Making Money Without Making Money Is The Bottleneck Of China's Clothing Internationalization.

Recently, Linghu Changlan, assistant director of Beijing billion Rui Fashion Co., Ltd., has been busy contacting various agents to promote the company's women's clothing. To her surprise, a local colleague who is seldom seen at ordinary times can always meet in the field or on a plane.

Beijing billion Rui Garments Co., Ltd. is a newly established small business. With the brand of "Jin Ba", "seven wolves", "Qipai" and "nine shepherd", "Yi Rui" is still a small character. But what makes Linghu Changlan headache is that many of the heads of clothing enterprises, like her, are now concentrating their energies on the domestic market under the worsening export situation.

"Before Fujian clothing OEM The proportion of exports is more than 70%. In recent months, however, Fujian's men's wear has shrunk by more than 40%. Everyone is looking for a way out. " The head of an enterprise said in an interview with reporters.

　　 Make money without making money.

Fujian is a gathering place for garment production enterprises in China, and the situation is not optimistic. Wang Qiming, chairman of Fujian Textile Industry Association and chairman of Haitian Textile Group, said that in the first two months of this year, the export of Fujian's textile and clothing decreased significantly, the overall decline of 30% to 40%, of which exports of textiles and clothing in the United States dropped by half.

Fuzhou customs statistics show that in February this year, the momentum of textile and clothing exports in Fujian declined sharply, and exported 421 million US dollars in that month, down 16.4% compared to the same period last year. Among them, the general trade export growth rate dropped significantly, in the first 2 months, Fujian province exports 943 million yuan of general trade and textile clothing, an increase of 5.7%, the growth rate dropped 22.6 percentage points from the end of last month. The growth rate of exports to major markets has also dropped to varying degrees. Among them, exports to the US amounted to 86 million US dollars, a decrease of 12.6%, a decline of 7.4 percentage points from the end of last month, a 114 million increase in exports to Latin America, an increase of 3.2%, an increase of 25.5 percentage points, an increase of 90 million dollars in exports to Africa, an increase of 9.1% percentage points, and a decline of 57.6 percentage points.

In fact, Guangdong, Shandong, Zhejiang and other clothing provinces are also facing the same severe test. According to the data released by the Ministry of industry and commerce, from 1 to February this year, China's textile and clothing exports were 31 billion 200 million US dollars, down 2.6% from the same period last year, of which 2.6% of textile exports and 2.5% of clothing exports. "The export of textile and garment enterprises has been shrinking dramatically. This massive backslide is unprecedented." A person in charge of the enterprise said in an interview with the China enterprise daily.

Over the past few years, China's apparel industry has seen tremendous prospects. After joining the WTO, WTO Rules, Europe and the United States and other countries have completely lifted the quota restrictions on Chinese textile and clothing products since 2005, and the export capacity of textile and garment products has been fully released.

According to the statistics of the China Textile Industry Association, by 2010, the output value of China's textile and garment enterprises above Designated Size exceeded 4 trillion yuan, and the total export volume of the industry reached 206 billion 500 million US dollars, while in 2000 it was only 56 billion US dollars, and the total growth in the 10 years increased by 292.1%, with an average annual growth rate of 16.4%. The share of textile and clothing exports to global exports also increased from 15.6% in 2001 to 32.71% in 2010.

A popular saying is that in the early 90s of last century, an export sweater could earn 30 yuan. But at present, the profit is only about 1 yuan, and some orders even lose money. According to a survey conducted by the China Cotton Textile Industry Association for the mainstream clothing enterprises in China, affected by these disadvantages, 44.4% of the garment enterprises in China have varying degrees of export to domestic sales, and some enterprises even completely cancel their exports.

A clothing business marketer told reporters that in the global economic depression, China's low-end products export garment factories were particularly devastating.

On the high end forum of textile and clothing trade held by Guangzhou Trade Fair early this year, Fu Ziying, Vice Minister of Commerce, said that China's exports of textile and garment products account for 1/3 of the world market and trade targets all over the world. But the aura of the huge industry over $200 billion seems to be fading.

The main export market of Chinese clothing, such as the United States, Japan and China Hongkong, has seen a sharp decline in the volume and price of garment export in 2008, and has not recovered in the first half of 2009. Concerned people are worried that the export situation of the textile and garment industry is "worrying about making money but not making money". According to the China Textile Industry Federation data, excluding the price factors, the number of textile and garment exports increased by only 0.5% in 2011, and the number of garment exports decreased by 0.2% over the same period last year. Industry profit growth continued to slow down, from January 2011 to November, the growth rate dropped 27 percentage points from the first quarter, while the profit growth rate in November was only 11.6%, down 46 percentage points from the beginning of the year. "At present, some of the low-end products have been transferred to neighboring countries, and this trend will become more evident in the coming years." Wang Tiankai, President of China Textile Industry Federation, said that the tight external environment will form a market forced mechanism, bringing a new round of industry reshuffle, and the transformation and upgrading of enterprises will be imminent.

　　 Using external brain to solve the problem of brand

China is currently the world's largest producer and exporter of clothing, and is also the largest clothing consumer in the world. In the late twentieth Century, the sales revenue of the largest clothing enterprises in China was less than 5 billion yuan, while in 2007, the sales revenue of the largest garment enterprises in China was nearly 20 billion yuan. In 2005, the total output value of textile and clothing accounts for about 1/10 of the gross national product, and has been the first to earn foreign exchange earnings for five consecutive years. One of the three garments in the world comes from China.

