Analyze The Characteristics Of Textile And Clothing E-Commerce Operation In 2020

2020 is a year worth remembering. The new crown pneumonia epidemic is sweeping the world, economic and social shocks occur frequently, and unstable factors are constantly superimposed. The global industrial chain is facing great challenges not seen in a century. For textile and garment e-commerce, 2020 is a year of opportunities and challenges. Industries, platforms, enterprises and merchants aim at new opportunities, apply new technologies, deepen new channels, open up new markets, and bear heavy burdens and rise in the crisis, bearing great achievements. In 2020, the textile and garment e-commerce will continue to grow, and the e-commerce transaction volume will be 7.29 trillion yuan, with a year-on-year growth of 8.97%.

I. Development Status of e-commerce in 2020

(1) e-commerce has become a bright spot in the development of the industry

It is estimated that in 2020, the e-commerce transaction volume of textile and garment industry will be 7.29 trillion yuan, with a year-on-year growth of 8.97% (Figure 1). Among them, the B2B e-commerce transaction volume of textile and garment enterprises is 5.29 trillion yuan, and the online retail sales of clothing and home textile is 1.80 trillion yuan.

According to the data of the National Bureau of statistics, in 2020, the total retail sales of consumer goods in China will drop by 3.9% year-on-year, the retail sales of clothing goods of units above the quota will drop by 8.1% year-on-year, and the accumulated operating income of garment enterprises above the designated size will drop by 11.34%; According to the data of China National Business Information Center, in 2020, the retail sales of clothing goods of key large-scale retail enterprises in China will drop by 20.71% year-on-year; According to the data of circulation branch of China Textile Federation, in 2020, the turnover of textile and garment specialized market with an area of more than 10000 square meters will drop by 2.22% year on year. In the environment of obvious decline in the production and circulation data of the industry, the e-commerce transaction volume of the textile and clothing industry still maintained an increase of 8.97%, which became an important growth point of the textile and clothing industry in 2020.

(2) business to business (B2B) e-commerce

In 2020, the volume of e-commerce transactions among textile and garment enterprises (B2B) will reach 5.29 trillion yuan, a year-on-year increase of 7.96%, accounting for 72.57% of the trade volume of e-commerce in the industry (Figure 2). The epidemic has accelerated the change of trading habits among enterprises, the number of online trading entities among enterprises has increased and the scale has expanded, and the enthusiasm of enterprises to apply e-commerce has been greatly improved.

(3) online retail of clothing and home textile occupies an important position in online retail

In 2020, the online retail sales of clothing and home textiles will reach 1.80 trillion yuan, with a year-on-year growth of 8.20% (Figure 3), accounting for 15.32% of the national online retail sales of physical goods. By the end of the third quarter of 2020, the number of shops on the online retail platform monitored by business big data was 1975.3 million. Among the online retail commodities, clothing, shoes and hats accounted for the highest proportion, accounting for 20.4%.

(4) counter trend growth of e-commerce in professional market

In 2020, the trade volume of e-commerce in the textile and garment professional market will be 1.55 trillion yuan, with a year-on-year growth of 5.44% (Figure 4), accounting for 21.26% of the total trade volume of the industry. Although in 2020, the turnover of textile and garment professional market with an area of more than 10000 square meters will drop by 2.22% year on year, but the turnover of e-commerce in the professional market will rise against the trend. The textile and garment professional market will give full play to the advantages of rapid response of small and medium-sized enterprises, actively build a public service platform, and activate the industrial chain with information technology, Promote the integration of online and offline development, and achieve a new breakthrough in online trading.

II. New changes of industry e-commerce development in 2020

2020 is the year of innovation and fission in the e-commerce industry. Traditional channels will be revitalized, advantageous modules will be fully developed, and online and offline integration will be in-depth, and new species and new playing methods will continue to emerge. The e-commerce industry once again ushered in the flow dividend, the expansion of competition, the traditional platform to explore new areas, the emergence of new players, accelerate the industry to abandon the old logic and establish a new order.

