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Strategy: Rio Tinto's Domestic Market For Garment Enterprises

2010/12/16 11:42:00 69

External Cooling And Hot Clothing Enterprises

  

Near the end of the year, for some apparel companies that are walking on two legs, despite the rapid growth of export orders this year,

Raw material

and

The labor

Rising costs, coupled with exchange rate fluctuations, have been busy for almost a year, but profit growth is mainly driven by the domestic market.


  

Wang Yisheng, director of Lotte children's clothing, said in an interview yesterday that the export orders have basically stopped, and that after the Spring Festival, they are ready to take orders, while the domestic clothing is still in production and processing.


"Different channels, the pressure of domestic and foreign market digestion costs are also different.

This year's domestic sales performance is pretty good. Mastering the terminal sales channels of domestic brands, through the design, the introduction of new ways and promotions and other ways, can basically digest the rising cost of cotton prices and other cost pressures. For example, the price of children's clothing in domestic brands has generally risen by 20%~30%. In the sales process, we will introduce promotional toys with toys to promote consumers' acceptance of price increases.

And the export OEM is short in the industrial chain. Once the price is raised, the customer may reduce the purchase quantity, and because of the long-distance pportation, it is difficult to give other products, so it is impossible to use the sales promotion mode.

In the previous period, the price increase was slightly larger after the price of cotton rose sharply, and overseas customers immediately reduced the purchase order by at least 20%.

Wang Yisheng said.


Lin Xianan, deputy general manager of Wenhua down products Co., Ltd., Guangzhou, also reflects that winter is the peak sales of down garments. Although sales are not long enough to enter the domestic market, brand sales have increased rapidly, and domestic sales have accounted for about 10% of the company's sales. It is expected to rise to 30% in the next two years.

With the increase of labor and raw material costs and the difficulty of recruitment, the company voluntarily gave up some bulk export cheap orders, basically did not take orders from middlemen, and gradually withdrew from the supply department of large overseas procurement customers such as WAL-MART, bu Feng lotus and so on, and pferred to orders for international high-end brands such as Max&Co, PENNYBLACK, Juicy Couture, DVF, etc. Although the orders for these brands were smaller, one in Europe and the United States generally sold for hundreds of dollars or even thousands of dollars, which was very demanding for the foundries.

Profit space

This is one of the ways to effectively reduce the current cost pressure for Wenhua down.


According to customs statistics, clothing exports in 1~11 months were 116 billion 940 million US dollars, an increase of 21.2%, which is 1.7 percentage points higher than that in the first 10 months.

According to the monitoring data of the China National Business Information Center, in October, the retail sales of clothing in hundreds of large retail enterprises increased by 28.6% over the same period last year, 6.1 percentage points higher than that in September, and the domestic clothing market showed a good growth trend, and the retail sales volume increased rapidly year by year.


The first textile network senior analyst Wang Qian said that this year, domestic clothing sales growth is significantly higher than exports, the growth gap between the next two markets is likely to further widen.


  

Wang progressive analysis said that the growth rate of clothing exports this year is mainly due to international economic recovery, low base last year and rising export prices. But there are many uncertainties in the export market, especially the fluctuation of exchange rate will further weaken the competitiveness of China's clothing exports. Moreover, the share of Chinese clothing in the international market has been very large, 30%~40%, the space for growth is very limited. It is expected that during 12th Five-Year, China's clothing exports will slow down, with an average annual growth rate of 5%~8%, while the domestic clothing market will maintain two digit growth, with an expected annual growth of about 15%.

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