Zhejiang Clothing Industry " Life And Death " Breakthrough

Located in the five fort village of Southeast Hangzhou, it was once famous for its flowering garment processing plants.

5 years ago, the whole village

The industry is at its peak, with more than 900 processing points and 60 million garments produced throughout the year.

Nowadays, tranquility instead of hustle and bustle, more than half of the technical equipment is backward, and innovation ability is not strong.

Competition promotes the pfer of productive forces to new industrial clusters.

Five, the change of fort village is just the corner of changing the garment industry.

Affected by the global market downturn, the rising cost of manpower and the impact of Internet sales, Zhejiang's garment industry has been expanding rapidly from the "high-speed expansion" to the crossroads of "overcapacity" and "high inventory", and the reform of the supply side of the garment industry is imminent.

Blind expansion leads to overcapacity

Can material processing mode continue to exist?

A farmer's house, 10 sewing machines, at most 20 garment workers, the raw material processing mode of Hangzhou garments started in the late 80s of last century, and the products were mainly exported and exported.

Before and after 2000, with the continuous expansion of the wholesale market in Sijiqing, Hangzhou, "hang Pao dress" quickly occupied the domestic market, and the "low and scattered" processing workshop also flourished.

Among them, Peng Bu Wu fort, seven fort and other villages, because of low rent, convenient pportation, quickly gathered more than 1600 processing points.

At the same time, the number of garment enterprises in Hangzhou also increased from 1400 in 2005 to 2400 in 2010, and the number of garment workers increased from 140 thousand to about 300000 in 2010.

"Looking back, this process is blind expansion."

Hangzhou school

Zhang Yi, director of the chamber of Commerce, said that the threshold of clothing processing is low, investment is small and profits are relatively high.

In a short span of five years, a large number of resources flocked to five fort and seven fort to increase garment production more than doubled.

However, the market demand is limited. Around 2012, affected by the global economic downturn and the pformation of the electricity supplier mode, clothing orders began to decline year by year, and the processing workshop was the first to bear the brunt.

Pu Tai, a Sichuan native who has made ten years' costume processing in the five castle, said that the clothing processing enterprises in the village have been reduced from 900 to 500: "before making a dress, we earn 15 yuan and half profit."

At present, we earn up to 8 yuan, and get rid of rent, water and electricity, labor, and almost no profit.

Some factories only have one or two orders a week, making dozens of clothes, so it's too difficult to sustain them. "

"The rapid change of the market makes the industry unprepared."

Shen Suli, chairman of Hangzhou CPPCC Committee and chairman of Xin Chen clothing, explained surplus capacity: "the global economic downturn has reduced the consumption demand of clothing.

The Internet sales mode has depressed the wholesale channel of Sijiqing market.

The reduction of exports has turned a large number of enterprises to domestic sales and intensified domestic competition.

The competitive garment enterprises will naturally become surplus capacity. "

A set of data also shows that the traditional clothing industry is going through the cold winter: in 2014, Hangzhou's clothing enterprises above Designated Size finished sales value of 28 billion 500 million yuan, down 1.35% year-on-year, the first time negative growth occurred.

In 2015, the sales value of clothing enterprises in Hangzhou dropped by 0.77% again.

At the same time, according to the statistics of the Hangzhou Municipal Commission of letters, the total profit of garment enterprises has dropped by 39.65%, and there has been a 24% loss.

The extensive clothing manufacturing mode has obviously not adapted to the green and efficient development requirements, and eliminating backward production capacity has become the trend of the times.

Countermeasures:

Elimination of backward production capacity, new industrial clusters, and joint development of small and medium sized enterprises

In 2015, Zhejiang proposed to build seven trillion industries, one of which is the fashion industry.

How to revitalize the garment manufacturing industry and promote information design and intelligent production has become a long-term goal.

In Hangzhou, with the "low and small" processing workshop gradually withdraw from competition, Xiaoshan, Yuhang and other places have produced new clothing processing cluster.

Different from the previous "fighting for each other", the new cluster has the advantages of resources, functions, services, radiation effects and so on, which is more suitable for the development of small and medium-sized enterprises.

"The way of processing materials has gone to the top, and it will never change."

Pu Tai elder sister told reporters that she was planning to move to Yuhang with her colleagues to gather their respective advantages and strive for more Taobao orders: "the winter wear design has been obtained, so long as the quality keeps up, and more do the" burst money ", the business will definitely get better in the second half of the year.

"Integration of small enterprises eliminated, the overall image of Zhejiang's clothing industry is also very beneficial."

Shen Suli supported the "alliance mode" to enhance competitiveness: "in the past, small businesses were reluctant to work hard on technology, design and brand, and were keen to grab the market and run sales, so that Zhejiang clothing became the pronoun of the middle and low grade.

Now the market forces enterprises to improve their design and quality, so that the best brand can be honed.

{page_break}

Labor costs increase international competitiveness decline

How can labor-intensive industries maintain profitability?

Unlike the five Fort workshop processing sites, the Hangzhou Joe's clothing industry has already begun to have cluster advantages.

A number of export enterprises above Designated Size have reached long-term cooperation with H&M, Zara, CABI and other international brands to achieve the growth of foreign trade orders against the market.

However, the increase of human cost has made the enterprises feel a small profit.

"In 2015, the company's foreign trade sales increased from seventy million to one hundred million, with an annual growth rate of around 30%.

