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Report On The Development Of China'S Textile And Garment Brands From 2020 To 2021 (Excerpt)

2021/6/23 0:06:00 0

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2020-2021 China Textile And Clothing Brand Development Report Excerpts

Challenge and opportunity -- brand development faces new environment

Under the complex international environment, the global industrial chain and supply chain are facing great impact; Domestic market has been significantly affected, textile and clothing consumption decreased; The global pattern of textile and garment brands is reshaping, and the domestic business environment is becoming more benign. Generally speaking, Chinese textile and garment brands are facing a new pattern of challenges and opportunities.

(1) the global economic and trade situation is more complicated

In recent years, populism is prevailing in the major western countries, trade protectionism is on the rise, and economic globalization has encountered a counter current. After the outbreak of new crown pneumonia, its impact is far-reaching, the trend of anti globalization is more obvious, the global industrial chain and supply chain are facing a major impact, and the risk is increasing. At present, the global epidemic situation has not been effectively controlled, the economic recession is obvious, and the development of foreign trade is facing many uncertain and unstable factors. According to the world bank's global economic outlook report released on January 5, the global economy will shrink by 4.3% in 2020, the economies of developed economies, emerging markets and developing economies are expected to shrink by 5.4% and 2.6% respectively, and China's economy is expected to grow by 2%.

(2) the domestic consumer market has been significantly affected by the epidemic

Affected by the trend of the new pneumonia epidemic, since this year, the domestic consumer market has fallen sharply in the first quarter, and gradually increased in the second quarter. Residents' non essential, aggregation, liquidity and contact consumption have been seriously suppressed, which has become a weak link in economic recovery. According to the data of the National Bureau of statistics, in the first three quarters, the per capita consumption expenditure of national residents was 14923 yuan, a nominal decrease of 3.5% over the same period of last year; Among them, the per capita clothing consumption expenditure was 847 yuan, down 11.9%, accounting for 5.7% of the per capita consumption expenditure, 0.5 percentage points lower than last year. As a non rigid demand commodity, the retail sales of clothing, shoes, hats and knitwear were 108 million yuan from January to November, with a year-on-year decrease of 7.9%, and the decrease rate was gradually reduced. It has maintained a single month growth for four consecutive months since August.

Chart 1-1 ? Year on year growth trend of total retail sales of consumer goods in 2020

Chart 1-2 ? Per capita consumption expenditure and its composition in the first three quarters of 2020

Source: National Bureau of statistics

(3) restructuring of global textile and clothing brand market pattern

Luxury sales have fallen sharply, and overseas consumption has returned significantly. According to Bain consulting report, the global luxury market will decline by 23% in 2020, the first contraction since 2009. The market size will drop from 281 billion euro in 2019 to 217 billion euro. China will become the only country with growth, and the luxury market will increase by 45% to 44 billion euro. Morgan Stanley predicts that in 2020, due to the continuous spread of overseas epidemic, it is difficult to quickly recover the inbound and outbound tourism shopping, and some of them will return to China, with an estimated return of 140 billion to 165 billion US dollars.

Sales of a large number of brands declined, and losses were serious. According to the prediction of global data, the global clothing market will decline by 15.2% year on year in 2020, and the total loss will reach 297 billion US dollars. From the operation of 18 foreign brands in the second quarter, except for lululemon, the revenue of all brands showed negative growth, with a decrease of 20% - 40%, and faced serious losses; The overall operation of the third quarter improved, however, 72.2% of the enterprises' revenue decreased and 2 / 3 of the enterprises lost money.

A number of brands withdrew from the Chinese market or went bankrupt. In 2020, old navy of gap group, Esprit of USA, superdry of UK and Earth Music & Ecology of Japan will successively withdraw from Chinese market; European fast fashion brand C & a sold its business in China, and Australia JeansWest, American men's wear brand Brooks brothers with a history of 202 years and Shanghai egger Clothing Co., Ltd. went bankrupt; Puma in Germany closed nearly 80% of its stores in the first quarter, Zara parent company INDITEX plans to close 1000-1200 physical stores in 2020-2021, and H & M plans to close 250 stores in 2021.

(4) the domestic business environment is becoming more benign

According to the "global business environment report 2020" released by the world bank, China's state-owned business environment has leapt to the 31st place in the world, up 15 places from the previous year, and has been listed as the top 10 economies with the largest improvement in the global business environment for two consecutive years.

From January 1, 2020, the regulations on optimizing the business environment will be implemented. In October 2020, 14 units including the General Administration of market supervision, the Central Propaganda Department, and the Ministry of industry and information technology jointly issued the notice on printing and distributing the special action plan for Internet market supervision (cybersword action) in October 2020, and launched the cyber sword action 2020 from October to December.

