Sun Ruizhe: Where does the per capita spending exceed $3,000?

After the 2010 China Textile Innovation Conference ended, demand and innovation became the biggest hot spot in the apparel industry. For this reason, the China Garment Reporter interviewed Sun Ruizhe, Vice Chairman of China Textile Industry Association.

Q: What role do you think the "rich people" target proposed in the "Twelfth Five-Year Plan" proposal has for the apparel industry?

Sun Ruizhe: According to calculations, the capital formation rate in China increased from about 32% in the early 1980s to 46.8% in 2009, and the final consumption rate dropped from about 67% in the same period to 48.6%.

The lack of consumption and the structure of income distribution are unreasonably related. The proportion of residents' income in the distribution of national income is relatively low, which affects the increase in consumer demand. In 2008, the per capita clothing expenditure of urban residents in China was 1,166 yuan, and that of rural residents was only 212 yuan. In 2009, the per capita clothing expenditure of urban residents in China was 1,284 yuan, while that of rural residents was only 232 yuan. From 2008 to 2009, there is a difference of about 5.5 times between the per capita clothing expenditure of urban residents and the per capita rural clothing consumption of rural residents. The proposed “rich people” goal will increase the overall consumption rate of the society as a whole, and at the same time provide an optimistic policy expectation to balance the spending power of urban and rural areas and rural textile and apparel.

The textile industry is closely related to people's lives. The textile and apparel industry is not only an industry with obvious international competitive advantages and an important civilian production industry, but also an important driving force for improving people's lives and having a more healthy and sustainable lifestyle. In the future, the textile and garment industry should become an important part of the strategic emerging industry and an important driving force for the fashion industry.

Q: What role do you think domestic demand plays in promoting apparel development?

Sun Ruizhe: In terms of national strategies, domestic demand must be an important support for economic development. We give two examples. One is the advanced developed country, the other is the developing country, India. Their domestic demand exceeds 92% and 88%, and China's figure for 2008 was 72.8%. Economic development has made objective demands on the adjustment of the structure, and the proportion of domestic demand must increase in the overall demand proportion. In the past two years, the sales of textile and garment enterprises above designated size have steadily increased in the domestic market, and this year has approached 82%.

Q: In your opinion, how should we understand demand-driven industrial innovation capacity building?

Sun Ruizhe: To truly promote the “demand-driven” connotative growth model at the industrial level, it is necessary to continue to penetrate the four main lines of technology, talent, brand, and sustainable development in the system engineering of industrial innovation capability.

The first is to accelerate the development of science and technology and industrial development strategies. Take green, low-carbon technologies and industrialization as a breakthrough. Last year, the United States launched a green economy recovery plan and the EU implemented a green technology R&D plan, all to shape new competitive advantages and seize new heights.

Second, it is to accelerate the promotion of the talent strategy. The innate quality of human resources has replaced the scale of human resources and is the key guarantee for determining whether China's textile and garment industry can achieve strategic breakthrough from the "large textile country" to the "strong textile country."

Again, it is to accelerate the promotion of brand strategy. The brand competition has qualitatively changed the competitive landscape of the textile and apparel industry: personalized competition has gradually replaced homogenous competition, and value competition has gradually replaced price and quantity competition. For the brand development strategy, it is necessary to increase the value-added of the brand and take the innovative path of connotative development.

Finally, it is a strategy to accelerate sustainable development. The rational distribution of domestic market, regional structure and industrial structure has established a sustainable development mechanism for the textile and garment industry. Energy conservation and environmental protection and new technology research and development have also provided a sustainable development of market foundation and technical support.

Q: What is the ultimate goal of industrial innovation?

Sun Ruizhe: The ultimate goal is to improve the competitiveness of the industry, to achieve a higher degree of industrial structure and rationalization, and ultimately control the right to speak in the global value chain system. As an innovative system adhering to the four major development lines of science and technology, talents, brands, and sustainable development, the two-pronged approach of standard discourse rights and fashion discourse rights will coordinate various innovative infrastructure projects and win technological discourse rights and markets from the perspective of hard power and soft power. Right to discourse and judgement of fashion value.

