Polarization Features Aggravate The Matthew Effect Of China'S Garment Industry

Supported by Enterprises above Designated Size data Narrow width, in order to truly understand the industry's overall picture, the vision gradually shifted to 90% of the total number of Chinese clothing enterprises in small and medium-sized enterprises. The reality also tells us that the total output value is only 30% of SMEs in the whole industry, and the export delivery value of the share is as high as 74%, though it contains most of the total. Profit is relatively small. Thin export processing, but the Chinese garment industry still dominated by export business can not be regarded as invisible.

At the data level, the survival picture of enterprises under the scale is almost invisible in the absence of official channels. The theory of "shutting down the tide" occasionally appears in the southeast coastal area, though it is exaggerated, it is not. Weakness lends wings to rumours 。 But because of the lack of data, it is inevitable to see different kinds of understanding through observation and analysis.

Developed countries have spared no effort in assisting the development of SMEs. European Union Launched many small and medium enterprises platform projects, long-term concern about the development of SMEs. Perhaps we have implemented some kind of system from top to bottom, but it is still underestimated. However, starting from basic research, the legal monitoring of SME business data is increasingly becoming the mainstream voice. The mission of big enterprises and small and medium-sized enterprises, and how to form traction and interaction under the existing national conditions, will inevitably become the focus.

In the first half of this year, people in the industry will generalize the "three mysteries" of the garment industry. First, the industry statistics released by the National Bureau of statistics and the General Administration of customs are all red. However, the negative news of the Pearl River Delta has been emerging in an endless stream, such as shutting down the tide and wasting three industries. Secondly, the rise of Chinese brand clothing has almost become the main theme of the first half of the year. But the price increase is directly proportional to the heat of the price debate. It is obvious that consumers are becoming more and more reluctant to buy up the so-called high cost price. Again, the transfer of international orders to Southeast Asia seems too abrupt. Some foreign trade companies even claim that the order of 50% of our enterprises has been transferred. In general, at least the orders originally belonging to our 20%~30% have fled.

It is not difficult to find the answer if we distinguish between the "regulatory" and "regulated" enterprises.

According to the National Bureau of statistics, the total industrial output value, main business income and total profit of garment enterprises above Designated Size reached a high growth rate of 28.89%, 30.55% and 42.22% respectively in 1~6 months. The gross profit margins and profit margins of the industry reached 15.37% and 5.36% respectively, and the profitability of the enterprises increased steadily. Resource Starvation Export processing orders shortage and cost price inversion result in low profits.

With the end of replenishment in the international market, international orders quickly dropped to the level before the financial crisis. Domestic demand is affected by the chain reaction caused by high inflation. In the first half of the year, domestic clothing consumption demand did not rise due to the Spring Festival and May Day holidays. According to statistics, in May, the sales volume of clothing sales of hundreds of key large retail enterprises increased by 21.15% compared with the same period last year, while the number dropped by 1.33% compared with the same period last year, and the unit price of the products rose by more than 20%. Under the influence of cotton prices falling, garment enterprises have been unable to get the acceptance of the terminal market by increasing the cost and relieving the cost pressure.

Corresponding to demand, clothing supply also tightened in the first half of the year. According to the statistics of National Bureau of statistics, over 11 billion 729 million months of clothing output in China's Enterprises above Designated Size reached 1~6 in the month of 1~6, an increase of 12.51% compared with the same period last year. However, under the influence of labor costs, bank loans and unstable orders, a large number of small businesses were shut down and production numbers were limited. Sharp decline 。

The characteristics of the two level differentiation aggravate people's imagination of the Matthew effect in clothing industry, and initially conclude that the industry is gradually moving towards agglomeration, and the era of group economy is coming. However, the key to the problem lies in the fact that large enterprises with good development conditions can shoulder the so-called macro responsibilities and guide the small and medium-sized enterprises to get out of difficulties and enter healthy and benign transformation and upgrading.

