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jannat rodela
Apr 12, 2022
In Welcome to the Forum
Now, the logic of economies of scale is starting to fail, and the age of individuals and individual economies is on the rise. The individual needs of each consumer begin to gradually replace the leading role of the upstream design monopoly. The Ministry of Industry and Information Technology recently released a set of data:From January to October 2019, the cumulative revenue of the clothing industry above designated size was 1,077.7 billion yuan, a year-on-year decrease of 0.2%; the total profit was 68.5 billion yuan, a year-on-year decrease of 3.4%. This is the first negative growth of Chinese garment enterprises. And such a seemingly slight decline actually comes from the violent shocks within the industry. April 2019: Forever21 announced its withdrawal from the Chinese job title email list marketMay 2019: La Chapelle spins off Qigege and other brands July 2019: Old Navy announced to withdraw from China the following yearAugust 2019: Fuguiniao declared bankruptcy November 2019: Noble Bird falls into debt crisis December 2019: ZARA Wuhan store closed overnight It cannot be ignored that, during the period when the performance of many brands declined, the two types of clothing companies achieved contrarian growth. One is the national tide brand represented by Anta and Li Ning. Qingtong Capital data shows that the penetration rate of Guochao brands reached 38% in 2019; in 2018, more than 84.4% of respondents began to recognize domestic brands, and 75.8% of respondents increased their consumption of domestic brands. The second is a clothing customization enterprise represented by Quantum, Yibangren, MatchU, etc. According to the data of China Business Industry Research Institute, from 2013 to 2018, the average annual compound growth rate of China's clothing customization market was as high as 22.9%. Everbright Securities predicts that the market size of this industry will reach 200 billion yuan by 2020. The development of the Internet has provided acceleration for these two types of clothing players. According to statistics from Zhiyan Consulting, in this 2.3 trillion ancient industry, the penetration rate of online shopping is close to 40%, surpassing that of digital 3C, fresh food, beverages, small household appliances and other consumer goods. On January 10, I was also invited to participate in the first issue of Tiger Sniff Pro Membership Day to share the challenges and opportunities of "apparel industry + Internet". I could not be there due to time reasons, so I will briefly discuss it here:China's clothing industry is currently in a double world, the fundamental reason is that the logic of design monopoly power to lead the demand is invalid. The transformation is imminent, and the current stage of the most promising C2M clothing customization can only satisfy the fit, without fundamentally subverting the traditional logic. The more idealized the more difficult to commercialize, the rescue operation of China's garment industry must go one step further in growth. 1. The logic failure of designing monopoly power to lead demand Recall the scene when we go shopping for clothes: go to a shopping mall with dozens of clothing brands, walk into several stores that display thousands of SKUs, and spend 1-2 hours to choose your favorite styles. There is a great possibility that even if you walk around the store with soft legs, you may not find the clothes you like.
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jannat rodela

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