Why do I feel that this year's clothing factory's business is very poor, fast double eleven, many factories have nothing to do?
In fact, not only is the clothing factory's business poor, many other industries in recent years, business is also declining, the reason for this situation, mainly consists of the following two factors.
Supply side
China's textile shoes and clothing originated in 80s, and flourished in 90s and early twentieth Century. Due to the reform and opening up, the people's economic living standards improved, the demand for clothing increased greatly, and the earlier garment factories were less, the market supply was insufficient, and the clothing industry was profitable, with hot money flowing into the textile industry, so the number of garment factories increased.
Take Jinjiang, Fujian as an example, in the whole 80s, there were no more than 10 shoe and clothing manufacturers, but by the end of 2018, there were more than 1000 enterprises in the city with more than 2018 enterprises. Only more than 7300 sports shoes and garment manufacturers were produced in the city, including 898 Enterprises above Designated Size and 550 thousand employees.
The huge volume of entry has resulted in a huge increase in the supply of shoes and clothing in our country, and the increase is far from the demand. Therefore, there is a so-called high inventory situation. Under the condition of high inventory, the inventory is mainly based on clear inventory, and the production volume of course is greatly reduced.
　　 Demand side
The footwear industry belongs to the consumer industry. Theoretically, there will be a fixed quantity demand replacement every year. But since 2014, China's economy has entered a downward period. Prices are still growing, but wage income has not increased or even fallen. Many people's consumption power has been greatly reduced. In fact, it can be seen that people's consumption is downgraded from a lot of spells. This is also the reason why many consumers can rise in a short span of two or three years.
summary
The above two aspects are the root causes of the current bad business in the clothing factories. But most of the ordinary clothes factories are not good enough. Another factor is the downgrading of the brands. Just like Ren Zhengfei said, if HUAWEI really lowered the prices, many mobile phone manufacturers at the level of one thousand to three thousand may have no living space now, when HUAWEI had no competitors in the country, this is a bad situation.
Obviously, not every entrepreneur is such an idea. Most of them are anxious to lose their rivals, and they are the only ones. As for the market of consumer demotion, many clothing brand enterprises are lowering their prices to promote sales. In this case, the low-end ordinary clothing enterprises are even more miserable. Therefore, the whole shoe and clothing market, except brand enterprises, most of the other ordinary enterprises are not as good as a day.