For the first half of the year, the most prominent "price rise" and "order escape" are the examples, and the leading role of big enterprises has been widely questioned. Can large enterprises first break through the limitation of internal circulation by standardizing pricing mechanism and expanding international channels? Can we turn the production organizations' eyes to the central and western regions on the basis of the existing network's large and sound foundation? Can we turn nearly half of the voluntary orders to the small and medium-sized enterprises as the industrial base?

To solve these series of problems is not only the macro responsibility of Chinese clothing enterprises turning from their own interests to social interests, but also an effective way to see what difficulties the SMEs are experiencing and how to receive long-term attention and assistance.

The data are singing all the way.

Why does reality sing elegy?

Small and medium sized enterprises as the basis of industry

Will be the future leader of the industry.

Enterprises above Designated Size

Become a driving force for industry operation index

The statistics of National Bureau of statistics changed in 2011. The definition of Enterprises above designated size increased from 5 million yuan to more than 20 million yuan, and the number of enterprises in the same period decreased from 19143 at the end of 2010 to 10899 in June 2011, a decrease of 43%. These enterprises account for about 10% of the total number of garment enterprises in China, and output value accounts for more than 70% of the total output value of the industry.

　　 Shandong is headed by 5 eastern provinces with steady growth in output

According to the statistics of National Bureau of statistics, 1~6 enterprises in China have completed 11 billion 729 million garment production over the last month, an increase of 12.51% over the same period last year. Among them, 6 billion 195 million knitted garments and 5 billion 535 million knitted garments, respectively, increased by 13.83% and 11.07% over the same period in 2010.

In 1~6 months, the top 5 provinces of clothing production in China were still Guangdong, Jiangsu, Zhejiang, Shandong and Fujian provinces, and the total output of 5 provinces accounted for 77.52% of the total output of the country. The central region accounted for 13.98%, an increase of 2.91 percentage points over the same period in 2010. Compared with the same period last year, the 5 eastern provinces increased by 9.38% over the same period last year. The largest increase was Shandong Province, reaching 12.19%, the smallest increase being Zhejiang Province, only 5.04%. The growth momentum in the central and western regions was stronger, and the output increased by 42.11% and 38.65% respectively over the same period. In the inland provinces, Anhui, Henan and Hubei all showed good growth momentum, up 78.17%, 75.46% and 61.04% respectively, while the output of clothing in Hebei, Hunan and Shanghai declined.

　　 Industry development, profitability and operational capability are good.

According to the statistics of National Bureau of statistics, the total industrial output value, main business income and total profit of garment enterprises above Designated Size reached a high growth rate of 28.89%, 30.55% and 42.22% respectively in 1~6 months, and the development trend of the industry was good.

Industry development capability, profitability and operation ability indicators performed well. The average gross profit margin and profit margin of the industry reached 15.37% and 5.36% respectively, and the total assets contribution rate and net assets yield rate increased by 8.88% and 11.79% respectively compared with the same period last year, while the three fee ratio decreased by 4.15% compared with the same period last year. The cost control ability of Enterprises above designated size has been enhanced, and the profitability has continued to rise. {page_break}

　　 The growth of per capita indicators is generally down month by month.

According to the National Bureau of statistics, the number of employees in Enterprises above designated size increased by 8.33% over the same period of 1~6 months. The per capita output value, per capita business income and per capita profit increased by 18.97%, 20.51% and 31.28% respectively, and the per capita efficiency increased significantly. However, the growth rate of per capita indicators has generally been decreasing month by month, mainly due to the temporary tightening of production and demand, resulting in a reduction in the total value of indicators.

　　 Enterprises under scale

Trapped in the market downturn and lack of industrial resources

The production of enterprises below the scale of 90% of the total number of enterprises is not as good as that of Enterprises above designated size. Small and medium-sized enterprises are at a disadvantage in the battle for industrial resources such as labor force, bank liquidity loans and orders, and a large number of small businesses are forced to close down. Overall, the whole industry production is basically the same as in 2010.

　　 Most of the profits are relatively thin export processing.

When supply and demand return to normal level, the operation of the industry is also normalized. Under the condition of relatively abundant and high-quality industrial resources, large scale enterprises above Designated Size have achieved good economic indicators, while small and medium-sized enterprises are trapped in the market downturn and lack of industrial resources to varying degrees. Export processing industry is generally faced with low profit margins due to shortage of orders and cost price upside down.

