Jun'an Jeans Company Relaunches

In the "China on the tip of the tongue," which has been hit so much in recent days, there is a steamed pig in Shunde village feast, which has made many people know the town of Junan. Martial arts enthusiasts are no strangers to Junan, because this is the hometown of legendary martial arts star Bruce Lee. In fact, Junan has another important identity - "China's denim clothing town". As one of the four major denim garment production bases in China, Junan Denim garment industry has a history of more than 30 years and is a local pillar industry.

In 1979, China's first industrial denim was produced in Junan. In 2011, China's first denim clothing research institute was established in Junan. According to statistics, cowboy clothing accounts for 45% of the town's tax revenue, total output value, etc. The town has more than 2,000 denim textile and garment and accessory enterprises, and it annually produces over 200 million denim garments, and its product export rate is as high as 80%. The annual output value exceeds 10 billion yuan.

However, after more than 30 years of development, the Junan denim industry is still at a stage where labor-intensive, low-value-added products, original brands with independent brands, and no benchmark companies. It is a short distance from the ideal Junan “smile economy”. According to the director of Guangdong Jun’an Jeans Fashion Research Institute and the director of Yichang Changhai, the ideal direction of development of the Jeans Jeans industry is to form a “smile curve”, focusing on two ends, one is R&D, design and brand; the other is to do logistics and Exhibition. Manufacturing and OEM OEM, which means that in the entire chain of jeans industry, safety is at the lowest end of the industry chain, trapped in the lowest profitable and most profitable link, and the large output value is very low. Therefore, the transformation The upgrade is imminent.

The “closed tide” has been exaggerated for the past two years. Due to the influence of the international and domestic environment, the Junan denim industry, which relied heavily on exports, once entered the “winter season”. In the industry, the “three wastes, two highs and one low” are used to describe the current status of denim factories. “Three shortages” refers to electricity shortages, money shortages, and people shortages. “Two highs” refer to high raw material prices and high labor costs, while “low ones” refer to low exchange rates. According to the reporter’s access to relevant information, from January to July last year, Junan apparel manufacturing companies opened 155 new businesses, closed down 105 companies, a year-on-year decrease of 15.8%, and cancelled 272 companies (of which 167 were unqualified in the 2009 annual inspection after a year of rectification. In 2011, business licenses were revoked by the industrial and commercial departments after failing annual inspections, an increase of 189.4% year-on-year; the average number of all employees was 71,952, an increase of 2.3% year-on-year.

In response, Yi Changhai, dean and doctoral supervisor of the Junan Jeans Apparel Institute in Guangdong Province, said: “Some negative reports in the media have overstated the reality of the operating difficulties of some enterprises. From the data in recent years, the company has The growth and fall are within the normal range, and although several companies have closed down each month, several new companies have opened every month, and the majority of bankruptcies are small-scale enterprises with a few dozen people. There was no major impact on the pattern of the denim garment industry in the town. On the contrary, some large-scale enterprises that focus on innovation and have their own professional market have not only been impacted, but have even increased their output value and sales volume."

The reporter was informed that Astor, Leqi, Ligao, Qiqi, etc. all rely on their own good product R&D and design capabilities to maintain rapid production, high quality, and high service. Not only is there no slow sales, but also The order has been sufficient, and the sales and profits of the company have grown rapidly. Among them, Ai Star clothing under the leadership of the general manager Fan Youbin through several major changes in three-year total net assets increased by nearly 50 times, the growth rate for the industry attention. According to Yi Chang’s reflection on Yi Anchang, it is undeniable that enterprises of all sizes have encountered various operational difficulties in their respective stages of development. According to data from the General Administration of Customs, China’s total exports of textiles and clothing from January to April 2012 totaled US$68.82 billion, which was a year-on-year increase of 0.5% compared with US$68.5 billion in the same period of the previous year. Among them, garment exports reached US$39.97 billion, up 1% year-on-year. According to calculations, from January to March, China's textile and apparel export prices increased by 4.5% year-on-year. Excluding price factors, the number of textile and apparel exports from January to March decreased by 1% year-on-year. The export situation in 2012 is not optimistic.

