Garment Industry Recovery: Star Network Red Led The Market, Electricity Supplier Turn To Experience Economy

Since 2018, in the context of consumption upgrading and industry recovery, apparel home textile consumer stocks have shown strong overall performance.

The garment industry has been in the doldrums for several years, recovering in the first half of 2018.

Garment industry is one of the traditional advantageous industries in China and plays an important role in the national economy.

Since the reform and opening up, with the continuous improvement of the living standard of our residents and the further development of international trade, China's garment industry has made considerable progress. Especially since joining the WTO, with the advantages of lower labor costs and a relatively complete garment manufacturing and processing industry chain, the production and sales volume of clothing products has increased rapidly.

But since 2016, the price of cotton and chemical fiber has rebounded significantly, and the pressure of raw material cost of garment industry is beginning to appear.

In addition, labor costs continue to rise and channel costs remain high, which continues to squeeze profits in the industry.

In recent years, the scale of China's garment industry has been declining steadily. In 2017, the output of ancient costume in China dropped by 8.49% over the same period last year. According to the statistics of National Bureau of statistics, in the first half of 2018, the garment enterprises above Designated Size completed 10 billion 995 million garment production, down 7.23% from the same period last year.

From the retail point of view, the overall retail sales growth rate of clothing industry has been declining year after year. In 2012, China's apparel industry achieved retail sales of 702 billion 150 million yuan, up nearly 30% from the same period last year. Until 2016, the industry scale growth rate still had more than 6% level.

In 2017, the growth of retail sales in garment industry dropped to 1.4% and retail sales amounted to 1 trillion and 35 billion 640 million yuan.

It can be seen that under the new economic situation, it is an indisputable fact that China's garment industry is in a downturn.

And since 2018, under the background of consumption upgrading and industry recovery, apparel home textile consumer stocks have shown strong overall performance.

From the performance, the two quarter of 2018, brand

Overall income has shown a strong recovery, especially in children's clothing industry.

Data show that in the first half of 2018, retail sales of clothing products above the quota reached 479 billion 200 million yuan, an increase of 10.1% over the same period last year.

The B2C garment retail scale has steadily increased in 2017, and has grown to 444 billion 720 million yuan in 2017.

However, since 2012,

The increase in retail sales is decreasing, with an increase of only 4.8% in 2017.

It can be seen that the low price, convenience and other characteristics of the electricity supplier are not a long-term solution to the difficult profitability of the garment industry.

In the first half of 2018, the online retail sales of physical commodities increased by 24.1% over the same period last year, higher than that of the entire garment industry during the same period.

The new retail solution has made some achievements in the apparel industry. The star net red effect has driven the market, and the electricity supplier has turned to experience economy.

The clothing industry has long been faced with four major development pains, namely, sales bottlenecks, inventory imbalance, low profits and customer churn.

KPMG's professional report on breaking the cocoon into a butterfly: the new retail energy garment industry has pointed out that Tmall's new retail has become a key driving force for the new round of change in the garment industry.

Tmall's new retail starts from the full contact and full content marketing of all the clothing brands that help to build the brand. Through the big data development, the digital supply chain network, the open ecology and the virtual reality full integration of the neural network, the intelligent stores that focus on the depth of consumers' experience, according to the "six changes" of the brand wide data such as "the people, the field, the goods", the whole network precipitation aggregation, and ultimately promote the healthy and sustainable brand growth.

With the strong push of younger generation of consumers and online consumption,

The pformation is still continuing. At present, one of the characteristics of the clothing market is the star net red effect, and the fans will be the breakthrough of the market.

In recent years, the net red star effect has affected the consumer groups. The clothing platform red shop and star store have a very high speed of development. It also reflects the characteristics that clothing consumers satisfy the fans effect in their consumption demands.

With the 80's and 90's becoming the main force of clothing consumption, garment manufacturers not only keep up with the trend and innovate in product design, but also have to cater for the tastes of these groups. Celebrity endorsement is a very direct and effective way to represent the image of a fashionable young person with a beautiful young appearance. With the taste and vision of the red people as the leading factor, the selection and visual promotion will be carried out, and the popularity of social media will be gathered, relying on the huge fans to conduct directional marketing, so that fans can be converted into purchasing power.

At present, there are more than 1000 net red shops on Taobao platform.

In 2017, during the "double eleven" activities, the top ten of the women's clothing shops in the sales volume accounted for seven seats in the red shop, and some of the red people shops could be broken tens of millions of new businesses.

Behind billions of sales are millions of fans in social media.

At the same time, B2C

Under the background of declining growth in retail scale, the "bottleneck" has forced the electricity providers to defer and experience the growth of the economy.

With the intensification of competition in the domestic electricity supplier industry, the endless price war has made many electric providers equal to the low price.

There has been no substantive breakthrough in the conversion rate of electricity providers, which has brought huge pressure to the electricity providers at the operational level.

The bottleneck of performance growth forced the electricity supplier to find new growth points, so many brands of clothing e-commerce began to expand below the line.

Clothing is a relatively special product. Consumers need to try it on in person. Sometimes it is not just the right size but also the temperament and feeling of the whole person.

In the electricity supplier, you can only see the appearance of the clothes and the appearance of the models.

Many customers find their bodies and models look different when they buy them back, so they will have a return idea.

Although electric business promotion can detonate sales in a short time, sales volume will fall to a low level on the one or two day after promotion, and even face the surging tide of return.

Poor customer experience is the biggest pain in online sales, and more and more homogenized products on the line also cause more competition.

Online low price strategy can easily increase sales volume, but to a large extent, it has dampened brand tonality and is not conducive to long-term brand management.

Adding online stores, enhancing customer experience and improving conversion rate is also their long-term strategy.

After many rounds of crazy price war, consumers are more and more rational. In the process of buying, they have more and more requirements for commodity experience.

The electricity supplier's disadvantage in experience directly affects the growth of the electricity supplier's performance.

Therefore, the entity store under the layout line is becoming a trend.