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Online brands try to shift to offline
- Sep 05, 2017 -

With the rapid development of Internet technology, the sales and distribution of brands present new development trends. At present, the integration of online and offline has become common view of brands for deploying their marketing channels. Traditional offline brands invest heavily in e-commerce, some go online to open market for new brands, some stick to the principle of products online and offline sharing same styles and prices. It is worth to be noticed that the bonus of online business is vanishing, drainage cost is increasing, market tends to be saturated and online brands begin to shift to offline.

For example, since the second half of 2015, online brand Inman has opened over 400 brick-and-mortar stores, and most are based on consumer experience. After trial run, the company found that offline business has a brilliant future. In the first three quarter of last year, the offline sales even surpassed online sales. Inman's offline system makes good use of big data platform, from selection of location to selection of franchisee further to later-phase management. It has become a successful attempt of running offline business with Internet thinking.

China's share in the global textile trade will embrace an inflection point

After China's exports of textiles and garment declined in two successive years, how it will go this year has become a hot topic. The investigation teams to Guangdong, Jiangsu and Shandong provinces report that China's share in the world market has reached a high level and it will embrace a turning point in history, and the textile exports in 2017 will remain to face downward pressure. The prospects are not optimistic on major export markets including EU, the United States, ASEAN and Japan and China's share in European, US and Japanese imports is declining. Brexit will bring certain negative effect of China's textile exports; the uncontrollable and uncertain factors of Trump's new deal are increasing; Japanese buyers are transferring their orders to Southeast Asia. Global supply-side competition has entered into an intensified period, and due to long-time weak demand, overseas end-product brands also encounter growth barrier. China's export advantages are being challenged by many foreign competitors.

Development of the textile industry encounters bottleneck of talent and labor shortage

Investigation teams receive many feedbacks about talent and labor shortage. The shortage of eligible talents has become a common issue of local textile enterprises. Social misconcept about textile industry has affected the industry's attractiveness to talents, especially in second- or third-tier cities, where there is a big shortage of designing, R&D, management, marketing and IT talents. It is hard for them to attract and retain talents.

In some industrial clusters in Jiangsu Province, the problem is more prominent. Enterprises complain that "it is easy to machines and equipment, but hard to find technicians". Restricted by age gap and knowledge structure, some enterprises even worry that they could not find skilled workers in the coming few years. Some jobs can be replaced by machine, but some cannot. Shortage of skilled worker will be a key issue faced by the industry in the years to come.

In Sichuan and Shandong provinces, investigation teams learned that some young people are unwilling to work in a factory. Related statistics show that the average age of employees in textile and garment enterprises in Shandong Province has exceeded 40. Industrial workers are getting "middle-aged". During the investigation tour, textile enterprises in many places also complained high cost pressure, including labor cost, energy cost, financing cost, etc.

In the current stage of transformation and upgrading campaign, enterprises, especially SMEs, have urgent need for professional information service and strong expectation for comprehensive and professional service platforms. To address this problem, Mr. Sun Ruizhe, president of CNTAC said painful and difficult problems should be sorted out thoroughly by professional research teams, who will carry out special investigation based on joint-action mechanism. The textile industry will carry out the national strategy of "Made in China 2025" in key areas and key projects. The increasing cost pressure encountered by the textile industry should not be explained merely by labor cost, but by comprehensive factors including labor productivity. He thinks that to promote the progress of the industry and attract talents, the industry should encourage controlled increase of labor cost, and greater efforts should be made reduce irrational burden incurred from imperfect mechanism and system.