Clothing Industry Heating Winter To Attack Domestic Market

"We are planning to open another shirt production line and are planning for a sales outlet." Ji Rongzhong, chairman of the five wood Clothing Co. Ltd., shocked the reporter.

As we all know, the financial crisis has made the textile and garment industry extremely cold in winter. RMB appreciation, subprime mortgage crisis, export tax rebate rate reduction, raw material prices, CPI rising. The multiple factors at home and abroad make the domestic textile and garment industry facing unprecedented crisis in 2008.

According to statistics, affected by the financial crisis, the loss of the textile enterprises above Designated Size reached 24.46% this year, the total loss was 4 billion 866 million yuan, the average profit rate of the 2/3 enterprises in the whole industry was -0.67%, while the average profit margin of the 1/3 dominant enterprises was 8.73%. In the first half of this year, China's textile and apparel exports totaled $83 billion 851 million, an increase of 11.11% over the same period last year, and the growth rate was 6.44% lower than the same period last year.

The sound of business failures and limited production in the developed areas of Jiangsu and Zhejiang coastal areas is endless. Export to domestic sales has become a good way for many garment enterprises to cope with the shrinking of overseas markets, but at the same time, it has also increased its own competition in the domestic apparel market. A woman who did not want to be named for many years engaged in clothing business, Ms. Li told our reporter that exports to domestic sales meant that the number and number of domestic brands suddenly increased, to a large extent, to change the original competition pattern, and consumers also cling to their pockets.

According to the sales statistics of key large retail enterprises in China, the sales volume of clothing sales of key large retail enterprises in China in 2008 1~6 was 53 billion 100 million yuan. If the price factors were excluded, the number of clothing sales increased by only 11.9%, down 3 percentage points compared with the same period last year, and the sales volume of clothing increased by 20.9%, down 1.6 percentage points compared to the same period.

The five wood companies located in the city are neither interested in the sky nor in the right place. Why do they make decisions against the situation? "Our enterprises always focus on domestic sales and brand management. Since its establishment, the company has been working steadily and steadily. The crisis mainly affected export garment enterprises, and the crisis made me see more opportunities. " Ji Rongzhong said in an interview with our reporter.

In the 2009 spring summer summer trend of Chinese women's trousers, general manager of Zhao Li Li Clothing Co., Ltd. also used the word "pun of cool weather and clothing warming" to express confidence in the development of clothing in the current economic situation. French Fashion Institute experts predict that from 2010, China will surpass Japan and become the third largest apparel consumer market in the world. 1 billion 300 million the huge market demand of the population is far from full potential.

Ji Rongzhong told reporters confidently: "opportunities are reserved for those who are prepared. Enterprises engaged in foreign trade clothing for a long time do not understand the needs of domestic consumers. Moreover, our enterprises have always been based on the domestic market, not only to understand the needs of domestic consumers, but also to focus on R & D investment in production technology, so as to win quality.

According to the statistical data of the Bureau of Commerce and business information, the five wood garments ranked first on the top of the list of commercial clothing brands in 2007, and ranked first again in the first half of 2008, far higher than the retail sales of other brands of similar products.

Zeng, chairman of the China Fashion Designers Association, said that the garment industry will be in the market adjustment period in 2009. The Chinese traditional garment industry must accelerate the transformation from processing to brand design. Only by improving the ability of independent research and development and upgrading the brand can we save ourselves.

Ji Rongzhong believes that consumers of suits are less affected by the financial crisis. Business negotiations, job hunting, marriage and other activities, suits are one of the essential consumer goods. At the same time, a series of policies promulgated by the government also provide a bigger development platform for the enterprises that are ready to go ahead.

The executive meeting of the State Council, held in November 19th, has identified 6 measures to promote the healthy development of the textile industry. It has fully supported the textile industry from expanding domestic demand, financial investment, tax relief, promoting exports, financial support and industrial policies. The textile and garment enterprises in the warm air need to strengthen their health and strengthen their own resistance.