Under The Impact Of The Collapse Of The Textile Industry, Niche Market Is The Way Out.

In from August 8th to 9th, the Sixth China brand festival was held in Beijing.

Shen Li, assistant to President of Li Lang (China) Co., Ltd., an interview with reporters, said

Generally feel the enormous pressure of survival, the collapse tide is inevitable, and the niche market that meets individual needs will be the way out in the future.

The following is an interview:

Reporter: Shen general, Hello, first of all, thank you for accepting our visit. Since 6 and July of this year, we have seen some reports that the entire textile industry is facing a lot of difficulties, and the export orders have been greatly reduced, and the problem of financing is frequent. Especially the pressure brought by human cost is very large.

Shen Li: our company may not be so strong, because we are not exporting, mainly for domestic sales. Under the pressure of domestic economy, consumers are more rational. So for our challenge, maybe consumers can buy a few clothes in a month and can only buy one piece of clothing, so that he will be very careful in choosing which clothes are better.

We need products with better design, better products and cheaper products. This requires higher cost control in all aspects of our industrial chain, and at the same time, our design requirements will be stricter.

I also see the manufacturing industry you mentioned just now. Indeed, we have our own factory, but because this factory is directly supplied with our own products, it has not done anything with other enterprises, and its proportion is relatively high.

The status quo is still good, but we can still do it when we are self-sufficient, but I do touch some factories, including this time there is another family. I don't mention it. It's a very large women's clothing factory. It mainly gives Jack, Jones, Europe, Japan, Only and other factories that I have worked with overseas. I also talked with the boss of the factory. He said that for these brands, the United States might be a little bit weak, because the stock was very strong during this period, and Only and Jack Jones said that the order volume did not decrease.

It is because he took the initiative to reform, and invited some outstanding designers from abroad. I know some designers. The orders designed by the designer made this order even higher. One of them was 10 million orders, and the designer's wage cost was 20 thousand yuan. He just came in from abroad, especially high.

Often in such a recession, we should think of how to change, because consumers are shrinking, but demand is needed. People still want to wear good clothes.

Reporter: I think we can learn from Apple's practice and we can create the market.

Shen Li: especially right, fashion is created and created demand. When you see a good thing, you still can't help it, or you want to take out your wallet. This requires me to think that the era of crisis is the arrival of the era of boutique and the coming of a more remarkable era.

Why is this competition very cruel? Because it is not only limited to domestic competition, but rather placed in large competitive markets abroad, because manufacturing and retailing are linked. We can see that H&M and UNIQLO are sinking to the second tier market, and whether they are heading for the three line market in the future. This is very stressful to us, especially the local brands are from rural areas, and rural areas encircle the cities. Although we have great advantages in the channels so far, what should we do if the channels of other people come to the future? So the era of not coming is not the era of channel first, but the era of content being king.

The same is true for manufacturing. In manufacturing, if the fabric developers are different from others, they will be differentiated, diversified, personalized, and then combined with brand enterprises to produce the unique products corresponding to the brand.

If I am a manufacturer, what kind of fabric should I develop for Li Lang, which is in line with the fabric of the Lang culture, I am different from other brands such as the seven wolves and so on, because it is completely differentiated demand, because the future personalized demand for the entire market, especially 80 and 90, is very high, and the market segmentation may become more and more serious.

In this case, there may be more niche products, its market is not too big, but the demand for personalized more.

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Reporter: its customer base may be relatively stable.

Shen Li: very stable, continuous attention, unlike the original large-scale enterprises, this situation, I think from the source, from the source of manufacturing, when you have some innovative consciousness, then you will be invincible, and need to put innovation consciousness on an international platform, because now many large international enterprises are global sourcing, then you have to think of your career should be a global platform, compete with others, absorb more and better talents, this is the key to the problem.

Reporter: I understand this. In the future, if our enterprises want to get out of the predicament, do not simply expect me to expand my financing channels, and get more money to cope with the scale. The key is what to do.

In the process, I think any industry really stands on the cusp of Pyramid. If we use the "28 theory" to explain it, I am afraid that this kind of consciousness will really come out.

Is it possible to say that the collapse of our industry is still hard to avoid?

Shen Li: I think we will go bankrupt because it is a chance to re shuffle.

Reporter: I think this process has such consciousness, and can initiate the differential choice voluntarily. Are you aware of these processing enterprises at present?

Shen Li: there will be some.

But in the end, I think it depends on executive power, because some are not necessarily active or forced, but the market pushes it.

Because you do not reform is a death, you may have a lifetime of reform.

Reporter: originally, for example, ten million pieces, I may only take this order, now differentiated demand, ten thousand, twenty thousand, I will accept.

?

Shen Li: Yes.

Reporter: some of the data of this year's customs reflect the weakness of our domestic demand. Whether the sales of the Lang is specific to the growth of domestic demand is not the pressure of the special ideal.

Shen Li: pressure is there, and this is the same as many domestic enterprises, we have pressure, but now we are indeed looking for measures to break through these pressures in the top of the company, so that the requirements for our management are more and more strict, including the management of terminals.

If we can put the details in detail, because in the past, the ten years of the year were indeed ten years of large-scale development, and from thousands to hundreds of stores to thousands of stores.

Because running too fast, the soul has not yet kept up with this, for this time, for enterprises, who can seize this opportunity to practice basic skills well, will remain invincible.

In fact, it was also an economic crisis in 2008. In the year before the listing of Li Lang, we did not think that our turnover increased in that year.

So this year, we feel that there are some crises, but I haven't come out yet because of the end of the year, but our whole team is also trying to figure out how to deal with it.

Reporter: last question, which area do you think our growth and growth should be in the future?

Shen Li: what we think is very important is management. Brand is the added value of our brand. We have taken a series of measures to bring some new added value to the product.

Reporter: I see many domestic enterprises are taking many brand lines. Is there any idea for Li Lang?

We now have, we have made a second brand, in September 25, 2009, after the listing of Lai Lang, we made a young brand, because Li Lang aimed at 35 to 50 year old business people. Our L2 (second brand) invested 200 million capital in Shanghai, aiming at the 20 to 30 year old crowd. Now the whole group is not bad. We find the crowd still very interesting, because it changes very fast. This crowd is different from the people in the real estate market. He is the crowd who stays in front of the computer every day. We are going to change rapidly in the whole marketing strategy, that is, the combination of online and offline, including capturing the hearts of the post-80s and 90's consumers very quickly, including the whole creative point. Shen Li:

The multi brand operation to our main brand now also brings many interaction ideas.

Reporter: now that they are sitting in front of the computer, will it be possible for Li Lang to achieve customized production in the future? Everyone will make an order according to his personality. I see a website for shoes making, and I will produce it for you if you want to make it.

Shen Li: This is the future direction of every enterprise. Now we are not very good at doing this business.

It will be very high.

Reporter: Thank you for accepting Shen Zong's visit.