Li Kailuo: Analysis of the Domestic Needs of Chinese Garment Industry

Based on the domestic market, the importance of local value, may be the Chinese clothing company to the dream of the most correct path a bear chasing people's misunderstanding first to tell a story, two people went to play in the wild, suddenly encountered a bear. One of them quickly took off his shoes and replaced the running shoes he brought. Another person is puzzled: "What's the use of shoes? You can't run it!" "I can't run but it can run you at least!"

This story is told because many clothing companies in our country have been holding this kind of psychology for years: The bear came, but I ran but the bear, but as long as I run through you will win.

From another perspective, if the entire industry is facing a serious situation, it may not help if you run fast.

In the complete chain of an industry, the most lucrative profits are concentrated on both ends of the industrial chain - R&D innovation and brand marketing, which is the front end and the end of the overall industrial chain. The processing link of the OEM company is the entire industry. The most passive and least profitable links in the chain. However, for many years, many Chinese garment companies have been doing OEM sales for their products, and they are delighted. The reason for this is actually a kind of small-minded and comfortable mentality focusing on immediate profits, and there is no competition between them and bears anyway. Also run away from people, then do their best to gain immediate benefits and run around their peers.

This misunderstanding has caused many “China Made” clothing companies to settle into international processing factories for many years. They are eager to be OEMs and are numbly soaked in the psychological comfort of “famous international brands are processed by us”. There is no brand, no channel, no R&D, no terminal, just obscurity in OEM production. Why? The jingle that once spread quite a lot, "I want to eat and sell domestically; I want to get rich and I'm going to export" answered the question vividly. Taking the road of own brand building to seize the domestic demand market means more production investment, greater production scale, better production process, stronger shipping capacity and longer time accumulation. The export of OEM products is relatively simple and easy, and it can provide immediate benefits.

"Three ships to the sea"

Some people say that creating a market, a group of sharks. An industrial market or geographical market is a large ocean. In this ocean, it can breed numerous enterprises and it can also feed sharks. China's emerging markets, which are in a period of growth, are large enough to accommodate the survival of a large number of large enterprises and are also sufficient to fulfill the dreams of many garment companies. To a certain extent, whoever occupies the Chinese market will occupy the profit space of the future.

However, although the domestic market is large enough, in the current economic downturn, how to make good use of this market, how to deal with the actual opportunities, how to ride the waves in the vast sea, and what kind of transformation techniques to fight the long air? It is an issue that must be considered by Chinese garment companies right now.

The previously published "Adjustment and revitalization plan for the textile industry" not only pointed out the direction of opening up the domestic market, but also listed a number of specific paths: to guide textile companies to develop new products to meet the needs of different consumers; to optimize and innovate business models and strengthen Marketing network construction, reducing circulation links; actively develop rural markets, increase sales to remote villages, facilitate farmers' consumption, etc.

However, for companies, it is impossible to try every path. Manufacturing companies represented by the apparel industry cannot achieve a super-firm by relying on an innovative product like the tech industry, nor can they rely on marketing as a purely cultural industry. Get long-term benefits. From the transformation of export-oriented enterprises to domestic demand-oriented ones, garment enterprises should abandon the idea of ​​quick success and instant benefit, and choose their own path according to their own resources:

Borrowing out to the sea—cooperating with international brands to develop markets, borrowing from the international brands’ existing reputations and market networks, and introducing international brand operation modes can increase wind resistance, increase marketability, and improve management capabilities. Through joint ventures, enterprises can be pushed to the market. A new competitive platform.

Shipbuilding to the sea - take the road of own brand, establish their own sales network, export local brands directly to overseas. In the process of creating a brand, the market operation has a certain degree of difficulty. The funds and energy required for investment are enormous. It takes a long time to accumulate and precipitate. This road is relatively long and frustrating, but it can achieve the ultimate dream of countless enterprises.

Buying ships to the sea - using the crisis to whip the bottom, acquiring overseas companies, buying international brands, and shifting from the original migrant workers who listened to the command of the middlemen to the first-line competitors directly under the command of the market baton, can often stimulate the company's ability to innovate.

There may be many ways to go to the sea, but no matter what ship you use to go to the sea, we all need to know that today's sea is not a sea of ​​the past. Today's Chinese home market is no longer the closed market in the past. Here, too many The foreign industry giants rushed around to grab the share and dividends of China’s huge future domestic demand market. Today’s Chinese companies are playing an international war in the local market. Challenges and risks coexist. For the traditional “Made in China” companies that rely on orders to make a living, standing in front of the market to open up the domestic market, it is necessary to think and then act, choose the right shoes, and keep their eyes open. The actual situation can only sail away.

In a recent speech in China, Philip Kotler, the prestigious marketing circle, said: "I must say that the 21st century is the century of Asia. In this century, China is the leader. Therefore, I call the 21st century Asia. In the century, many beautiful things will happen in this century.” Kotler's words may have exaggerated elements, but there is no doubt that the Chinese market has great potential, based on the domestic market, and values ​​local values. This may be a dark path. Difficult and difficult, but it may be the most correct path leading to the dream of countless Chinese garment companies.

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