Yuhang Clothing: Sail Again In The Backwardness

When it comes to the clothing industry in Hangzhou, everyone must be smiling and applauding.

However, there are a group of people who are neither happy nor angry.

The sharp gap between home textiles and clothing in Yuhang

Yuhang, one of the eight urban areas of Hangzhou, is known as "there are heaven on earth, there are Suzhou and Hangzhou, and there is Yuhang between Jiangsu and Hangzhou".

The ancient Liangzhu culture, the long history of canal culture, and the overseas Chinese Zen tea culture have told the world of Yuhang's ancient civilization.

Yuhang

Since the reform and opening up, garment enterprises have been one of the first township enterprises in Yuhang. The garment industry is the first industry that has led the people to become rich as the first industry since reform and opening up, and has played a positive role in the export of other industries.

Yuhang's well-known home textile industry is actually one of the rising industries.

Nowadays, with the continuous support of the government, home textile enterprises have actively participated in various exhibitions, and have taken the initiative to go out and gradually found their own.

In 2002, Yuhang district was awarded the title of "China's famous cloth art city". The home textile products covered curtain, sofa cloth, bedding, fancy yarn and so on. There were 328 home textile enterprises above Designated Size, and successfully registered the collective trademark of "Yuhang home textile".

And what is the development of garment industry in Yuhang these years?

Gao Ligen, chairman of Yuhang garment industry association and chairman of Hangzhou Jie Feng Garments Co., Ltd., said that there are only 83 clothing enterprises above Designated Size in Yuhang District, and the output value of industrial industries is nearly 9 billion yuan. Although the amount is not much different from that of home textiles, home textiles are known as "rich people's projects" in the locals, while 90% of garments are exported, relying too much on labor resources, and wealth creation is lagging behind home textiles.

At the same time, in the face of the continuous growth of raw materials and labor costs, the profit margins of enterprises have been shrinking, and the future road of foreign trade clothing enterprises has been challenged.

"It is harder to do than it is in 2008. Let's not see that the order has not been reduced, but the increase in costs has led to a great loss in the profits of the enterprises. At the moment, it is approaching the breakeven point."

Gao Ligen said.

At the same time, with the continuous expansion of the domestic market, some foreign trade clothing enterprises began to take the initiative to take the road of brand.

However, companies have lamented that turning from foreign trade to brand - difficult.

Jie Feng started to do domestic sales last year. In September this year, it opened its first store, designing and researching, marketing, decorating, advertising, and so on, so that the company invested tens of millions of dollars in a year, but anyway, it had to stick to its teeth for several years.

A lot of investment, so that enterprises hope customers can timely payment, so that there is sufficient liquidity.

Unlike foreign payment, domestic customers are required to pay 30% of the deposit first. After the product is produced, a portion of the loan is paid, and the final 10%~20% can be paid within 45 days after shipment.

The head of a sweater factory was rather helpless: "we recently had a customer fixed 300 thousand yuan, after paying 30% of the deposit, took part of the goods, but the capital chain was broken. We had to keep this part of the inventory under pressure, but the funds could not be recovered, and we couldn't get the big bill again."

Zhejiang Tong Tai Garments Co., Ltd. has been engaged in foreign trade for more than 10 years. Under the current foreign trade situation, it has to pform itself into a brand.

Tong Xiaoming, chairman of the board, said that since the end of last year, the company began to switch to domestic sales: "the experience of foreign trade only let us learn the 1/3 of clothing brand operation knowledge, and 2/3 has to learn from scratch.

Foreign trade processing to make brand is equivalent to the two venture. "

Indeed, to do foreign trade, enterprises often focus on production links, and pforming into a brand into the domestic market involves designing, producing and selling the entire industrial chain.

The more links, the more complex problems encountered in brand operation.

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Clothing has once made Yuhang a model, but now it has left the company in a dilemma of survival.

"Give up or speed up pformation?" local government officials have repeatedly asked themselves.

In fact, Yuhang has good natural resources.

The clothing enterprises left by the ebb tide have strong professionalism in capital, team and production. Most of the production base of Hangzhou women's clothing is landing in Yuhang. Can these production bases complete docking with Yuhang's local foreign trade garment enterprises? All these provide opportunities for the development of Yuhang's clothing industry.

It is precisely because of this opportunity that the government finally made up its mind to take the support of home textiles to enhance the clothing industry in Yuhang.

"As early as 2005, when the state assessed the comprehensive strength of the hundred counties, Yuhang was already among the top 15 in China. By 2010, the total GDP of the region has reached 26 billion 880 million yuan, and the per capita GDP has exceeded 10 thousand US dollars. This data is very important. For us making clothes, the per capita breakthrough of 10 thousand dollars is a new stage."

Tu Dongdong, deputy district head of the people's Government of Yuhang District, Hangzhou, has a strong tone.

He also stressed that with the deterioration of the economic situation in Europe and the United States and the rising cost of all kinds, the difficulties faced by foreign trade clothing enterprises will be bigger and bigger.

"As the district government of Yuhang, including the relevant departments in Yuhang, we have always placed high hopes on the development of the garment industry in Yuhang, and have summed up garments and home textiles in the traditional industries. We hope that the garment companies can develop their ideas, pform and upgrade them, and find suitable roads for their own development in the domestic and foreign markets."

Tu Dongdong said.

To this end, in July 2010, Yuhang garment industry association was established.

This indicates that the pformation of garment industry in Yuhang has begun.

"We need to strengthen exchanges with the industry, support foreign activities of associations and enterprises, and constantly learn from them."

Chen Bingxin, director of the Yuhang Economic Development Bureau, said firmly.

An important step forward is the creation of the "China creation - the road to brand change and the upgrading of Yuhang garment industry".

The location of the forum was chosen in Yuhang, and many experts detailedly described the brand operation process from brand positioning, channel and commodity planning, which attracted the participation of hundreds of local and Hangzhou enterprises.

"In Yuhang's pformation and upgrading of the garment industry, the government's efforts are still very strong."

Zhang Li, vice president of the China Textile Industry Federation, said: "Shenzhen women's wear, Ningbo men's clothing, Junan cowboy and so on all reflect the characteristics of the clothing industry cluster. As an important textile and garment base, Yuhang also needs to create a new image of its own industrial cluster."

In addition, the forum not only invited many mainstream experts at the same time, but also specially invited real brand enterprises to describe the operation process of the brand.

Compared with some forums focusing more on image promotion, this activity is more like a class or a postgraduate course for further education.

We listened carefully, remember carefully, and nodded from time to time, saying, "this is the case."