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    How Can China'S Garment Industry Get Rid Of Factories Of Sweat And Sweat?

    2010/7/15 15:19:00 94

    Clothing Industry

       Recently, I talked with some Chinese designer brand owners about their business, their complaints, or lack of excellent fabrics, or the lack of basic morality of the employers, or the lack of loyalty of the consumers, or the lack of market culture at the social level. In fact, I dare to make a bet with them all. "Do you really believe in your creative power and get rid of the so-called social bottleneck?" In the French movie "two little guess", one line is: "GAPPASGAP (dare or dare not)?" If you add a prefix to the front, you can say, "get rid of the sweat and sweat factory, GAPPASGAP?"


    As a large garment country, China can be said to have experienced and is still experiencing the "youth years" of "sweaty" factories. Due to its shortcomings in marketing, R & D and business mode innovation, "made in China" has long been placed in the bottom of the international apparel industry supply chain. But how can the so-called "madeinChina" be so cheap? Don't blame the British, the Americans, the Italians. In terms of brand operation, increasing profits and lowering costs and putting pressure on sweatshops are not the exploitation of China's big manufacturing powers by international fashion powers. Even in the US, such a business model has become routine.


    Take "madeinUSA" popular brand AmericanApparel as an example. In the United States, which imports 96% of its clothing, it runs counter to it: madeinDowntownLAVerticallyIntegratedManufacturing, the brand operation of cheap casual wear is simply a "suicidal" behavior in the traditional business rule. For Canadian artist DovCharney, who sits on AmericanApparel's youth fashion empire at the age of 37, he will say, "GAP (dare)!"


    If the United States brand is made in the United States, it is a "big head" approach. It is inevitable that the retail price of each garment will also be doubled. It is reported that when AmericanApparel almost filed for bankruptcy in March 13, 2009, the chain had to renegotiate its debt terms or raise $16 million. Luckily, AmericanApparel got a $80 million loan at midnight, avoiding bankruptcy, and immediately paid 51 million of the debt and avoided a fine. Because of the $60 million 600 thousand loan from the Bank of America, they have a breathing space. It is worth mentioning that the loan is linked to other debts.


    In fact, if AmericanApparel really went bankrupt at that time, maybe the brand would not be worth mentioning. Its influence is not enough to tell the Chinese fashion designers about the case of AA (AmericanApparel). It is the luck of this paranoid Jewish artist that more designers have to focus on the fact that AA has succeeded in "madeinUSA". Such a person who dares to deviate from business mode has composed an era of "trick pie design" which has to be ashamed of itself. R&B.


    It is understood that AmericanApparel vertically integrated production in the United States, located in the AA factory in Losangeles City, has 3500 workers, is the largest single garment factory in the United States today, producing more than 210 thousand T-shirts per day, processing 3800 SKU. AmericanApparel non sweatshops, workers pay 13-15 dollars / hour, 1 times the minimum wage in the United States, and provide free medical examination and insurance, and also offer English teaching courses for non English speaking staff.


    On this basis, AmericanApparel, despite its efforts to expand and sell well, struggled for financial struggles from 2009 to 2010. Starting in December 2009, DovCharney, the founder and CEO of the company, had to borrow $6 million 500 thousand from personal accounts for the circulation of goods to ensure the opening of new stores. This is exactly the same style of Chinese designer brand trader. It is a hint that any Chinese designer dare to sell his home dog and horse to do such a crazy thing. At present, there are more than 260 shops in AmericanApparel, which cover all the stores in the Americas, Europe, Asia and Oceania. The expansion speed is fast, but they do not sell dense shops. This brand has not been able to compete with the GAP and South Korea in the past 7 years. Without him, that is, pursuing the goal of globalization, the promotion of global thinking by "madeinUSA" has been encouraging the morale of this brand.


    Today's AmericanApparel has an annual sales volume of US $250 million. This is "too much oil and water" under the long transportation and high cost of brand goods. This brand operation mentality is not acceptable to any brand in China. But from another point of view, it is possible to interpret the business profit idea of Chinese clothing enterprises, but it is difficult to make a brand that is full of wit and humor. {page_break}


    Sometimes the brand strength is comparable to the diamond cutting diamond with a facet cut, so that all sectors of the society can see and admire AmericanApparel and become one of the representatives of the American spirit. That is, AmericanApparel in the marketing, R & D, business mode, the competition is everywhere, so that the brand is different. In Beijing China World Trade Center store, Sanlitun store, Shanghai Lao Yang Fang shop, there are consumers of different colors. It is undeniable that AmericanApparel is the fastest growing company in the history of the United States, and is also the most vertically integrated company in North America's clothing and accessories production, distribution and retail. There are more than 7000 employees in the world, of whom the words "pay is much higher than other employees in the same industry".


    AmericanApparel has opened up in China. When recruiting salesmen, there are recruitment notices on the bean paste, which goes like this: "we have come to China. In the coming months, AmericanApparel will be the first to open stores in two major cities in Beijing and Shanghai. Unlike other fashion brands, we will bring all the clothing and costumes produced by the United States. The salaries of our employees in China will be higher than that in the US. "


    These strange and unique tricks made AmericanApparel popular and troubled. Many people wonder why the "bankruptcy door" lawsuit finally took the risk: "who saved the AmericanApparel at the last moment?" The answer is the British - LionCapital, a private equity firm in London. At present, investors in AmericanApparel include OranginaSchweppes, British grain maker Weetabix and American chip maker KettleFoods.


    In addition to their brand loyalty to the AmericanApparel style, the biggest reason is that the brand has consistently advocated the spirit of "madeinUSA" and the generous treatment of employees. Here, the argument that winners are paranoid seems to be demonstrated. But have Chinese designer brand owners also considered their lack of social responsibility and lack of public interest in innovation? You know, no matter how dazzling color style can attract eyeballs, the spiritual tension of selfless change of social status may attract gay investment and sponsorship.


    The key lies in your "GAPPASGAP?" As for the Chinese excellent designers who are still grumbling, they are more responsible for changing the future than anyone else. I hope they have brave gamblers, not just T as vanity fair.


    Buyers happy sellers worry


    In online shopping, consumers and businesses are often located in different places. Consumers find problems after buying products, and do not know how to protect their rights. In reality, websites and online shops are often located in different places. In the face of illegal business practices, where should consumers complain to the industry and commerce department? Therefore, for a long time, the controversy over the real name system has always been the focus topic.


    The SAIC has issued a new regulation on Internet transactions recently. Since July 1st, the Interim Regulations on the management of online commodity trading and related services have been implemented. It is stipulated that online shop must practise "real name system" and submit real information such as personal name and address to the platform operator. Most people, especially consumers, hold a positive attitude towards the real name of online stores, and think that this can purify the online shopping environment.

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