5G: The Internet Of Things Affects The Strategic Pformation Of China'S Garment Industry Towards The Iot Era.

In recent years, due to the crowding out effect of investment and exports, the gross domestic product has continued to increase steadily, but the growth rate of total retail sales of consumer goods has shown a marked downward trend. At the same time, the upgrading of domestic consumption level and the change of lifestyle also make people more willing to buy consumer goods such as fitness, entertainment and other services, and the proportion of clothing and apparel as a basic consumer goods in people's disposable expenditure is also declining.

Under the combined influence of multiple factors, the growth rate of clothing retail sales has experienced a continuous decline in the past three years, and the overall development of the garment industry has shown a weak trend. In 2017, the total retail sales of Chinese clothing reached 1 trillion and 35 billion 640 million yuan, up 1.36% compared with 2016. The change of China's economic environment and the comprehensive upgrading of consumption have made a profound structural change in the garment market.

Entering the 2018, the garment industry has gradually moved towards a consumer oriented and innovative way.

Under the impact of new technologies such as Internet, Internet of things and VR, the garment industry has become more open and intelligent than before. In the future, the garment industry will continue to undergo changes in the past, and many enterprises will continue to integrate resources through mergers and acquisitions.

The apparel industry will usher in a revolution led by digital technology. Not only will there be a series of new business models based on digital technology in the industry, it will also enable existing players to meet the changing needs of consumers in a more efficient way.

The extreme, personalized and dynamic demands of consumers make it increasingly difficult for customers to satisfy customers.

Younger: although 70 still occupy the core strength of domestic consumption, the contribution of post-80s and post-90s to total consumption is gradually increasing, and the influence is also gradually increasing. The clothing industry is also showing a younger trend.

According to the survey, the three most popular styles of post-80s and post-90s are small refreshing, avant-garde, European and American fans, and showing regional characteristics. Young people in East China prefer small refreshing ones, while avant-garde and European and American fans are more favored by young people in Southern China and southwest.

In addition, the clothing styles most concerned about after 80 and 90 were women's wear, men's wear, sportswear, dress, couple's family dress and underwear household clothes.

At the same time, the preference of clothing for the elderly is also showing a younger trend. It is concerned about the factors such as tide flu and design of clothing, rather than just being satisfied with the functional requirements of clothing.

Personalization: with the increase of consumers' consumption intention, consumption level and taste of life, consumers are pursuing more personalized and diversified expression in all aspects.

In clothing, people are not only satisfied with basic functional needs, but also require clothing to reveal themselves fully, and hope that personal costumes are young, personalized, fashionable, interesting and so on.

With the development of demanding and diversification of consumer demand, garment enterprises are making competitive advantages in the way of meticulous operation, and the apparel industry is moving towards a more personalized direction.

Case: many brands such as Gucci and Nike have launched personalized customized services.

More and more clothing brands are launching personalized service.

For example, Gucci launched customized services on its Dionysus Dionysian handbag, and consumers can highlight their styles by matching all kinds of embroidery, rims, metal accessories and initial letter inlay in Dionysus Dionysus handbag.

Nike will also add more DIY options into its clothing products, and consumers can customize the color, texture and pattern of their shoes and clothing according to their preferences, and even add customized elements that belong exclusively to individuals in order to meet the personalized needs of consumers.

Instantaneity: with the accelerating pace of fashion trend, the styles of clothes need to change with the trend. Consumers are constantly pursuing new trends and new styles, and they also have higher requirements for enterprises to quickly capture the fashion elements in the market.

In this context, clothing brands need to design and produce fashion styles immediately according to fashion elements. At the same time, the supply chain and channel side also need to have quick response ability and cooperate with the store end to create a speed advantage in the fast changing fashion trend.

Case: fast fashion brand shortens the lag between clothing and fashion, and is constantly improving its efficiency.

Traditional clothing brands capture from the trend, then design and produce products, and deliver products to stores and counters. It takes about a few months for such a series of processes. Such a long and tedious process makes clothing production far less than the trend.

However, according to the idea of "fast fashion", enterprises can convert concepts into consumer products and sell them in stores in tens of days, so that the lag between clothing products and the trend will be greatly shortened. At first, the fast fashion brand will shorten the whole process to 50 days. Today, the fastest enterprise can do it within two weeks.

