Clothing Manufacturer_Clothing Factory clothing manufacturers News Looking for the spring of China’s clothing industry and opening up the era of domestic market

Looking for the spring of China’s clothing industry and opening up the era of domestic market

Looking for the spring of China’s clothing industry and opening up the era of domestic market Facing the difficult export situation, China’s textile and apparel industr…

Looking for the spring of China’s clothing industry and opening up the era of domestic market

Facing the difficult export situation, China’s textile and apparel industry has begun an era of seeking sales from the domestic market.

Why are Chinese companies so anxious to enter the international market? This is the question of Iger Group, and it may also provide us with a new way of thinking during the financial crisis.

How many kilograms of clothes do you consume a year? If this question is thrown to an ordinary consumer, it may be a strange question, but this issue is a very important issue for the Chinese textile and garment industry.

In 2000, my country’s per capita consumption of textile and clothing products was 7.5 kilograms. By 2007, this figure had reached 14.6 kilograms. Relatedly, the proportion of domestic sales in the textile industry has also increased from 60% in 2000 to the current 70%.

The growth of the domestic market has become an important battlefield for the textile and apparel industry. In the context of the financial crisis, the export situation of this industry has also been affected. Relying on different forms of survival, a group of clothing companies did well in 2019.

The per capita consumption of textile and apparel products in developed countries is 30 to 40 kilograms, which gives us reason to believe that the domestic textile and apparel market still has a lot of room for development.

Exports suffer setbacks

At noon on March 3, the third day of the 19th China East China Import and Export Fair (hereinafter referred to as the “China Fair”), the McDonald’s restaurant on the second floor of Hall W5 of Shanghai New International Expo Center was crowded. Those waiting can buy lunch after waiting for about 5 minutes, and about 50 of the more than 300 chairs outside the restaurant are still vacant.

Gerard Sabate Puig from Spain told reporters in Chinese: “I have come to China Fair 6 times. This year the number of people is smaller than in previous years. Last year we purchased 2 million pieces of clothes from China. This year we will 20% reduction.”

Data from the China Fair Organizing Committee showed that 18,229 overseas merchants attended the fair, a decrease of 5.37% from the previous session. In terms of transaction volume, the total export transaction of this China Fair was US$2.24 billion, a decrease of 39.06% from the previous session.

The downturn in the China Trade Fair is the “epitome” of China’s foreign trade situation. Statistics from the National Key Export Commodity Volume Table for January 2019 released by the General Administration of Customs show that my country’s textile and apparel exports totaled US$15.231 billion in January 2019, a year-on-year increase of negative 0.65%. According to data released by the Ministry of Commerce on March 3, my country’s total export value in February was US$25.85 billion, down 17.1% from the same period last year. Among them, textile exports continued to decline, with a year-on-year negative growth of 15%.

Domestic growth

Compared with the bleak situation in the export market, the domestic clothing market is quite warm. While domestic companies are complaining that foreigners’ “pockets” are getting tighter and tighter, the foreigners who work in domestic companies are happily “counting their money.”

As of March 5, 2019, in the past 52 weeks, Etam Group’s sales in China increased by 20% year-on-year; Swedish clothing giant H&M Group’s sales in China increased by 83%; it owns Lee, The sales of the American VF Group in China of mature brand products such as Northface increased by 60%.

It’s not just “foreign monks” who can “recite sutras”. Meibang Apparel [25.70 -3.38%] (002269.SZ), which focuses exclusively on the domestic market, had an operating profit of 834 million yuan in 2019, a year-on-year increase of 94.65%. Another clothing company focusing on the domestic market, Septwolves (002029.SZ), released a performance report stating that the company’s operating profit in 2019 was 197 million yuan, a year-on-year increase of 61.32%.

Jiangsu Sunshine] (600220.SH) has adjusted the ratio of external and domestic sales from 70:30 to 60:40, and will further adjust it to 50:50 in the future, hoping to seize the opportunities in the domestic market, but for more For garment export companies, turning around and turning to the domestic market is still “easier said than done.”

Difficult to turn around

“It is easier said than done to convert export to domestic sales.” Fan Jun, manager of the clothing department of Shanghai Xiyuan Import and Export Co., Ltd., said, “The big difference between export and domestic sales is that export is relatively simple. Export is basically wholesale and not We need channels. To do domestic sales, we need channels, stores, and designers.”

Bu Yinshan, manager of Henan Wanhao Garment Import and Export Co., Ltd., believes that building a brand and establishing sales channels are necessary conditions for domestic sales and require a large amount of capital investment. However, it is difficult for small and medium-sized enterprises in the textile and garment industry to find bank loans. “Banks feel that the textile and garment industry is not a sunrise industry and are unwilling to lend money.” Bu Yinshan said.

A staff member of a clothing company told reporters that 80% of his company exports and 20% is sold domestically. Although it has special counters in Shanghai Jiuguang and Pacific [13.91 -1.35%] department stores, the domestic sales part loses millions every year. Yuan.

The export market has not yet reached the point of exhaustion. Shigeo Nakamu, director of product development of Japan’s MrMax Co., Ltd., who visited the China Trade Fair, told reporters: “The quality of Indian clothing is not as good as Chinese products at present. I will not go to India to buy clothing now. This possibility may happen in 3 to 5 years.” ”

Exporting to domestic sales is of great significance to the domestic market.For apparel companies, it is tantamount to a “rebirth”, extending from production to design and terminal sales. This is the “smile curve” theory proposed by Acer founder Shi Zhenrong.

Pierre Pilchior, founder of the Egg Group, said that Chinese companies need to be patient to complete such a process. He said: “For companies, if the goal is to win quickly, copying and imitation are the quickest ways to make money, but to create It takes a long time to build your own brand.”



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