In fact, the tolerance of small and medium-sized enterprises to all kinds of adverse changes is relatively weak. Under the threat of cost and downstream orders, capital chains have encountered unprecedented severe tests, and high-quality resources such as skilled workers, funds, real estate and other industries have been concentrated on large enterprises. Small and medium enterprises, which account for 90% of the total number of enterprises, are the basis of China's garment industry. Some future leaders will be born. Perhaps the industry should pay more attention to them.

　　 Statutory monitoring of SME business data

The developed countries have spared no effort in assisting the development of small and medium-sized enterprises. For example, the eBIZ-TCF project launched by the European Union is to help speed up the transformation and application of information technology in the real industry, and create a unique electronic language plan for the data exchange between suppliers of textiles and footwear industry, producers and retailers, and the ultimate goal is to improve and stimulate the application of e-commerce.

Our country may start from the basic research of small and medium-sized enterprises, legally monitor the operation data of small and medium-sized enterprises, build common technology tackling and promotion platforms, and provide financial support to small and medium-sized enterprises with good prospects for development, so as to help SMEs develop healthily and healthily.

Firm price

Why is it fragile?

Internationalization is the avoidance of large enterprises

The necessary way of business risk

Domestic sales growth

Benefit from rising commodity prices

High inflation and chain reaction to reduce terminal willingness to pay

Due to the chain reaction caused by high inflation, domestic clothing consumption demand in the first half of the year has not risen due to the Spring Festival and May Day holidays. High inflation, tight monetary policy, weak stock market and real estate market, which seem to be directly related to clothing consumption, have a profound impact on consumer demand and market atmosphere, and consumer market is more sensitive to price. Although the industry is faced with the difficulties of rising costs and fluctuations, the terminal market has no intention of paying the bill.

According to the National Bureau of statistics, the total retail sales of consumer goods in the 1~6 months amounted to 85833 billion yuan, an increase of 16.8% over the same period last year. The growth rate decreased by 1.4 percentage points over the same period last year, 0.2 percentage points faster than that in 1~5 months. Among them, the retail sales of Enterprises above Designated Size (unit) amounted to 39034 billion yuan, an increase of 23.7% over the same period last year, and retail sales of clothing commodities increased by 372 billion 700 million yuan, an increase of 23.9% over the same period last year, accounting for 9.55% of total retail sales of Enterprises above Designated Size (9.55%), showing an obvious downward trend in 2011. The total retail sales of clothing in China is about 750 billion yuan, which is basically the same as the increase in the total retail sales of consumer goods in the whole country. {page_break}

　　 International brand launches lower price second tier brand

According to the statistics of China Business Information Center, the sales volume of clothing sales of hundreds of major retail enterprises increased by 22.22% in May compared with the same period last year, while the number increased by 0.86% compared with the same period last year. In June, the sales volume of clothing increased by 21.12% over the same period last year, and the number of clothing sales increased by 1.23% over the same period. The sales volume of clothing increased by 14.24 percentage points over the same period in 2010. The rise of clothing prices directly led to the increase of clothing sales. And the impact of the international parity brand on the market is bigger and bigger. The international brand that once clamored to raise the price has not risen. Instead, it has launched the second tier brand with lower price.

Consumer price growth

Too much depends on ex factory price transfer.

Ex factory price index rose for two consecutive months.

According to the National Bureau of statistics, the 1~6 clothing price index rose to 100.5 in June, and the clothing consumer price index rose to 101 in the month of June. In June, the clothing price of clothing increased by 2.7% compared with the same month in June. The garment factory price also reached a record high. The producer price of clothing manufacturers increased by 4.2% over the same period last year, 5.2 percentage points higher than that of the end of June. The upward trend of clothing prices is strong, which is consistent with the fact that the industry generally relieved the pressure of rising costs by raising prices. We can see that the factory price index has been rising for two consecutive months, and consumer prices have risen or are weak.

