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

    2016/7/7 15:28:00 58

    ChinaGarment IndustryCompetition Pressure

    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.

    For a long time,

    Garment industry

    There is a lot of chaos.

    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.

    In addition, the small single source is not stable, in general, most factories are not willing to pick up the small list.

    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.

    China Textile and apparel

    Exit

    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.

    According to China Customs statistics, 2015 China's textile and clothing (including

    Textile yarns

    The total value of exports of fabrics and products, clothing and accessories) was $283 billion 850 million, a decrease of about 4.9% over 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.


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