How Chinese service enterprises respond to the continuous influx of foreign brands

In 2010, as the final year of the implementation of the 11th Five-Year Plan, it has become a crucial moment for China's economic restructuring. The domestic and international economic situation remains complex and grim. Domestic demand is responsible for stimulating China’s economic growth.

Who can step on the new beat of Chinese clothing consumption? CHIC exhibitors "dark battle" clothing sales market

In 2010, as the final year of the implementation of the 11th Five-Year Plan, it has become a crucial moment for China's economic restructuring. The domestic and international economic situation remains complex and grim. Domestic demand is responsible for stimulating China’s economic growth.

In 2009, the state invested 4 trillion yuan in expanding domestic demand and promulgated the "plan for the adjustment and revitalization of the textile industry," clearly stating that "we must coordinate the international and domestic markets." The just-concluded 2009 Central Economic Work Conference proposed that in 2010, it will continue to expand domestic demand and increase residents' consumer demand.

For China's garment industry, what kind of future will be supported by the fulcrum of domestic demand? Who can step on the new beat of Chinese clothing consumption?

The 18th China International Apparel and Clothing Expo (CHIC2010) to be held on March 28th is just like a wonderful event. Each participating company will do its utmost to interpret the understanding of China's domestic apparel market.

Urbanization boosts domestic sales growth

At the beginning of 2010, the aftermath of the international financial crisis, the Chinese clothing market can go all the way toward the direction of an overall warming?

According to data from January to October 2009, China’s textile and apparel retail sales of enterprises above designated size reached 360.7 billion yuan, up 20% year-on-year. Although the growth rate has decreased compared with 2007 and 2008, it has remained at a relatively high level in the past 7 years.

"It is expected that the domestic growth rate of apparel in 2010 may be between 20% and 25%." Analysts at Huatai Securities have made optimistic forecasts.
The promotion of urbanization is a strong driving force for domestic sales in the textile and apparel industry. The Central Economic Work Conference clearly stated that in 2010, we must focus on expanding domestic demand, especially increasing consumer demand, and relying on steadily promoting urbanization.

From the clothing consumption data of urban residents and rural residents in China, it can be seen that in 2008, the per capita clothing expenditure of urban residents was 1,165 yuan, while the per capita clothing expenditure of rural residents was only 211 yuan. Analysts believe that the current annual growth rate of urbanization is about 1.5%, and urbanization brings about 12 billion yuan in apparel sales each year. The resulting annual growth in apparel sales is about 4%.

United Securities analysts believe that consumption upgrades and demographic changes in 2010 will keep consumption growth high. In China's second-tier cities and third-tier cities will be more apparent. In addition, one of the themes of government policy in 2010 is “promoting consumption”, which may increase residents’ spending power through a series of administrative measures, and it is also expected to bring theme investment opportunities. In 2010, the domestic apparel market will continue to increase steadily, while the effect of destocking in the industry will show up, and business operations will be better than in 2009. Domestic apparel brand enterprises are at the high end of the industry chain and will benefit from the economic recovery and consumer sentiment.

Competition between Chinese and foreign brands

China's domestic apparel market attracts more and more foreign apparel companies, and CHIC has become a booster for them to open up the Chinese market.

In CHIC2010, the organizer invited more than 20 cross-border artists such as architecture, painting, sculpture, and gardening to establish the CHIC 2010 Hardrive Fashion Art Gallery for the first time in the central corridor of the exhibition to promote CHIC's fashion and artistic atmosphere. ". Hardrive is a mid-to-high-end brand under UBC Group (United Business Corporation). It is reported that the theme of the current fashion art gallery is “Beyond the Edge of Destruction.” A total of 33 artworks will participate in the exhibition. They will interpret the artists’ “fashion "Unique understanding and sincere expression. The concept of the Hardrive brand is innovation and transcendence. “We also want to express the concept of art as the soul.” Wang Hui, deputy general manager of Beijing Tianyi Yuanmei Clothing & Accessories Co., Ltd., said, “At present, we mainly use direct sales stores. Quality assurance. We hope to expand the brand's influence by participating CHIC."

The Korea Federation of Fiber Industry organized the most representative apparel and apparel companies in Korea and participated in CHIC2010 in the form of “Preview in CHINA 2010” Korean Pavilion. This will also be the first time that Korean companies will make their appearance in the CHIC collectively in the form of a Korean pavilion. The Korea pavilion will hold four fashion shows at the China Clothing Release Meeting during the CHIC2010 and hold a business conference for merchants. The Korea Fiber Industry Federation explained this: "We are participating in this exhibition to expand the distribution channels of Korean fashion companies in China and help them establish business contacts with Chinese customers."

Faced with the continuous influx of foreign clothing brands, how to deal with Chinese clothing companies?

Li Rucheng, Youngor Group Co., Ltd., said: “In recent years we have learned that many international brands that have been worshipped by the Chinese clothing industry are not very good. This inspires us: We must do our brand well.” Li Rucheng has been thinking How to make the Youngor brand better, he believes that it is necessary to satisfy China's consumer market first and give full play to its advantages of “excellent quality and moderate price”.

Xue Gang, general manager of Shanghai Cher Clothing Co., Ltd., is optimistic about the spending power of second- and third-tier cities. He believes that this year, under the guidance of the policy of stimulating domestic demand, urbanization will accelerate. At present, the competition in the first-line market has been relatively full, and the markets in the second, third and fourth-tier cities have not yet fully matured and there is much room for development. Cher will focus on the development of stores in the second-tier and third-tier markets this year, with the exception of a small percentage that needs franchise cooperation, and most of them are self-employed.

In the strengths of the Chinese and foreign apparel industries, the Chinese garment industry stepped into 2010. While consolidating its leading processing and manufacturing capabilities, China’s textile and clothing industry continued to advance on the road of structural adjustment and industrial upgrading. Row. Under this background, CHIC2010 will increase brand communication, strengthen professional business services, enrich the cooperation of various elements, introduce the concept of cross-border integration, and integrate supporting resources to create cultural, independent innovation, technology, marketing, and brand strategy. Brand display effect, help participating brands share more "domestic demand cake".