Sustained increase in production costs, textile and apparel companies seeking online "break the array"

“A large part of the money that companies make now pays rent.” A few days ago, Shishi, a clothing company’s marketing manager, lamented that with the continuous increase in the rental cost of facades, the operating pressures faced by distributors are increasing, and shoe and clothing manufacturers have to Taking out more profits and subsidizing them, resulting in a decline in their own profit margins and the lack of follow-on funds for further development, “this seriously affects the development prospects of companies, but there are currently no good solutions.”

This year, the China Garment Association announced last year’s list of top 100 “Sales Profitability” companies in the apparel industry last year. As an important textile and apparel segment in China, “Chenpai Apparel” occupies 6 seats, including seven wolves, halberds, tigers, greens, and gage. In Westland, seven wolves ranked highest, ranking 24th. According to the Septwolves’ 2010 financial report, its operating income reached 2.2 billion yuan, the profit was close to 340 million yuan, and the profit rate was about 15%. “This kind of profit rate is good, and many textile and garment companies’ profits stay at 5% to 8%. Between.” Lin Hongnan, chairman of Fucheng (China) Co., Ltd., introduced that the sales profit rate of Septwolves was the first among Fujian's textile and garment companies, mainly related to the high end of the brand's strength in recent years, and always maintaining the high premium of the product. .

In March of this year, seven wolves acquired Hangzhou Kennametal, which has well-known world-class brands such as Canali, Versace collection, and world-famous jewelry brand Georg Jensen. The agent, Zhou Shaoxiong, Chairman of the Septwolves, said at the press conference that one of the next major activities of Seven Wolfs is to represent international brands. “The acquisition of international brand agency rights has several advantages. The most important thing is to expand its influence and Improve and improve the coordination of the entire operating system.” Liu Xiaoqun, general manager of Wolves clothing, said that Wolves represented international denim brands such as “EDWIN”, “TOUGH”, “SALAD” and “GAS” and became Fujian provincial-level agents. Currently also accelerating extension shop, "feel some of the pressure, mainly on the expansion of the store's funds." Liu Yiqun said that the Wolf Road is to take the "heavy brand light production" route, but the annual increase in store rental so that it can not be fast expand. In his plan, the design of the extension shop is much faster than it is now.

“The conditional brand enterprises have all developed into listing standards, but the problem is that channel costs have skyrocketed and profitability has declined.” Zhou Shaoxiong said that companies and companies are responsible for the various unfavorable factors that affect the profitability of the current brand textile and garment companies. People should pay attention to the strategic alliance of the supply chain of the industrial chain. The ordering meeting must be optimized. The coordination of employees and production plans must be more stringent. "Quality and price are also new topics that need to be studied."

How to "break the array"? Mr. Fang, an industry insider, said that e-commerce is a good way. For example, a menswear brand in Fujian maintained a growth rate of more than 300% last year, and brands such as Metersbonwe, whose online sales have already broken through 100 million yuan, have even set the goal of e-commerce to Zhou Chengjian, chairman of the company. In 2020, it will achieve sales of 100 billion yuan. "To achieve such a result, we must do two things." Mr. Fang believes that first, the popularity of its own brand is high, and the second is that the consumer's recognition of the product is stronger. In addition, acting as an internationally renowned brand is also a good idea. For example, Nike and Adidas have achieved Belle. “As China's textile and garment companies become bigger and stronger, more and more international brands will enter the Chinese market. This is an opportunity for powerful Shishi companies."