Not only is it faster, but also the number of fashion brands updated every year, and the traditional fast fashion brand Zara can update thousands of new clothes every year, maintain two times a week, and the latest fast fashion brand has increased the number of new models to 3-5.

Experience: the change of consumer demand is not only reflected in clothing products, but also in the experience of shopping as a whole.

Consumers are increasingly paying attention to the interest and comfort of shopping environment, the sense of experience brought by many aspects such as service consciousness, convenience of shopping and after-sale service.

Case: UNIQLO creates offline offline shopping experience

UNIQLO knows that having good visual creativity can help its brand and shop go longer. In store decoration, UNIQLO mainly uses warm colors and other fashion elements. At the same time, it tries to integrate artistic sense into lighting and storefront decoration, so that the store can achieve unexpected aesthetic effect as a whole, so as to enhance consumer's shopping experience.

Cost performance: consumers are becoming more rational towards the purchase of clothing products, and the lever of information asymmetry is gradually fading away. Consumers are more willing to choose the right products according to their own preferences and needs, instead of blindly paying high premium for brands.

According to market research, 21% of consumers consider giving priority to price performance when buying clothes, 27% of consumers consider the style, 21% of consumers care about the comfort of fabrics, indicating that consumers are paying more and more attention to the cost performance of products compared with brands.

The complexity, dynamic, high dimensional and cross boundary of industrial competition make it difficult for garment enterprises to survive in competition.

Multidimensional cross boundary competition: with the increasing diversification and differentiation of consumer demand, the competition of garment industry has changed from the single competition mode of scale dimension to the direction of multidimensional cross-border competition, and the competition has become increasingly complex and disorder. Many clothing brands that have never been intersecting before have quietly joined the ranks of competitors.

Not only within the garment industry, but also the garment industry is merging with other industries. The continuous development of big data, artificial intelligence, and virtual and real integration of new retail industry has also extended the boundaries of the garment industry.

Case 1: the high fashion group of the global style integrating the capital market by George Lee.

She is a well-known high-end clothing brand in China. At present, she is actively implementing the acquisition strategy, and has gradually grown into a multi brand fashion group.

It has many fashion brands and its brand covers different market segments, namely, China's senior women's wear brand ELLASSAY, Germany's senior women's wear brand LAUREL, American light luxury brand Ed Hardy, France light luxury designer brand IRO, American designer brand VIVIENNE TAM.

He is trying to become an internationally competitive high fashion brand group through the continuous construction of the main brand and the acquisition and acquisition of the new brand.

Case 2: dismemberment of large underwear industry in China

The cross border competition in garment industry has also led to the invasion and even disappearance of many garment segmentation industries with high degree of concentration. The big underwear industry is one of them.

Since 90s, OEM manufacturers in China have begun to try their own brand building and start the production of domestic brand underwear, thus promoting the large underwear industry, and have produced some strong and large scale domestic underwear brands, such as the Antarctic velvet, the main pajamas and the household clothing market Connie, the main attacking underwear market, and so on. The domestic underwear brand has gradually risen and occupied a certain share in the market.

However, with the increasing trend of cross-border trade, Hongkong fashion brand V21, fast fashion brand Zara and H&M, single category of men's clothing and seven wolves and other more clothing brands in different ways to achieve the cross-border layout of large underwear products, underwear market began to become chaotic, once the underwear giant faces the fate of being dismembered or even bankrupt.

Case 3: the apparel industry is merging with the home industry.

The clothing industry has a certain relevance with the home industry, such as fabric similarity, and two industries are closely following the trend.

Therefore, fast fashion enterprises such as Zara, H&M and Hai Lan home are extending their business to the home industry. With the advantage of their own brands, every clothing brand's household products have their own characteristics. For example, the color of the household products designed by Zara is more bright and easy to see, while the home products designed by H&M are more steady and restrained, and have a lot of affinity.

The industry is rapidly centralized and highly integrated: the resources in the industry are showing an accelerating trend of integration. Large enterprises continue to integrate the resources in the industry through mergers and acquisitions, and squeeze the profits and living space of small and medium-sized enterprises, resulting in many small and medium-sized enterprises facing the risk of being annexed and closed down.

In the statistics of 35 large and medium-sized clothing footwear enterprises, the profitability of 25 enterprises performed well.

