What is the direction of the future development of the clothing industry structure?

From the cycle of economic development, China's economy in general is still in a period of faster growth, running in excess of the economy, the relative lack of consumer demand in the environment, but at the same time there are local overheating and even some of the more serious speculative behavior. And the clothing industry as a whole, the rapid development, but the lack of domestic demand, serious overcapacity, inventory backlog aggravated.

As of the third quarter of 2012, the textile and apparel industry, listed companies have a total inventory of up to 73 billion yuan, thus giving rise to the "clothing inventory enough to sell three years," the argument, so that the whole industry sighs of its indisputable, but also can do nothing about it. In the end, the clothing industry is still threatened by high inventory, resulting in tighter cash flow, the traditional expansion through the franchise mode of operation needs to be adjusted.

The apparel industry into today's high inventory crisis, the main reason is the imbalance between supply and demand.

It is necessary to adjust the high-end route of Chinese clothing brands

In recent years, domestic branded clothing focused on the white-collar class, in accordance with the price of a certain percentage each year in the rising. From the perspective of the industry as a whole, China's clothing brands because of changes in market consumption structure, the formation of two new different camps. The first camp is to take the high-end route of clothing brands, pricing high, sales, especially from 2001 to 2006 this part of the brand has been a great success, only in 2009, 2011 suffered two crises reverse. The reason for this is mainly manifested in China's wealth is concentrated in the hands of 0.5% of the people, this part of the people's consumption ability is very strong, their consumption of luxury goods and high-end brands in the growing, but it is necessary to pay more attention to the middle-income consumer groups.

The over-concentration of wealth has also resulted in increasing polarization, and the survival of mid-range brands in the market has become increasingly difficult. The grasp of consumer demand, price positioning, channel expansion, market scale operations have become extremely important, while consumer demand has become increasingly elusive. In a country where there is no middle class, it is very difficult to cultivate a group's awareness of the brand and become a loyal customer by finding a group that meets the brand's objectives.

So according to the actual situation of wealth concentration of Chinese consumer groups, enterprises making high-end brands should lock their eyes to the top consumer groups. Through cooperation and learning with foreign brands, develop into a favorite brand of China's top consumer groups, product pricing should be matched with their income, preferences and needs. These brands should be flexible in adjusting their positioning, grasping the market demand and being flexible to cope with the uncertain customer groups.

Fierce competition in the casual wear market

Rapidly rising casual wear brands in the 80s and 90s of the last century, after several years of fierce competition, the market demand is weak, and production capacity exceeds the actual demand capacity. A part of the old casual brand began to decline, and gradually replaced by domestic excellent brands such as Meters - Bangwei and other brands. But the growth of the market is limited after all, even if many poorly run brands to give up the market gaps, in terms of the casual wear market, the new gaps are still not much, casual wear companies in the development of the next few years in the development process, we must consider the production and the market is not supporting. Overemphasis on market share, ignoring the demand factor, it will be necessary to assess the enterprise's profits and inventory will be significantly affected.

High-speed development of the sportswear market

From Adidas, Nike, Puma, Li Ning, Anta to Jordan, 361, Tebu, sportswear market development in the past few years, will soon also enter the era of overcapacity. An industry competition to a certain extent, capacity and demand began to mismatch, the industry began to enter the survival of the fittest. Brands that have the strength to be recognized will survive; brands that don't have the strength to be recognized will disappear.

In the sportswear market, domestic brands are mainly concentrated in second-tier cities and international brands are mainly concentrated in first- and second-tier cities. With Nike and Adidas adjusting their market strategies and focusing on second and third tier markets, I believe the bloodbath in the sportswear market will reach a climax in 2008. Those enterprises with vision and ability, and at the same time well-prepared, will be the final winner. However, due to the lack of demand for market consumption, into 2012, high-end brands also lowered the noble head, it is inevitable to reduce the price of promotions.

Developing children's clothing market

Children's clothing enterprises for several consecutive years of recession, is witnessed ****, with hundreds of millions of children population in China, the consumption capacity and production capacity but does not match. Huge consumer population can not pull the growth of the market consumption trend, the high cost of children's education to the parents' limited income has brought heavy pressure, parents used in the children's consumer durables such as clothing expenditures continue to shrink. In the absence of a large social education system, I think the children's clothing companies have to be prepared to fight a protracted war.

Diversified competition in the women's clothing market

China's women's clothing brands have gradually formed a market pattern from high-end to low-end, and styles have become blossoming. Product design capability and brand management level is approaching the international level, but China's women's clothing has not yet formed a leading brand, mainly because of the diversification of consumer demand at the same time the purchasing power is not growing rapidly. When the demand and purchasing power is not proportional to the time, product design to a variety of small amounts, which will bring heavy pressure on the growth and diversification of enterprises. So that China's women's clothing enterprises to seize the opportunity to find new highlights in the many uncertainties, to grasp the market demand.

Slow growth in domestic demand will bring great pressure on the retail industry, and inevitably put forward higher requirements for business operations. We hope that our companies will pay more attention to branding and management, reduce operating costs and improve market resilience in order to capture the market and find new growth highlights and growth opportunities when the economic environment changes.

The success of the past does not mean that today's success, in the ever-changing market as long as the enterprise has a clear goal, long-term strategic planning, in order to find the growth of the highlights and opportunities, especially at this stage in the "post-crisis" era. The rise of brands and industries must be closely related to the domestic economic environment. Choose to do an industry or market, if you can not see the future development of the market, it will not be better.