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Chinese self-owned clothing brands blooming

Chinese self-owned clothing brands blooming Source: english.ctei.gov.cn
Date: 12-05-2012
Visits: 233
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Nearly 100 events like 20th China International Clothing & Accessories Fair (CHIC2012), 8th China Annual Award for Clothing Brand, 2012 China International Fashion Week and China Clothing Forum were held one after another in Beijing during the last ten days of March, with assembly of the major-brand enterprises both at home and abroad. It is delighted that with the deep development of the economic globalization and international labor division, the self-owned brands in the Chinese clothing industry are blooming.

"Just as the subject of Leaping-forward, the Chinese self-owned clothing brands are speeding up the transformation and making efforts for further improvement", said by Wang Zhuo, general secretary of China National Garment Association.
"All flowers blooming together", the general brand strength has been enhanced.

The clothing enterprises have entered from the primary phase of product sales to the comparatively advanced phase of cultural sales.

Over 1000 clothing brands from 21 countries and regions participated in the CHIC2012 from March 26 to 29. Among them, there were about 600 self-owned brands with their exhibition stands distinguishing from each other, some magnificent, some fresh and natural, in order to highlight their special styles through the exhibition.

China Annual Award for Clothing Brand held during the same period reflected more about the enhancement of the self-owned clothing brand value. Totally in the previous seven awarding events, 112 brand enterprises were nominated and 44 won various awards. According to the standard in 2011, this number of 112 previous nominated enterprises accounts for only 1 percent of the 10,400 enterprises of above designated scale in the whole industry with the comprehensive value for a single clothes being 2.77 times of the average unit price in the industry; the sales volume accounting for 20 percent of that of all the enterprises of above designated scale; the yield of a single enterprise being 4.35 times of the average; and the revenue from main business for a single enterprise being RMB 1.353 billion Yuan, 11.37 times of that of the enterprises above designated scale.

Wang Zhuo said that currently, the gradual increase of the domestic market demand brings an important development opportunity for Chinese clothing industry. The clothing events in the first quarter fully reflect the innovation spirit of the Chinese clothing brand and the importance attached to the development of the self-owned brands. The clothing enterprises have entered from the primary phase of product sales to the comparatively advanced phase of cultural sales and owned the concept of creating an overall Chinese brand. He also pointed out specially that the Chinese-owned clothing brands have sped up the process of the globalization of market and resource integration and transferred the development of industrial chain from the domestic market to the transnational one.

"One brand with multiple products", the potential of segment market is dug.

For multiple-brand operation, it requires the specific coordination and work division so as to make full use of the existing resources and channels of the clothing enterprises.

Red Dragonfly, used to produce leather shoes, begins to manufacture clothes recently. Man clothes of Red Dragonfly Fashion Group appeared in the 2012 China International Fashion Week for the first time, which means the acceleration of the "one brand with multiple products" development strategy by Red Dragonfly Fashion Group.

Due to factors like low channel inventory, large price space and consumption upgrading in small and middle cities, man clothing market is considered with a large development potential. A lot of clothing brands step into the field of man clothing with the hope of taking the lead in the subdivisional market.

Top 5 man clothing brands under Youngor, a leading man clothing enterprise, made a joint exhibition on the site of CHIC2012. Among them, GY, created in 2009 and oriented to the growing elite group from 25 to 35 years, caught the eyes of visitors. Li Rucheng, president of Youngor, says that GY has not merely sought for expanding scale but pay more attention to overall brand enhancement. With sales amount over RMB 100 million Yuan in 2011, the brand owns over 100 shops in the whole country. It will open image shops and flagship shops in the major first-line cities.

Wang Zhuo says that it has become a common choice for clothing enterprises to subdivide the market by means of "one brand with multiple products". "The strategy to develop multiple brands is helpful to deepen the market and expand the sales volume". However, Wang also warns that for multiple-brand operation, it must do a good job in the specific coordination and work division so as to make full use of the existing resources and channels of the clothing enterprises rather than to increase the brand number blindly so as to avoid from the conflict among the self-owned brands and channels.

"Regional cooperation", to learn to make use of various resources

The clothing industry is no longer a simple manufacturing industry but endowed with the fashionable and innovative culture.

Joint exhibition of regional brands is also a highlight in CHIC2012. Twelve famous clothing enterprises from Henan Province appear together like leading-show-Msuya, Yerad, Yiyang and Dusen. Dalian and Chongqing also played a "regional card".

"The clothing industry is no longer a simple manufacturing industry but endowed with the fashionable and innovative culture. The development of clothing industry does not only increase employment and profit, but also create a perfect cultural atmosphere for a region". Wang Zhuo said, due to the large potential in the domestic market, the clothing industry has attracted more social capital in recent years.

A staff in Everbright Securities talks to the reporter that "we are optimistic for the investment prospect in the clothing industry, a moderate substantial industry, and have made investment in some enterprises. We hope to find some new brand enterprises with development potential in CHIC2012 and help them to step into the capital market".

Due to the drive of brand upgrading, the clothing enterprises are much enthusiastic about being listed and IPO of the clothing enterprise also enter the "period of blowout". According to the data released by China Securities Regulatory Commission, 8 clothing enterprises are waiting to be listed in main board of A Share to the end of March 8, 2012. However, the data also indicates that clothing enterprises felt difficult in being approval for IPO in A Share in 2011. Six were rejected among 11 clothing enterprises applying for IPO, with the passing rate only 45 percent.

Wang Zhuo said "there is a relatively complete operational requirement for enterprise IPO. Most clothing enterprises in China are private family enterprises and need to be regulated and improved in the internal management structure. Therefore, listing of the clothing brand enterprises can acquire capital support for further expanding scale and enhancing the brand value, and can also help enterprises to regulate operation and enhance management".
 
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