Judging from the factors and trends in the industry in 2012, the pressure on the international market in 2012 is still relatively obvious. There are many uncertainties that will affect the export growth of the industry. Continual improvement of urban and rural residents' income levels and policy support will boost the factors. The domestic market is stable, and the increase in the overall cost will also result in an increase in the cost of labor. The fluctuations in the raw material market and the unsmooth supply chain system are the major risks facing the industry. In a market environment where external demand is sluggish and domestic demand is slowing down, there is less room for companies to resolve various cost and risk factors, and business pressure is more prominent.

In the transformation and upgrading of the wind, security should reflect. Jun'an is one of the four major cowboy production bases in China. In 1979, China's first industrial cowboy was produced here. The development of Jun'an Jeans is a microcosm of the Chinese cowboy industry and will play a demonstration role.

The rise of the Junan denim industry in the past was born out of the opportunity of "three to one supplements" the shifting trend of the industry. The enterprises represented by the Jiangnan Garment Factory and the Sanhua Tongxing Garments Factory and other old factories are the typical traditional Junan Jeans garment companies with fixed customers and not much operational risks.

Junan’s entrepreneurial history of denim textile and clothing is the history of the struggle of the Jun’an people. Junan's cowboy business owners mostly adopt extensive management. The business owner has several employees. The orders are received from the workers and the business owners make decisions. The majority of cowboy clothing business owners are relatives and friends, and family businesses account for the majority of the total. For the most part, there is no modern corporate organizational structure in the interior, which is generally served by Junan locals or relatives. When necessary, increase the number of sewing machines, but it will not make a fuss about the enterprise.

However, after more than 30 years of development, Junan Jeans is still in a labor-intensive, low-value-added product, with little original brand of its own brand, and no development stage of benchmarking companies. According to the idea of ​​Yi Changhai, in such a good soil, after 30 years of development, Chong'an should have formed an ideal "smile economy", that is, focus on two ends, one is R & D, design and brand, and the other The aspect is logistics and exhibitions, but it is still far from this step.

In the face of uncertain market conditions, government agencies at all levels in Shunde and Jun'an are actively guiding and encouraging enterprises to implement industrial transformation and upgrading, technological transformation, industrial restructuring, changes in development methods, independent research and development brand, and other changes, and in the process of industrial transformation and development. Give policy preferences and financial support; companies must update their ideas, scientific development, continuous independent innovation, development characteristics, from the "manufacturing" enterprises to "brand" operating companies. We will develop new products that are suitable for consumers, improve management mechanisms such as meticulous production of products and rapid manufacturing, and crack down on bottlenecks in traditional industries that are lagging behind, have low productivity, and have low added value. Only by adapting to changes in the market can companies continue to develop healthily and sustainably. The Junan denim industry can really "smile".

Technological processes determine the market position of enterprises The history of the world economy shows that every economic crisis stimulates the production of revolutionary production technologies and production processes. Under business pressure, companies seem to be more motivated to carry out technological innovation. In the same way, Junan Jeans, which is under heavy pressure, is also exploring various production processes and technological innovations. Such as the introduction of foreign modern equipment to replace the manpower, such as automatic hanging production line, the new energy ** mercerizing, laser machine denim technology and other high-tech, through technological transformation and equipment updates, constantly tap the company's potential to stimulate the vitality of enterprises. There are more than 10 companies that currently carry out this technological innovation, and more than 20 are trying. While accelerating technological transformation, local governments also guided enterprises to use the lean production workshop management mode that combines 6S management and JIT management to continuously improve management. According to reports, a set of JIT software can increase business productivity by 30%.

ASD introduced the automatic garment production hanging system at the beginning of this year, which increased its production efficiency by 30%-50%. Aowei Wei company adopts JIT management software, which can increase production while shortening working time, and efficiency is increased by nearly 30%. Since the beginning of the year, facing the severe economic environment, Ao Shi Qi Clothing Co., Ltd. has purchased 16 mechanized production line machines. All lines are digitally managed. While strengthening quality control, they also greatly increase production efficiency. Ligao Garment uses techniques such as hanging production lines to promote the development of enterprises. “The efficiency is so high. We used to use large-scale production lines before, which was not only inefficient but also of low quality,” said its Chairman, Chen Zufu.

