Briefly Describe The Four Major Development Pain Points That Chinese Apparel Industry Has Been Facing For A Long Time.

New changes

Transmutation has two meanings in terms of words: Metamorphosis and replacement. It represents a radical change.

And it can be used to describe the crisis and change that the apparel industry is facing today.

According to the world clothing shoes and hats net, in recent years, China's

Industries and enterprises have been affected by new technologies, new channels, new market competition and new consumer groups. They have gradually fallen into a low ebb and embarked on a long journey in the doldrums.

To solve the bottleneck of development, it is the key to see the current problems.

Recently, a report released by KPMG, an international investment and Research Institute, pointed out: Nowadays, China's clothing industry has long been faced with four major development pains, namely, sales bottlenecks, stock imbalance, low profits and customer churn.

If we want to overcome difficulties and turn things around, we need to lay out in the long run.

Value depth, global marketing, and building smart stores that focus on consumers' deep experience, and ultimately promote healthy and sustainable brand growth.

New pains breed new changes in production and marketing

In fact, in addition to the pain points of KPMG's four industries, it went into 2017, accompanied by "

"Business ecosystem continues to deepen, other traditional industries have successively successfully pformed, but" Internet + "for most of the clothing industry, is still a door to the world, seemingly close, but still can not find the right" key. "

In an interview with reporters, Xia Hua, chairman of Yiwen group, once pointed out that "Internet +" and shared economy want to change the clothing industry, instead of simply selling products to the Internet, instead, they should completely change the production and marketing logic.

Over the past few years, many garment enterprises have tried to make the "electric business" bigger, and some have even abandoned the traditional channels and stores, which has invested a lot of cost, but the profits seen in the past few years are not good enough.

Insiders pointed out that clothing companies need to realize that "Internet +" is only a tool to help or assist traditional enterprises in their own businesses, and never put the cart before the horse.

Quality, management and control of supply chain are the basis for a garment enterprise to settle down.

On this basis, garment enterprises can reconsider the use of the Internet to enhance the accuracy of matching between production and marketing, fine service and enhance customer satisfaction. This is the way to pform the apparel industry by using Internet tools.

New demand promotes brand new definition

Prior to this, the "2016 global trend consumer consumption report" released by the electronic commerce platform and CBNData jointly pointed out six trends: younger consumers, diversified online brands, diversified clothing categories, prominent advantages of full channel mode, high end brand e-commerce, and personalized demand for private customization.

Obviously, with the coming of the era of consumer upgrades, brands are facing many challenges, such as the diversification of users' needs, the integration of online and offline channels, the decentralization of brand media, and so on.

The new middle class, represented by the post-90s and 95, is becoming the main consumer of the times. The consumption appeal of this group also largely determines the future development trend of the brand, and this group has more and more individualized demand for clothing consumption, and more importantly, it is also keen on the trend culture.

All of these provide good opportunities for brand remolding and rebirth of garment enterprises.

When it comes to the topic of brand remolding of domestic clothing enterprises, Mao Jihong, founder of the clothing industry, points out that brand remolding should stick to independence and maintain considerable values and brand confidence.

"Standing in the crowd is a belief. You can't replace your survival logic with other people's survival logic. You can't replace your value with others' value."

New retail brings new ecological incision

In March 2017, the new retail research report, released by the Ali Research Institute, defined the new retail as "the data driven pan retailing form centered on consumer experience".

The industry has dismantled this theory to the production and marketing mode of garment enterprises, namely, from the traditional SPA mode, that is, the operation mode of independent brand specialized retailers, to the whole industrial link of garment enterprises participating in commodity planning, production, logistics and sales.

Agency researcher GF believes that if the clothing industry can really implement the new retail theory to the whole ecosystem, it can better solve the contradiction of strong seasonal, short cycle, fast change, long supply chain and slow reaction in the apparel industry, and at the same time, minimize the risk of the apparel industry to predict, so as to achieve quick reaction supply.

At the enterprise level, Fang Jianhua, founder of emann, believes that new retail is not a simple "commodity plus channel". Enterprises use the Internet to enhance business efficiency and brand efficiency, which is the essence of new retail.

In his view, the high-end clothing consumption in the future is actually a heavier experience. Customers need to buy and walk immediately, and need to feel and feel the texture and size of clothing.

At present, the apparel industry's online share is about 22%, and the proportion of future online may increase, but it will not exceed 50%.

Keyword analysis

Warm up

China Apparel Association 6 revealed that in the first three quarters of this year, China's garment industry has maintained steady growth in output of over 1.5 Enterprises above designated size.

From the domestic market, clothing sales in China's domestic market increased by 7.1% over the first three quarters of this year, up from last year, and online sales increased by nearly 20%.

Comments:

According to the analysis of the industry, the main performance indicators of China's garment industry have improved significantly since the beginning of this year. The trend of recovery has been confirmed. It is not easy to achieve such a growth in the context of the overall factor cost of the industry rising. This is also a reflection of the adjustment, pformation and innovation development of China's garment industry in recent years.

High-end mergers and acquisitions

In 2017, the industry M & a momentum is still fierce, but the target of M & A has changed: cross border acquisitions have become less and clothing companies have acquired more new brands.

At the same time, "brand maturity", "expected profitability", "high end or light luxury" are becoming new mergers and acquisitions labels.

It is like seven wolves investing 320 million 400 thousand yuan in the international designer brand Karl Lagerfeld China operation entity; Anta has been handed over to HK $60 million for the acquisition of high-end children's clothing brand KINGKOW in Hongkong and so on.

Comments:

Behind the buying and selling of clothing enterprises is the revival of the industry and the gradual maturity of enterprises in mergers and acquisitions.

The merger and acquisition of garment enterprises mostly focus on mature brands, which shows that enterprises are beginning to mature and are no longer blind. After all, the risk of developing new brands is bigger, the incubation period is too long, and the failure rate is too high.

The merger and acquisition of China's garment industry is not very mature yet, but it has entered a new stage.

But ultimately, enterprises should make brands. For clothing enterprises, brands and products are still the most important.

Return to main business

In 2017, some people chose to continue to expand, and some people chose to return to the main business camp: Li Rucheng, chairman of YOUNGOR group, said that YOUNGOR will return to the main garment industry in the next five years, and will invest 10 billion yuan to enhance the fabric, craft and brand and enhance the sales channels. Zhou Chengjian, the founder of the United States, said frankly, "we must return to our original mind, return to our main business, return to the real needs of consumers, and make good products, do a good job of experience, and gradually correct ourselves from the impulse and confusion that we have mentioned before." the red bean stock also ended the double main business development of "real estate + clothing" which has lasted for more than 10 years, and returned to a single main industry -- clothing, strengthening the competitiveness and profitability of the main garment industry.

Comments:

The diversified pformation has brought more choices to the service enterprises, provided new growth points and cultivated brand value, but because of the wide layout, the risk will naturally increase.

On the other hand, there are many enterprises in the attempt to diversify the expansion of the choice of return to the main industry, also means to return to the "first heart", more focused on one thing to do a good job brand operators, in order to improve the value of the brand.

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