Jiang Hengjie'S Discussion On The Industrial Situation And Development Ideas After The Turning Point

In 2009, China Apparel Association's annual conference of men's wear, women's wear, children's clothing and garment accessories Specialized Committee, Jiang Hengjie, executive vice president of China Apparel Association, introduced the macroeconomic situation of China's garment industry in 1~7 month, and put forward the important thinking of the future growth of garment industry from quantity growth to benefit development.

"In 2009, the production of Chinese clothing dropped sharply in the first quarter, and began to recover in the two quarter. The three quarter continued to recover.

Among them, domestic consumption demand has gradually stabilized, and there has been signs of continued warming.

Jiang Hengjie said, "the three quarter of the garment industry changes, showing signs of steady recovery.

This is basically consistent with the central government's judgement on China's economic situation.

Jiang Hengjie believes that China's garment industry has undergone sustained and rapid development in the past 30 years.

In 2008, the total social output of China's garment industry decreased by about 15% compared with 2007.

From the first quarter of this year, clothing production fell 6.61% year-on-year, two in the two quarter, and 4.8% in the three quarter.

He predicted that the total social output of 2009 will continue to decline, but the rate of decline may be narrower than the decline in 2008.

Another issue concerns industry efficiency.

In Jiang Hengjie's view, this is also a key issue for measuring brand development.

"The enterprises in the garment industry are growing rapidly, and the per capita benefit is obviously improved."

In Jiang Hengjie's view, this side confirms that the organizational structure of China's garment industry is changing, and the resources at home and abroad are rapidly gathering to the dominant enterprises.

This year's three quarter economic performance data still confirm this reality.

The survey shows that the number of Enterprises above designated size has increased year by year, and the number of employees has declined.

This trend shows that the total labor productivity is increasing rapidly and the per capita profit has been greatly improved.

At the same time, Jiang Hengjie has always wanted to see the polarization phenomenon within the industry from a rational perspective.

"Although there are obvious signs of improvement in large and medium-sized enterprises above Designated Size, some enterprises without brands or sales channels are still temporarily closed."

Jiang Hengjie judged that the industrial profit and resource concentration will be higher at the same time that the industry is polarizing. This will provide a better environment for the development of the dominant enterprises and create opportunities for the growth brand.

Based on this, Jiang Hengjie said that next year's China International Clothing and Accessories Fair will build a platform for new brands with more style, expressive power and market penetration.

In the past, 70% of the old brands and 30% new brands will have the "right" adjustment.

Optimistic judgement of domestic market

"In the first half of 2009, consumer desire for domestic market repression persists.

With the advent of national day and new year's Day holidays, a long period of consumption is suppressed, and may be released again.

Jiang Hengjie has an optimistic forecast for the consumption potential of the clothing market in the second half of the year.

Festival consumption will stimulate the domestic market, which is Jiang Hengjie's judgement on the clothing market in the second half of the year.

Jiang Hengjie pointed out that labor manufacturing and processing costs are rising, the cost of raw and auxiliary materials is increasing, the energy costs of water, electricity, gas, coal and so on are increasing every year, while the apparel factory price index PPI is decreasing.

He said that the phenomenon should be viewed dialectically, because there are still a large number of PPI brands that are not rising or falling.

This further explains that the clothing market should be positioned and subdivided.

Enterprise brand must have the difference of style, dislocation competition.

The second characteristics of the domestic market are: the first half of the year is mainly spring and summer clothing, the average unit price is relatively low. After entering the autumn and winter, the price of the single product will rise rapidly. In order to further stimulate the market demand, the PPI price index, which once had a high trend, may be close to the consumer price.

Jiang Hengjie once predicted in previous years' annual Specialized Committee annual meeting of the Chinese clothing association that China's clothing industry will usher in the "turning point" of economic concepts in terms of quantity and speed of production after 30 years.

He believes that in the face of "inflection point", the industry has yet to achieve a profit margin improvement.

This is mainly attributed to: first, the industry has greatly increased the effective supply rate to the external market, that is, the product's suitability for the market has been greatly improved.

The industry took advantage of the downturn in market consumption to seize the opportunity to clean up the inventory. Secondly, the industry started from two aspects of improving the cost control ability and labor productivity to enhance the management capacity.

The combination of "benefit from market" and "benefit from management" has effectively promoted external regulation and internal control capability of enterprises.

After the turning point, there will be a fundamental change in the development of China's garment industry. The development trajectory in the future is not based on quantity expansion, but on the expansion of economic efficiency. Brand development should pay special attention to quality, brand and taste.

At the same time, Jiang Hengjie added, "positioning accurately, making products well, making brands and achieving value will contribute to the upgrading of China's garment industry."