Garment Industry Begins To Enter The Era Of "Product Is King"

Consumer demand is changing from pursuing brand to pursuing cost performance, and the demand for products with high performance price ratio is rising. Meanwhile, designer brand is emerging as a product with unique design, strong sense of design and distinct style.

During this period, the products with high cost ratio and low cost performance were neglected, while the product style was single, and the brand lacks awareness.

The weak market share of small brands has been shrinking and being phased out by the market.

Near the end of 2016, the IPO rhythm was accelerated.

Recently, regulators have significantly increased the speed of IPO audit. From the perspective of clothing sector, the industry believes that up to now, a total of 9 enterprises are queuing up, and the scale of fund-raising of these 9 enterprises is expected to reach 7 billion 314 million yuan.

Among them, there were 2 enterprises (Taiping bird clothing, Be Meleven), and 1 pre disclosure updates (an Zheng fashion group), 1 feedbacks (outdoor products) and 6 entertained (day fashion, land fashion, Anne, cracking electronic commerce, Hui Mei fashion group and October mom).

From the industry of IPO new shares, queuing enterprises mainly have women's clothing (3), children's wear (2) and Amoy brand (2), these sub industries have relatively more dispersed characteristics, and at the same time, under the background of consumer escalation, children's clothing and e-commerce brands are becoming more and more obvious.

At present, A shares are less relevant targets (3 high-end high-end women's clothing, 1 children's products), the listing of these new shares will enrich the number and category of clothing enterprises.

It is reported that China's clothing industry as the traditional consumption "clothing, food and shelter" four categories of the first, and people's lives are closely related.

As the most populous country in the world, the demand and consumption of clothing are huge and stable.

In the past few years, although some sectors of the industry adjustment period has dropped significantly, the overall demand has not declined and is still growing because of the diversification of channels.

Li Jie believed that

Overall supply and demand situation, the demand side, the industry has maintained steady growth; but from the supply side, in recent years, great changes have taken place. Some large listed companies choose cross-border pformation and some SMEs are eliminated, will bring about the restructuring of the industry competition pattern, adhere to the main business and rely on the main business to carry out business extension layout of the leading enterprises will benefit from the reduction of market participants brought about by the market share to further upgrade.

At the same time, the diversification of channels brings the fragmentation of consumer demand, testing the overall management and management ability of clothing enterprises.

In Li Jie's view.

Leading clothing enterprises have more advantages in coping with the fragmentation of demand brought about by the diversification of channels: 1) having greater brand influence and more R & D input at the product side to expand their differentiation advantages; 2) having more bargaining power, channel integration and operation capability for downstream retailers at the channel end, thus achieving the balanced development of multiple channels.

From the sales data of Tmall's "double eleven", take the women's clothing category with the most diverse styles and the most dispersed market as an example, the "brand name" of the sales ranking rooted in the electricity supplier has no longer been the leader of the traditional brand, showing the advantage of the brand influence and management ability of the clothing leading enterprise.

Other subdivision industries are even more so, once the offline brands are launched, they will soon be in the forefront of the "double eleven" rankings.

At this stage, the initiative to manage the brand and enhance customer loyalty become

The important driving force of development is that the growth driving force of the whole industry has changed from extension to price increase to an increase in the same store volume. This requires garment enterprises to "improve their internal strength" from the following aspects: product design, R & D, ordering and distribution, store operation and management, and customer service.

Cao Yitang, senior observer of the famous clothing industry, also pointed out that from the industry life cycle, there are still opportunities for growth in designer brand, outdoor and children's clothing.

The scale of China's designer clothing market has been expanding, from 11 billion 100 million yuan in 2011 to 28 billion 200 million yuan in 2015 (2.2%), the annual compound growth rate reached 26.2%, and it is expected to reach 91 billion 600 million yuan in 2020 (3.9% of the apparel industry), surpassing other segments of the apparel market.

Cao Yitang believes that the next ten years will be a golden opportunity for the development of Chinese designer brands.

For more information, please pay attention to the world clothing shoes and hats net report.