Clothing : New Changes in the throes of giving birth

” China ‘s garment industry has reached a critical moment of transformation and upgrading of China’s garment industry in brand building need to continue to strengthen in the future .” Recently, the chairman of the Joint National Organization brand associations , Jiangsu Brand Society president Dr. Xu Haoran told reporters.
2013 , the domestic apparel industry continued cold , overstock serious sales growth weak, shrinking market demand , the overall profitability of the industry downturn . Under surrounded these negative factors , the domestic apparel industry difficult. Many industry insiders have said : The change in the situation of domestic apparel industry has come , the future of China’s garment industry challenges and opportunities .
Development of the industry downturn is not reduced
Recently, the National Bureau of Statistics China Economic Monitoring Center and the Economic Daily in a joint study by the industry sentiment index released “in the garment industry through climate index report” shows that current domestic apparel industry the main business income , gross profit and gross tax increment speed has slowed to varying degrees. Among them, three- quarters of the apparel industry ‘s main business revenue of 379.6 billion yuan , two consecutive quarters showing a downward trend , the garment industry was 69.7 billion yuan of funds of finished products , and continued the trend of seven quarter slowdown , the apparel industry loss was 17.0% The total enterprises suffered losses of 7.2 billion yuan.
The report also noted that the current domestic garment industry index of 80.0 warning continues in colder “blue light zone” running garment industry’s own endogenous growth momentum is still insufficient.
In addition , since October , with the major clothing companies have announced three quarterly results , the overall performance of the contour 2013 apparel industry is also gradually clear. Affected by the overall downturn in the apparel industry , the results of each garment enterprises generally poor performance .
Among them, Metersbonwe 2013 third quarter results show that from January to September 2013, the overall revenue decline of 19.9% ​​, net profit drop of 49.12% . Seven wolves 2013 third quarter results show that from January to September 2013 achieved revenues of 2.31 ​​billion yuan , down 8.11 percent . Joeone released three quarterly show, from January to September this year, achieved revenues 1.761 billion yuan , down 1.18% ; profit 426 million yuan , down 9.6% , operating income and net income both declined .
After a long period of ” closed shop boom” after the embarrassment of sports apparel brand still no signs of improvement . To 361 ° for example, its 2013 third quarter operating data show that the company’s new store openings 186 , 443 closed , the net reduction in the number of stores 257 . Previously more publicly available data, the first half of 2013 , Li Ning , Anta , Peak , China Dongxiang , 361 °, the number of Xtep brand closed six stores in total up to 2249 , a daily average of six companies closed shop 12 .
Industry insiders believe that the apparel industry is facing such a dilemma , caused by multiple factors , this situation will continue in the short term .
Weak demand , high inventory
Dr. Xu Haoran told reporters that at present a major problem garment industry, there is a serious backlog of inventory , sales growth is weak , unable to sell out a lot of inventory , the store under various types of wire under tremendous pressure.
Industry sources pointed out that the current total inventory of all brands apparel industry add up to about 2 times the total sales , even if one does not produce, in accordance with previous sales momentum point of view, but also to sell for two years.
It is understood that in recent years, the apparel industry has been facing the problem of overcapacity , major apparel companies generally appear high inventory phenomenon, now affected by many negative factors , these industries began to focus on the problems and shortcomings of the outbreak .
From the current point of view , a number of garment enterprises have taken discounts , cheap online sales ” to stock” measures as soon as possible and strive to digest excess capacity , return the funds to accelerate new supplement . Of particular note is that in recent years with the explosive growth of online shopping , more and more clothing companies began to layout electricity supplier and an important means to clean up its inventory seen , which is to digest inventory , return of funds to achieve sales growth had a positive effect and stimulate consumption to some extent , but this approach also has drawbacks appear.