Adjustment and Innovation -- brand construction presents new situation

The brand building system of the whole textile industry has been basically formed. Affected by the epidemic situation, the textile and clothing brands in 2020 are under obvious pressure, and have experienced a process of overall low-level operation in the first half of the year and gradually warming up in the third quarter. In the face of the new situation, textile and clothing brands actively carry out digital transformation, adhere to scientific and technological innovation, pay attention to healthy consumption, strengthen cultural construction, and enhance the ability to lead consumption and enhance cultural confidence.

(1) remarkable achievements have been made in brand building of the industry during the 13th Five Year Plan period

During the 13th Five Year Plan period, the industry brand cultivation and promotion system continued to improve, and "masters, big brands, and major events" were emerging; The original ability of fashion design has been improved significantly, and the recognition and reputation of local brands have been continuously improved; There are about 4500 clothing and home textile brands in major domestic commercial entities, an obvious increase compared with 3500 in 2015, of which about 85% are self owned brands; Independent brands have begun to play an important role in expressing cultural confidence and inheriting national civilization. The original trend brands have gradually matured in terms of quality, design and culture, accounting for 15% of brand consumption from 11% in 2017; The ability of brand enterprises to integrate superior resources at home and abroad has been continuously improved. From product going out and production capacity going out, brand enterprises have begun to move forward to brand going out and capital going out; The quality and international influence of fashion events such as fashion week have been significantly improved. On the whole, the brand building of the whole textile industry has formed a three-level system, including processing and manufacturing brand, terminal consumption brand and regional brand.

Since 2012, the Ministry of industry and information technology and China Textile Industry Federation have jointly carried out the identification of "key tracking and cultivating textile and garment brand enterprises" (hereinafter referred to as "key brand enterprises"), which will be dynamically adjusted to 80 in 2020, including 50 terminal consumer brand enterprises and 30 processing and manufacturing brand enterprises. From the main economic indicators, the "key brand enterprises" have obvious advantages compared with enterprises above the scale of the whole industry. The main business income, profitability and R & D investment intensity are significantly higher than the average level of the whole industry. The scale strength of enterprises has gradually increased, with 16.3% of enterprises over 10 billion. The average main business income increased by 26.19%, the total profit increased by 14.70%, the R & D investment increased by 23.85%, and the number of marketing outlets increased by 25.12%. The average profit margin and R & D investment intensity decreased slightly.

Chart 2-1 ? Main economic indicators of "focus on tracking and cultivating textile and garment brand enterprises" in 2016-2020

(data of last year, unit: 100 million yuan, piece)

Chart 2-2 ? Annual growth rate of main indicators of "focus on tracking and cultivating textile and garment brand enterprises" from 2016 to 2020

(2) the overall situation of brand building

Affected by the epidemic situation, the production and operation of the whole domestic textile industry has been impacted, and gradually stabilized after experiencing a significant weakening in the first quarter. Textile and clothing brand pressure is obvious, showing the overall low operation in the first half of the year, and gradually warming up in the third quarter.

Through the research and development of textile and clothing brand competitiveness evaluation index system, China Textile Industry Federation evaluates the brand competitiveness of some listed companies from the five dimensions of enterprise basic ability, innovation ability, management ability, market performance and consumer performance

1. On the whole, most enterprises' brand competitiveness index is between 0.8 and 0.9. Among them, terminal consumer brand enterprises are slightly higher than processing and manufacturing brand enterprises, most of which are between 0.8 and 0.9; However, the brand competitiveness of processing and manufacturing brand enterprises is quite different, and most of them are between 0.75 and 0.95;

2. From the five dimensions of brand competitiveness, the management and innovation capabilities of sample enterprises are better than other aspects, and they attach importance to innovation management investment and social responsibility construction such as R & D design, intellectual property protection, information construction of production links and supply chain, new product development, etc;

3. In terms of brand types, the basic ability and management ability of processing and manufacturing brand enterprises are slightly higher than that of terminal consumer brands; At the same time, we pay attention to continuously improving the ability of product innovation, and the average sales ratio of new products has exceeded 40%. The average net profit (12.2%) is significantly higher than that of processing and manufacturing brands (4.9%), and the sales proportion of new products is close to 70%;

4. From the perspective of consumer performance, the competitiveness gap between enterprises is obvious. 26.7% of the total number of enterprise members has exceeded 10 million; The average active rate of members is 35.9%, and less than 30% of the enterprises whose active rate exceeds 50%; The average repeat purchase rate is only 14.5%, most of which are between 10% and 40%. It shows that most of the brands have great radiation power, while the personalized demand trend of the consumer market is obvious, and the brand loyalty needs to be improved.

