fung, Tokyo STYLE and Honeys are speeding up pfer orders to Southeast Asia.

{page_break}

The third category: 500 to 5000 medium-sized factories.

In April 2015, with more than 2000 employees, Lining and XTEP's core supplier, Jaron clothing, broke down because of the expansion of the market, and the boss disappeared.

In May 2015, it was the 500 largest private enterprise in the country, with a total assets of 1 billion yuan, and Shaoxing printing and dyeing giant went bankrupt in five oceans and had more than 2000 employees.

The Dongguan thick Hong garment factory owner, who once had more than 10000 employees, ran on the road, and the employees went to the streets to ask for two months' wages and financial compensation. The local government dispatched 1500 policemen to maintain order. But in the textile industry gathered in Shaoxing, Shantou, Changle, Dongguan and other places, the small and medium-sized textile and garment enterprises bankrupt and went bankrupt were numerous.

After the introduction of the new labor law in 2008, the labor cost in China doubled in just five years.

As the textile and garment industry is a typical labor-intensive enterprise, the rise in labor costs has brought unimaginable pressure to the operation of enterprises.

China's spinning industry is backward in equipment and operating cost is high. At present, the low end market share below 50 has been eaten up by countries such as Southeast Asia, India and Bangladesh.

More than 100 high-end products are controlled by Japan, Germany and Italy.

Before and after the attack, the textile and garment industry has long been defeated.

The fourth category is small factories, workshops, unemployed workers and so on.

Because of the closure of these factories, the scope of these groups has been expanding.

Idling unemployed workers, entering the stage of re employment, part of the outstanding skilled workers, began to make their own orders from the workshop.

Such a workshop, lack of effective management system and fabric procurement control, quality is difficult to grasp.

Most of the small factories are less than 30 people, the facilities are poor, the business and management are all handled by the boss. Once the workers get sick, they will delay the whole construction period. Without manpower and financial resources, there is no advanced technology and equipment, and the process is rough. For example, the fine control of pilling test is basically missing.

The production process is done by hand. Once the novice is encountered, the quality is difficult to guarantee.

So the productivity of such workshops is extremely unstable, and survival is also a problem.

From this we can see that the polarization of the clothing industry is serious, and the industrial pattern of the weaker Yu Qiang and the weaker is becoming more and more obvious.

The failure of large and medium sized factories that are not listed has made the top leading enterprises more abundant, but on the other hand, the existence of a large number of small factories, workshops and idle textile workers needs to be re organized, upgraded and standardized. This provides conditions for the development of the social platform.

Evolution process of "supplier supply chain supply network"

Most of the factories in the past were closed and isolated, and they only met each other's supply and demand relationship. The relationship between supply and demand only existed in the relationship between supply and demand of physical products, monotonous and imperfect, rigid and inflexible.

Small production workshop formed by the development of small-scale peasant economy has gradually developed into a large factory. Its mode of thinking tends to be traditional. In the environment of information closure, repetitive operations are always carried out.

But in this period, domestic production capacity and demand are relatively balanced, and the competition pressure between factories is relatively slow, which has not yet created an opportunity for reform and innovation.

At present, the competition in the global market is becoming more and more intense. Enterprises are faced with the rapidly changing market demand and shortening the delivery time, improving the quality, reducing the cost and improving the service pressure.

Originally scattered enterprises gradually realized that to survive in a highly competitive market, it is necessary to complement each other's ability to realize their capabilities, establish a cooperative alliance relationship, and enable enterprises to coordinate and coordinate in a cross enterprise integrated management mode, so that they can better adapt to the environmental changes. In this form, the supply and demand network with target enterprises as the center takes place in the flow of material, information and capital, thus forming the rudiment of the supply chain.

The relationship between supply and demand is not only the relationship between supply and demand of entities, but also the relationship between supply and demand of services, and the relationship between supply and demand of enterprises' internal product development and production.

As for the garment industry, the whole production process, such as procurement, cutting, sewing, logistics and other links, has formed a cooperative relationship in all aspects of the apparel supply chain. Although it has improved production efficiency to a certain extent, there are limitations, such as the regional character can not be broken, cooperation is limited to relatives and friends or neighbors, and the problems of new partner selection and running in cost, time cost and integrity need to be solved.

In the foreseeable future, supply and demand communication channels between enterprises and enterprises will form their own network distribution.

Through Internet technology, we can connect and precipitate national capacity data: Factory Distribution, specialties, technology level and so on can be digitalized and programmed.

Through these data, we can grasp the state of the factory in real time and match the order accurately.

Through the Internet products, we can organize regional productivity and efficient collaboration, improve production efficiency and reduce the waste of cost.

Taking advantage of the Internet, breaking the restrictions of time and space, making clothing supply convenient and efficient, and gradually reducing consumption, this is the concept of supply network.

The value of flexible supply network highlights

The core competitiveness of Chinese garment enterprises is precisely the optimal allocation of resources and the optimization of industrial chains.

Because of the asymmetric distribution of clothing raw materials, textile technology, production base, talent structure, capital operation and clothing information, resources have not been optimally allocated, and the most urgent task is to optimize the industrial chain.

Changing the status quo of the industry is not a matter of time. We need to reform the grassroots capacity, break it up, restructure it and upgrade it into a platform based operation.

For example, the domestic Sinba clothing flexible supply chain platform, its core mode is to organize production capacity into a network layout, provide flexible production services, through idle capacity utilization and production process optimization, can achieve orders from one hundred to tens of thousands, with an average production cycle of 7.4 days.

Through upgrading and upgrading of traditional garment factories, the concept of social production is introduced to eliminate the pressure of labor costs and corporate loans, and at the same time, increase the rate of return on manpower and investment. In production, it meets the changing needs of the clothing market, so that brand shops can produce new products in the shortest possible time and create a number of domestic "ZARA" enterprises.