Briefly Describe The Four Development Pain Points Faced By China'S Garment Industry For A Long Time

　　 New changes

Transmutation has two meanings in terms of words: transformation and replacement, which represents complete change. It is most appropriate to use it to describe the crisis and change that the apparel industry is facing today.

According to the World Clothing, Shoes and Hats Network, in recent years, China's clothing The industry and enterprises suffered from the continuous impact of new technologies, new channels, new market competition and new consumer groups, and gradually fell into the valley, embarking on a long journey to find a breakthrough in the downturn. To break the bottleneck of development, insight into the current problems is the key. Recently, a report released by KPMG, an international investment research institution, pointed out that China's clothing industry has been facing four development pain points for a long time, namely, sales bottleneck, inventory imbalance, low profits and customer loss. To overcome difficulties and turn the corner, we need to plan in the long run - build brand Value depth, carry out global marketing, and build smart stores that focus on consumers' in-depth experience, ultimately promoting healthy and sustainable brand growth.

　　 New pains breed new changes in production and marketing

In fact, in addition to the four industry pain points mentioned by KPMG, entering 2017 is accompanied by“ Internet plus ”With the deepening of business ecology, other traditional industries have successfully transformed. However, "Internet+" is still a very close door for most garment industries. It seems very close, but the right "key" has never been found.

Xia Hua, chairman of Yiwen Group, once pointed out in an interview that "Internet+" and sharing economy want to change the clothing industry, not just to sell products online, but to completely change the logic of production and marketing. In the past few years, many garment enterprises have tried to expand the "e-commerce", some even completely abandoned the traditional channels and stores, which has invested a lot of costs, but the profits visible in the past few years are poor.

Industry insiders pointed out that garment enterprises need to realize that "Internet+" is only a tool to help or assist traditional enterprises in their own business, and never put the cart before the horse. The control of quality, management and supply chain is the basis for garment enterprises to settle down. On this basis, clothing enterprises can think again about using the Internet to improve the accuracy of matching between production and marketing, fine service to improve customer satisfaction, etc. This is the right way to use Internet tools to transform the clothing industry.

　　 New demand promotes new brand definition

Previously, the 2016 Global Trend Life Consumption Trend Report released by the e-commerce platform in conjunction with CBNData pointed out six major trends, including younger consumer groups, diversified online brands, diversified clothing categories, prominent advantages of the omni channel model, e-commerce of high-end brands, and personal needs leading to private customization.

Obviously, with the arrival of the era of consumption upgrading, brands are facing many challenges, such as diversification of user needs, integration of online and offline channels, and dispersion of brand communication media. The new middle class, represented by the post-90s and post-95s, is becoming the main consumption force of the times. The consumption demands of this group, to a large extent, determine the future development trend of the brand, and this group's personalized demand for clothing consumption is increasingly evident, and even more enthusiastic about fashion culture. All of these provide good opportunities for the brand remodeling and rebirth of garment enterprises.

When talking about the topic of brand reshaping of domestic clothing enterprises, Mao Jihong, the founder of Exception and Fangsuo, pointed out that brand reshaping should adhere to independence, and maintain considerable values and brand confidence. "To stand out from the crowd is a kind of belief. You cannot use other people's survival logic to replace your survival logic, and you cannot use other people's value to replace your value".

　　 New retail brings new ecological cut

In March 2017, the New Retail Research Report released by Ali Research Institute defined new retail as "a data driven pan retail form centered on consumer experience". When people in the industry disassemble this theory into the production and marketing mode of clothing enterprises, it is a transition from the traditional SPA mode (i.e. the operation mode of independent brand professional retailers) to the whole industry process of clothing enterprises, including commodity planning, production, logistics and sales.

Guangfa Securities, an institutional researcher, believes that if the clothing industry can really put the new retail theory into practice in the whole ecology, it may better solve the contradiction between the clothing industry's strong seasonality, short cycle, fast change and long supply chain, slow response, while minimizing the risk of demand forecasting in the clothing industry and realizing quick response supply.

At the enterprise level, the founder of Inman, Fang Jianhua, believes that new retail is not a simple "commodity+channel". Enterprises use the Internet to improve business efficiency and brand efficiency, which is the essence of new retail. In his view, in the future, the consumption of middle and high-end clothing will actually focus on experience. Customers need to buy and go, and they need to touch and feel the texture and size of clothing. At present, the online share of the clothing industry is about 22%, and the online share may increase in the future, but it will not exceed 50%.

　　 Keyword analysis

Warming up

The output of more than 15000 enterprises above designated size in China's garment industry has maintained steady growth in the first three quarters of this year, the China National Garment Association said Saturday. From the perspective of the domestic market, clothing sales in China's domestic market in the first three quarters of this year increased by 7.1% year on year, up from last year, and online sales grew rapidly by nearly 20%.

　　 comment:

According to industry insiders, since this year, the main benefit indicators of China's clothing industry have obviously improved, and the warming trend has been confirmed. Against the background that the overall factor cost of the industry is still rising, it is not easy to achieve such growth, which is also a reflection of the adjustment, transformation and innovative development of China's clothing industry in recent years.

　　 High end M&A

In 2017, the industry M&A momentum is still fierce, but the target of M&A has changed: cross-border acquisitions are fewer, and clothing enterprises have more cases of acquiring new brands. At the same time, "high brand maturity", "strong expected profitability" and "high-end or luxury" are becoming new M&A labels. Like Seven Wolves invested 320.4 million yuan in international designer brand Karl Lagerfeld China operating entity; Anta was rumored to have acquired Hong Kong's high-end children's wear brand KINGKOW for 60 million Hong Kong dollars, and other events have attracted the attention of global peers.

　　 comment:

Behind the big "buy buy buy" of clothing enterprises is the recovery of the industry and the gradual maturity of enterprises in mergers and acquisitions. The mergers and acquisitions of garment enterprises are mostly concentrated on mature brands, which indicates that enterprises are beginning to mature and are no longer blind. After all, the risk of cultivating new brands is high, the cultivation period is too long, and the failure rate is too high. M&A in China's clothing industry is not very mature, but it has indeed entered a new stage. However, enterprises should eventually build their brands. For clothing enterprises, brands and products are still the most important.

　　 Return to main business

In 2017, some people chose to continue expanding, while others chose to return to the main business camp: Li Rucheng, the chairman of Youngor Group, said Youngor would return to the main clothing business in the next five years, and would invest 10 billion yuan to strengthen fabrics, processes, brands and improve sales channels; Zhou Chengjian, the founder of Meibang, said frankly that "we should return to the original intention, return to the main business, return to the real needs of consumers, and do a good job in products and experience. We should gradually correct ourselves from the impulsion and confusion mentioned above, and wake ourselves up. Red Bean has also ended the development of" real estate+clothing ", which has lasted for more than ten years, and returned to a single main business - clothing, Strengthen the competitiveness and profitability of the main garment industry.

　　 comment:

Diversified transformation has brought more choices to service enterprises, provided new growth points, and cultivated brand value. However, due to the wide layout, risks will naturally increase. On the other hand, many service enterprises choose to return to the main business after trying to diversify expansion, which also means returning to the "original intention", focusing more on one thing, and doing a good job in brand operators to enhance brand value.

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