From Individual Pformation To Industry Pformation And Upgrading -- Garment Industry: Starting From Recovery

At the end of November, the 2010 China garment high tech achievements exchange and promotion conference was held in Shanghai and China Fashion Association.

In the coexistence of progress and various new and old constraints, China's garment industry in 2010 is in the recovery stage of the financial crisis and the starting period of its structural pformation.

The word "warm" is at the top of the picture.

From the perspective of industry data, the industry indicators in the first three quarters of the year have rebounded sharply on the basis of the lower base in 2009. Production, investment, domestic sales, export and business efficiency have shown different degrees of warming.

Warm clothing has made many garment enterprises develop rapidly.

In the 1~9 month of 2010, China's clothing production rebounded sharply, and the output of Enterprises above designated size increased by 18.24% compared with that of the previous year. The total social output increase is expected to be around 10%.

The recovery of domestic and international markets and the apparent growth of demand for replenishment of new products stimulated production growth.

On the export side, according to customs statistics, 1~9 months in 2010, China completed 93 billion 488 million US dollars and 21 billion 956 million pieces of clothing and accessories exports, up 19.03% and 14.22% compared with the same period last year. The volume of exports basically recovered to the level before 2009, while the export volume increased significantly.

The abundance of orders has increased the investment enthusiasm of Enterprises above Designated Size in the local garment industry.

According to data analysis, in 2010 1~8, the actual investment of Enterprises above Designated Size reached an increase of 24.48% over the same period last year, an increase of 9.06 percentage points over the same period in 2009, especially in the central and western regions, where the investment growth rate reached 49.79% and 52.37% respectively.

In the domestic market, according to the National Bureau of statistics, in the first three quarters of 2010, the retail sales of clothing commodities above the limit reached 400 billion yuan, an increase of 24% over the same period last year, an increase of 7.1 percentage points over the same period in 2009.

According to the statistics of large retail business clothing consumption data of China Business Information Center, sales volume and sales volume increased by 23.05% and 10.30% respectively in 1~8 months.

The average business income and average profit of enterprises increased by 16.04% and 24.17% respectively, and the per capita profit, per capita output value and per capita business income increased by 28.3%, 19.41% and 19.91% respectively.

At the same time, the average gross profit margin and profit margin of the industry reached 14.49% and 4.65% respectively, and returned to a higher historical level.

The main business revenue and profit growth of the garment industry increased by 9.62 and 23.6 percentage points respectively over the same period last year.

From these data, the industry has achieved sustained and sound development, and competitiveness and sustainable development capabilities have been further enhanced.

Labor and cost are difficult to move.

"Underemployment, rising costs, market volatility and rising prices have become a prominent problem restricting the development of the industry."

According to the China Clothing Association survey, in 2010, due to the lack of labor in the garment industry, the overall operating rate of the coastal areas reached only 70%. Many large enterprises also reduced the rate of operation to 80% due to labor shortage and labor costs rising, while increasing the proportion of outsourcing processing. SMEs with around 50% operating rate were everywhere.

Because of the increasing demand for processing of "outsourcing", some enterprises can not adapt to the order of fast, small and precise. Some reputable enterprises also appear the phenomenon of untrustworthiness such as "sitting up prices".

In 2010, rising cost has become a problem faced by all industries, and has become an important constraint factor for the development of local garment industry.

The irrational rise of cotton prices has led to almost all of the fast rising prices of clothing raw materials; the rise of wage and welfare costs and the decrease in the number and quality of labor have greatly increased labor costs; the rise in commercial rents and pportation prices has raised business costs; water and electricity resources have risen in price and energy supply shortage has increased the manufacturing costs of high buildings; several adjusted fiscal policies have raised the cost of industrial credit and so on.

The rigid rise of cost and the further shortage of resources are adjusting the supply capability and structure of the industry.

At the same time, although the international environment has changed since 2009, the impact of the financial crisis has not been eliminated. The substantial rebound in the international market is still uncertain. The economic and market demand of the developed economies has maintained a low growth rate. Exchange rate issues and trade protectionism are all problems that the industry must face.

While exports are being tested, international brands are accelerating to the Chinese market and extending to the two or three tier market.

From individual pformation to industry pformation and upgrading

This year, the central and western industrial base areas ushered in a large number of active investigation of eastern provinces.

The situation of the garment industry in the eastern region is changing quietly, and the gradient pfer has been heating up in the enterprises that reformed the industrial chain.

In addition, the company's optimistic expectations for the future employment and consumption in the central and western regions, the market layout of the brand in the inland provinces directly guide industrial pfer, and the order pfer mode will promote the development of industries in the central and western regions.

Improving the brand contribution rate has become the core work and common concept of enterprises to resolve unfavorable factors and effectively open up the domestic market.

How to promote brand promotion in cultural creativity, product development, style innovation and so on, and further enhance the added value of products has become a required course for enterprises.

Innovation has become the main theme of the industry in 2010.

Enterprise model innovation, brand model innovation, and the following channel innovation, product innovation, cultural innovation and so on are emerging in the industry.

2010 seems to be a smooth progress in the scientific and technological progress of the garment industry, and has been deepened, extending from the hardware of equipment to the integration of the two technologies.

At present, the fashion manufacturing mode is facing changes in the whole world. Flexible manufacturing, mass customization and other advanced production concepts have entered the industry line of vision.

Manufacturing process reengineering and process management informatization have been gradually implemented in traditional large flow enterprises.

"Quick reaction" is the magic weapon for the brand to remain invincible in the market. "Fast" must rely on the support of new and high technology such as information technology.

Scientific and technological progress has become a collective conscious action in the industry.

With the deepening of market competition and brand competition, brand enterprise's industrial chain integration ability and industrial resource allocation ability have become one of the core elements that determine brand competitiveness.

Competition in the future will be further reflected in the integration of industry resources. The level of resource integration will affect the competitiveness of enterprises.

At the same time, the future competition will also be the competition of capital strength of enterprises.

The power of capital will play a more important role in the future market.

"Queuing and listing" has become an industry highlight of the garment industry in 2010.

With the increasing internationalization of the domestic market and the accelerated pace of internationalization of Chinese brands, international industry cooperation and enterprise cooperation have become increasingly common.

Production cooperation, product cooperation, design cooperation, marketing cooperation, brand cooperation and capital cooperation will bring more and more international garment enterprises. The internationalization of the garment industry will become more and more high.

All the highlights of the industry show the direction of the development of the same industry, showing the same industry development path, that is, the structural adjustment, pformation and upgrading of the whole industry, and lay a solid foundation for the construction of "clothing power".