Advantages and disadvantages of the clothing business

Advantages

1. Economies of Scale

There are certain barriers to economies of scale for apparel companies. By pulling away from the relative size of their competitors, they gain purchasing pricing power, thereby diluting fixed costs. For example, a new start-up offline clothing business, the biggest cost is the management and development costs in the early stage, the order is getting bigger and bigger, the supply chain costs will be lower and lower, the cost of doing 100 pieces and doing 1,000 pieces of the cost of doing is a very big difference.

2, user habits.

In the era of no e-commerce, the difficulty of finding a style, only through the physical store, the physical store did not find can not be found, but now if you see a clothing style in any place, directly open the Taobao shoot Litao, and immediately find a very large number of similar styles, but also immediately than the price, the cost of searching for almost zero.

Disadvantages

1, the market intensified vicious competition

China's apparel consumer market is promising, especially after the global economic crisis, the international brands have accelerated the expansion of the Chinese market at the same time, the export-oriented traditional apparel enterprises have also begun to gradually turn to the domestic market, making the industry competition further intensified, product promotions and discounts, homogeneity of the competition, channel construction and other behaviors increased.

2, intellectual property protection lag

Product style design, brand image logo is an important intellectual property rights of branded apparel enterprises, and the domestic apparel industry generally lagging behind in the protection of intellectual property rights, infringement of insufficient efforts to combat the problem. The processing and manufacturing threshold of the apparel industry is relatively low, and the design of product styles and colors is relatively intuitive, and the infringement of copying apparel designs and stealing famous brands is still common in the industry.

Expanded:

Status of the apparel industry

The textile and apparel industry has a large development, but also to a greater extent to promote the development of the national economy. China's huge market demand has become the main source of power for the steady growth of the domestic garment industry. People's living standards continue to improve, the concept of clothing consumption is maturing, the quality of clothing, features, brand culture connotation of the understanding is constantly improving

Garment consumption gradually tends to the development of medium and high grade, clothing using medium and high grade fabrics in the proportion of the year-on-year growth. Clothing industry to high value-added, high-tech content, high comfort direction, is conducive to the upgrading of the product structure of the apparel industry, and enhance the market competitiveness of branded apparel enterprises.

Consumption of clothing has shifted from a single cover the body to avoid the cold of subsistence-type consumer demand to fashion, culture, brand, image of the consumer trend. China's apparel consumer market is along: demand consumption → fashionable consumption → fashion consumption → personality consumption, such a low to high brand consumption demand trajectory for change