Standards are the commanding heights of independent innovation. Whoever has mastered the right to speak in standard setting will have the initiative in market competition. Its main framework mainly includes innovative penetration of technology research and development, standard construction of quality system, information management and standardized management of social responsibility.

In addition, it is very important to strengthen the construction of the right to speak in fashion and to create the dominating power for the source of fashion trends. It should be noted that the transformation of fashion is the only way for the traditional manufacturing industry to obtain product pricing power and dominant fashion value evaluation system. Its main contents include creating the dominant power of popular trend planning, constructing the incubating mechanism for fashion ideas, and establishing a grand fashion alliance for cross-border integration.

The establishment of a right to speak in fashion requires upstream and downstream companies in the textile and apparel industry chain to accelerate the seamless integration of vertical and upstream fashion resources in the industry chain, and promote the development of a horizontal R&D system integrating production, learning and research, from colors, yarns and fabrics. To all aspects of clothing, with integrated approach, with the trend as a link to maintain the same brand image of the same line, the formation of China's textile and fashion fashion harmony sound.

The construction of industry's right to speak in fashion should take the initiative to take advantage of the increase in the soft power of the national brand, actively promote the promotion of “industry diplomacy” and the fashion industry as a whole, and gain more extensive and in-depth knowledge at the level of domestic and international public consumption.

At the just-concluded 2010 China Textile Innovation Conference, Sun Ruizhe, vice president of the China National Textile and Apparel Industry Association, said: “China’s current annual consumption levels of major households and individuals are very different from those of foreign countries. This gap is also an improvement in the lives of the Chinese people. An important direction for expanding domestic demand will definitely bring opportunities to the textile and clothing industry.”

The sustained growth of domestic apparel retail sales and retail sales in the first three quarters of this year confirms this statement. In the first three quarters, the retail sales of the apparel market increased cumulatively by 85%, and retail sales increased by 12.3%. As far as the main consumers are concerned, from 2010 to 2025, 20 to 59 years old are the main consumers, and they will take a turning point in our consumption upgrade.

At present, there is an empirical value in the world. The per capita income is more than 3,000 US dollars and it is regarded as a boundary of major changes in consumer behavior. Huatai Securities made a calculation of per capita income level. In 2002, when China's average annual income reached 3,000 US dollars, it was less than 10%, and by 2008 it was close to 40%. Therefore, 3,000 US dollars is bound to bring about major changes in consumer style and consumption type. This is a transition to the brand consumption stage, which will bring new opportunities for textile and apparel.

● Clothing consumption continues to be strong In 2010, the internal and external development environment faced by the apparel industry can be described as complex and changeable. The substantive recovery in the international market is not yet clear. The recovery of the developed economies such as the United States, Japan, and Europe as a whole is sluggish, which casts a shadow over the prospects for global economic and market recovery. Exchange rate issues and trade protectionism are all problems that the industry must face. problem. The irrational increase in cotton prices has led to a rapid increase in the prices of almost all clothing raw materials. The rising cost of wages and benefits coupled with the decline in the number and quality of labor has greatly increased labor costs, and is a dilemma of the “manpower” and “raw materials” as the first factor in manufacturing. Brought many chain reactions to the operation of the industry.

In spite of this, all indicators of the apparel industry have achieved a relatively high increase. One of the important reasons is: consumption.

The continuous high growth of domestic demand and the increase in consumption structure have become the first driving force for the development of the textile and apparel industry.

According to the national statistics released by the National Bureau of Statistics in November, the total retail sales of social consumer goods was 1391.1 billion yuan in November, a year-on-year increase of 18.7%. From January to November, the total retail sales of social consumer goods was 1,3922.4 billion yuan, a year-on-year increase of 18.4%. ~ 0.1% increase in October. Among them, the retail sales of apparel products above the designated size in the wholesale and retail industries increased by 24.5%.