A clothing company official told reporters disclose the current number of garment enterprises are taking ” online selling stock , selling under the new line” sales model. Businesses through the online channel will overstock products at lower prices in online sales, but sales of similar goods store so will inevitably be affected, more and more consumers are ” test equipment store , online orders “,” this is no way of things, only robbing Peter to pay Paul a . ”
Insiders pointed out that currently more clothing companies just as their electricity supplier inventory digestion of consumption “sewer ” , the ” Brokeback bleeding ” way dumping inventory, which the brand value of the product has caused some damage . In addition, the current conflict of interest conflicts online and offline channels are also increasingly prominent , ” right-hand fighting ” situation often occurs , this contradiction can be solved.
Inventory remains high, ” destocking ” action continues, but the needs of the market has shrunk , which makes China’s garment industry is facing greater challenges.
According to Dr. Xu Haoran introduced , before the domestic apparel industry rely heavily on export earnings , but now export orders is decreasing , giving garment enterprises adversely affected.
This argument has been confirmed in the ” 2013 1-3 quarter operation of China’s textile industry ,” the report MIIT released in November 6 . Statistics show that since 2013 , import demand in Europe , Japan and clothing down , the larger of China’s textile and garment export industry pressure. For example , from January to August , the EU dropped by 5.9 percent of total imports of textiles from China Garment year , Japan fell 3.9 percent of total imports of textiles from China Garment year .
The performance of the domestic market is equally bleak . According to statistics of China National Commercial Information Center released noted that the first half of 2013 , the country hundreds of key large-scale retail enterprises apparel retail sales growth is lower than the same period last year by 2.9 percentage points .
Negative factors facing the apparel industry is also more than that. Rising domestic labor costs , shop rental elevation, raw material costs increase, the strong impact of international clothing brands , which have led to the profit and garment enterprises are substantially compressed. More seriously , in recent years , some Southeast Asian countries with cheaper labor costs attract more and more foreign manufacturers , China ‘s comparative advantage of low-cost clothing manufacturing industry is disappearing .
Usher critical period of change
Although the domestic apparel industry very difficult, problematic, but many industry insiders have said that this does not mean that Chinese apparel industry has to decline. In contrast, Chinese apparel industry is currently in a critical period of transformation and upgrading , the future of the apparel industry will usher in a new revolution .
Chen Dapeng , executive vice president of China National Garment Association in 2013 China Garment Assembly has pointed out , the development of Chinese garment industry is facing a more complex environment of the future and a new multi-faceted challenges, while also facing a huge opportunity . Chinese apparel industry will vigorously readjust the industrial structure in the future , and actively cultivate brand growth , highlighting the brand new full value , moving from a manufacturing power to create powerful intellectual future annual growth rate of China’s garment industry should be more than 10%.
Dr. Xu Haoran believes that the current problems in terms of the surface of the domestic apparel industry is inventory , market demand is low, sluggish sales channels , but in fact reflects the domestic apparel industry is serious homogenization , brand awareness is not strong , philosophy needs to be improved , urgent issues such as innovation and marketing mode . Therefore, the future of China’s garment industry will change occurred or that change will bring pains to clothing enterprises.
” The next few years there will be a number of brand development lag behind business philosophy , product features poor garment enterprises are eliminated , and the precise positioning of those businesses will better life , while mergers between companies clothing phenomenon also appears that some have channel advantages will be more mergers and corporate value . ”
Dr. Xu Haoran believes that the future development of China ‘s garment industry great potential , after going through the throes of the apparel industry will usher in a new pattern. ” China ‘s garment industry will be the next really big brands , a number of high-value , high-profit independent brands will enter the high-end market , then, the high-end market in Western luxury brands will give way to self -made clothing brand .”
Clothing enterprises should abandon impetuous, with intensive mental painstaking to do the brand , develop customer loyalty , should the pursuit of ” selling ” to pursue ” often sell .” “A clothing brand is equal to the demand of a crowd , men and women can not take-all , but can not do anything , if only the pursuit of ‘ large and fast track ‘, that cake looks like a lot , in fact, lost the original market . “