Hong Zhongxin: China'S 100 Billion Garment Enterprises Are Not Accidents.

Clothing industry

The golden age.

31 years later, Hong Zhongxin, President of Limited by Share Ltd, faced with an era of oversupply of clothing.

A widely circulated joke in the market is that all garment enterprises do not produce and Stock clothing is enough for the whole country to wear for one year, while another more spicy paragraph says that a garment company of 50 thousand people can not earn as much as a real estate company with only 500 people, much less than a 50 equity investment company.

"In terms of China's own market, it is not surprising that hundreds of billions of enterprises will emerge in the future."

Hong Zhongxin does not agree with this view. He believes that the good days of China's clothing industry are not at the end.

"China's market is extremely large. At present, there are hundreds of billions of market in men's clothing industry, and the growth rate is two digit per year."

Accordingly, Hong Zhongxin is optimistic that the characteristics and advantages of Chinese clothing brands are also forming, and it is entirely possible to occupy a certain share in the international market in the future.

Clothing enterprises need not feel inferior.

Uniformed clothing enterprises UNIQLO 2009 results show that Inditex (ZARA) and Gap2009 revenue in the fiscal year are 13900 billion yen (about 111 billion 700 million yuan), 13149 billion yen (about 105 billion 600 million yuan), H&M's annual income has reached 11359 billion yen (about 91 billion 300 million yuan), and ZARA, H&M, Gap and other markets in China's market hit and hot sales situation has made Chinese garment enterprises feel enormous pressure.

Inditex, headquartered in Spain, was founded in 1985. It has been used for more than 20 years, and has already entered the "gate" of 100 billion yuan in revenue. However, there is not a "threshold" for China's local garment enterprises across 10 billion yuan.

Hong Zhongxin analysis shows that these differences are closely related to the growth path of Chinese garment enterprises.

For example, the development of 31 years has gone through three stages, one is from 1980 to 2000. This is the product era of the clothing industry.

As the reform and opening up has released huge market demand, product production has become the key factor determining the survival and death of enterprises. As a manifestation of primary competition, the competitive locations of enterprises are mainly in factories, where decisions are made and prices are determined.

The two is from 2000 to 2007. At this stage, China's garment industry has already said goodbye to the supply shortage era, and the sales channel has become the key to decide the prosperity and decline of every enterprise. Chain operation has become the main business mode of garment industry, and the competition place of garment enterprises has changed from factory to market.

Three, since 2007, brand has become the top priority of garment enterprises.

In Shanghai, the rental price of some core business areas reached 100 thousand yuan per square meter. In the two or three line cities where domestic garment enterprises occupy a larger advantage, the rent also rose sharply. With the increase of human resources cost, the continuous growth of the sales channels by increasing the number of sales channels has already met the "ceiling". Laying stress on product development, grasping the fashion trend and enhancing the brand connotation has become the only way for garment enterprises to break through the tight encirclement. After entering this stage, Chinese local garment enterprises and pnational clothing brands really start competing with each other.

Hong Zhongxin believes that during the "12th Five-Year" period, compared with the past 30 years, it has provided more possibilities for the expansion of Chinese garment enterprises. The gap between Chinese local garment enterprises and multinational enterprises is not expanding, but shrinking.

The "12th Five-Year" period is a period of double income for the Chinese people, a period of great expansion of domestic demand, and a period for Chinese consumers to improve their personalization and quality. International enterprises are very optimistic about China, and the rapid expansion of luxury goods industry in China. All these indicate that during the "12th Five-Year" period, the consumer goods industry, especially the consumer goods enterprises, which can meet the higher consumption requirements of consumers, will have great opportunities for development.

Worried about the limited prospects for the development of China's clothing industry, Hong Zhongxin believes that some of them are worried. In his view, clothing is an important part of consumers' personal taste and identity seeking. It is also a social business card. Consumers' demand for high-quality clothing, especially the brand clothing that can bring intrinsic recognition, is extremely exuberant, and this demand trend will persist for a long time.

On the other hand, with the development of China's economy, Chinese consumers' recognition of their culture is constantly strengthening, and their national pride is also growing. The national brands of high quality will get great development opportunities. Under this opportunity, China's clothing industry, especially men's clothing industry, will have a number of excellent clothing enterprises, with brand, quality and scale.

Three steps to achieve internationalization

In 2007, strong fighter moved the marketing center to Shanghai, which was called "going out of the river into the sea" by the powerful boss. That is, from Jinjiang, Fujian to Shanghai. Besides the geographical pformation, the company began to build its own sales channels in Shanghai and other markets, and resumed the sales agency power.

Internationalization is a process, and Chinese local brands have been thrown away from this process.

Hong Zhongxin said that this is the reason why Chinese private enterprises suffer hardships and hardships, and, of course, is the spiritual motive force that Chinese private enterprises are striving for and striving for.

Internationalization is now an irreversible world trend in the process of social history.

How to deal with internationalization and how to achieve internationalization has become the ultimate factor determining the rise and fall of an enterprise, and becomes the key choice to decide the future fate of an enterprise.

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For the next thirty years of international road, the strategy of Hong Zhongxin is "three steps".

The first step is to compete with international brands.

"Taking root in the central city, stepping into the core business circle and grabbing the gold shop", he believes that only by truly co operating with the international brand in the same city and the same street, can we firmly occupy the leading position in the domestic men's wear market, finish the preparatory work and platform construction of the internationalization strategy, and actively explore the "power driven road" of the internationalization strategy.

The second step is to cooperate with international top designers or men's wear brands or acquire overseas brands.

Under the premise of sticking to the core positioning of the jacket, China will consider cooperation with top international designers or men's wear brands, or through overseas mergers and acquisitions, launch two major brands targeting high-end market and young fashion at the right time, effectively control the market blank, and complete the reasonable planning of the brand line.

At the same time, we should constantly improve the level of internationalization of financial management, talent reserves, R & D, supply, commodity planning and retail operations, and promote the integration of business strategy and management system with international standards.

The third step is to establish a global marketing network.

With the promotion of overseas brand mergers and acquisitions, we have opened up the "RBA road" to expand overseas markets, and have truly established a global marketing network. Our business is expanding globally from domestic operation to global operation, realizing the globalization of talents, resources, R & D, production and sales, and making greater breakthroughs in a wider field and at a deeper level.

"There are many opportunities to make money in the Chinese market. There may be many industries that make money faster than clothing.

It is very hard to make clothes. Only by adhering to the ideals, can the enterprise strive for it.

Hong Zhongxin said.