But profit is hard to grow. "

Wu Zhengqian, general manager of Dongxing clothing, said that the profit margin of foreign trade garment orders is only 5%: "in order to compete with the manufacturing industry in Southeast Asia, we can only abandon profits and stabilize our customers.

With the continuous increase of wage costs, the advantages of international competition are getting smaller and smaller. "

According to the statistics of Joe's street, the cost of human resources in the dressing industry in 2005 was 2500 yuan per person, 4000 yuan in 2010 and 7000 yuan per person again in 2015.

The overexpansion of production capacity has also increased the demand for clothing workers and accelerated the rise in wages.

In the industrial gathering area, advertisements for many years can be seen everywhere, and many of them are already yellowed.

The difficulty of recruiting workers in clothing enterprises has become a common phenomenon.

"The cost of living in Hangzhou is very high. Even if you earn 6000 yuan a month, you will not be able to save much by the end of the year."

Xiao Wang, a 90 year old car worker from Hunan, said he plans to go back to his hometown to find a job with his girlfriend: "maybe another industry, maybe a small shop."

Countermeasures:

Build independent brand to realize industrial pfer

"Rising living standards and rising wage demands are inevitable trends.

In order to maintain international competitiveness, Zhejiang enterprises must improve their manufacturing processes. "

According to the relevant staff of the Hangzhou Municipal Commission of letters, the Xiaoshan based Han Bo (China) company has a complete set of intelligent garment production lines, and the technology of automatic blanking and automatic ironing is in the leading position in the world. "After the replacement of machines, the global order of Han Po has been continuously for many years, and Yudu has been undertaking high-end clothing manufacturing, and the profits are considerable."

At the same time, the profit distribution structure of clothing industry is: design 40%, marketing 50%, production accounts for only 10%.

Only by grasping the production link is it obvious that we can not get more profits.

The initiative to create an independent brand and "not to dress for others" can also become a breakthrough for export enterprises.

For example, Sanxing garment company has launched the "LIMAKA" brand, hoping to gradually replace export orders.

The pfer of production base to the western region and abroad has also been put on the agenda of Zhejiang clothing enterprises.

"Cross border investment will lead to cooperation in production capacity abroad, and re find the advantages of human resources, which can be regarded as an option for economic restructuring."

Shi Yulong, a regional economic research expert of the national development and Reform Commission, said that the rapid development of the "one belt and one way" national strategy is conducive to the opening up of the international market and the pformation of Zhejiang's clothing industry.

Transformation of clothing inventory crisis chain mode

How do brand enterprises create "full channel" marketing?

The cold winter industry also has a huge impact on large brand enterprises.

Due to excess capacity, a large number of clothing backlog in the sales link, forming a huge inventory backlog.

According to statistics released by the National Bureau of statistics, in 2013, the total inventory at the end of the national clothing wholesale period was 61 billion 362 million yuan.

By the end of 2014, the total inventory had been raised to 80 billion 924 million yuan again.

Analysis of the industry, at present, the country's clothing inventory enough to supply 1 billion 300 million people a year to wear.

"High inventory is not an exaggeration."

In a brand enterprise that ranks the top ten in Hangzhou fashion, Mr. Li, assistant to the chairman, said that relying on the traditional mode of franchising, only about 70% of the clothes sold each quarter, and the remaining 30% were converted into backlog.

"So we sold 1 billion 500 million clothes last year, and inventories reached more than 300 million yuan, almost offset all profits.

The longer the sales chain, the more the stores open, the more serious the backlog is. "

Mr. Li said that the inventory crisis has become a common "black hole" of chain clothing brands.

Take Zhejiang Wenzhou famous brand "Metersbonwe" as an example: at the end of 2014, its inventory reached 1 billion 435 million yuan, and the total loss in 2015 was 4 billion yuan.

The same is the "Semir clothing" of Wenzhou enterprises. Last year, the stock reached more than 20 billion yuan.

The fashion chain joining mode that has been brilliant for a while is in urgent need of "Internet +" pformation.

Countermeasures:

Launch brand factory store big data management precision production

In order to digest inventory, well-known clothing enterprises are exploring the establishment of "factory shop": in the three Xin Industrial Park, Eve and other brands opened "outlets" outside the processing factory, and women's clothing was mostly sold for less than 100 yuan.

In the Xiaoshan women's wear Industrial Park, Jiangnan Buyi and other brands are promoted by 90 percent off, and Han Bo company has also introduced high-end export garments.

In the Xiasha Economic Development Zone, the investment of tricolour brand is about 7000000, the collection factory shop is launched, and YOUNGOR men's wear and XTEP children's wear brand are introduced. The attraction effect of the stock clothing is planned to stimulate the development of commercial real estate.

Internet big data technology has also begun to be applied to clothing sales.

Zhuo Shang tricolour brand is erecting "all channel marketing platform", linking the stock data of entity direct shop, Tmall shop, factory store and company, so as to realize the unified distribution on line and online.

Zhang Qiang, the managing director, said: "in the future, we will control garment production to a minimum and make up for production according to market demand.

Let the entity store become the shopping experience center, the customer tries to wear satisfaction, may place the order on-line, sends the door directly.

As pointed out in the outline of the Zhejiang province's fashion industry development plan, the clothing industry will further implement the "electricity supplier changing market", encourage enterprises to accelerate the development of e-commerce, and actively explore various emerging e-commerce modes such as offline business.

We should speed up the upgrading of traditional business streets and specialized markets, and create a number of fashion "streets, corridors, galleries, shops and markets" incorporating product design, exhibition, tourism, experience and shopping.