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Scarf Industrial Development
Oct 30, 2017

Scarf Industrial development

Over the past 20 years, China's scarves and other industries have been mainly industrial and industrial exports, but as the market environment and structure have changed, the profits of manufacturing and manufacturing have become thinner and thinner. Compare that to the 15% to 20% commission that was commissioned 20 years ago, and now the net profit of 3% is very lucky. When all manufacturers compete for limited orders, your only destiny is to cut back on profits when the distribution channel becomes stronger.

We have a survey data, in the whole value chain, the production and manufacturing profit is within 5% to 10%, the distribution is in 50% to 60%, the brand reaches 30% to 40%, so the profit of the production enterprise is very low. As a profit-making organization, natural selection should consider moving from manufacturer to brand and further into circulation. To achieve such a cross, Chinese enterprises to strengthen specific ability in marketing implementation, marketing is always pay close attention to in the design of the product, etc., and not just how to sell standardized products with low price. China textile fabrics, garments in the eu's largest export country, is also one of the world's third biggest importer of clothing, when we put the data on average to each person, each person spend a dollar on clothes. We believe that China's domestic apparel industry will grow in the next few years.

China's domestic consumers are now rapidly developing to the middle class or high-end, and the corresponding industry upgrading has not kept pace with the changes in the market. After joining the WTO, many restrictive clauses disappeared and China did not occupy its domestic market in time. While we are talking about middle-class markets, an increasing number of middle class people are desperate for their taste in clothes, but now China still lacks such style and taste. Along with the rising of the credit system, especially the credit card use space, will increase the consumption desire of the middle class, if China's textile and garment enterprises can not timely access to market quickly and is likely to quickly take the Chinese market for foreign companies.

China's scarf trade is basically at home, mainly at the low end of the supply, mainly to the middle and low-end of the foreign countries. Now, the top - and - grade scarf brands and scarf enterprises in foreign countries are gradually transferring middle-grade scarves to China, which are made in China, based on the pressure of cost. There are several very interesting example, Jane he put production in wenzhou of China, many brands such as valentino also soon to do so, so probably after the Italian design made in China brand clothing become a trend.

China's scarf design and brand are relatively weak. So China needs more people like Italian designers to enhance its ability to design scarves. Many big department stores in China and put way also has a problem, to lead to a trade market, now can survive, as foreign enterprises to enter, its survival will face a big challenge. So when foreign brands enter, they influence the supply of Chinese domestic market from one side.