Getting Higher Premium Capability Is A Top Priority For The Development Of China'S Clothing Brand.

Recently, the investment fund LCapital of the luxury group LVMH group joined the CITIC Industrial Fund's acquisition of $200 million.

10% of the shares are valued at $2 billion, and the valuation is high.

This is not the first time that international capital invested in Chinese women's clothing. At the end of last year, LCapital also invested in Xiamen's Higa apparel, which owns JORYA, GIVH SHYH, ANMANI, CAROLINE and AIVEI, and ranked the second largest shareholder. In earlier 2009, the international private equity giant Carlyle Investment Group also invested in Shenzhen.

(ELLASSAY).

Reasons for popularity

Whether Ochirly, JORYA or ELLASSAY, these

Because of its high valuation and the favor of international capital, it should be said that more or less already has the gene of accomplishments of international brands.

Unique style, leading the trend, with a strong sense of fashion; the pursuit of excellent quality, embodies the cultural connotation of taste; to adapt to different consumer demand, showing the characteristics of the difference of creative design.

It is also quite different from the traditional labor-intensive enterprises. They have a considerable proportion of independent production, and also use outsourcing or entrustment to achieve large-scale production, bringing together many high-quality creative design talents. The competitive advantage is more reflected in R & D capability and supply chain management. The products have higher added value and stronger brand premium capability, which can be regarded as a model of "pformation and upgrading" of traditional industries, or a new enterprise incorporating many elements such as fashion, culture, creativity and design.

For a long time, China is the largest clothing producer in the world and the largest consumer of clothing, but it lacks the world brand.

Today, China's products are all over the world. There are few Chinese brands in the world. While cheap and good Chinese products are selling well all over the world, foreign brands can easily occupy our high-end market.

Although MADE IN CHAINA has swept the world, it is not brand recognition, it is just a cheap label. China has a very complete luxury production line from OEM to ODM, but it has not enjoyed the high premium of luxury goods, it only earned the money of OEM processing.

If we are willing to spend more time thinking about it, it is not difficult to find that the gap between Chinese enterprises and international enterprises, Chinese brands and international brands may be difficult to eliminate in a short time.

To build an international brand and become an international fashion center, China still needs a long time to accumulate.

To achieve pformation and upgrading, to create Chinese brands and to acquire higher premium capability has become a top priority for the development of Chinese clothing brands.

Increasing consumption brand effect

From the perspective of China's current wealth structure, the consumption structure characteristics of "gourd society" still exist, that is, some groups of small gourds, which have a strong purchasing power for high-end or luxury goods consumption.

At present, with the change of population structure and consumption upgrading, this consumption structure is undergoing profound changes. First, in 2011, the urban population surpassed the rural population for the first time. Two, 80 and 90 are becoming new consumers. Three, there is a higher demand for brand identity and quality.

More and more elite consumer groups are no longer satisfied with simple LOGO consumption. They are not satisfied with the label style conspicuous consumption. They are more concerned about brand marketing, design and even services. They tend to choose some luxury brands with premium capability, and consumption concepts and consumption claims are also gradually upgrading.

It should be said that in the current consumption field of China, there is both the luxury buying boom and the "fashion to the countryside" opportunity, while the "gourd" central consumer group will have an opportunity to increase rapidly in the future, and a huge quasi luxury purchasing power will be formed in the high-end consumption field.

This "small hoof", which includes a huge future market, has not only become the driving force for attracting international capital and international brand to accelerate strategic layout in China, but also a big container for China's high-end clothing brands to grow vigorously.

But on the other hand, the huge market means more opportunities and more temptations. This makes Chinese clothing brands and "run volume" companies everywhere. But the enterprises that are truly able to resist loneliness are less devoted to brand deepening and shaping with the professionalism and dedication of "ten years of grinding one sword".

Judging from the current development of China's apparel industry, most enterprises are developing more stores and brands through a certain stage.

This extensive development is acceptable at the early stage of the brand, but in the long run, it will represent growth in terms of quantity, and it will not be worth much in the future, nor will there be room for premium.

