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In the next three years, who will be the biggest "loser" in China's clothing industry?
Reading times:468  Update time:2021-03-05

Who will become a loser in the next 3 years and a garment company eliminated by the market? And who will be the winner in the next three years and the clothing enterprises that successfully survive the crisis?


 In 2020, people in the clothing industry are confused and helpless.The market became depressed, demoralizing most people.At the same time, it also breaks the balance of mentality.Why does this happen?
Because the customer began to exchange goods.Because of the impact of imitation price.And because no matter how good the money is, there is not much replenishment.
1.China's garment enterprises are facing four problems at present and in the future

⑴Overall overcapacity, total supply greater than total demand

Clothing enterprises have low entry threshold, less investment and fast construction of the overall supply chain, so they can form large-scale in a short time. Through the rapid development of the past decade, there has been obvious overcapacity. With the improvement of consumption level and the rapid development of the clothing industry, the total supply of clothing products has been far greater than the total demand. As the clothing market generally adopts the futures mode, the formation of overcapacity has a lag period, which has been in a serious situation.

⑵The homogenization competition is serious, and the profitability is seriously declining

After more than 30 years of development in product design, production, sales, brand and operation, the overall process, talents and resources of garment enterprises have been quite mature. Therefore, it is quite easy to copy brands. Enterprises with similar brands occupy the market with homogeneous products, and the competition quickly enters the Red Sea from the blue sea, which leads to a serious decline in the profitability of garment enterprises.

The growth of market demand slows down and the development of enterprises slows down sharply

With the structural adjustment of China's economic growth model to solve the overall economic overcapacity, the economic growth rate is gradually decreasing, which affects the growth of people's income and has a certain impact on the clothing consumption market. The growth of market consumption demand is slowing down, and the development speed of clothing enterprises is greatly slowing down.


⑷The development mode of clothing enterprises can not meet the market demand

After more than 30 years of development, garment enterprises have been in the stage of rapid development, so the development mode is single, and the ability to respond to market demand changes is low. When the market is saturated, there is no innovation mode to meet the changes of market demand, and the enterprises are in a passive adjustment state.

2. 50% in the next three years,Which service enterprises are eliminated by the market?

⑴Garment enterprises with slow transformation of business model

According to the changes in the market, the clothing enterprises did not timely re position the market, transform the business model and integrate the supply chain, but simply reduced the scale and simplified the organization.

⑵Garment enterprises with fast transformation of business model

According to the changes of the market, we should make new market positioning, new mode adjustment and new integration of supply chain according to the characteristics of the enterprise. However, the garment enterprises that are too fast and too big to keep up with the operation ability and level will be eliminated.


⑶Garment enterprises with broken supply chain

Due to the long-term cooperation of the strategic supply chain production system and supplier system, due to the decline of profitability, the clothing enterprises will be closed down and shut down simultaneously, which will affect the normal business development of clothing enterprises.

⑷Small scale garment enterprises serving the middle and low end market

In the market competition, these enterprises will face the risk of being eliminated by the market in the future because of their small scale, low anti risk ability and weak competitiveness.

⑸Domestic high-end brand clothing enterprises

With the improvement of domestic consumers' awareness of high-end brands, there are new branding concepts for high-end brands. At the same time, due to the income impact of high-end consumers, garment enterprises with high-end brands will face huge market pressure.


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