The Junan Denim Garment Research Institute of Guangdong Province, established last year, shoulders heavy responsibility for technological innovation. Yi Changhai said that as the only cowboy research institute in China, Junan Denim Institute is responsible for the mission of industry innovation, dedicated to key technologies and achievements, and will also step up technological development, such as the development of fabrics, the design and production of new models. Process optimization, etc. provide technological support for the transformation and upgrading of enterprises. To this end, Yi Chang is working with Australian and Russian textile industry experts to bring international research teams to Jun'an.

The Cowboy Institute pioneered the promotion of advanced production techniques and technology applications among the top ten companies in the taxpayer households in the Junan. Through these companies to achieve the effect of industry demonstrations. Establishing digital garment manufacturing factories in companies such as Astar, relying on advanced equipment and technologies to digitize and streamline the design, pattern making, grading, ragging, cutting, distribution and production of garments, simplifying the process flow. Shorten the manufacturing cycle, improve market competitiveness; rely on enterprise information construction to promote business transformation, integrate ERP platform to standardize corporate resources and collaboration, improve productivity, optimize supply chain management, and flexibly meet the rapid growth of the company's needs. It is understood that washing and dyeing are the most difficult to control quality and environmental protection in the production of jeans. However, the added value generated by the washing process accounts for 40%-50% of the value of a garment. It can be said that the level of the washing process determines the market position of the company.

The reporter learned that some of Junan's denim clothing enterprises also invested heavily in the introduction of the ** mercerized finishing machines produced in Italy and the latest international environmental protection technology and washing equipment - ozone washing machine, as well as laser machines, pearl nano denim and automatic Hanging production lines and other latest technologies. In particular, the ozone washing machine draws air directly from the outside, generates ozone through the internal devices of the machine, and then uses the role of ozone to achieve the decolorization effect of the clothing inside the machine. The inside of the machine reduces ozone to air and then discharges it. “This is the most advanced in the world. Waterless water washing technology, this water washing machine is not only environmental protection, but also save resources." A company related person in charge introduced.

According to the person in charge of a large local textile company, currently most of the jeans production enterprises in Junan still use traditional manual production, which has been unable to cope with the impact of the advanced production lines of garment manufacturers in Jiangsu, Zhejiang and Shanghai.

For example, Chen Huiqun, chief executive of the Zhuqi garment factory, said that there are currently surrounding companies that have introduced a "hanging system" production line, which is close to pure streamline operations. In this system, after a pair of trousers is cut, it will start from the beginning to the end and be completed at one time by different processes. However, the factory's process is a kind of “miscellaneous flow”, that is, one person is responsible for a product and completes its own process. Afterwards, it will be given to the next process again.

The advantages and disadvantages of the two processes are quite obvious. Chen Huiqun said that the former is more conducive to guaranteeing “production beats”, that is, it promotes good connection between various processes and reduces waste of time, and the cooperation between the latter's various processes is relatively easy to break. Often one person finishes and must continue to wait. "But the hanging system has a strong demand for orders, because a set of processes takes a long time to master. If the volume of a batch is too small, it will lose its meaning if it is finished soon."

It is reported that in the Junan denim company, only four large-scale companies, namely Aishida and LiLi, have adopted this automatic hanging system.

Yi Changhai also stated that an industry without standards is not normal and there is no right to speak without standards. The next important task of the Institute is to unite the government and industry in setting the standards for the denim industry and further promote the development of the industry. OEM production has become the "hard injury" of Junan. A few years ago, Junan entered the export number of cowboys - "the world of cowboys and the cowboys of the world". However, the cowboys who went out from the comfort zone posted all the other regions. Trademarks, OEM production has become the "hard" injury.

