Jingjiang apparel fabrics conquer the way

Leading the trend not only avoids the fate of being eliminated, but also takes the initiative and allows the company to develop steadily. Differentiated competition to find their own blue ocean in the market segment...

As a traditional industry, the Xiaoshan apparel fabric industry has developed earlier. The industrial clusters in the eastern area began to appear early in the liberation period. Until now, the cluster has formed a relatively complete industrial chain of "spinning-textile-weaving-printing-clothing". At the same time, a group of leading companies that are influential in the apparel fabrics industry in the country, such as Hongfa, Zhengkai, Funn, Zhixing, Yongsheng, etc., have continued to grow and develop, and their processing and supporting facilities are in excellent condition.

However, with the current global slump, Xiaoshan apparel fabric industry is also facing the industry downturn. The superposition of demographic dividends, rising land costs, and difficult problems have made many traditional industries fall into difficulties.

However, Xiaoshan apparel fabrics companies that are seeking transformation and upgrading have begun to examine themselves and begin to take precautions, and they have sought out the development road that suits them. Among them, the clothing fabric enterprises represented by Jingjiang have conquered the trend and have come out with a lot of new and distinctive roads.

The Dilemma of the Traditional Industry With the development of the regional economy, Jingjiang apparel fabrics industry has enjoyed high popularity both at home and abroad. Through several decades of development, the industry has now formed a certain industrial scale and has become Jingjiang's regional characteristic industry and key pillar industry.

However, in recent years, the textile industry, including apparel fabrics, is facing severe challenges and can no longer participate in international competition simply by quantity and cheapness.

Mr. Chen is the boss of a small and medium-sized fabrics company in our district. The company mainly arranges production by taking orders. Affected by the international environment, orders have been substantially reduced since the first half of this year, and the rate of operation of enterprises has been reduced. Business operations have been greatly affected, and the business in the first half of this year has remained marginal.

The reporter learned that in the first half of this year, the company's business performance was flat, and it was well developed. More corporate profits were almost zero, and some even run at a loss.

As a traditional industry, the apparel fabric industry's initial development and prosperity have benefited greatly from China's once cheap labor force. Today, with the disappearance of the demographic dividend, the low value-added advantage of the apparel fabric industry in the labor force is being replaced by Southeast Asian countries and even some emerging markets. According to reports, the cost of labor in the apparel fabric industry in our region is already three or four times that of Southeast Asia. The owner of Jingjiang No. 1 fabrics company stated that the wages of workers are now increasing at an annual rate of almost 15%, and the profit margins of enterprises are getting smaller and smaller, and the competitiveness of products is also decreasing.

Facing the reality that the demographic dividend is gradually disappearing, the product structure of the apparel fabric industry may be its biggest weakness.

The barriers to entry are low, and a large number of apparel fabric factories have emerged and expanded blindly. This has led many apparel fabric companies to rely on price wars to expand their markets in the early stages of development and create undesirable competition. At the same time, product homogeneity is also a serious internal cause for apparel fabric companies. "A lot of companies tend to make products following the market. What happens in the market is that they sell well. Everyone will go to the top. Once the market fluctuates, many companies will suffer heavy losses in production." The relevant person in charge of Jingjiang Street's branch of industry said that despite Jingjiang's In terms of apparel fabrics, the grades are still high, but they do not have the advantages they deserve in international competition.

In addition to market segmentation, Wang Xiaoshan’s entrepreneurs are not only able to endure hardship, but also see their own characteristics. Despite difficulties, many entrepreneurs in Jingjiang still talk about the development of the apparel fabric industry in Xiaoshan, but they still have confidence. They have already begun to upgrade.

Zhao Jidong, president of Yongsheng Group, said: “The external causes of the development of the environment and market order are very important. The poor macroeconomic situation will inevitably be detrimental to the development of the enterprise. However, the enterprise must rely on the inherent source of power to develop.” Zhao Jidong said that although the outside world has been The apparel fabric industry is considered to be a sunset industry, but due to the specific nature of the industry, its market demand will always be, and as long as there is demand, there will be a market, and if there is a market enterprise, there will be a development path.

So where is the road to corporate development? Zhao Jidong pointed out that the rigid demand of the entire market will not fluctuate too much. If companies want to break through, they must consolidate their own foundations and take a differentiated production path.

