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How to recognize the five aspects of Innovation and reform in China’s garment industry?

Chinese Garment Factory

2020 is an extraordinary year, garment industry is facing unprecedented challenges and pressure, but at the same time we also see that the clothing industry is a highly market-oriented ideas and feelings as industry, on the one hand, in the case of epidemic prevention shortages, many enterprises to actively turn masks, protective clothing, to win the epidemic war play an important role.At the same time, in the face of marketing difficulties caused by coVID-19 and geopolitical influence, garment enterprises are thinking and responding rationally, constantly adjusting and innovating, showing their confidence, love and perseverance in the industry.

Chinese Garment Factory

In the first half of this year, the sudden outbreak of coVID-19 has had a huge impact on the industry. With the effective prevention and control of the coVID-19 epidemic in China, the industry has gradually improved since the third quarter, and the Chinese market has picked up significantly.According to the statistics from January to August, the decline of both domestic and export markets has been narrowing. In particular, the first positive growth has been achieved in August alone, with domestic sales increasing by 4.4% and export increasing by 3.23%. The market indicators have shown positive recovery changes.From the perspective of the main economic and benefit indicators of the industry, although the economic benefit indicators have also improved to some extent since the third quarter, the decline rate of the quality and benefit indicators of the industry operation is still lower than the market.From January to August, the total profit of 13,168 enterprises in the industry fell by 14.36% year-on-year and 25.63% year-on-year. The profit margin of operating income was 4.28%, 0.65 percentage points lower than that of the same period last year, indicating that the overall operation of the industry is still under great pressure.

The industry’s difficulties and pressures today are, of course, directly related to the impact of the epidemic, but objectively speaking, they are not entirely so.Over the past few years, we have been living in an era of great transformation and transformation. The most important feature of this transformation is that we want to move from an industrial economy to a new era of digital economy. The epidemic has only accelerated the medium – and long-term trend, and added a new variable to this great transformation.The epidemic may be more like a typhoon. After the typhoon passes, the basic ecology of the industry and market will be gradually repaired, but what will not change is the era of change.

A new round of revolution of science and technology especially the development of digital technology, is bringing the global economy and the reconstruction of the social order, from the industry point of view, the elements of digital technology comprehensively promote the industry, each link of the digital and networked, cause the business process, reorganization and transformation, modes of production, market connection to form a new system of industry collaboration, the allocation of resources and value creation.At the same time, a new commercial civilization with sustainable development at its core and featuring open economy, technological economy and green economy is also taking shape.

For the garment industry, we are facing multiple incremental changes.First of all, consumer demand is undergoing a huge structural change, which comes from the change of consumers’ lifestyle and their understanding of fashion.Consumption is becoming more and more obvious in terms of individuality, quality, style, value and multi-culture. Especially for the younger generation, they have totally different understanding and demands on fashion.The problem of the current market is not entirely the problem of slowing down growth, because China is already a market of more than 3 trillion yuan, and it is impossible for its size and total volume to continue to grow at a double-digit rate every year. The key is the structural change of consumer demand behind it.At the same time, the modes of consumption and exchange are changing, and the Internet is the biggest driving force behind the major transformation of the modes of exchange. Platforms, communities, live-streaming economy and other new forms of business are emerging in large Numbers. Digitalization and intelligentization are also driving the continuous and comprehensive updating of business.

So, for most of the enterprises that have developed in the past decades of reform and opening up, facing these changes, compared with the enterprises that have grown up in the era of information technology, it seems a little traditional. Consumers’ demand has changed. Has our supply changed?Will it be enough?The way we used to connect to the market has changed. Are we using new tools to build new relationships with consumers?

This year’s epidemic has given us a big push. 2020 will be a watershed year in the evolution of mankind from an industrial civilization to a digital civilization. The future is already here.So, for our enterprise, the most important is to be on the idea of more fully realize that we are entering a new era of digital economy, profound cognition of ecological industry and market are the disruptive changes, the enterprise all production, organization and management activities need to go to the new requirements of such a new era, an objective look at your own management model and growth pattern can keep pace with The Times and transcendence, can realize the innovation and transformation in the new ecological.

Chinese Clothes Store

Here, I would like to share with you five aspects of the industry innovation and change understanding:

First, digital transformation.