Shen Yongfang, President of Shenzhen garment industry association, thinks that it is this barbaric growth mode that makes Shenzhen's garment industry able to achieve today's success. "After more than 20 years of development, from the beginning of 100% processing exports to today's own brand of 60% to 70%, it not only made Shenzhen the world's brand processing base, but also made us earn 60% of the market in the first tier cities in China." Shen Yongfang said.

But in the view of Wang Xuewei, vice chairman of the Shenzhen Municipal Committee of CPPCC, although we already have " Made in China "A very strong foundation, but" made in China "will not directly and naturally produce the world quality. The transformation requires entrepreneurs, clothing industry and government departments to continue to work hard for them.

Fu Ziying pointed out that the export of China's textile and garment industry is still dominated by OEM, with independent brand and independent design less than 10% of the total export volume, and the export price advantage is weakening.

"We attach great importance to the three words of influence. In the past few years, we have been most focused on constantly shaping the influence". In the interview with reporters, general manager of Bosideng Garment Development Co., Ltd., Gan liming, said: in 2005, we entered the British market with its own brand, and made a breakthrough in China's men's clothing to the world. In 2012, the Bosideng flagship store, which is located in the bustling Oxford street, the commercial office and flagship store, is under construction and will be officially opened in London.

But at the same time, he said frankly that such an overseas advance can not make Bosideng earn much money in the short term.

In this regard, Fan Jun, Secretary General of the China general merchandise business association, said that the competition of clothing brands at home and abroad has been launched in China. The Chinese market is becoming the base for creating global winners. The traditional sense of internationalization is often narrowly defined as landing in overseas markets.

Chen Dapeng, executive vice president of the China Apparel Association, said that although the clothing brand is temporarily lacking in high-end luxury goods, it has begun competing with the overseas two or three line brands in the domestic market and the international market. Now, many domestic shopping malls and shopping centers have changed their practice of blindly introducing foreign brands, and began to focus on introducing domestic brands to create their own characteristics. In foreign countries, we can often see the brand of domestic textile and clothing. Many brands set up overseas stores, such as Lily, Vigoss, Lining, etc., to open stores in the European and American markets, or to implement the acquisition strategy, such as Bosideng, YOUNGOR, Ruyi and so on, and enter the international market in many ways.

Liu Yijun, the marketing department of St. David's fashion business men's clothing department, said that the cooperation between domestic garment enterprises and foreign designers should be relaxed and focused on the combination of Chinese and Western cultures. Foreign designers bring the latest trend of information and design concepts. Chinese designers combine the preferences and habits of Chinese consumers to improve their designs and produce "nice and well dressed" clothing products. "Domestic clothing enterprises can not fall into foreign countries, they are all good circles. Such blind behavior will completely lose business. " He said.

"At the beginning of the establishment of the brand, I want to be an international brand. I think the existing stage can cooperate with the advanced and mature brands of the world, and only by standing on the shoulders of giants can we see further." Liu Dan, assistant general manager of Karl Denton, said, "I think good quality is our passport to pass the world."

　　 Positive confrontation with international brands

According to the data obtained from the China National Business Information Center, the price of brand clothing in the major large-scale retail enterprises increased by 20.3% in 2011, up 1.2 percentage points from 2010. The contribution rate of unit price growth to retail sales growth is as high as 79.9%, which is 28.2 percentage points higher than that in 2010. That is to say, the growth of garment retail sales in 2011 is almost 80% from the rise of unit price.

However, the growth rate of clothing retail sales was the lowest since 2001. The rapid growth of clothing prices, especially the accelerated growth of brand clothing prices, has brought greater pressure to consumer clothing consumption. In 2011, the volume of retail sales of all kinds of clothing in the major large-scale retail enterprises increased by only 4.36% over the same period last year, a sharp decline of 5.84 percentage points compared with the growth rate of retail sales in 2010, and the lowest level since 2001.

China's clothing prices rose rapidly in 2011, and clothing prices and retail prices rose 2.4% year-on-year, the first time since 1998. The rapid rise of clothing prices has a certain impact on the actual sales and volume of clothing. In 2011, the retail sales of clothing commodities above the limit increased by 25.1% over the same period last year, down 0.7 percentage points from 2010. Excluding price factors, the actual growth rate was 22.2%, down 5 percentage points from 2010. Statistics from the China National Business Information Center show that in 2011, the volume of retail sales of major large retail enterprises increased by only 4.4% over the same period last year, and the growth rate dropped by 5.9 percentage points over 2010.

"As more and more enterprises develop online, the number of apparel online sales enterprises has increased significantly. Online sales have entered the period of fighting for funds, prices and channels. At the same time, in order to regulate the market, relevant government departments are gradually increasing supervision over online sales, such as increasing taxes and selling genuine clothing, which will lead to a large number of enterprises facing the danger of being eliminated." insiders told reporters that "because of the escalation of consumer demand, consumers will gradually upgrade their clothing from the price to the service level." Therefore, with the change of the online sales environment, the market competition will be intensified.

At the same time, the prosperity of the domestic consumer market is constantly stimulating the ambition of overseas brands to enter the Chinese market.

In 2012, the test of sports brand will be more severe. International brands such as Nike and Adidas have been playing a steady and steady role in the first tier cities and actively entering the two or three tier cities in China. They have penetrated all levels of China's market. In the face of fierce competition in the domestic market, domestic brands such as Lining and PEAK are all looking at the world, killing the domestic market and advancing towards the international market such as the United States.

" channel It's more and more like a game of burning money. The interviewees said with emotion. According to him, in the past few years, many famous clothing brands in China have taken the three or four tier market by way of self purchase or acquisition. Some clothing brands even have stores in every town.