The 3 companies have over $10 billion in revenue: 10 billion 880 million yuan in search, 10 billion 550 million yuan in Anta sports, and 10 billion 14 million yuan in Hai Lan's home.

The revenue of 3 enterprises increased by more than 4 over the same period: search for special 65.9%, Anta sports 44.1%, and Shanshan brand 43.9%.

The net profits of the 4 enterprises soared more than 100%: 228.7% of the wedding birds, 218.7% of the United States, 218.7% of the Taiping birds, 105.7% of the group.

There are more than 300 shops in 4 enterprises: Anta sports 699, Lining 463, Semir fashion 441, and Hai Lan home 305.

The above data can be found that the large and medium-sized enterprises in the industry perform well, and the apparel industry is practicing the survival rule of the strong Heng Qiang as a whole.

The CRn (n=10) index of clothing market segmentation also showed an upward trend in recent years.

We expect that the CRn index of garment segmentation will rise sharply in the next 2018-2025 years, and the integration will be completed in an all-round way.

Case: the collapse of small and medium enterprises swept across the country, the industry accelerated.

With the decline of the overall growth rate of the industry, the collapse of many small and medium-sized clothing enterprises led by Guangdong, Zhejiang, Jiangsu, Fujian and Shandong has swept across the country. The difficulties faced by small and medium-sized enterprises are mainly caused by the market being squeezed, resulting in a decline in sales and financing difficulties, resulting in a cash flow dilemma.

On the contrary, large enterprises have better ability to resist market fluctuations. They not only have sufficient funds and good reputation, but also can buy raw materials using futures, and control the links with high added value such as technology side and design end, which reduces the impact of rising raw material prices on enterprises.

The continuous upgrading of value and the acme of business mode: with the constant escalation and rigor of consumption demand and the worsening of competition, the competition among enterprises is developing towards the ultimate direction.

For example, enterprises with the core of product cost performance are committed to maximize the advantages of cost performance, and the enterprises that closely follow the trend are pursuing the ultimate goal of speeding up. The ultimate solution requires enterprises to create innovative business models based on the pursuit of extreme value.

Dynamic: market competition presents a trend of dynamic, and the speed of changing trend makes enterprises need to develop new products at any time according to market dynamics. If we lose the understanding of the trend and control the production chain, it will be difficult to survive in the market if we lose the same direction in the ocean currents with sudden changes of wind and rain.

The dynamic trend also leads to the shortening of the time cycle from the prosperity to the decline, and the uncertainty of the industry has increased dramatically.

Online and offline integration, experiential shopping formats are more popular with consumers: the pformation of the retail industry has also had a profound impact on the clothing industry.

On the one hand, the lack of online scene experience and information accuracy makes the retailing industry unable to really get rid of the offline retail scene. On the other hand, the progress of offline logistics makes the convenience of offline scenes more and more convenient.

Therefore, many online retailers are trying to build a new retail system integrating online and offline. As a branch of retailing industry, garment industry will also usher in the impact of new retail.

Case: Alibaba helps Taiping bird create a new retail mode that integrates online and offline.

In September 2017, Alibaba announced a strategic cooperation agreement with Taiping bird, a traditional clothing company. The two sides will carry out in-depth strategic cooperation in such aspects as brand building and incubation, consumer data and operation, and online and offline integration.

With the cooperation with Tmall platform, Taiping bird has successfully pformed to online, and in 2016, double 11 reached 615 million yuan sales, ranking first in the domestic fashion brands ranking.

At the same time, Alibaba also used the new retail mode to make Taiping bird one of the pioneer brands in overseas markets, and landed in Taiwan in the form of flash store.

The store uses a surreal technology sense element to set up an interactive area for young people to show themselves, so as to enhance brand image and increase the drainage of online shops, so as to achieve online and offline integration and interoperability.

The impact of experiential shopping channels on the purpose shopping channel: with the development of Internet and e-commerce, consumers can more directly butt up with producers, the data of goods and logistics terminals are more pparent, and the chain of industrial chain is gradually shortened, and the department store format under the line is being affected by the impact of the electricity supplier.

Compared with the traditional shopping department store format, many sports facilities such as gymnasium, KTV, video game city, beauty salon, cinema and other amusement facilities and functional shopping centers, as well as convenient convenience stores are more popular among consumers.

