Clothing industry entered the "winter"

The international economic situation is complex and ever-changing, labor costs have been rising, and the domestic market is not booming... In the first half of this year, the apparel and textile industry in our city suffered multiple “cold streams” and the total profit of apparel enterprises above designated size even declined from January to May. Nearly 50%. Under such a severe situation, many garment companies have entered the state of "warm boiled frogs." To get out of the predicament, we must seek change. Transformation and upgrading have become the problems that the garment industry in Jiaxing has to face.

【data】

The garment industry encounters "Empressions on all sides"

“The market is difficult and the business is difficult to do. The business in the first half of this year is estimated to have dropped by 20% or 30 percent from last year.” Yesterday, the head of a Clothing company spoke to reporters.

In fact, the situation of this company is not an exception. The main economic indicators of the apparel industry have fallen year-on-year since the beginning of this year. From January to June, the value-added of apparel enterprises decreased by 1.8% year-on-year, and electricity consumption decreased by 3.6%; from January to May, the total profits and taxes of garment enterprises decreased by 23.2% year-on-year. A year-on-year decline of 47.8%, the garment industry is still in depth adjustment.

Why did garment companies enter the "winter"? “In the city's garment enterprises, there are many processing materials, low product prices, low added value. These companies are often squeezed by both the market and the cost, profits will naturally reduce. In addition, the demand for clothing this year Shrinkage and export disruption are also the reasons for the industry's recession.” Shen Linzhong, director of the General Office of the City Economic and Credit Commission, told reporters that the transformation and upgrading of garment enterprises in the city is imminent.

In view of this situation, the “Report on Industrial Economic Operation of Jiaxing City in the First Half of the Year” pointed out: “In the second half of this year, the city will guide enterprises in the traditional industries such as textiles and clothing to increase technological transformation, develop new products, expand domestic and foreign markets, and strengthen refinement. Management, increase product added value.At the same time, we must persist in grasping large and small, and ensure that the production and operation of key enterprises are not affected, and encourage full-load production of enterprises that are in line with industrial policy, order, market, and profitability."

【Case】

Those who laugh at the "winter"

During the depression, the reporter was still delighted to find many companies laughing at the "winter". Why are these companies able to maintain steady growth without the optimistic situation?

1 Differentiation Open Market Another Window

Each production line in the production workshop is fully fired, producing butterfly suits, bee costumes, princess dresses and fairy costumes. This is the scene most commonly seen in Zhejiang Aifu Game Equipment Culture Industry Co., Ltd. "I have heard that some companies have seen a decline in their orders and results this year. We really have no such concerns. We have maintained steady growth in the first half of this year." Yesterday, Xiao Xiaodan, the merchandise director of "I Love," said confidently.

In fact, at the beginning of 2003, "Aifu" took the old road of the garment industry, mainly producing home textiles and sportswear. Although they can also make money, famous brands are highly competitive and their advantages are not obvious. The transformation of the enterprise was placed before the chairman Wang Weijia.

Born in Pinghu long-term growth in Europe, Wang Weijia has a different perspective. “Enterprises need to take a differentiated strategy if they want to make a transition, if they have characteristics, they will have markets and customers. Therefore, 'Yifu' has turned the market into a children's game equipment.” Hang Xiaodan said, “I love her husband” and it’s like this. .

Having spotted the way of the game installation, the “Yifu” R&D team began to devote themselves to designing and creating the first homemade children's game brand in China, Yijialin, which not only learnt from the Chinese cultural background, but also Fusion of animation, games, cartoons and other elements.

“In the first half of the year, our export orders were basically unaffected. After all, what we did was differentiated products. The independent brand Yijialin products were improved on the basis of the original game equipment, and they are more adaptable to the Chinese market and sales are relatively stable. Currently, We already have dozens of franchise stores in Beijing, Shanghai and other places.” Hang Xiaodan said that differentiation is the secret to their steady growth.

2 Brand Strategy Becomes the High Ground for Competition

Asked about the sales situation in the first half of the year, Zhang Li, the general manager of business operations at Zhejiang Yisijia Garment Co., Ltd., bluntly said “favor”. It is reported that so far, the company's foreign trade orders have been arranged to the end of October, while domestic sales of YISIJIA brand compared with the same period last year also had nearly 30% increase.

In 1994, at the time of the establishment of ISKJA, the company mainly processed large companies, and later developed into "branded products" for foreign clothing brands. Due to the fact that they were all exposed to outdoor series at the time, they looked back at the few domestic golf jackets. The chairman of the company Fang Xiaodong thought a lot.

In the face of increasingly severe competitive pressures and profit-making problems, whether it is to continue to “make a wedding dress for others” or to open up new ways to create its own brand? At this intersection, Fang Xiaodong chose the latter, so YISIJIA's brand came into being and quickly opened the market. At present, YISIJIA has already owned 3 direct sales stores in malls such as Dai Mengde, and has more than 180 franchised stores, and has entered stations such as Tmall and JD.com.

At present, the company specializes in the production of four series of clothing, namely, pressure plastic rainwear series, golf sportswear series, down jacket series, outdoor sportswear series, products are mainly exported to Japan, the United States, Britain, Sweden and more than 10 countries and area. The domestic YISIJIA brand is mainly engaged in outdoor sportswear products such as Jackets, Sweatshirts, Quick Drying Clothes, Ski Wear, Outdoor T-shirts, Skin Windbreakers, Outdoor Backpacks, etc.

Regarding the reasons that the company’s sales performance was not affected, Zhang Li believes that this is closely related to the brand strategy. “Our company mainly does functional clothing. In the past few years, the market has provided functional clothing such as windproof, waterproof, UV-resistant, and sunscreen. The growing demand, coupled with our YISIJIA brand has made a reputation and has gained the trust of consumers."

3 Traditional clothing industry catches up with e-commerce “express”

"Online shopping family" is certainly no stranger to the brand Justyle. But you may not know that these fashionable clothes are all from Jiaxing's clothing company - Zhengshang Technology Information (Jiaxing) Co., Ltd. In 2013, Justyle still had online sales of 200 million yuan, and sales of “Double 11” exceeded 100,000. The company now has more than 2 million members...

Speaking of positive changes, we must start from 2008. In April of that year, it officially landed on Taobao Mall and became the first batch of businesses settled in Taobao Mall. The Justyle flagship store was on-line. Relying on e-commerce, traditional clothing companies have undergone transformation and upgrading on the sales channels.

However, the momentum is just not satisfied with doing only electricity suppliers. Xu Zheng, CEO of Zhengshang believes that e-commerce is a channel and a new means of communication. In the era of “Electrical E-Commerce”, the boundary between online and offline companies will gradually dissolve. “Our online sales in the first half of the year have maintained steady growth. However, we cannot ignore the line below. After concentrating on e-commerce, we believe that in the future, only 'foot two shops' can develop better. Online and offline integration is the inevitable trend of retail development. There may not even be the concept of 'pure e-commerce'."

It is reported that since January of this year, Zhengzhou has been carrying out several O2O (Online to Offline) sales at its factory stores in Jiaxing, and has successfully attracted tens of thousands of people to enter the market. From August this year, the franchise's franchise stores will “broadly blossom” across the country.

“From the industry point of view, the city’s apparel products are indeed more suitable for online sales. In addition, Jiaxing has formed a complete e-commerce industry supporting service system, including logistics, online store design, photography, etc. At the same time, superior location conditions Improve the convenience of logistics and distribution,” said the person in charge of the City Economic and Cultural Commission.