In fact, during the “11th Five-Year Plan” period, clothing consumption has maintained a year-on-year growth of more than 20% year-on-year, and the growth rate has been significantly higher than the total retail sales of consumer goods in the same year.

In 2006, the total retail sales of consumer goods in China reached 764.1 billion yuan, a year-on-year increase of 13.7%, of which retail sales of apparel goods increased by 20.0%, and the growth rate was 6.3 percentage points higher than the average. In 2007, the total retail sales of consumer goods reached 892 billion yuan. , an increase of 16.8% year-on-year, of which retail sales of apparel goods increased by 28.7%, and the growth rate was 11.9% higher than the average. In 2008, the total retail sales of consumer goods reached 1,088.8 billion yuan, a year-on-year increase of 21.6%, of which retail sales of apparel goods increased. 25.9%, the growth rate was higher than the average level by 4.3 percentage points; in 2009, the total retail sales of consumer goods in the country reached 1,245.3 billion yuan, a year-on-year increase of 15.5%, of which the retail sales of apparel goods increased by 20.8%, which was higher than the average growth rate by 5.3 percentage points.

While consumption continues to grow, another feature is worth noting: consumption in second and third-tier cities has grown significantly. As the market for first-tier cities matures and matures, the second and third tier markets and more in-depth market expansion have become the brightest growth points in the apparel industry.

In addition, the rural apparel consumer market and the urban apparel consumer market have developed simultaneously. In recent years, as farmers’ income has increased and rural consumption levels have increased, rural consumers’ demand for clothing has changed from being durable, cold-resistant to seeking newness, seeking beauty, and seeking high-grade clothing. Clothing consumption has started to become more casual and fashionable. And urbanization.

According to a data from the National Bureau of Statistics, since the reform and opening up, the per capita spending on clothing for rural residents has increased from less than 6 yuan in 1983 to 142 yuan in 2008, an increase of 23.9 times; The number of items increased to 2.7, an increase of 2.9 times.

It is understood that some clothing companies also recognize the huge potential of the rural market and gradually increase their investment in the rural market. Jiang Hengjie, an advisor of the China Garment Association, also emphasized that "clothing companies should pay attention to tapping the potential of the rural market and make 1.3 billion people's clothing."

● China will become the largest consumer of luxury goods "In the next three years, China will replace Japan and become the largest consumer of luxury goods.” On the future development trend of the domestic luxury goods market, Zhu Mingxia, director of the Xiangxiang Luxury Goods Research Center of the University of International Business and Economics is A prediction was made on the luxury market development trend forum held in Beijing.

Goldman Sachs Investment Bank predicts that China’s willingness to consume luxury goods will increase from 40 million to 160 million within the next five years. A market observer pointed out that Asian economies are prosperous and luxury goods are sought after. Data show that in 2010, China’s luxury goods consumption was as high as US$6.5 billion, ranking first in terms of global growth rate and sales volume for three consecutive years. Last year, China, which occupied 12% of the global luxury consumer market, rose by 3% this year to 15%. According to Goldman Sachs’ latest consumer data in the Asia-Pacific region, almost all luxury brands that have landed in China have achieved double-digit growth in the coming 2010. The development momentum of the Chinese market is amazing.

According to information provided by Gucci, it entered the Wangfu Hotel in Beijing in 1997 and opened another store in Shanghai’s Times Square in 2001. In 2004, the number of new stores increased by 3, 4 in 2006 and 7 in 2007. In 2009, the number was increased to 9, and in 2010 it was close to 30. In the coming years, Gucci plans to set up 40 branches in China. At present, Gucci has 50 in Japan and about 70 in Europe. China has become a key area for Gucci's sales growth. Gucci brand products in mainland China, Hong Kong, and Macau have jumped 41.5% last year, pushing Gucci Group’s overall revenue growth by 8.1% to 3.38 billion Euros.