On the other hand, the behavior of female consumers buying clothing is more random. In contrast, the purpose of male consumers buying clothes is more clear. They usually have a goal before shopping, and they can directly search for the target after entering the shopping mall, and buy the right ones and stop shopping.

In the future, shopping centers with good experience can be favored by more female consumers, and more random shopping behaviors can be induced through the enhancement of sense of experience.

The mode innovation of service and retail is becoming popular: at present, the boundaries between retail and service industries are constantly merging, and services can also be sold to consumers as commodities.

Under the influence of adverse factors such as the impact of the electricity supplier and the decline of the retail environment, the retail service can make the business and customers more fully communicate. It is a way of innovation with humanity and experience as the core.

Case: Nordstrom creates a "retail store" based on sale service -- Nordstrom Local

Nordstrom Local is an experiential shop which sells services and a small number of clothing products. Due to the fact that there is no resettlement area, it occupies only 3000 square meters, far less than the average area of Nordstrom traditional stores.

Experience stores mainly provide modeling advice, online order service and self service, clothing improvement and customization, wear advice and door-to-door try, gift cards, nail and drink services. Nordstrom Local will become an experimental site for Nordstrom to observe consumer behavior, analyze and understand consumer needs, and become a bridge linking online business with offline services.

Digital information technology drives the industry to develop in the direction of intelligence and activation

Transformation of clothing by IoT Technology

The functions of traditional clothing are mainly decoration, protection of human body and cold resistance, and the application of IoT technology has greatly enhanced the functionality of clothing. Clothing has become a high-tech tool to make people's lives more convenient, more efficient and entertaining. IoT technology has improved the functionality of clothing in breadth and depth, and has made traditional clothing into an intelligent digital device that can be worn for a long time.

Case 1: millet launched smart shoes and Heapsylon smart socks

Xiaomi integrates digital intelligence technology into clothing such as shoes and socks. By connecting clothing with mobile phones, it sends data to the cloud service platform. Users can calculate the route through the built-in chip and record the heart rate changes through the sensor. Heapsylon socks can record the number of steps, pace, speed and calorie consumption of the wearer, and analyze the movement and physiological condition of the consumers.

Case 2: andmar launches multi-function smart running shoes, supporting smart wearable devices.

As Nike gradually abandoned the smart wearable device market due to its weaker performance than expected, Andemar resolutely decided to go against the trend and plan to deepen the market in the smart wearable device market.

Recently, Andrew has launched a new product: intelligent running shoes Record Equipped Running Shoes.

Compared with the ordinary intelligent running shoes on the market, this Record Equipped Running Shoes can provide more practical functions, such as testing the intensity of movement, and conducting guidance analysis to the wearer before starting the movement, and giving the recommended momentum according to the muscle and physical condition of the wearer.

Transformation of IoT technology to industry

With the development and innovation of science and technology, the application of garment industry in intelligent technology innovation is endless. For example, the development and application of big data and artificial intelligence have made clothing brand enterprises improve in efficiency.

In the future, as consumer demand becomes more subdivided and competition becomes more intense, upgrading the apparel industry chain through deep digitization and intelligent IOT technology has become an inevitable trend of pformation for all garment leading enterprises.

Case study: Boohoo creates a "super fast fashion" wave through data analysis and supply chain simplification.

Zara, with its compression production cycle and fast control of the trend, is known as the "fast fashion" enterprise. It takes only 5 weeks from conceptual design to clothing.

However, at present, a new wave of "ultra fast fashion" can shorten the cycle to 2 weeks or even shorter. The British brand Boohoo is a member of the wave. Boohoo quickly grasps the current fashion elements by analyzing its website consumer data and other Internet information, shortens the design decision time of products, and then streamlines the process of identifying fashion trends, design, production and distribution by means of highly bundled production supply chain system.

At present, the annual sales growth rate of Boohoo has reached Zara times 4~6 times.

Conclusion: with the change of demand side, technology side, competition side and channel side, the future mainstream business mode of garment industry should first integrate intelligent digital technology into its own business process, enhance the perception and responsiveness to the needs and trends of consumers. According to the positioning of enterprises, the business mode will be the ultimate in order to enhance the competitiveness of the market, and always maintain the characteristics of opening up, actively cooperate with the apparel industry and other industries related resources to cooperate or even integrate, so as to enhance their efficiency and competitive barriers.