(1) RCEP was established to expand e-commerce

In 2020, the regional comprehensive economic partnership agreement (RCEP) was signed, and the free trade zone with the largest population, the largest economic and trade scale and the most potential for development in the world was officially born, opening a new space for the development of cross-border e-commerce in China. Large scale tax reduction in the region will greatly narrow the cost gap between general trade and cross-border e-commerce, which is conducive to the expansion and development of overseas warehouse business; After the elimination of various non-tariff barriers, the convenience of customs clearance and trade will be greatly improved, thus improving the delivery efficiency of cross-border direct mail e-commerce, expanding the scale of direct mail e-commerce, and optimizing the structure of cross-border e-commerce; The policy coordination and regulatory cooperation on data, tax, privacy and other aspects generated by RCEP will enhance the transparency and security of cross-border e-commerce, and cultivate a good business environment for the comprehensive development of cross-border e-commerce.

(2) the sinking market has become an important increment in e-commerce transactions

In 2020, the sinking market will become an important increment of e-commerce trading entities. Pinduoduo platform, which focuses on the sinking market as its core, has achieved nearly 200 million users growth in 2020; In 2020, the number of active users of Jingdong platform will increase by nearly 110 million, and more than 80% of the new active users will come from the sinking market.

The accelerated development of the sinking market is due to the popularity of the Internet in the sinking market and the construction of infrastructure. The low-income groups and price sensitive groups begin to transfer to the online market. In 2020, the online speed of consumers in the sinking market will increase unprecedentedly; On the other hand, small and medium-sized businesses have also begun to transform online in batches, and have settled in platforms with lower entry threshold, such as pinduoduo, shuoyin, Kuaishou, Taobao special price version, etc. The influx of both supply and demand sides in the sinking market promotes the rapid development of online.

(3) clothing brands activate private flow pool

In the first half of 2020, the offline layout of the clothing industry basically stopped. Clothing brand deeply activates consumers by detonating private traffic. In 2020, Hao'er group, a well-known brand of mothers, infants and children, has added an online special channel, the "big brand and small price" platform of AI Cang. Through small procedures, the online special sale can be carried out, and the sales volume will exceed 10 million yuan; In the first half of the year when the market environment entered the freezing point, it realized 81% of the spring sales.

In the era of digital economy, a clothing brand with a certain industry reputation and stable consumer groups is a high-quality IP. Every excellent store manager and sales staff can be transformed into a KOL with huge private traffic potential through training, and take offline stores as the support to ignite online sales with private traffic, It's a new way of playing when clothing brands are cold offline. At the same time, accumulating private traffic by community is also a sublimation of clothing brand's management of its members.

(4) cross border e-commerce has become a growth highlight

Up to now, China has established bilateral e-commerce cooperation mechanisms with 22 countries in five continents. As a new channel of trade cooperation, silk road e-commerce has attracted more and more attention and participation on the world stage. During the epidemic period in 2020, the import and export volume of new foreign trade formats such as cross-border e-commerce will not drop but rise, becoming one of the important forces to stabilize China's foreign trade. According to customs statistics, China's cross-border e-commerce import and export will reach 1.69 trillion yuan in 2020, an increase of 31.1%. 2.45 billion import and export bills were released through the customs cross-border e-commerce management platform, an increase of 63.3% year-on-year.

In terms of trading entities, more and more foreign trade factories, traditional platform sellers and brand merchants have entered the cross-border e-commerce industry; In terms of trading channels, the flow of traditional cross-border e-commerce platforms such as Amazon, eBay, express, wish, Shopify has increased, and a large number of new independent station platforms have emerged; In terms of export market, the demand in Europe and the United States has increased, and the Southeast Asian market has sprung up; In terms of new technologies, Amazon is actively promoting voice shopping, and chat robots are also becoming popular. In addition, the stable industrial chain supply chain of China's textile industry has greatly attracted overseas orders to return.

(5) live e-commerce broke out in an all-round way

2020 is the year of full-scale explosion of live e-commerce, with brands, channels and platforms collectively entering the Bureau, and stars, entrepreneurs and governments entering the market in an all-round way. As an incremental system, live e-commerce has entered a golden period of explosive growth. In 2020, there will be more than 20 million live e-commerce shows. As the key sales category of Taobao, shuoyin, Kuaishou and other mainstream live e-commerce platforms, clothing has a large market share in the whole live e-commerce market. Take Taobao live broadcast as an example, the sales volume of "clothing, shoes and bags" category accounts for nearly half of the total sales.