After the financial crisis in 2008, the growth rate of global luxury goods consumption is falling sharply. As a result, the Chanel Group laid off 200 employees, accounting for 1/10 of the number of employees. Christian Lacroix, a French luxury fashion brand, applied for bankruptcy protection. Waterford Wedgwood, a British luxury ceramics company, filed for bankruptcy protection. KPS, a private investment company in the United States, acquired some of its global assets, including Hong Kong. the company.

However, China has quickly become a refuge paradise for luxury goods. According to Husband Retail Consulting, a retail market consulting firm, nearly 300 top stores opened in Beijing before the end of 2009. The data released by various agencies shows that the Chinese luxury goods industry has maintained a growth rate of more than 20% in recent years. Insiders said: "Although these are part of the survey data, no one can come to an accurate statistical result, but at least we can see that the luxury brand's passion for the Chinese market."

In China, the middle class, another major player in luxury goods consumption, is gradually paying attention. Chinese middle-class people are also proud to wear or own a luxury LOGO. Sun Ruizhe said: "China's definition of the middle class is rather vague, and the middle class must be the most important part of consumption. McKinsey has done statistics, including more than a dozen emerging countries including China, and now the middle class now includes nearly 2 billion. Population, they currently consume nearly 7 trillion U.S. dollars each year, and in the next 10 years, this figure will reach 20 trillion U.S. dollars, which is twice the U.S. consumption, and China must be half of the country here. Its consumption potential is very large. of."

According to statistics, the average age of Chinese luxury consumer groups is 15 years lower than the average age of global consumer groups. Huang Jin, chief strategy officer of the show network based on luxury goods marketing pointed out that young people's luxury consumption is T-level development. “The first package may be an ordinary popular package. The next package may be worth five or six thousand. It may be next year. Buying Louis Vuitton and buying Hermès the following year has become a normal consumer behavior, which is why so many luxury goods companies have entered China.”

● Apparel consumption ranks the first place in clothing, food, housing and transportation for females spending 5 years in a row. What is the reason for this? Perhaps the "2010-2011 China Urban Women's Consumption Survey Report" issued by the All-China Women's Federation Propaganda Department, the China Consumer Association, the China Women's Magazine Agency and other units can provide answers on the data.

The survey shows that in 2010, urban women’s consumption was the largest expense for “clothing and apparel”, ranking first in consumer rankings (this “top spot” status has been for five consecutive years), followed by tourism, health and vehicle-related Expenditure.

The survey also revealed that Chinese women are more interested in domestic apparel brands. Among the most expensive ones purchased by urban women, the “domestic brand” ranks first, reaching 49.3%; choosing to purchase “domestic brands” and “ More than 60% of the joint venture brands; urban women's awareness of international brands is related to the degree of urban internationalization. The cities with higher proportion of international brands are Beijing, Dalian and Shanghai. In the data of the continuous increase in beautiful consumption, it is an eternal theme to purchase clothing and clothing for women. In the first 10 months of this year, 96.8% of the respondents had experience in clothing and apparel consumption. The average cost of purchasing clothes for them is 4267 yuan, and the average cost for clothing for the whole family is 8793 yuan. Respondents purchased the most expensive one (set) of clothing for an average of 1,390 yuan.

In addition, online shopping has become one of the important shopping methods for women: In 2010, 70.8% of the respondents participated in online shopping, and the proportion of online shopping last year was only 42.3%. The number of respondents who participated in online shopping in Beijing reached 90.7%, ranking first in 10 cities. 18 to 30-year-old respondents have the highest proportion of online shopping, 39.8% of 51-60-year-old respondents participate in online shopping.

