9: Decrypting the 2012 Trend of the Fashion Industry: Subdividing Fast and Deep Fission


In 2012, the "inflection point" of China's garment industry has arrived. In fact, the “inflection point” exhibited by China's garment industry in 2012 is the birth of a brand-new industrial pathway or platform. It is based on the industry accumulated in 2011 to update or convert it, resulting in trends and results. It is inevitable that the Chinese clothing industry will be reconstructed and reborn at a higher level.

When the industry encounters a high-cost era in 2011, when the high cost reveals the true essence of the “double-edged sword”, it is still commonplace that the low-end garment manufacturing industry continues to accelerate the pace of shifting to the mid-western China. The new trend in the apparel industry is that brand premiums are being chased by rivals and become increasingly popular. More small and micro-sized garment companies are deeply distressed, high-cost mercilessly squeezed and eroded their already thin profit margins.

The domestic demand market is fully activated and strengthened The bright spot of the domestic market in 2011 is driven by the dual factors of China’s urbanization process and continued growth of residents’ income. Third and fourth-tier cities have become one of the main battlefields to boost domestic demand.

In 2011, the domestic apparel market continued to grow steadily. The traits of the Chinese urban apparel market showed a differentiation trend. The first and second tier cities continue to play the role of leader. It is a vane of fashion and trend, a location and breeding ground for the importation of international brands, and a stage for China's first-line clothing brands to “dance with wolves” and achieve glory and dreams. In China's third- and fourth-tier cities, cheap fashion is in full swing, and the brand game becomes increasingly fierce. China's third- and fourth-tier cities have become a must-win place for international brands and domestic first-line brands to “channel sinking”. Upgrade the basement of the Assembly Number.

Full-scale competition interpretation In 2011, the concentration rate of China's garment industry showed an accelerating trend. The allocation of industrial resources was further tilted and concentrated toward dominant enterprises, and the market competition became increasingly intense. The new competitive situation is that local brands and foreign brands have “encountered” each other in the third and fourth-tier cities. The focus of the brand game is to control limited high-quality channel resources and compete for limited value customer resources. Market competition has been fully demonstrated: from product design and R&D to brand promotion marketing, from supply chain management to enterprise information system construction, from business model planning and design to cooperating capital markets... The competition between enterprises and enterprises has become a “chain” Competition with "chain". How to create a complete value chain to participate in the competition cycle, how to strive to "chain owners" to control the value chain, the actual test of the wisdom and courage of Chinese clothing companies.

Technology means becoming a competitive weapon In 2011, the widespread adoption of green and low-carbon, nano-technology, environmental protection and energy conservation, smart chips and other science and technology formed a strong support for the transformation and upgrading of China's garment industry, and the industry’s products showed higher and higher technological content and technology. Application of more and more common trends. On the other hand, technological progress has become the cornerstone and booster of China's garment industry from low-end manufacturing to high-end control and gaining industrial discourse rights on a global scale. A batch of new clothing products with consistent new features, new concepts, new brands, and new values ​​debuted in the market. They earned enough attention for the company, attracted capital, and pushed a new segmentation market portal for enterprises to become a company. Participate in the market cycle of competitive weapon.

Rapid and fissile market segmentation In 2011, China's four major consumer groups contributed a lot to boosting the domestic market. They corresponded to four market segments: one was the “longevity bonus” with the elderly consumers as the core, and the other was the The "Moonlight Family" purchasing luxury goods, the third is the "Lohad family" pursuing healthy products, and the fourth is a new generation of consumer groups represented by the 80s.

China's clothing market is characterized by rapid subdivision, deep subdivision and infinite subdivision. In this context, the great challenge facing companies is to select market segments precisely based on their limited resources. In essence, the market segmentation has become the "death and death" of enterprises.

IT technology increasingly penetrates and integrates In 2011, Chinese apparel companies frequently deployed B2C, and e-commerce applications ushered in the blowout period. The transformation and upgrading of Chinese garment enterprises will inevitably have a huge dependence on the IT application industry. The application of IT information technology, including ERP and Internet of Things, has significantly accelerated the pace of promotion in the industry, and has shown an increasingly pervasive and convergent trend in the apparel industry chain, which has become a sign of maturity and standardization for apparel companies. In the face of the wave of IT IT applications, Chinese apparel companies face two difficulties: First, apparel companies have an urgent need for IT information technology applications, but they cannot afford high acquisition costs and operating costs. Second, apparel companies are There are many misunderstandings or biases in the application of IT information technology, IT information technology applications can not play its due role.

Capital has become a key force The link between the Chinese garment industry and the capital market has never been as close and hot as it was in 2011.

In 2011, under the leadership and promotion of capital, a group of high-quality apparel companies went on the market one after another, and more competitive enterprises were poised to embark on the IPO journey. The force effect of capital has also been revealed. In terms of channel layout, R&D and design, information management, human resources training, and supply chain integration, the Chinese garment industry is undergoing a leap from quantitative change to qualitative change. It cannot be overlooked that in the industrial environment in which capital is in control of the right to speak, the living space for small and medium-sized enterprises will be further compressed, and the dominant enterprises will also face the dual choice dilemma of “advance either with capital games or out of the game”, each time holding hands with the capital. Or marriage will quickly become the next new starting point.

The birth of a new generation, represented by the new generation consumer generation, has become the main force in the Chinese domestic market and has become one of the largest market segments in terms of capacity. Under the environment of economic globalization and informationization, major changes have taken place in the lifestyle and consumption concepts of the Chinese urban newborns. The formation of the new generation of consumers will increase the total consumption of apparel in China, the upgrading of consumer grades, the propagation of consumer ideas, and the fission of market segments. Have a profound effect.

The new generation's consumption is substituting for generations, and its essence represents a never-ending change in consumer demand. How can China's garment companies adapt to the rapidly changing external market environment? This topic will always be accompanied by the company's entire life cycle. The consumer demand research continues to be conducted, closely following fashion trends, or “homework” where Chinese apparel companies can’t leave.

Brand consumption will become the main theme At present, China's per capita GDP has exceeded US$3,000. It is estimated that by 2015, China’s per capita GDP will exceed US$5,000. At that time, consumption will have a stronger driving effect on the economy, and it will enter the stage of consumption-led economic development as a whole. .

As China's resident consumption structure continues to be optimized and upgraded, consumers, especially urban residents, have increasingly advocated consumer goods brands. According to the annual statistical survey conducted by the China Industry and Enterprise Information Publishing Center on the national key consumer goods market, the average market share of the top 10 brands in the market reached 66.3% in 2010. In the future, China's consumer goods market will continue to develop in recent years, brand consumption occupies the mainstream of the development trend.