Analysis of Current Problems in the Mainland Garment Enterprises

There are four major problems faced by the clothing industry in mainland China now and in the future:

First, the overall overcapacity, the total supply is greater than the total demand: garment companies to enter the low threshold, low investment, the overall construction of the supply chain is fast, so you can form a large scale in a short period of time, after more than a decade of rapid development has clearly appeared overcapacity With the improvement of consumption levels and the rapid development of the garment industry, the total supply of apparel products is far greater than the total demand. Since the apparel market generally adopts the ** model, there is a lag period in the overcapacity, which has already presented a serious situation.

Second, the homogenization of commodity competition is very serious, and the profitability is severely declining: After more than 30 years of development in product design, production, sales, branding, and operation, the overall process, talent, and resources of the garment enterprises have become quite mature. Therefore, product duplication is quite easy. Homogenized products of the same brand enterprise occupy the market. Competition has caused the garment company's profitability to decline.

Third, the slowdown in market demand slowed down, and the pace of corporate growth slowed sharply: As China's economic growth model was structurally adjusted to address the overcapacity of the economy as a whole, economic growth was gradually reduced, affecting the growth of people’s income and generating clothing consumption market. Certainly, the growth of consumer demand in the market has slowed down, and the pace of development of garment enterprises has slowed down significantly.

Fourth, the clothing industry development model can not meet the needs of market changes: After more than 30 years of development, garment companies have been in a period of rapid development, so the development model is single, the ability to respond to changes in market demand is low, when the market is saturated There is no innovation model to meet the changes in market demand, companies are in a passive state of adjustment.

Individuals in the clothing industry in China generally have the following problems:

First, garment companies did not really understand and meet the needs of consumers: The “order system” model that garment companies have long pursued has forecasted market demand, not actual consumer demand, and has not formed an effective mechanism for understanding and satisfying consumers. Can not be achieved by sales, market-oriented, but oriented to the needs of dealers, so as to form a terminal vip consumer consumption decreased year by year, the point of sale to form a large number of inventory products.

Second, the upper and lower ends of the value chain of garment enterprises failed to achieve a win-win situation: During the development process of garment enterprises, the profitability of the brand merchants was fully guaranteed, but the sales terminal distributors in the market were affected by factors such as rent, store employee, and product inventory. As well as the increase in production costs of suppliers and manufacturing plants, the overall profitability has been declining and the company has suffered a loss due to the fact that the total supply has not increased. As a result, the top and bottom ends of the value chain of the company failed to achieve a win-win situation. , seriously affecting the company's continued profitability.

Third, the innovation of apparel companies is not enough, their own profitability is declining and their competitiveness has been lost: In recent years, the cost of manpower, taxes, and raw materials of apparel companies has been rising, the overall level of innovation is not enough, and sales have not increased significantly. The level of profitability of itself has also been declining and it has lost its competitiveness.

Fourth, the integration of garment companies did not find a clear direction: in the case of market sales, they did not identify the focus, did not clearly recognize the company's own problems, and invested a lot of money in retail management to strengthen management and training. It is clearly realized that the integration of enterprises is integrated from the new market positioning, new product planning, new product design, new supply chain innovation, new pipeline integration, and new retail adjustment.

The reasons why 50% of companies are eliminated in the market in the next three years include:

First, garment companies with too slow business model transformation: They have not repositioned their market in a timely manner according to changes in the market, transformed their business models, and integrated their supply chains, but simply simplified and organized their apparel companies.

Second, the clothing business model transformation too fast: According to the changes in the market, the company's own characteristics of the new market positioning, new model adjustments, new supply chain integration, but the speed is too fast, the pace is too large, the ability and level of management can not keep up Clothing company.

Third, the broken supply chain apparel companies: Due to the long-term cooperation with the strategic supply chain production system, supplier system due to decline in profitability, and the suspension of the plant, thus affecting the normal business development of clothing enterprises.

Fourth, small-scale, low-end services in the clothing market clothing enterprises: In the market competition, small-scale, low-end service market demand, due to low risk resistance, weak competitiveness, these companies will face the market in the future development of elimination risk.

V. Clothing enterprises of high-end brands in mainland China: With the increase in awareness of high-end brands by mainland consumers, there is a new concept of debranding for high-priced brands. At the same time, high-end consumer groups will face huge income due to income impact. Market competition pressure.