The Way Of Transformation Of The Garment Industry
For China's garment enterprises, how cold in this winter
? A survey showed that only 22 A-share listed companies in the third quarter, the clothing inventory reached a staggering $ 382 billion total. Even some media asserted that the national clothing stock enough people to wear 3 years.
Insiders pointed out that the weak market demand, a strong rise of e-commerce, foreign brands sniper, is the crisis of incentives. However, the deeper reason is that the market space is limited, but the business model is still stuck in the large-scale expansion.
According to the data by the General Administration of Customs, from January to September 2012, China National Garment total exports of $ 116.1 billion, a year-on-year growth of 0.7%. Since the beginning of October, due to the overseas demand for Christmas orders, export growth has been warmer, but the long-term trend is still not obvious to take a good.
On the one hand, the majority of China's garment enterprises by the export trade to domestic sales. The same downturn in domestic demand, the balance of supply and demand were broke through in the market, and also led to high inventory of the clothing company. On the other hand, the strong rise of e-commerce, but also has brought a great challenge to the traditional garment enterprises.
Currently,2009-2011 department store clothing sales accounted for about 38%, 35.7% and 26.9% of China's total clothing sales respectively, expected in 2012 will account for 25.1% of the share. However, there is a downward trend on the whole.
After the 2007 economic crisis in Europe and America, the international fast-fashion brands have moved into China, also brought a fierce competition to the domestic apparel brands. Growth trajectory of 30 years, a large number of Chinese garment enterprises are basically started out by doing foreign trade foundries, then the development of OEM factory, and finally converted to the brand. The most typical case is Metersbonwe , In the pre-development just do own brand, and do not do sales but by the agents to join through the Four Seasons orders will quickly spread channels, the so-called "asset-light" operators.
In fact, in the early development of the industry, this extensive operation mode rapidly can achieve the large number of clothing "Fast Company", because the market demand is sufficient to conceal the trouble of rapid expansion. Comprehensive inventory crisis since the outbreak of the textile and apparel retail industry this year, marking the industry got into the development of the transition. After decades of development, the Chinese clothing market space is very limited, high-speed epitaxial growth is unsustainable, but the business model remains in the large-scale expansion of the inertia, the conflict between the two lead to lower-than-expected corporate sales of new stores, and many new stores inventory over affordable areas of a slowdown in consumer demand. Whats more, it upgraded to the crisis that interfere with normal business operations.
There is no doubt that the transformation has become the main theme of China's garment enterprises. The direction of the future transformation of the local garment enterprises, is intensive business model changed by extensive growth in the past, can learn the fine points of foreign brand clothing category, as well as the precise control of information on the retail end.
Guangdong Bifan Clothing Co., Ltd. is a large Joint Venture, which covers 120 Acres, which have the capability for 20 hundred people. We are mainly doing the business of all kinds of garment shell fabrics, we have 1500 manufacturing devices, all of them are introduced from the oversea. We hope you can join us and established long-term relations of cooperation with us.
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by: vera_liu
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