The Trend Of Consumer Demotion Is Obvious. How Can The Traditional Textile And Garment Industry Reborn?

According to the current situation, the consumption of clothing will continue to grow steadily in 2018. The China Industrial and commercial research institute expects that the total retail sales of clothing will reach 15231 billion yuan in 2018, and the market volume is huge.

In the past 40 years of reform and opening up, with the continuous development of economy and the increasing consumption level of the nation, the Chinese garment industry has been developing rapidly.

As the basic consumption industry of the national economy, it is closely related to the daily life of residents.

For consumers, especially female consumers, on the basis of their education level and income level, the demand for quality of life has also been significantly improved. Therefore, the demand for clothing and textiles is also increasing. On the one hand, clothing is just needed commodity, daily production and daily necessities; on the other hand, the trend of the trend is changing rapidly, and the aesthetic level is rising. Therefore, the demand for updating clothing and other products is very high, and the market is increasing continuously, and the ceiling is hard to reach.

With the gradual infiltration of the market, the marginal cost of raw materials and labor costs has risen sharply, and the problem of overcapacity and backlog has become increasingly prominent.

The escalation of trade between China and the United States is even worse. In July 10th, the US $200 billion official list of tariffs on Chinese products was added to textiles and clothing.

Under the fierce competition environment and external policies, the spinning and weaving industry has slowed down the growth of the industry. However, the slowdown is often accompanied by the optimization of the market structure. It is foreseeable that the spinning and weaving industry will soon usher in a large-scale shuffle. It is also facing challenges and opportunities at the same time.

In order to cope with fierce competition and gain the first mover advantage, whether it is the life of big brother roele, the leading material supplier, Huafu fashion, or the new fashions that are newly arrived, they are concentrating their efforts to speed up the layout and strive to break through the bottleneck of traditional enterprises' development and seek new paths for enterprise growth and industrial upgrading.

Life of Luo Lai

With the successive releases of China Daily, the leading enterprises in the spinning and weaving industry show their bright performance.

The first leading enterprises to enter the textile industry in China

In the first half of 2018, the company achieved operating income of 21.97 billion yuan, up 10.87% from the same period last year, and net profit of 2.18 yuan to 100 billion yuan, an increase of 35.14% over the same period last year.

At the same time, the company launched the 14 million 50 thousand share restricted stock incentive plan in 2018 to closely link future dividends with annual performance, which will promote the smooth and orderly development of performance.

Huafu fashion

Global leader in color spinning

In the first half of 2018, revenue was 6 billion 790 million yuan, an increase of 25.3% over the same period last year.

To increase the layout of overseas production capacity and gradually shift production to Vietnam, where raw materials, labor and electricity prices are low and tax concessions, break through geographical restrictions, expand overseas markets, and gradually develop into global leading enterprises. The company expects net profit to reach 7.26-8.47 billion in the first three quarters of 2018, an increase of 20-40% over the same period last year.

Day fashion

Listed last year

In the first half of 2018, total revenue was 510 million yuan, an increase of 11% over the same period last year.

Among them, the main brand "broadcast: broadcast" has been developing steadily. In recent three years, its revenue has been maintained at 7 billion yuan, accounting for 80.54% of the company's main business revenue. It is the most important source of revenue for the company.

In May 31, 2017, the Shanghai Stock Exchange listed the new daily fashion, a company with unique design concept for consumers. The company has its own fashionable women's wear "broadcast: sowing" and the whole category of tide brand "CRZ" and the fashion creative women's "PERSONAL POINT" three main clothing brands. The three brands have certain differences in the design style, brand positioning and target customers, and have realized complementarity and extension, which has been well adapted to the clothing needs of different ages and different styles.

Based on the brand synergy effect and expanding the coverage of the company's product market, the market influence of the company's products has been effectively enhanced.

The company adheres to the principle of original design and adheres to the brand concept of "creating the future with creativity, making fashion a success in life", and implementing a multi brand strategy based on "creativity and design" to create a brand image actively and continuously.

In April 18, the new brand "MUCHELL" and "broadcute" of children's clothing opened in Shanghai and Beijing also continued to have a good original style.

As we all know, the industry attribute of the spinning and weaving industry is "high SKU quantity and short sales cycle", which means that the brand must have stronger operation and management ability, the single brand audience is narrow, and the sales ceiling is limited. Therefore, branding and diversification become the inevitable choice for the long term development of the spinning and weaving company.

