Traditional Spinning And Weaving Industry Is Brilliant.

In the first half of this year, the profits and taxes and profits of Wuxi Jiaxin textile and Garment Co., respectively, increased by 36.2% and 30.5% over the same period last year, much higher than the output value and sales growth.

Under the influence of many unfavorable factors such as the rising price of production factors and the continuous appreciation of RMB, the performance of foreign trade enterprises is obviously "abnormal".

In this regard, general manager Zhao Tuo summed up 7 words: to see the market as a brand.

Jiaxin textile and garment is a new company that has just been established for 5 years, because Zhao was originally a foreign trade company. Its initial stage coincided with the prosperity of foreign trade clothing industry.

After accumulating experience in OEM, Zhao Tuo began to ponder over the American clothing market. He decided to design and create his own brand, and change from OEM to brand innovation.

In 2005, the American operating company of Jiaxing Textile Co. recruited more than ten local designers in the United States, expanding R & D centers in China, and formed a team of 6 professional designers and computer CAD engineers, 35 teams of production managers and sample producers, and invested 5% of the sales volume in design and research.

In view of the low and medium market of American clothing, Jiaxun has created five or six brands, from old to small and different styles.

Eventually, 3 of its brands crowded into large department stores and professional clothing sales chains in the United States and gained a foothold in the US market.

Like that, there was a "PEACHKEEN" sports girl suit, which had achieved unprecedented success and led the trend.

Because of its own brand, the added value of products is relatively high. When the exchange rate adjustment, labor cost growth and foreign trade clothing industry profits fell sharply in August 2006, Jiaxing still achieved a good profit.

However, since the second half of last year, the US economy has declined and the consumption power of the market has declined. As a strong foreign trade garment enterprise, Jiaxing textile has inevitably been affected, and the sales of the three major clothing brands have declined sharply.

Zhao Tuo had to study the American clothing market once again. He found that the American clothing market was polarized. On the one hand, because of the decrease in American income, cheap low-grade clothing was favored. On the other hand, the quality of life of the high-income class did not decrease, and the top grade brand still sold well.

Jiaxun responded immediately: reducing the output of its own brand 50%, and turning to high-end clothing brands.

Zhao Tuo said, for high-grade clothing OEM processing, the profit is more than 3 times higher than the ordinary OEM production, it can effectively digest the cost growth brought by exchange rate adjustment; in addition, it can also learn the design and sale of high-grade brand, and make its brand "reborn".

Just because Jiaxin has already laid the foundation of R & D and design in creating the brand, the famous clothing brands such as "MEK", "TURE LEGEND" and "MONTERY" have joined hands with Jiaxing.

It is estimated that cooperation with high-end brands is expected to increase the profit margin of Jia spinning by 10%.

The economic and Trade Bureau commented: facing the complicated macroeconomic situation, the textile enterprises as the traditional pillar industries in Jiangyin are undergoing severe tests. Especially, some textile and garment enterprises with high dependence on foreign trade, low scale operation, and lower reaches of the industrial chain have lost their economic benefits.

However, a number of textile and garment enterprises have grown up in adversity, and gradually win the initiative of market competition by optimizing product mix, changing business models and branding the brand. The Wuxi Jiaxin textile and Garment Co., Ltd located in Zhu Tang town is one of the most representative success stories.

The success of Wuxi Jiaxun is to grasp the pulse of the international market, adhere to the management model of the market and the brand, rely on the international famous brand, strengthen the R & D innovation, enhance the value-added of the product, expand the profit space, and enhance the ability to resist the market risk.

It is hoped that through the promotion of the successful experience of Jiaxin textile and garment company, Jiangyin textile and garment enterprises can be beneficial to draw lessons from it, and further make useful attempts in upgrading product grades and speeding up scientific and technological innovation, so as to get rid of the plight of development and extend the past glory.