Decrypting 2012 Trends in the Fashion Industry: Subdividing Fast and Deep Fission

In 2012, the "inflection point" of China's garment industry has arrived. In fact, the “inflection point” exhibited by China's garment industry in 2012 is the birth of a brand-new industrial pathway or platform. It is based on the industry accumulated in 2011 to update or convert it, resulting in trends and results. It is inevitable that the Chinese clothing industry will be reconstructed and reborn at a higher level.

When the industry encounters a high cost era

In 2011, when the high cost exposed the true face of the “double-edged sword,” the cliché is still the low-end apparel manufacturing industry continues to accelerate the pace of transfer to the midwest. The new trend in the apparel industry is that brand premiums are being chased by rivals and become increasingly popular. More small and micro-sized garment companies are deeply distressed, high-cost mercilessly squeezed and eroded their already thin profit margins.

The domestic market is fully activated and strong

The bright spot of the domestic demand market in 2011 was that driven by the dual factors of China’s urbanization process and continued growth in residents’ income, the third and fourth-tier cities have become one of the main battlefields for boosting domestic demand.

In 2011, the domestic apparel market continued to grow steadily. The traits of the Chinese urban apparel market showed a differentiation trend. The first and second tier cities continue to play the role of leader. It is a vane of fashion and trend, a location and breeding ground for the importation of international brands, and a stage for China's first-line clothing brands to “dance with wolves” and achieve glory and dreams. In China's third- and fourth-tier cities, cheap fashion is in full swing, and the brand game becomes increasingly fierce. China's third- and fourth-tier cities have become a must-win place for international brands and domestic first-line brands to “channel sinking”. Upgrade the basement of the Assembly Number.

Full-scale competition interpretation

In 2011, the concentration rate of China's garment industry showed an accelerating trend. The allocation of industry resources was further tilted and concentrated toward dominant enterprises, and the market competition became increasingly intense. The new competitive situation is that local brands and foreign brands have “encountered” each other in the third and fourth-tier cities. The focus of the brand game is to control limited high-quality channel resources and compete for limited value customer resources. Market competition has been fully demonstrated: from product design and R&D to brand promotion marketing, from supply chain management to enterprise information system construction, from business model planning and design to cooperating capital markets... The competition between enterprises and enterprises has become a “chain” Competition with "chain". How to create a complete value chain to participate in the competition cycle, how to strive to "chain owners" to control the value chain, the actual test of the wisdom and courage of Chinese clothing companies.

Technical means become competitive weapon

In 2011, the widespread adoption of science and technology such as green low-carbon, nano-technology, environmental protection and energy conservation, and smart chips formed a strong support for the transformation and upgrading of China's garment industry. The industry's products have become more and more technologically advanced, and the application of technology has become more common. the trend of. On the other hand, technological progress has become the cornerstone and booster of China's garment industry from low-end manufacturing to high-end control and gaining industrial discourse rights on a global scale. A batch of new clothing products with consistent new features, new concepts, new brands, and new values ​​debuted in the market. They earned enough attention for the company, attracted capital, and pushed a new segmentation market portal for enterprises to become a company. Participate in the market cycle of competitive weapon.

Market segmentation fast deep fission

In 2011, the four major consumer groups in China contributed a lot to boost the domestic demand market. They correspond to four market segments: one is the “longevity bonus” where the elderly consumers are the core, and the second is the “moonlight” that likes to buy luxury goods. "Family", the third is the "Lohas" of the pursuit of health products, and the fourth is a new generation of consumer groups represented by the post-80s.

China's clothing market is characterized by rapid subdivision, deep subdivision and infinite subdivision. In this context, the great challenge facing companies is to select market segments precisely based on their limited resources. In essence, the market segmentation has become the "death and death" of enterprises.

IT technology increasingly penetrates and integrates

In 2011, Chinese apparel companies frequently deployed B2C, and e-commerce applications ushered in the blowout period. The transformation and upgrading of Chinese garment enterprises will inevitably have a huge dependence on the IT application industry. The application of IT information technology, including ERP and Internet of Things, has significantly accelerated the pace of promotion in the industry, and has shown an increasingly pervasive and convergent trend in the apparel industry chain, which has become a sign of maturity and standardization for apparel companies. In the face of the wave of IT IT applications, Chinese apparel companies face two difficulties: First, apparel companies have an urgent need for IT information technology applications, but they cannot afford high acquisition costs and operating costs. Second, apparel companies are There are many misunderstandings or biases in the application of IT information technology, IT information technology applications can not play its due role.

Capital becomes a key force

The link between the Chinese garment industry and the capital market has never been as close and hot as it was in 2011.

In 2011, under the leadership and promotion of capital, a group of high-quality apparel companies went on the market one after another, and more competitive enterprises were poised to embark on the IPO journey. The force effect of capital has also been revealed. In terms of channel layout, R&D and design, information management, human resources training, and supply chain integration, the Chinese garment industry is undergoing a leap from quantitative change to qualitative change. It cannot be overlooked that in the industrial environment in which capital is in control of the right to speak, the living space for small and medium-sized enterprises will be further compressed, and the dominant enterprises will also face the dual choice dilemma of “advance either with capital games or out of the game”, each time holding hands with the capital. Or marriage will quickly become the next new starting point.

New generation consumption generation

The new consumer generation represented by the 1980s has become the main force in the Chinese domestic market, and it has also become one of the largest market segments in terms of capacity. Under the environment of economic globalization and informationization, major changes have taken place in the lifestyle and consumption concepts of the Chinese urban newborns. The formation of the new generation of consumers will increase the total consumption of apparel in China, the upgrading of consumer grades, the propagation of consumer ideas, and the fission of market segments. Have a profound effect.

The new generation's consumption is substituting for generations, and its essence represents a never-ending change in consumer demand. How can Chinese garment companies adapt to the rapidly changing external market environment? This topic or will always go with the company through the entire life cycle. The consumer demand research continues to be conducted, closely following fashion trends, or “homework” where Chinese apparel companies can’t leave.

Brand consumption will become the main theme

At present, China's per capita GDP has exceeded 3,000 U.S. dollars. It is estimated that by 2015, China's per capita GDP will exceed 5,000 U.S. dollars. At that time, consumption will further increase the driving force for the economy. As a whole, it will begin to enter the consumer-oriented mode of economic development.

As China's resident consumption structure continues to be optimized and upgraded, consumers, especially urban residents, have increasingly advocated consumer goods brands. According to the annual statistical survey conducted by the China Industry and Enterprise Information Publishing Center on the national key consumer goods market, the average market share of the top 10 brands in the market reached 66.3% in 2010. In the future, China's consumer goods market will continue to develop in recent years, brand consumption occupies the mainstream of the development trend.