The specific way of operation is mainly the two paths of extension and merger and self branding. The former mainly deals with the changing risks brought by consumer demand through the existing brands in the M & a market, while the latter uses the main brand awareness to guide the sub brands and cover as many users as possible.

The construction of such a multi brand combination is the daily broadcast. Dong Mijin, Yao Peng, said that as of now, 5 brands have been established on the day, and each brand has an independent creative design center, a large number of original design talents, and every day has great respect for every creative designer. The design style of each brand is relatively independent and the style of design is one of its own.

In addition, in the first half of the year, the company vigorously promoted R & D, new design and R & D centers and exhibition centers, and worked hard to create an ecological chain collection platform, which runs through online version database to offline laboratory and large production technology library, and completed the efficient flow of design to production.

Because of this free and open creative environment and timely technological optimization and updating, the daily broadcast platform can continuously hatch more micro and creative design capabilities, thus enriching the entire brand matrix.

Optimize the layout of the channel, adjust the business strategy, and increase the gross profit margin.

The main operating costs of spinning and weaving industry include raw material cost, labor cost of design / production / sale, pportation cost, shopping mall entry and store rental cost.

Therefore, the optimization of cost structure can effectively reduce expenditure and increase profits.

The daily broadcast increased the scale of business and information management, increased the efficiency of design and production, and increased the gross profit from 60% at the end of 17 to 64% at the end of June this year.

In terms of sales mode, direct selling, distribution, joint sales and network sales are adopted in the daily distribution.

In the face of the current slowdown in domestic macro-economic growth, the company further adjusted its business strategy, improved the control of marketing channels, increased the intensity of direct operation, and gradually increased the number of direct battalions. In 2018, 1-6 cities in Beijing, Shanghai, Nanjing, Wuhan, Tianjin, Guangzhou, Shenzhen and other countries increased the number of 87 direct outlets directly, increasing the proportion of direct battalion revenues.

While increasing the proportion of direct sales, the company plans to open up the channel boundaries, integrate online and offline, and gradually develop into a consumer centric, full channel sales network, realize the interconnection of customers' resources on line and line, diversify the channels for customers, add offline experience stores, provide instant interactive deep services, and give consumers the opportunity to feel the company's culture and products on the spot. At the same time, the company will integrate online and offline resources, enabling consumers to complete shopping without any time and place constraints, and to complete shopping conveniently and quickly, so as to meet consumers' all-around, all-weather and personalized service needs.

At the same time, the company focuses on strengthening supply chain management. The VMI mode is based on on-demand supply, and is supplied in small quantities and lots of batches.

Compared with traditional large batch and low batching mode, VMI mode can better connect with terminal sales, decide production according to real-time sales situation, control inventory effectively and relieve inventory pressure of companies and distributors.

It has a good effect on strengthening the control of inventory size and speeding up inventory turnover. According to wind data, the inventory turnover rate of 2015~2017 is 1.65/1.67/1.73 times, and it is in a reasonable range and has continued to improve.

In addition, in 2017, the company built 1.2 million square meters of modern logistics centers in the daily broadcasting Park, imported advanced sorting and logistics equipment, and deepened the application of ERP system, and also improved the efficiency of supply chain management.

Jin Yaopeng also mentioned that the future of the sprint will increase the cost of management and sales, and further reduce costs and increase profits.

After "consumer demotion", price performance has become the decisive factor of consumer behavior.

Some time ago, the hot self deprecating phrase in the circle of friends, "pickled mustard tuber, Erguotou, riding on a stroll for a walk", coupled with the recent concept of "consumer demotion", is that the business of low-priced goods is getting better and better. Is poverty really getting closer to us? Is the consumption trend of Chinese people really losing ground? From a rational point of view, it is not always true that consumers will still recognize the added value of the brand's quality and service guarantee, and tend to be high quality and cost-effective products in product selection. Therefore, in order to win the favor of the mainstream consumers, clothing brands need to make reasonable pricing based on the optimization of quality and brand development, and closer to the psychological expectations of consumers.

The daily broadcast also has its own consideration in the pricing of products. Jin Yaopeng introduced that the average price of the broadcast: brand in the first half of 2018 was 750. As a high-end clothing brand, it has the same price position as the public casual wear, which has a great price advantage compared with the high-end clothing in the market.

Therefore, we believe that with the current consumer's more reasonable consumption behavior and the importance of product practical value and consumption concept, the daily broadcasting will have a good development on the basis of its own advantages.