Industry Analysis: In The Pformation Period, We Need To Strengthen Brand Superiority.

Experience 2008

The trend of cost upgrading is hard to change.

The rising labor costs in the whole country bring the cost of garment industry up. Data show that during the 5 years from 2005 to 2009, the annual average per capita wage of textile industry has risen from 12351 yuan / person to 25553 yuan / person, the increase is 106.9%.

For brand clothing enterprises, although there are fixed supply channels and production lines, with the increasing demand for outsourcing processing, the supply chain problems of garment industry will gradually increase. Some production enterprises can not adapt to the fast and accurate supply mode, which restricts the fast operation of the apparel brand supply chain. Therefore, brand clothing is still not out of the predicament of recruitment difficulties, and the continuous rise of labor wages will also become an important factor that brand clothing has to continue to face.

In addition, large fluctuations in raw material costs, and the rise in commercial land rent and pportation prices, increased business costs, increased water and electricity resources, and pushed up manufacturing costs which were already at a high level. The three increase in interest rates caused financing difficulties for SMEs. Tightened credit policies increased the operating costs of enterprises.

China's clothing enterprises are at the lowest end of the global apparel value chain. The clothing brand lacks the sense of value, and lacks the industry advantage compared with the international brand.

For example, compared with the European clothing industry, the lack of cultural atmosphere, can not get the respect from culture, so what people value more is European luxury goods.

At the same time, international brands accelerated to the Chinese market, such as ZARA in Spain and UNIQLO in Japan, and have extended to the two or three line market.

The competition in the domestic market of brand clothing will become more and more intense, and the uncertain factors will increase, and the market volatility will also emerge.

From the current market, Chinese brands are booming in the domestic market. However, the brand operation of domestic garment enterprises is late. From the early stage of self establishment of fir, Luo Meng and other men's clothing brands to the peak of brand development in the whole industry in recent years, the long-term entrustment of OEM production has made some enterprises lose the initiative of brand building.

Moreover, the phenomenon of piracy and counterfeit is more.

The plagiarism of the brand results in serious homogenization of the products, especially in the women's wear market.

The price of brand clothing is relatively high, prompting consumers to consider the purchase of low priced clothing with similar styles and quality because of price factors, which affects the sales of brand clothing.

Once the brand clothing is plagiarized, if the new style can not be designed in time, the priority of the original style will be lost, and the market share of the brand clothing will also decline due to the low price of the same style products occupy some market share.

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Urgent need to accelerate the training of advantages

Brand clothing enterprises urgently need to accelerate their training in the pition period.

One is to create brand charisma, enhance brand awareness and reputation, improve the design level of brand clothing, improve the level of designers, enhance the quality of personnel, and enhance the training of talents.

The two is to increase labor productivity, reduce the cost of circulation links, change the traditional sales mode, and brand clothing enterprises need to establish a modern business philosophy.

The three is to improve the cultural integration of brand clothing. There are some differences between the consumption groups of brand clothing and ordinary clothing consumption groups, especially high-end luxury clothing, and consumers have higher requirements for brand clothing.

With the increase of the educated group and the improvement of education level, consumer groups pay more and more attention to cultural assignment, and the high-end clothing consumption crowd is the same. Therefore, improving the level of cultural integration can enhance brand image on the one hand. On the other hand, it can gain greater recognition, form advertising effect, and at the same time bring about sales promotion.

Four is to strengthen the clothing brand's ability to control the domestic and international value chains, and improve the private brand's strength in the international market.

Although some major domestic brand manufacturers have begun to strengthen the control capability of the clothing market value chain in the domestic market, they need to increase their efforts in the international market.

Five, we should strengthen the adjustment of industrial chain and change the unsmooth connection of industrial chains.

Take YOUNGOR as an example, in October 2001, YOUNGOR and Japan "plant" dangli joint venture to set up a washing plant; in 2002, YOUNGOR invested in the textile city to upgrade the fabric quality through the production of high-tech, functional high-grade fabrics, and subsequently invested in YOUNGOR's yarn dyed knitted, knitted, woolen and other items.

YOUNGOR gradually controlled the upstream, not only controlling the quality of raw materials, but also keeping up with the market, responding to the needs of the middle and lower reaches immediately, and reducing costs.

In the middle reaches, YOUNGOR spent $100 million in 1999 to build YOUNGOR International Clothing City, which integrates design, textile, clothing, sales, trade, exhibition and business. In 2004, it invested in 500 million Yuan Xingjian YOUNGOR's western production base in the south shore tea garden area of Chongqing.

In the lower reaches, the downstream sales channels are in the hands of enterprises and become circulation enterprises, which is an important part of YOUNGOR's continued integration of the industrial chain.

The control of the upper and middle reaches, the integration of the industrial chain, changed the linkage of the industrial chain, and promoted the development of YOUNGOR.