Zhuhai Clothing Enterprises: Seeking Pformation And Upgrading By Brand

"Originally did not want to sell on the spot, but so many people want, really can not help."

Bai Yumei is the production director of Zhuhai Lida Textile Co. Ltd.

It is reported that after the financial crisis, the establishment of independent brands and expansion of the domestic market have gradually become the consensus of Zhuhai's many foreign trade processing and garment enterprises.

The recent sharp fluctuations in domestic cotton prices have further strengthened the determination of clothing companies to seek pformation and upgrading with branding.

Cotton price volatility highlights brand importance

"Cotton market such as the stock market, skyrocketing, plummeting, impractical."

Talking about the trend of domestic cotton prices this year, Xie Zhaoyu, general manager of Olenti fashion company, is so appraise.

Data show that this year, domestic cotton futures prices rose first and then fell sharply.

Take Pu cotton as an example. At the beginning of this year, only twenty thousand yuan per ton, then gradually rose, and began to accelerate rapidly after September, reaching a peak of nearly 40 thousand yuan / ton in November, and then rapidly dropped to about 26 thousand yuan.

The sharp fluctuation of cotton prices has made many enterprises "unable to eat".

Jin Wan, a foreign trade textile enterprise, said that before November, cotton prices rose sharply, resulting in a sharp increase in production costs. "Raw material costs rose more than 20%". Because of lack of independent brands and marketing channels and lack of bargaining power, the original orders "can only be hard headed, and new orders do not dare to pick up".

And the brand clothing enterprises such as Wiseman and Olenti reflected that the increase in cotton prices did not cause much losses.

Xie Zhaoyu said that because of the complete industrial chain of design, production, sale and terminal management, the fluctuation of cotton prices in the short term will not bring too much impact to Olenti, let alone the company can improve the design and adjust the price to raise the pressure of cost.

However, the crisis also enabled foreign trade processing enterprises to realize the importance of independent brands, including Li Da company. Some powerful foreign trade enterprises in Zhuhai began to create their own brands, and gradually accelerated the pformation from exports to domestic sales.

"Pure processing may be small profits but quick turnover in the short term, but it is by no means a permanent solution."

Bai Yumei said that the recent fluctuations in cotton prices have further strengthened the determination of enterprises to create brands and expand the domestic market.

The road to brand is wisdom and perseverance.

At the Wuhan fair, a total of 8 garment enterprises participated in the exhibition in Zhuhai.

Many companies, like Li Da, hope to enhance their brand awareness and expand the domestic market with the help of exhibitions.

The company also signed a 18 million yuan purchase order with a distributor in Wuhan, and other garment enterprises also received many procurement contracts at the exhibition.

Xie Zhaoyu said that the competition in the garment industry is becoming increasingly fierce. The key to Olenti's success in winning the national market lies in its huge international marketing and creative network and its core design capability.

At present, Olenti has set up an independent R & D institution in many cities such as Hongkong and Zhuhai. The annual R & D investment is 100 million yuan, and nearly 4000 new styles of clothing are launched annually to the global market.

In addition to studying fashion and learning design, pformation and upgrading of garment enterprises also need a "tolerance to loneliness" persistence.

Zhang Yuhong, chief executive of Zhuhai new clothing company, believes that clothing brand is an intangible asset that can help businesses resist market volatility risks.

And this intangible asset is directly proportional to the operating time. "The longer the time is, the higher the value." but the cultivation of a successful brand is not an overnight effort. It often takes years or even decades. If the enterprise is eager for quick success and instant benefits and lacks perseverance in the early stage of pformation, it is very easy to choose to give up or to "rot" the brand.