China's garment industry development status

Let’s look at the startling data of a group of Chinese clothing industry: As of the end of last month, the total inventory of 50 listed companies in China has reached 57 billion yuan. What is the concept? According to the ranking of China's retail statistics in 2012, In addition, Lao Fengxiang and Esprit were excluded from the 10 listed apparel companies. The sales revenue for the entire top ten was only RMB 58.9 billion, which is basically equivalent to hoarding all the goods of the top 10 companies in the industry. It can be imagined that the status quo of China's garment industry is somewhat worrying.

The Current Situation of China's Garment Industry 1. There are large differences between regions. China is a big country in clothing, but it is not a strong country in clothing. The overall development of China's garment industry is very unbalanced. Products produced in the southeastern coastal provinces account for more than 80% of the country’s market share. The clothing industry in the Midwest is still very backward. The competition among various apparel companies also stays at a relatively low level, mainly in the price, style and other aspects of competition, the vast majority of apparel companies, product sales or the main circulation of the wholesale market.

2. Increased inventory pressure. Now all companies' inventory is still enough to sell in the market for two years. Larger clothing companies are often accompanied by a sharp increase in the cost of warehouses. The company's sales have turned several times and the cash on the account has not seen much growth. Due to the obvious seasonality of garments and the faster and faster updating of apparel products, inventory problems have become one of the most headaches for garment companies. If this problem can be solved, the economic benefits of China's garment industry can be greatly increased.

3. Weak brand awareness. Many of China's current clothing industry are following the example of well-known brand clothing. What is more, they are engaged in "shanzhai" on a large scale and are the number one brand of international brands, but they do not know how to establish their own brand. Although some companies in China have continued to strengthen brand promotion, such as Metersbonwe, Septwolves, Bosideng, and other brands have occupied a place among international apparel brands, profitability is still very low, because these brands mainly rely on low-cost advantages. International brands compete. International apparel brands have 7 short-listed apparel brands in the world’s top 10X0 brands, and only 2 Chinese apparel brands have entered the top 100 Chinese brands. In the absence of a truly international fashion brand, there is no brand in China that has become an influential brand in the world. From “Made in China” to “Chinese Fashion”.

4. There is a shortage of industry professionals. Those who have gone deep into the apparel industry will clearly realize that the overall talent team in the apparel industry is very poor. Cultivating international brands and supporting foreign designers has weak design capabilities. The structural chain of Chinese apparel companies stays in the traditional design and management mode. Design methods mostly stay in the backward phase of paper layout. The design cycle is long and the clothing is new. The product cycle (design, clothing, and sales) averages two weeks in developed countries and four days in the United States. The average time in China is ten weeks, and the gap is very clear. Trial production costs are high, causing new product innovation capabilities to be weak, and new product development cycles are long, it is not easy to find marketable products, which in turn causes inventory backlogs and capital turnover.

In the face of the above problems, a group of self-owned brands with high-end talents, international competitive advantages, and independent innovation will be formed. In particular, the backbone enterprises that can play a role in R&D and marketing and demonstrate the role of the industry can enable China to become a clothing power from a clothing giant.