　　 Highly sensitive to industrial cost components

Although China's clothing industry promotes brand strategy in an all-round way, under the background of industry oriented and cost pricing as the main body mode, enterprises are highly sensitive to several elements such as raw materials, labor (labor), cost (production and sales expenses) and other industrial cost components. Cotton prices soared in 2010, driving up the price of raw materials such as chemical fiber, silk, wool and so on, and passed it to the clothing production department in 2011, resulting in the high price of clothing in the first half of the year. Meanwhile, the price expectation of the market terminal decreased with the fall of cotton prices. The difference between the two prices led to the "price increase" of most brands meeting the ceiling. At the same time, the relationship between price and cost is also questioning the pricing mechanism of Chinese clothing brands and the price rules of clothing market.

Immature pricing mechanism

Difficult to resist internal loop system variables

China's clothing brand price deviates from normal track

The price of Chinese clothing brand has deviated from the normal track obviously, and the ratio of Chinese common brand price to factory price is more than 10 times, and the rate of international common brand is basically 6. In 2010, cotton prices surged and plummeted in the "interval" phenomenon. The rise of labor costs is a predictable norm. Only commercial costs, in the face of scarce commercial resources, the fierce competition for resources has unlimitely expanded the imagination of commercial prices.

The business cost of an enterprise is almost unpredictable. Irregular rise has forced many brands onto the "high price" road. As the most important part of the rules of the market game, the formation of price rules remains to be seen. Clothing is not a resource product, and the dependence on raw material prices is more like a loose relationship. Clothing price is an important component and direct embodiment of brand positioning and competitiveness, so it is also an important part of medium and long term planning for brand enterprises. An enterprise's "news wind price change" will cause the brand to have no long-term planning agitation impression.

　　 International brands decompose through global configuration

The price of international popular brands is relatively stable in the long run. It has a long-term trend of rise or fall. But in the short and medium term, its pricing will not "jump up and down" because of changes in the market and production factors.

International brands decompose local market pressure through global sourcing and global distribution. The so-called "East does not brighten the west". The industrial chain of Chinese brands is relatively short and narrow, often confined to the domestic market. The interrelated change of domestic economy, resources and market is almost the only hope of brand.

In this sense, "internationalization" is not the scenery, but the vitality of the brand. Although China has the world's most dynamic economy and the most potential consumer market, it is the absolute advantage of our country to develop the garment industry than any other country. But if we stop here, this advantage will not only be weakened by the limitation of internal circulation and the restraint of various factors, but also more fearful that this advantage will be better shared by the good international brand of "circulatory system". {page_break}

Order to Southeast Asia

Why not the Midwest?

Large enterprises need to be improved.

Production organization bridge role

Exports to emerging markets are larger than traditional ones.

According to customs statistics, in the first half of 2011, China completed the export of clothing and accessories 65 billion 823 million US dollars and 13 billion 834 million pieces, up 23.67% and 2.55% respectively over the same period last year. The amount of clothing exports accounted for 57.47% of the textile exports, down 3.6 percentage points from the end of 2010. The number of garment exports increased by 11.68% over the same period last year, while the number of exports increased by only 0.67% in June, and the monthly export volume continued to decline. The average price increase of exports continued to rise, while the growth rate of 1~6 increased by 21.17% over the same period of June. The price increase in one month was more than 24% in 4 months.

In the first half of this year, China's exports to all continents increased by two digits. Asia is still the first continent in China's clothing exports, accounting for 5.02% of total exports, down 1.75% from the same period last year. Followed by Europe, an increase of 30.51% over the previous year, accounting for 32.98% of total exports. Third, North America, exports grew by 15.52% year-on-year, accounting for 19.98% of total exports, representing a 1.41% decrease over the same period last year. China's exports to Latin America increased by 71.36%, accounting for 5.79% of total exports, representing an increase of 1.61% over the same period last year.