The lack of self-owned brands and original well-known brands has become an obstacle to the progress of Junan Denim. The brand is the longest core competitiveness of the company. The Junan Denim garment industry is a labor-intensive industry and needs to be bigger and stronger. Enterprises must move from OEM to R&D, design and production, and improve their own sample-making capabilities so that they can master production. Initiative.

However, brand building requires a lot of manpower and material resources to cultivate, which makes many companies dare not act rashly. Some enterprises even think that since they have no ability and energy to do it, they are simply in a good position.

Yi Changhai believes that in fact, some of the cowboy production companies have the ability to build brands, but because the concept has not kept pace, the road to brand building has not yet begun. "Actually, as long as several companies can take the lead, they can affect other companies and drive the development of the entire industry."

Creating an original brand tour Along with the flourishing development of the Junan Jeans Industry, a large number of private entrepreneurs engaged in denim garment production are emerging. They are leading enterprises from small-scale workshop production to modern enterprise transformation and facing a new phase of global economic development. They are more reflective of how companies have emerged from the low end of the industry chain and are seeking to transition to high value-added industries. Some of these "prophet" are working hard to build their own brands, and some have hired a professional team to develop and design denim products, build channels, and expand the domestic market.

As one of the pioneers, the general manager of Ligao Wang Desheng told reporters that in recent years, the development space for pure production has become narrower and narrower, the labor costs of companies have become higher and higher, social responsibilities have become larger and larger, and profit margins have increased. The smaller. Only by making their own brand, can they have the right to speak in the market. Ligao Garment began to cultivate its own original brand two or three years ago. In 2010, it established a dedicated brand promotion team. They also took a lot of detours at the beginning, such as changing the orientation of their product styles, until they stabilized at the end of last year; in the past two years, 20 or more boutiques have been opened in Rongji, Ronggui, Nanhai and other townships in Guangdong. In Tianjin and Hunan are also cooperating with customers to shop. Although he has invested a lot in opening a store, he has achieved better results and played a better role in promoting the brand.

Wang Desheng said that it is very difficult to start a brand, although it has not yet reached the expected publicity, but it will continue to do so.

Astar general manager Fan Youbin also has his own brand dream, and it has been implemented since its inception. The company has its own brand "EVERSTAR" (Astar), through the cooperation of production, education (factory, school, research institute), to strengthen product development, launch products suitable for consumers, and promote brand development through product features; it is reported that this year, Astar It will introduce waterproof, breathable and warm-feather cashmere denim products, increase the added value of products, and take the production, research, and marketing of integrated marketing strategies.

The Jun’an government’s efforts to build and promote the Junan Denim regional brand are also increasing. It is reported that Junan has continued to promote the overall packaging of the “Jun'an Jeans” regional brand through the establishment of the Junan Cowboys Union and the Junan International Jeans Expo. , Organize the company to participate in the group to further polish the "Juan'an Cowboy" regional brand. Encourage and guide enterprises to build their own brands and increase their added value. The reporter also learned that Junan Town will plan to introduce capable companies, make reasonable purchases for some cowboy companies, reorganize several companies or groups of companies, and set up a joint-stock company with high-quality assets to apply for listing.

With the joint efforts of the government and enterprises, in recent years Junan apparel own brand sales accounted for more than 50% of the total annual sales of the industry. CIMB's "SEBORN" and "HARLEY BOY" annual sales amounted to more than RMB 40 million. Changrun's "Beatles", "Rui Lang", "Ming Xuan Long" and "Paichen" have annual sales More than 30 million yuan, ADELA's "ADLO" annual sales of more than 30 million yuan, the company's "Biao Qi" Qiqi company and Xuejilong company's "CIKELON" annual sales are more than 10 million yuan. Junan Jeans has gradually developed its own brand and brand name, and the proportion of self-owned brand sales has increased year by year. The continued decline in the world economy of the trial hydropower business platform has also affected the exports of the Junan denim enterprises. In the past, the purchasing power of the European and American markets fell, and Junan companies are trying to explore emerging markets. The Junan Denim Enterprises are actively exploring markets in South Asia, Africa, South Africa, Israel and other Asian and African countries and the Middle East, strengthening trade with these non-established countries, and reducing the US and European restrictions by expanding sales channels. negative impacts. The Jun’an government also encourages qualified companies to go abroad, strengthen business cooperation with developing countries such as India and Cambodia, and penetrate products into the US and European markets through third countries.