What is the difference in production? Zhao Jidong believes that an important reason for the current difficulties in the growth of apparel fabric companies is that the homogeneity of production in the industry is serious and profit margins are divided. “A company that wants to jump out of this flock must develop its own products and arm them with high-tech.” This is the answer given by Zhejiang Yongsheng apparel fabrics to seek a way out. At present, its differentiated fiber fabrics are already the leading ones in the industry. High-end products lead the development of the industry and rank among the European and American markets.

In order to continue to maintain the advantages of differentiated competition, Yongsheng has a well-developed R&D team as its backup. Zhao Jidong himself is a technical school and likes to delve into research. “The new product research and development in the apparel fabric industry is different from others. Developers must understand first-line production conditions before they can propose good measures to improve their products.” So, the battlefield where Yongsheng technology is developed is the first-line production workshop. Product R&D personnel often also engage in production. Like Zhao Jidong, he is not only a manager, but also a technical talent who enjoys a special allowance from the State Council and is responsible for the research and development of new products. Each year, Yongsheng will invest 4% to 5% of its sales, and more than 4,000 million yuan in technology research and development.

In addition, Yongsheng has imported nearly 100 sets of world-class dyeing, finishing and experimental facilities from the United States and South Korea, and has specially appointed experts from the Korean dyeing and finishing industry to conduct on-site management and technical guidance. Its differential fiber weaving technology is at the leading position in the domestic printing and dyeing industry. It is the key to the company's ability to lead the differentiated fiber dyeing industry, and it is also an advantage.

Leading the trend to master the initiative In addition to Yongsheng, in the segment market to find their own blue ocean, Zhejiang Forn is also exploring their own breakthrough.

"The left is the king" is repeatedly emphasized by Wang Neili, general manager of Zhejiang Fuen Garment Fabric Co., Ltd. In the face of the downturn in the apparel fabric industry, she believes that she sticks to her product positioning, based on the industry, and is well-equipped, high-quality, and high-end. The product is the way to survive. "Because the external environment is too complex, blindly changing their own strategies and involving non-familiar industries will likely lead to the disruption of the capital chain and delay the company's main industry."

In order not to be eliminated, but also to gain control of the initiative, Foen spent huge sums of money to invite two Italian top fabric designers to specialize in the development of new products. “They are at the forefront of the Italian fashion trend in the world. They are olfactory spirits, and the products they design are often very fashionable.” In the past two years, Fonn has identified eight new products as provincial-level industrial new products of Zhejiang Province and various kinds of clothing. The fabrics are favored by Chinese and foreign merchants, especially the company's color spun yarn fabric products. They have reached long-term cooperation with Italian and Spanish merchants to develop and export contracts, becoming leading fashion brand products in Europe, with annual sales of nearly 500 million yuan. *. “An international clothing brand in the UK has now designated us as its fabric supplier.” Fonn fabrics are favored by foreign high-end apparel brands, from Martha to H&M and ZARA. These large customer orders are from the Fonn brand reputation.

“Fabric companies need to create their own brands that are different from apparel manufacturers. It is not enough to put a few advertisements on TV. We are in the middle of the entire industry, and our product quality is good or bad, and whether or not our innovative customers must be able to It will be recognized," said Wang Lili: "Our brand is a word of mouth for customers and customers."

At the same time, Fonn has adopted and introduced the IS09000 quality management system, IS014000 environmental management system, OHSMS18000 employee health management system, and ERP information management system to establish an effective quality management system and achieved standardized, procedural, and legal governance of the company. It is reported that in 2008, Forn Company was rated as a model enterprise for management innovation in Hangzhou, and the company’s first “4R+E” marketing model was also rated as outstanding management innovation results in Zhejiang Province.

As a new generation of successors in Jingjiang apparel fabrics industry, Wang Nelli said: "Innovation management is not just the introduction of new scientific management models, but also the absorption and improvement of some traditional management models that meet the actual development needs of enterprises. Managing a business is an inherited and groundbreaking project."

The sunset industry in the eyes of ordinary people is now moving toward new heights in the hands of a group of passionate entrepreneurs. We will continue to look for a new model for Xiaoshan apparel fabrics industry, pay attention to the direction of apparel fabrics industry, and provide a model for the development of the industry.