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The key to improving the brand premium is to build brand awareness, high quality recognition and rich brand associations.

The development process of international famous brands is mostly brand specific operation, bringing the characteristics of the brand itself to the extreme. For example, Balenciaga (Paris family) has always been skilled in tailoring and sewing, Zegna (Zegna) focuses on top fabrics, Burberry (Burberry) classic lattice becomes a symbol, Chanel (Chanel) style is constant, and little reduction in price.

At home, some clothing brands began to focus on the forging of premium capability, adhere to the brand's own characteristics, and get out of the unique development path of the brand.

The women's clothing brand from Shenzhen has been unique in its distinctive style since its establishment.

However, the most amazing thing is not only the design or quality of the song, but the persistence of the brand in the decades.

With the intensification of market competition, multi brand operation has become the choice of many garment enterprises.

However, in such a turbulent situation, he failed to resist the temptation, insisted on the development of a single brand, and concentrated the advantages of resources to create the unique value of the brand itself.

Brand is the only product, but the product is not monotonous. Through diversified product lines to meet the different needs of consumers, control speed, pay attention to quality and advocate a happy culture. Although the number of shops is growing little, the performance of single store has been continuously improved, and the connotative and high-quality growth has been achieved.

Coincidentally, the same is women's clothing brand from Shenzhen, in recent years, the total number of stores has not changed much, and has remained at around 500.

But the storefront structure has been adjusting, for example, the sales mode of the innovative club store, the location of the shop is not in the busy downtown area, and the area of 500 square meters is not large. It only provides services to members, not only to sell products, but also to provide costumes and collocation and image design, etc. it effectively improves customer loyalty and purchase frequency, and produces huge profits. It is reported that the annual sales volume of the club club has reached an astonishing 70 million yuan.

Persistence victory

In this era of complex business and fierce competition, products are not equal to commodities, and famous brands are not brand names. Strong production capacity does not mean that the stronger the market ability, the better the quality of products must be pformed into consumer recognition.

If we rely solely on the extensive lines of multiple brands and open stores, we may expand the scale, increase revenue and increase profits in the short term, and the brand influence will also expand. But in the long run, whether gross margins and net profit margins can be maintained at an appropriate level can not further enhance the added value of brands.

Blindly pursue the old mode of scale and sales volume, only focus on the intensive cultivation of the brand, and will eventually get rid of the vicious cycle of rising costs, declining profits and increasing inventories.

The wrong way of thinking does not affect bold exploration, but it allows us to take more detours or choose the wrong direction.

A large number of shops can not represent the good development of the brand, and a large number of brands can not represent the development of enterprises.

This is a very easy question to understand.

However, for many years, most Chinese clothing enterprises still flatter the development mode of multi brand creation, and the competition among garment enterprises is still at a relatively low level, such as price and style.

The development of baozi, Mass Phil, and George's seems to reveal a simple truth: sometimes, more or less.

It is better to focus on the promotion of single store performance than to open shop with sesame flowers; instead of registering a large number of brands, it is better to concentrate on the intensive cultivation of a single brand.

Only by focusing on the value creation of the brand, meticulously managing, leading the fashion trend, enriching the cultural connotation, realizing the creative design, replacing the high speed with the high quality, can we realize the change of the quantity of the independent brand from quantity to quality through the connotative development.

The reason why China's clothing brand premium is low is that most brands lack the spirit of being single-minded, dedicated and professional. They lack the concept of intensive farming. If we want to create local international brands and effectively enhance brand value, we may need not to be bigger and bigger, but to do fine and strong, achieve quality growth through connotative development, and achieve the geometric growth of added value through brand effect.

The dream of Chinese enterprises to achieve an international brand has never been achieved overnight. For the Chinese clothing brands that are still in the jungle period, the road of brand is particularly difficult and requires long-term adherence and persistence.

Endure loneliness, stand up to grinding, can usher in the bloom of flowers.