Digitalization is the basic requirement for enterprises in the digital economy era. Digitalization upgrading of the entire link from consumption perception to R&D, design, manufacturing, management, supply chain and marketing should be the primary task for all enterprises in the current transformation.Digital tools will become the infrastructure, online will become the viability, although the enterprise form is different, but data driven will become the standard for the future development of enterprises.To achieve more accurate supply and demand matching, more flexible and diversified product supply, more agile and elastic supply chain, and more efficient management and operation, all reflect the logic of digitization from front to back.Science and technology are The Times. This year, we have seen that many companies that have been able to defy the trend despite the impact of the epidemic have taken the lead in the digital upgrading of all links and in the integration of online and offline activities.

Second, organizational change.

Digital technology is bringing about the transformation of enterprise organization form, business process and operation mechanism.Organization means production relations, enterprises need to think about their own organization is not aging?Have our management philosophy and team aged?How to adapt to the digital economy era of flat organization structure, networking and create a sharing of the new requirements, through the organization of the iterative upgrade, enhance ability of organization and the organization efficiency, flexible within the release and stimulate the vitality of innovation, and then extended to the external coordination, and the upstream and downstream resources related party to build up a symbiotic relationship with system efficiency, realize the synergy value, this is the enterprise in the new era of reconstructing the key to core competitiveness.

Third, focus on your core competencies.

No matter how times change, clothing industry, as a basic consumer goods industry, provides the best products and services for consumers is always the essence of the industry.For enterprises, in such a change, it is more necessary to focus pragmatically on the change and improvement based on their own core capabilities, and pay attention to the enhancement of quality and the evolution of adaptability, rather than the growth of scale.Only by improving the basic ability and innovation ability, highlighting the uniqueness, differentiation and irreplaceable, focusing on, deeply cultivating and upgrading products, and devoting to shaping the long-term value, can the enterprise win the long-term future.

Fourth, enhance cultural creativity

Today, we are facing a diverse lifestyle and cultural landscape of social ecology, culture, value, experience has become the main characteristics of consumption.All kinds of trend culture, subculture, avant-garde art, sports, games, animation and so on are in cross-boundary integration, clothing is an important expression and attitude.At the same time, as China’s economic and social development, and in the country to strong background, especially the younger generation of Chinese consumers, the nation’s spiritual value and cultural awareness have been enhanced, how to reflect the culture of the Oriental connotation and life aesthetics, and conform to the contemporary life style and aesthetic, and solve the problem of the contemporary and cosmopolitan requires our culture creation.Cultural creativity is not only the actual need for the structural reform of consumer demand, but also the most core support for the creation of industrial value. We need to work for a long time.

Fifth, we need to deepen the transformation of development philosophy and values.

Today, has become the consensus of the global sustainable development, has become an important scale to measure industrial economic activity, personal responsibility, environmental responsibility, responsibility, sustainable fashion reflects the enterprise’s social consciousness and entrepreneur’s spirit quality, build industry new business civilization is not only an important content, is also the important strategy of enterprise competition in the market today and in the future.To build an enterprise that makes the world a better place, assigns responsibility and belief to products and brands, and is rooted in the culture, values and vision of the enterprise, and becomes a warm, respected and great enterprise, is bound to be an important embodiment of mastering the discourse power of fashion and occupying the commanding heights of the industry in the digital economy era.

The above five aspects are part of the refining and sorting out of the transformation, reform and innovation practices of China’s apparel enterprises.So, though the industry is now under the changes brought about by the pain, in the face of many difficulties, stress, and uncertainty factors, but the mainstream of the industry with strong toughness and the concept of innovation, continuous transformation of the mode of development, and constantly accelerate the depth of the digital technology and industry, actively promote the new development of binary pattern, a steadfast toward industry updates, level ascension and high quality development.

Historically speaking, I think this is a new start for China’s garment industry in the era of digital economy. It is also a new stage in the national centenary goal. The industry is comprehensively improving its creativity and soft power, reshaping its new industrial advantages, and standing on a new historical starting point to climb the global industrial commanding heights.Great changes, great challenges, but also great opportunities for China.In our reform and opening up more than 40 years to build up a complete industrial system and the accumulation of industrial advantage and competitiveness, by virtue of the Chinese consumer market structural changes brought about by the huge space and digital technology can assign, China is bound to be the most conditions in the digital economy era to undertake the mission of innovation to lead the global apparel industry.”Lead the change, create the future”, is the so-called “the right path is the vicissitudes of life”!

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Business Director at Shanghai Fumao Clothing Co.,LTD

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