The local governments in the leading regions of textile and garment industry are endowed with the ability from various angles, and actively introduce policies to help the development of local clothing related industries and live e-commerce industry; Traditional clothing brands are also experimenting with live broadcasting. For example, Youngor, a men's clothing brand focusing on business people, has 95% of its sales coming from the brand's direct marketing. In 2020, Youngor first tried to carry out live marketing, and in March, it tried to clear the inventory through live broadcasting, with a sales volume of more than 5 million yuan; In April, the transaction volume of live broadcast of wedding festival exceeded 10 million yuan“ The live broadcast activity of "ten stores broadcasting, one hundred cities celebrating together" was launched. Twelve live broadcasting rooms were broadcast at the same time, and nearly one million people watched in a few hours.

Textile and garment professional market, an important offline circulation channel of textile and garment industry, has also accelerated the popularization and support of live e-commerce business, and established a new line of "market + live broadcasting base". Changshu clothing city gives full play to the guiding service role of the industry belt live broadcasting service office, and accelerates the process of new retail cooperation with Taobao live broadcast, shuoyin, 1688 and other platforms; Puyuan woolen sweater market held 2020 China Puyuan live delivery festival was officially launched, enabling small and medium-sized and micro enterprises through live delivery and digital marketing, helping small and medium-sized enterprises to establish a live broadcasting system and effectively open up the sales channels of "Online + offline" and "e-commerce + live".

(6) traditional e-commerce giants set foot in the front end of the industrial chain

In 2020, Alibaba officially announced the establishment of Alibaba fast Rhino (Hangzhou) Digital Technology Co., Ltd. (rhinoceros Intelligent Manufacturing), committed to the flexible transformation of the traditional clothing supply chain, making "made in Internet" a reality; Jingdong jingzao brand of Jingdong has launched customized service, which enables consumers to realize the whole process of online clothing customization.

E-commerce giants set foot in the field of the real economy. Relying on their big data advantages and Internet genes, and taking c2m mode as the core, e-commerce giants have built a new supply chain to realize "production on demand, production by sales and rapid delivery", which is the ideal production state of traditional manufacturing industry for decades, and will bring a thorough reform to China's textile and garment industry.

III. new features of industry e-commerce development in 2020

(1) content based e-commerce platform and e-commerce content platform

In 2020, e-commerce platforms will pay more attention to the presentation and recommendation of various contents, such as Taobao, tmall, Jingdong and other e-commerce platforms. In the process of optimization, e-commerce platforms are undergoing content-based transformation in terms of page design, function setting and content presentation. In addition, the e-commerce features of the content platform are becoming increasingly prominent. For example, short video content platforms such as Shuo Yin and Kuaishou are speeding up the layout of e-commerce business. Byte skipping officially established an e-commerce first-class business department, and formally applied for the e-commerce trademark of tremolo in November last year; Fasthand platform continues to make efforts in the field of e-commerce, and pays more attention to the supply chain ability and content production ability of platform merchants, so as to improve user stickiness. The cooperation between pure content platform and e-commerce has great uncertainty. The new platform with high-quality content flow and e-commerce transaction scale has become the new focus of competition between the two sides.

(2) vertical access mode

In 2020, the consumption oriented supply-demand relationship will become increasingly prominent in e-commerce, from the international direct mail business in the cross-border e-commerce field to the reverse customization business launched by "rhinoceros intelligent manufacturing"; From Alibaba's "little man donkey" intelligent logistics robot to the live e-commerce where the anchor introduces products online and discusses prices, all the new changes are compressing all links between businesses and consumers, so that manufacturers can directly reach consumers, and even guide production in reverse direction starting from the consumer demand side.

(3) integration of online and offline

In 2020, the epidemic broke the traditional commercial supply chain model and accelerated the reform of traditional channels. The traditional offline channels were rapidly implanted with internet genes, and the online transaction ability was evolved. Traditional brands are implanted with internet gene, actively deconstruct their own brand sales channels, and drive their own direct stores and franchise stores to jointly build an online and offline integrated development sales network, which not only achieves the growth of sales, but also completes a new breakthrough in thinking concept. The textile and clothing professional market actively provides online transformation public services for merchants in terms of equipment and facilities, venues, professional training, art guidance, technical support, photography services and other aspects, and supports merchants to expand online channels; At the same time, the professional market is also constantly enriching and strengthening its offline functions such as publishing, exhibition and trade, trading and experience, actively promoting new modes and formats such as exhibition economy, online ordering fair and cloud publishing, etc., so as to stimulate the competitive advantages of the professional market, and explore a road of online and offline integrated development with unique characteristics of professional market.

