50% of textile and apparel companies will be eliminated in the next 3 years

Everyone knows that on the grassland, when the flock encounters the wolves, they are not worried that they are slower than the wolves, but they are worried that they are the slowest ones in the flock, otherwise they are eaten by the wolves. That sheep. Textile and apparel entrepreneurs are thinking about how to make themselves not the sheep that runs the slowest. Through recent observations, we have seen that some clothing companies are likely to become the slowest running sheep. The "market" wolf group is watching, waiting for the opportunity to attack, one by one to eat these fallen sheep.


Four major problems in Chinese apparel business and future fabrics

First, the overall overcapacity, the total supply is greater than the total demand

Apparel enterprises have low barriers to entry, low investment, and a fast construction of the overall supply chain. Therefore, they can be scaled up in a short period of time. Through rapid development in the past decade or so, overcapacity has become apparent. With the improvement of consumption levels, the apparel industry is fast. Development, the total supply of overall apparel products has far exceeded the total demand. Since the clothing market as a whole adopts the futures model, there is a lag period in the overcapacity formation, which has already presented a serious situation.

Second, the competition for homogenized commodities is very serious, and the profitability is seriously declining.

After more than 30 years of development in product design, production, sales, branding, and operation, apparel companies have matured their overall processes, talents, and resources. Therefore, brand replication is quite easy, and homogenized products of similar brands are crowding the market. The competition quickly entered the Red Sea by the Blue Ocean, which caused the profitability of clothing enterprises to decline seriously.

Third, the growth of market demand slowed down, and the speed of enterprise development slowed down sharply.

With the structural adjustment of China's economic growth model, the overall economic overcapacity is resolved, the economic growth rate is gradually lowered, affecting the growth of the income of the people, which has a certain impact on the apparel consumer market. The growth of market consumer demand is slowing down, and the growth rate of apparel enterprises is large. slow down.

Fourth, the development model of clothing enterprises can not meet the needs of market changes

After more than 30 years of development, garment enterprises have been in a stage of rapid development. Therefore, the development model is single, and the response to changes in market demand is low. When the market is saturated, there is no innovation model to meet the changes in market demand. Passive adjustment state.

The following problems are common among Chinese garment enterprises

First, clothing companies do not really understand and meet the needs of consumers.

The "order system" model that apparel companies have long promoted to predict market demand, rather than the real needs of consumers, does not form an effective mechanism for understanding and satisfying consumers. Therefore, it is impossible to achieve sales volume and market-oriented. Guided by the needs of dealers, the consumption of terminal VIP consumers has declined year by year, and outlets have formed a large number of inventory products.

Second, the upper and lower ends of the value chain of the clothing enterprise failed to achieve a win-win situation.

In the development process of clothing enterprises, the profitability of brand owners is fully guaranteed, but the sales terminal distributors in the market are affected by factors such as rent, store staff, product inventory, etc., as well as the increase in production costs of suppliers and production plants. When the total supply quantity has not increased, the total profit level has been declining, and even loss-making operations have occurred. Therefore, the upper and lower ends of the value chain of the enterprise have failed to achieve a win-win situation, which seriously affects the company's continued profitability.

Third, the innovation of clothing enterprises is not enough, their profitability is declining, and they lose their competitiveness.

In recent years, the cost of manpower, taxation, raw materials and other clothing companies has been rising, the overall level of innovation is not enough, and the sales volume has not been significantly improved, and its profit level has also been declining and lost its competitiveness.

Fourth, the integration of clothing enterprises did not find a clear direction

In the case of market sales being blocked, there is no point of finding the right point, and there is no clear recognition of the company's own problems. Investing a lot of money in retail management to strengthen management and training, it is not clear that enterprise integration is a new positioning from the market. New plans, new product designs, new innovations in the supply chain, new channels of integration, and new retail adjustments are integrated.


Which companies are 50% eliminated by the market in the next 3 years?

First, it is a clothing enterprise whose business model transformation is too slow

There is no market repositioning, a transformational business model, and a consolidation of supply chains based on market changes, but simply a small-scale, streamlined organization of apparel companies.

Second, it is a clothing enterprise whose business model has changed too fast.

According to the changes in the market, the new characteristics of the company's own characteristics, new models, new integration of the supply chain, but the speed is too fast, the pace is too large, the ability to operate and the level of clothing companies can not keep up.

Third, the clothing enterprise with a broken supply chain

Due to the long-term cooperation of the strategic supply chain production system and supplier system, due to the decline in profitability, the company has shut down and transferred, thus affecting the normal business development of apparel enterprises.

Fourth, it is a small-scale clothing enterprise that serves the low-end market.

In the market competition, the small-scale, low-end service market demand, due to low anti-risk ability and weak competitiveness, these enterprises will face the risk of being eliminated by the market in the future development.

5. It is a domestic high-end brand clothing company.

With the improvement of domestic consumers' awareness of high-end brands, there is a new concept of de-branding for high-priced brands. At the same time, high-end consumer groups will face huge market pressure for high-end brands due to revenue impact.

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