The survey selected Beijing, Shanghai, Guangzhou, Harbin, Changsha, Lanzhou, Dalian, Taiyuan, Chengdu, Ningbo and other 10 large and medium-sized cities, distributed 1050 questionnaires, and retrieved 1024 valid questionnaires. The effective recovery rate was 97.52%. The selected respondents were urban women aged 18 to 60 who had recurring income. Their average age was 36.

●Explosive growth of e-commerce consumption Sun Ruizhe said at the 2010 Innovation Conference of the Textile Industry Association: “Online shopping must be a concern for everyone in the future. China is currently developing this form, and our online shopping for textiles is In the first place, more than the digital home appliance industry. The Textile Industry Association Information Center once had a research report on the demand for textile and apparel products. It also shows the consumption level and has a strong desire to choose online shopping."

According to the "China's E-Commerce Personal Consumption Market Research Report 2010", 30% of the 3,532 netizens in the three cities surveyed have participated in e-commerce activities. These people are not only 6 hours per week. The above netizens, who have participated in e-commerce activities such as on-line purchasing, online auctions, online bidding, online education, online booking, and online stock speculation, have been involved in consumer identities to varying degrees in the past year. Consumer groups have gradually formed.

According to the data of IResearch “2009-2010 China Online Shopping Industry Development Report”, the total online shopping amount in 2009 will reach around 250 billion yuan. But overall, online shopping accounts for only 1.98% of the total retail sales of social consumer goods. The online shopping group is gradually expanding with the growth of the number of Internet users. However, due to the fact that the penetration rate of Internet users in our country is still lower than that of developed countries, and there is a huge gap between online shopping penetration rates in the cities, these all imply the eruption of the e-commerce market in China. There is still great potential for sexual growth.

The average age of Chinese luxury consumer groups is 15 years younger than the global consumer groups, and it is mostly between 25 and 44 years old. Online shopping, watching TV shows, watching news, and chatting have become the main lifestyle of this group. In order to cater to the consumption power of luxury brands and attract younger potential consumers, the marketing strategies of luxury brands have also changed and they have begun to engage in online marketing. In the past two years, the online shop of the luxury brand's own official website has gone from China to Europe. At present, Armani, etc. began to sell the current season goods through the official online shop. Italian YOOX Group, which specializes in tailor-made online stores for luxury brands, also recently landed in China. “In the past, luxury brands have been conservative about online marketing, but now the needs of consumers are changing. No matter how strong a brand can not stick to the original marketing tools, we must adjust according to changes in consumer demand.” Luxury website “ Youwang, director of marketing, Huang Siwei said.

VANCL, the clothing e-commerce leader who claims to create "civilian fashion," seized the mainstream of mass consumption, sold more than 2 billion yuan in just a few years, and achieved a myth of the apparel industry. The reason why online shopping has risen so fast is that there are three reasons: First, consumers have more goods to choose from when shopping in “shopping” online stores than visiting physical stores. They can easily shop around and save time. Second, online shopping can be interactive and search to learn more about brand and commodity word of mouth, in order to make more accurate shopping decisions, worry; Third, online sales of goods because there is no channel, promotion and other costs, So it will be more favorable than the physical store's goods, which is the so-called saving money.

As of 2010, China has 420 million Internet users - more than five times the number of Internet users in India, and almost twice as many Internet users in the United States - and new users are still increasing at a rate of 6 million per month. About half of the Chinese urban population uses the Internet, and rural residents use the Internet to reach 1/7. It is estimated that by 2015, the penetration rate of Internet access by Chinese cities using personal computers will reach 66%, which is equivalent to that of Western Europe, while rural Internet penetration will double to nearly 30%. In urban and rural areas, China will have more than 750 million Internet users. Such a huge consumer base is the basis for the rapid growth of Internet sales. E-commerce must be the most rapid sales model in the future, and apparel e-commerce consumers are bound to show a geometric progression.

TRANSFER FILM WIHT FLUORESCERCE COLOR

Heat Transfer Printing Film,Transfer Film,Heat Press

Haiben Awning Co., Ltd. , http://www.jstarpaulin.com