(4) standardization of industry environment

In 2020, with the continuous revision and improvement of e-commerce tax regulations, the release of anti-monopoly guidelines in the field of platform economy (Draft for comments), and the continuous introduction of policies to ensure the security of cross-border e-commerce, the competitive environment of e-commerce industry is increasingly standardized. At the important time point of e-commerce development, the state has issued a series of standardized policies and regulatory measures for the e-commerce industry, which will effectively prevent unfair competition, maintain the order of the industry, provide a more benign competition environment and development soil for e-commerce practitioners, and provide a safer consumption environment and good shopping experience for e-commerce consumers.

The future development trend of textile and garment E-commerce

(1) cross border e-commerce enters a golden period of development

The overseas e-commerce market is expanding rapidly. According to the "Southeast Asia e-commerce report 2020" released by Google, e-commerce has become the largest industry in Southeast Asia, with an increase of 63% in 2020; McKinsey's survey shows that more than 50% of European and American consumers are willing to continue their online shopping habits; According to the Ministry of Commerce, sales of e-commerce in the United States will increase by 32% in 2020. In order to further promote the healthy development of cross-border e-commerce, in 2020, the State Council decided to set up 46 new cross-border e-commerce comprehensive experimental zones on the basis of 59 cross-border e-commerce comprehensive experimental zones, opening up a new development path for foreign trade.

At the same time, e-commerce enterprises have also increased their efforts to provide cross-border e-commerce services. Byte hop is laying out overseas cross-border e-commerce business called "Fuxiang Haigou", which includes well-known brands and good goods from more than ten countries; Ctrip's "global shopping" platform, which focuses on outbound shopping services, has upgraded from the original "online mall" mode to "cross-border mode", providing online booking platform and cross-border direct mail service. Driven by technology, the application of cross-border e-commerce has become the strategic choice of enterprises in the future, which will accelerate the organizational change and product upgrading of enterprises, and occupy the first opportunity in the future development.

(2) the scale of the sinking market continues to expand

In the future, the scale of the sinking market will continue to expand. On the one hand, consumers in the first and second tier cities begin to appear stratification, and the proportion of consumers pursuing the ultimate cost performance ratio is significantly increased; On the other hand, with the comprehensive popularization of mobile communication equipment and the in-depth promotion of infrastructure construction, China's "invisible" sinking market is constantly emerging. In 2020, the Ministry of Commerce will further promote the comprehensive demonstration of e-commerce in rural areas and create an "upgraded version" of the comprehensive demonstration; Alibaba, Jingdong and other e-commerce platforms have seen the vast space of the sinking market and the hierarchical consumption demand of the first and second tier markets. Alibaba has restarted the cost-effective strategy, and Jingdong has launched Jingxi. Both e-commerce giants have achieved fruitful results from the sinking market.

(3) live e-commerce will be upgraded in an all-round way

Major e-commerce platforms and live broadcasting platforms will continue to increase the investment in live broadcasting e-commerce, and the intensification of competition will directly promote the comprehensive upgrading of live broadcasting e-commerce. The live e-commerce has partially entered the stage of fine operation, and the e-commerce anchor is also moving towards the road of professionalization and specialization. In terms of content, platforms such as tremolo have developed from simple short video to medium and long video, attracting a large number of long video teams; In terms of mode, the live e-commerce ecology has upgraded from the original video with goods to "video + live". The short video transmission cycle is longer, which is more suitable for promotion of product promotion, while the live broadcast attaches importance to real-time sales transformation. For the brand side, "video + live" will better achieve the integration of finished products; In terms of technology, AR / VR, artificial intelligence and other technologies are expected to improve the shopping experience. Live e-commerce will upgrade from simple anchor with goods to "cloud shopping and cloud shopping".

(4) digital intelligence will restructure the business ecosystem

Based on big data, rhino intelligent manufacturing of Alibaba has entered the physical manufacturing industry, developed c2m manufacturing, realized the promotion of innovation, cost reduction, and complemented the weaknesses, opening up a new pattern of physical manufacturing industry. It can be predicted that the future business will be a digital intelligence business with consumers as the core and big data driven. Online giants and entity giants will jointly focus on the construction of fast and flexible supply chain and promote the deep integration of online and offline Omni channels. Digital intelligent enterprises, digital intelligent market and digital intelligent merchants will become the core force of future commercial development, and the end-to-end full link efficient and accurate matching of new commerce will become a reality.