Jiangsu garment industry “looks to the future” to accelerate brand building
Bosideng, Hongdou, Heilan House Co., Ltd…. when it comes to Jiangsu local clothing, many brands can come to mind in many people’s minds. Faced with problems such as low overall profit margins, few leading companies, and weak influence, how will Jiangsu’s garment industry, an industrial chain with a long history, respond? On June 2, the Jiangsu Provincial Brand Apparel Industry Strengthening Chain Promotion Conference was held in Changshu. Nearly a hundred companies exchanged views on the topic of “Jiangsu Brand”.
According to statistics, in 2020, the province’s garment manufacturing industry had 1,639 enterprises above designated size, accounting for 12.3% of the country’s share; it produced 2.308 billion pieces of clothing, accounting for 10.3% of the country’s share; 26 companies were shortlisted for the “Top 100 Enterprises in China’s Garment Industry” , tied for first place with Zhejiang Province. Professional markets such as Changshu Garment City and Wujiang OrientalSilk Market have annual sales exceeding 100 billion yuan. In addition, there are 58 related industrial clusters and parks in the province, which have played an important role in promoting the development of Jiangsu’s garment industry.
In urgent need of improvement, industrial development faces weaknesses
At present, clothing companies in our province mainly focus on OEM processing, and the driving force for brand building is insufficient; clothing creative design and personalized customization are lacking; the degree of product homogeneity is high, and the profit margin of the clothing industry in 2020 is only 3.5%; lack of a brand display platform with high domestic and international influence…
Although Jiangsu is a major clothing province, it also faces a series of weak points, which has also made the need for enterprises and brands to transform and upgrade become increasingly strong.
Black Peony (600510.SH) is a garment fabrics manufacturer with denim as its main product. More than 70% of its products are exported. Talking about the biggest problem currently faced, the company’s technical director Deng Jianjun blurted out: “One is the tariff exchange rate, and the other is circulation.”
“Compared to a few years ago, export tariffs are relatively high now. Moreover, exports to Europe and the United States are basically signed with ‘annual bills’. The current international situation is relatively complex, and the continued appreciation of the RMB against the US dollar means that corporate profits will Continued decline.” Regarding the issue of product circulation, Deng Jianjun bluntly said that because companies spend a lot of money on circulation links such as stores, distribution, and promotion, this will undoubtedly increase sales costs. “Many brands in Europe and the United States have transferred raw materials and bases to Southeast Asia, and have strengthened direct sales in stores and supermarkets in their own countries. The profits are relatively high. However, our brand has just started, and the high proportion of distribution costs has restricted development. ”
The prospect is bright, persist in technological innovation and go global
It is worth mentioning that although problems still exist, coping strategies have been gradually explored—that is, adhering to the combination of brand technological innovation and industry going global.
Suzhou’s Song Brocade brand Shangjiukai has taken advantage of surrounding universities to establish industry-university-research cooperation with Suzhou University, Donghua University, Zhejiang Science and Technology University and other universities, and carried out the “Key Technologies for the Production of Song Brocade and Hualuo Fabrics and Product Research and Development” Projects such as “Research and Development of Song Brocade Fabric that Can Prevent NFC Data Reading” have innovatively applied traditional silk specialty fabrics to various products, promoting the in-depth integration of silk and technology. “At major domestic and international events such as the G20 Hangzhou Summit, the Xiamen BRICS Summit, the Astana World Expo, and the Jiangsu Development Conference, more than 100 of our products have been presented as national gifts to foreign heads of state and their wives.” Company Chairman Wu Jianhua said with a smile.
“Because ASEAN exports have zero tariffs, we have begun to focus on the ASEAN countries.” The person in charge of another company said that in terms of production structure adjustment, we will have more contact with the ASEAN market in the future. In terms of “going global”, companies are considering transferring some of their production capacity to Southeast Asia. “This is also the route of brands such as GAP and Levi’s. When Chinese companies have a certain level of strength, it is an inevitable trend to go global and compete with foreign brands.”
Bosideng’s international brand route, Hongdou’s industrial Internet platform, Rongmei’s online retail… Data from the Provincial Bureau of Statistics show that the total revenue of Jiangsu’s clothing industry in the first quarter reached 35.912 billion yuan, a year-on-year increase of 3.67%, and the total profit was 10.29 billion, an increase of 70.16%. In addition, according to customs data, Jiangsu’s clothing exports reached US$4.81 billion in the first quarter, a year-on-year increase of 33.4%, showing an overall growth trend.
Strong industrial chain, “special classes” provide service guarantee
At the end of last year, the Provincial Party Committee and the Provincial Government issued the “Three-Year Action Plan for Strengthening Industrial Chains” and established a “Special Class for Strengthening Chains of Brand Apparel Industry in Jiangsu Province” to achieve the two-way integration of “innovation chain” and “industrial chain”. By 2023, we will strive to create a number of national-level advanced manufacturing clusters with benchmarking and demonstration significance, and create a number of “chain master” companies and “hidden champion” companies with strong international competitiveness.
The promotion meeting held on June 2 was one of the important tasks carried out by the “Jiangsu Province Brand Apparel Industry Strong Chain Special Class”. At the meeting, the person in charge of the special class and the Standing Committee of the Provincial People’s CongressWang Yanwen, deputy director of the committee and deputy secretary of the party group, proposed that promoting the highquality development of the brand clothing industry chain requires four combinations: combining with the upgrading of domestic market consumer demand; Combining the improvement of technological innovation capabilities in the industrial chain with cultural inheritance and creativity, and the expansion of multi-level publicity and promotion channels. She said that judging from the opportunities faced by the development of the brand clothing industry chain, clothing companies’ brand building, intelligent manufacturing, and new materials font>The development level of development and creative design will continue to improve, and the consumer demand in the international and domestic markets will continue to upgrade, which will provide good opportunities for the industrial chain to achieve high-quality development and further satisfy the people’s yearning for a better life.
Shen Lei, the chief expert of the special class and doctoral supervisor of Jiangnan University, shared two cases with the heads of the companies present: Jiao Nei, sales increased from 0 yuan to 1.5 billion yuan in 4 years, and they only focus on making underwear products; Xiaobai T , does not have any LOGO or pattern, but now it has ranked first in T-shirt sales on Douyin, JD.com and other platforms. “This shows that there is still a market for specializing in brands, pursuing quality, and emphasizing experience.”
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