Textile and garment enterprises: transformation or not, this is a problem

For a long time, China’s garment export volume has continuously increased. Behind the huge number, how much is the actual profit of our garment enterprises? According to the survey, China's garments are facing a quandary that is more and more profitable. China's brand profits are only one-third of the profits of foreign brands. The embarrassing situation of “exporting 800 million shirts to buy an A380 Airbus aircraft” has not been fundamentally changed.

Affected by the financial crisis, since 2008, China’s apparel exports have fallen sharply. In terms of Nanjing, Nanjing's foreign trade began to decline rapidly since the end of 2009. In 2009, Nanjing’s total import and export volume reached US$33.76 billion, a year-on-year decrease of 16.9%.

As a result, more and more companies have set their sights on the domestic market. For the Chinese clothing industry, export to domestic sales has become an important way to solve the excess production capacity of foreign trade companies. The sharp reduction in export orders has once again accelerated the pace of these foreign trade enterprises in opening up the domestic market. They have huge productivity advantages, reliable quality and process assurance, and many companies also have strong financial strength. However, behind this seemingly prosperous, it also has the hardships of the enterprise.

Although the domestic clothing consumer market is very large, but this is very large and not infinite. The fierce competition in domestic first-line brands is obvious to all. In reality, most of the textile and apparel brands are in an obscure state, and are even in an awkward position to struggle for survival. Moreover, with the intensification of domestic inflation and rising prices, the buying power of the boss’s surname has also been weakened to some extent.

The domestic market space is becoming more and more limited, and export companies that turn to the domestic market may not be able to share the expected cake. According to Wang Qianjin, editor-in-chief of China First Textile Network, under the background of the global economic slowdown, the growth of China's economy and even domestic demand will inevitably slow down, while apparel is a selective consumer, and the decline in consumer confidence will inevitably affect people in the future. Expenses on clothing. "Internal sales" looks beautiful, but it is difficult.

The difficulties in transition mean that there is no hope at all. the answer is negative. Only companies that now need to be transformed should not be confused by the illusion, can withstand the temptation to distinguish between pies and traps.

In fact, the first problem faced by foreign trade enterprises in opening up the domestic market is to transform the company’s resource advantages into domestic sales advantages so as to create the competitiveness of the domestic market. For most of the enterprises, especially those enterprises with powerful capabilities in transition, three major changes must be made to transform the advantages of enterprise resources into domestic sales advantages.

The first is the transformation from brand manufacturers to brand operators, from "Made in China" to "Created in China." Under the export model, enterprises are brand manufacturers. What they do is order production and service according to the existing brand requirements. They act as the “behind-the-scenes heroes” of international brands; under the domestic sales model, enterprises are brand operators and “backstage heroes. "We must go to the stage, we need to have our own brand and market, and we need to build our own unique brand system from scratch." At this point, the domestic "Zhang Xiaoquan" model is worth our reference. At the same time, we can also see that in the past decade, all walks of life in China have established their brand influence in the market in this way. From the initial cosmetics, clothing, leather shoes, SPORTS SHOES industry engaged in brand franchise, to today's Watsons, Zhou Hei black ducks, seat passengers ... ... you can see is the result of chain stores across the industry operating mode blossom.

Followed by the transition from product-oriented to market-oriented. No company can survive the neglect of the market. The so-called "market-oriented" is to keep up with the pulse of the market, regulate production trends, optimize the allocation of resources, and gain the initiative in the domestic market to obtain competition in the domestic market.

The third is the transition from B2B to B2C mode. Under the B2B model, the enterprises' grasp of the demand will skip the end-consumers directly facing the foreign brand enterprises, and the enterprises will follow the simple process to produce and supply the products according to a single contract. Once the company shifts to B2C mode and there are no customer orders, companies need to face the end consumers directly. Due to the lack of real understanding of consumers, they cannot find ways and means to satisfy consumers' needs in a short period of time. Therefore, they are prone to confusion and confusion. .

The road is long and arduous, and textile and garment companies are bound to search for it. The transformation of foreign trade to domestic sales is a new battle in the face of new battlefields. To achieve transformation, enterprises must not only have a long-term battle preparation, but also have the willingness to be willing; not only must master the methods of transformation, but also have the leveraging wisdom. The future is bright, but the road is hard.