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Value Advantage Is The Ultimate Goal.

2012/1/3 17:20:00 53

From the development of manufactured products to the present, China's textile and garment industry needs to turn to higher value. Higher value is not to seek breakthroughs in selling products, but to create brand value.

In the "innovative capital drive" forum, Yang Dayun, President of UTA Fashion Management Group, expressed his views on the value of enterprises.

Technology is not the only value.

For brands and consumer markets, the technological content of fabrics can increase the value of the product itself, but this is not the true place of value.

Enterprises need to focus on how to sell the added value of what trademark, in fact, consumers need is a kind of value embodiment.

Yang Dayun said: "DuPont Co has turned its brand into a symbol of modern life, environmental protection and a new era in the future. So choosing cooperation with DuPont is a state. I think this is the highest value. If technology is the sole value, it is far from enough."

Textile and garment enterprises need technology

advantage

Transform into brand and pform brand advantage into value advantage.

Foreigners are most familiar with the Ma, silk and cashmere products in Chinese textile products. These three products are brand names abroad and represent first-class.

A lot of Hermes seven thousand yuan silk scarves are made from Jiangsu silk.

Why is there such a big gap? The main problem is not that the level of textile industry of Chinese enterprises is not high, but that the upstream of China's textile industry needs to be more closely linked with international popularity and consumer market, and they lack the cultivation of product value.

Yang Dayun said: "the Chinese consumer market, including many brands, is suffering. If they want to make creative products and set up Chinese brands, they will need the textile industry to produce fabrics that are creatively designed in line with international standards.

Many design companies have told me that China's fabric inspiration has been destroyed, and that foreign fabrics have been inspired, but they can not afford to do so.

How to make the upstream and downstream industrial chains smoothly integrate, I think there is still a way to go.

At the same time, the management and comparison of Chinese textile and garment enterprises are compared.

extensive

The added value of the product is low.

Taking cotton price increase as an example, Yang Dayun thinks that the price increase of cotton should have no effect on clothing retailing. The price of a ton of cotton is calculated on a garment, the cost is only increased by about 0.25 yuan, but the production enterprise has increased 23% in the original clothing retail price, so this year less than 1000 yuan down clothing.

This is actually because when the whole link is changed, enterprises can not cope with the cost of the market, and only increase the retail price. The bad result of the increase in retail price is that the brand awareness and the connotation of the brand itself have not been improved, but the consumer has to bear the price growth rate of 23%. This makes most consumers disagree, which may lead to the sale of products at a lower price or large inventory.

Win value with capital

In the process of shaping enterprise value, we can not avoid the need for capital investment.

Yang Dayun believes that there are many ways of indirect financing, and Chinese enterprises, especially small and medium-sized enterprises, should try direct financing, that is, direct docking with the capital market.

China's overall textile and apparel accounts for a very small proportion in the capital market. The textile and apparel industry in the New York stock exchange is located in the seventh place. The textile and garment industry in China's capital market is located in the eighth place, and the securitization rate is very low.

Although China's traditional clothing industry is worth investing, there are only about 76 listed companies (including overseas and domestic).

So far, no garment enterprise in China has achieved a turnover of 20 billion yuan, while Nike's turnover is expected to reach 200 billion yuan.

In this case, why is the capital market still more interested in traditional textile and clothing? Because the traditional clothing enterprises listed on the market are relatively small investment risk compared with high-tech industries.

At the same time, the demand of our 1 billion 300 million population will continue to expand in the future, and China's per capita income has reached US $3000. There will also be a rapid growth in the next 10 to 15 years.

China's textile industry is very large, and China will generate some large scale enterprises. This is also the reason why investment banks choose clothing enterprises to invest. They have taken into account the potential of Chinese garment enterprises.

Investment banks also have their own rules of the game, "you really do.

To be straitened for money

"No one can give you money". Their investment philosophy is to invest money for enterprises that are not short of money. A business must be in a state of full glass before they have access to investment. They will never add water to empty cups.

Why investment competition has become fierce in the past two years? Because there are lots of money and very few good projects. A growth potential enterprise or brand will have a lot of investment competition.

For traditional industries such as textiles and clothing, although the short term growth will not see very bright results, but in the long run, China's textile and garment industry has great room for development.