One obvious fact is that after the financial tsunami broke out, almost all those who survived poorly depended entirely on exports, and those who survived well were almost those companies that had established their domestic sales channels early. Therefore, the government encourages companies to increase brand awareness and make good use of corporate brand resources and the good reputation of the Junan Denim regional brand to further expand the domestic market.

Ouyang Eunjing, deputy director of the Junan Town Economic Promotion Bureau, said that in the development of the domestic sales market, the pattern of relying on a large number of advertisements, participation in exhibitions, and promotion in the past is now difficult to achieve. The reason is that the companies in the Junan have insufficient financial resources. Sufficient talent system to support. The tightness of the company's capital chain has led some of the Junan companies to use domestic stores to do domestic sales, and the pace of expansion is not fast. More companies adopt brand cooperation methods, mainly with domestic brands such as Qipin Wolf and Yichun. They do OEM processing on the one hand, and use their specialty stores and brand marketing resources to promote their own brands, but they are still “slower”. .

In recent years, the rapid development of e-commerce has made some Junan cowboy business owners excited. In the recent e-commerce seminar organized by the Cowboy Institute, more than 20 Junan Jeans apparel companies want to test water e-commerce, in order to broaden product sales channels and shape the brand's influence.

Ouyang Baojie, Director of Social Service Department of Guangdong Junan Denim Costume Research Institute, said that currently, Junan Denim garment enterprises are basically in a weak state with no strong independent brands, no proprietary market channels, and lack of market core competitiveness. Most companies are For export-oriented companies. Entering the field of e-commerce is a challenge for enterprises and an opportunity for development.

Ligao Garment began registering with Taobao and Alibaba several years ago. “Now the equipment is relatively simple and there are few people, but we are still moving forward. Although our monthly sales are about 2000 to 3,000 yuan, we have The situation is not very good, but the effect of brand promotion is still quite satisfactory.” According to the person in charge of the Ligao e-commerce department, “We still need to solve a lot of problems, such as equipment updates, investment in advertising, and so on. Gradually to improve, the company will put e-commerce development into a more important position."

Wang Desheng, General Manager of Ligao Garments Co., Ltd., said that because the brand has not yet started, there is a big difference between the sale price on the Internet and the store, and the price does not go up, which also affects the brand. And they focused on the manufacturing process of the factory. They have not increased their investment in e-commerce. The sales of e-commerce platforms are not optimistic, but they will continue to try.

After attending the aforementioned seminar, Xie Brown Group Planning Manager Tao Guangqing said, “We must enter the field of e-commerce this year, but we can't be too rushed. To learn from previous experience, we must first introduce professional talents in this area and set up an e-commerce department as soon as possible. Responsible for the operation.” He said that he has been doing 20 years, are taking the production mode of OEM, taking the traditional marketing model, and now also should change the business model to go. It is reported that the Xiblan Group has been doing feasibility studies and planning reports for e-commerce last year.

Chang Bao Garment Co., Ltd. Sales Director Guo Baolin said with emotion that the company chose the B2C platform to be correct. He told reporters that foreign trade is generally a big single, the production cycle will inevitably lengthen, and now the economy is sluggish, in order to avoid capital risks, had to do short orders, order instability led to production cuts and the loss of employees, forming a vicious circle. In order to reduce the risk, the company began its operations on the B2C platform.

Astar also plans to establish an e-commerce sales network platform through the B2C platform, and also innovatively create M2C (manufacturer-to-consumer) remote customization platform, build a remote network customization e-commerce sales platform based on the digital clothing manufacturing platform foundation, change The traditional sales model with many-to-one (many-to-one refers to mass production in traditional production mode and then sells to a single consumer through retail channels) turns into a one-on-one custom production and sales model.