Chart 2-5 ? Distribution of brand competitiveness index of sample enterprises

Chart 2-6 ? Average brand competitiveness index of sample enterprises

(3) new features of brand building in 2020

Digital transformation has become the biggest feature of brand operation in 2020, and it is an important direction for industry transformation and upgrading to promote industrial digitization and promote the deep integration of digital economy and real economy; With the help of scientific and technological innovation, it has become a continuous topic to improve brand competitiveness, actively adjust the product structure, show the industry responsibility of common anti epidemic, and pay more attention to meeting people's health consumption demand in the post epidemic era; Pay attention to cultural construction and enhance the ability of consumption and cultural guidance.

In response to the decline of domestic market, brand digital transformation brings new development opportunities. The digital level of production and operation in the whole textile industry has been gradually improved, the digital and intelligent technology and equipment have been constantly updated, and the level of intelligent design, production automation, efficient and accurate management has been gradually improved. Supply chain links are based on data resources. Through intelligent data analysis, all links of the supply chain are optimized in series. The raw material end, production end, sales end and channel end are closely combined and reshaped to achieve the optimization and improvement of the fluency and timeliness of supply chain cooperation.

The proportion of traditional channels, webcast, community marketing and other channels is changing. From the perspective of "key brand enterprises", in the first half of the year, the sales volume of single store in physical stores decreased by 15.2%, the flat efficiency decreased by 16.0%, and 59.0% of enterprises reduced the number of stores. At the same time, online sales increased rapidly. From January to November 2020, the online retail sales of physical goods increased by 15.7%, of which clothing goods increased by 5.9%“ In the first half of the year, online sales of "key brand enterprises" increased by 18.3%, and the proportion of online sales increased from 15.1% in 2019 to 18.9%, an increase of 3.8 percentage points. With the rapid growth of live e-commerce, some data show that in 2020, the trade scale of live e-commerce industry is expected to exceed one trillion yuan. In the first half of the year, the number of clothing and apparel live broadcast products has reached 8.55 million, accounting for 37.6% of the total category of live e-commerce. Zhejiang, Guangzhou, Shanghai, Qingdao, Sichuan, Chongqing, Jinan and other local governments have issued corresponding policies to encourage and support digital marketing.

Pay attention to the cultivation of internal skills, improve the ability of brand innovation and R & D and product structure adjustment. Under the pressure of the overall operation of the industry, a large number of brand enterprises still focus on strengthening scientific and technological innovation to enhance internal competitiveness. In the first half of 2020, the average R & D investment intensity of "key brand enterprises" will reach 2.25%.

Affected by the epidemic situation, people's consumption concept and consumption habits are also changing. The demand for sterilization and anti-virus is stronger. The big health characteristics such as antibacterial and antibacterial have become the normal needs of consumers. Health functional clothing and home textile products have become one of the important protection barriers, ushering in a huge market space.

Pay attention to cultural construction, enhance brand stickiness and Chinese cultural confidence. Strengthening cultural confidence has become an important starting point for independent brands to stabilize the domestic market. More attention should be paid to brand culture and creative design, to the leading force for lifestyle, to weaken the concept of age and traditional classification, and to advocate comfortable, fashionable and quality life. China's textile and clothing brands are attracting more and more consumer groups with the advantages of quality improvement, original design ability improvement, Chinese cultural carrying capacity improvement, scientific and technological content improvement, and high cost performance ratio.

Export growth against the trend, highlighting the advantages of processing and manufacturing brands. According to the data of China Customs express, in 2020, China's textile and clothing export volume will be 291.22 billion US dollars (excluding 94 chapter mattresses, sleeping bags and other bedding), with a year-on-year increase of 9.6% (10.3% in RMB), close to the best level in history, with a year-on-year increase of 12.5 percentage points and a positive growth in May.

The rapid development of creative park has become an important platform for the promotion of industry innovation ability and brand incubation. Up to now, the Ministry of industry and information technology has identified five batches of 54 "textile and garment creative design pilot parks". There are 6983 textile and garment design institutions, 27000 textile and garment designers, 1460000 online textile and garment designers, 2.64 million textile and garment enterprises, and 17000 textile and garment brands incubated. Among them, two creative design platforms relying on the Internet to gather creative resources have obvious advantages in gathering creative design resources and serving enterprises. The number of online signature designers and service enterprises accounts for 98.3% and 98.6% of all creative platforms respectively（ By: China Textile Industry Federation brand office)

This article is excerpted from the report on the development of China's garment industry 2020-2021, compiled by China Garment Association. For a full subscription to the report, please contact:

China clothing association ? ? Ministry of industry

Tel: 010-85229226 ?? thirteen billion nine hundred and eleven million five hundred and eighteen thousand three hundred and thirty-nine