In the first half of the year, China's exports to Hongkong, EU, USA, Japan and China continued to grow. The export volume increased by 30.8%, 15.34%, 21.22% and 5.31% respectively. The export volume of these traditional markets was 42 billion 962 million US dollars, accounting for 65.27% of the total clothing exports of the country, an increase of 21.92% over the same period last year, pulling 14.51 percentage points of clothing exports. The total export volume for emerging markets such as Latin America, Africa, ASEAN and Russia is 10 billion 363 million US dollars, accounting for 15.74% of the total garment export volume of the whole country, an increase of 38.39% over the same period last year, pulling 5.40 percentage points of clothing exports, and the growth rate of exports to emerging markets is obviously larger than that of traditional markets.

　　 The contribution of product structure adjustment is lower than the direct price increase.

From the increase of export volume, China's exports to Asia, Africa and North America were less than that of last year, down 0.41%, 10.17% and 4.68% respectively, and the number of exports to Europe and Latin America increased by 4.95%, 40.18% and 12.28% compared to the same period last year. The price increase for all continents was between 13.96%~28.26%. The top 5 countries in the mainland are the United States, Japan, Germany, China, Hongkong and the United Arab Emirates. The number of exports increased by -4.71%, 0.79%, 17.80%, -11.43% and -3.43% respectively, and the price increase for the 5 countries / regions was between 17.96%~26.64%. In the short term, the adjustment of product structure can not be carried out step by step, that is, the export price rises sharply in the short term. The contribution from the structural adjustment of export products is lower than that of the direct price increase.

　　 "Cotton price" is only the fuse for order transfer.

In 2010, the lagging effect of cotton prices on clothing terminals has been revealed. The high price of raw materials, tight supply and the continuous rise of labor costs have accelerated the loss of the price advantage of China's clothing export. At the same time, the development of Southeast Asian competitive countries has accelerated. Over 30% of the simple and low value-added orders have been transferred to China's neighboring countries. In the second half of 2011, as cotton prices stabilized, some orders showed signs of reflux, and export situation would be better than the first half. However, the phenomenon of loss of orders should still arouse the concern and reflection of the whole industry.

On the surface, the great fluctuation of cotton prices in China is the culprit of order transfer. However, the price of cotton is fluctuating globally. Southeast Asian countries and regions are also facing the environment of raw material price fluctuation and labor cost rising. Therefore, "cotton price" is only a fuse for the problem that should be erupted.

China is a big global trade fricter. Despite the end of the textile insurance in ~2008 in 2005, the importing countries and regions in Europe and the United States have not launched a big trade friction against Chinese clothing. However, the small friction that China has suffered from the world has never stopped. In order to spread risks, foreign businessmen are also trying to train reliable suppliers outside China, such as Vietnam, which has caught up with and surpassed China in the processing of brand sports shoes such as NIKE. Maybe some of the simple knitted products such as underwear and T-shirts will remain in Southeast Asia for a long time.

　　 China needs a responsible production organizer.

The advantages and disadvantages of developing garment processing industry in the central and western regions of China and Southeast Asian countries are compared. The industrial development foundation in the central and western regions of China is good, and the infrastructure facilities such as the powerful industrial chain and transportation along the southeast coast can be conveniently maintained. Southeast Asian countries have more suitable labor force, more preferential industrial policies and less risk of trade friction. There are many similarities between the two places, such as relatively low labor productivity, imperfect industrial chain, high logistics cost, limited processing capacity of high value-added products and so on.

At present, China is not short of excellent processors, but there is a shortage of excellent production organizers, that is, a strong bridge between orders and factories. In the small countries of Southeast Asia, some big enterprises will assume the role of production organizers. They will rely on domestic industry, face foreign orders, and then allocate them to domestic SMEs. The production organization network in China's coastal areas has been very large and sound. However, large enterprises rarely focus their production organizations on the central and western regions. They rely more heavily on the resources of the southeast coastal areas that have been firmly established, and the willingness to invest in new networks is low.

In fact, half of the orders transferred in 2011 were voluntarily waived by Chinese enterprises. These orders may be relatively low profit margins, but the export of conventional products with low price is the foundation of export industry. The shake of this foundation will shake the foundation of industrial development. Blindly pursuing the so-called "high profit" and "high added value", ignoring and even abandoning the foundation is obviously short-sighted. The eyes of Chinese clothing enterprises should turn from their own interests to social interests and assume a more macroscopic and more important social responsibility.