The five current conditions of the garment industry force the supply chain to deepen reform

For many years, the garment industry has been fragmented, disordered, inefficient and chaotic. In addition, China's economy has entered the new normal, economic growth has slowed down, and domestic demand has continued to decline. In this "winter turmoil", China's garment manufacturing industry is in danger.

However, blindly complaining about the world and other people has been paler, empty talk said a little powerless. In this occasion, see clearly the situation to follow up reform is vast avenue. We analyzed and studied the garment industry from the five aspects of "background, labor, core, spirit and opportunity". The five status quo of the garment industry forced the deepening reform of the supply chain to be imminent, and we worked hard with flesh and blood.

Background: Industry 4.0 and Made in China

Not divided into industries, Lang Xianping said: as long as the industry 4.0 spread out in the world, China's manufacturing will collapse, disintegration.

At present, intelligent industrial equipment has become the basis of the global manufacturing upgrading and transformation. Developed countries regard manufacturing upgrading as the primary task of Industry 4.0. Take Germany's Feissot Harley locomotive factory as an example. In the era before Industry 3.0, it took 21 days to produce a Harley locomotive, because its production process was all fixed and mechanized. But in the era of Industry 4.0, a customer orders a personal customized motorcycle at 9 o 'clock in the morning, all these five modules are alive, according to the needs of the customer, find their own raw materials, find their own factories to repackage and recombine, within six hours can be delivered to the customer's personal customized motorcycle.

In addition to much shorter time, there is another advantage of being smart, which basically reduces the cost by 40%.

The manufacturing industry in China is already very difficult and the cost is catching up with that of the United States. If the United States pushes Industry 4.0 and the cost drops by 40%, where is the chance for us to compete? The manufacturing cost of Germany and Britain is currently about 10% - 20% higher than that of China. As long as the industry 4.0 is promoted, the cost will be much lower than that of China. Where is our hope of competition?

As a manufacturing power in China, enterprises are facing severe economic transformation and are stepping forward from a manufacturing power to a manufacturing power. The country has proposed the national strategy of "Made in China 2025", which is similar to the strategic thinking of the Industrial Internet of the United States and Germany's Industry 4.0, which can effectively help enterprises to achieve upgrading and transformation.

To see small, based on the present, the garment industry does not reform, the death is not necessarily fast, but it must be miserable.

Artificial: employment problem highlights, productivity needs to be liberated

The number of college graduates in China hit 7.65 million in 2016, 160,000 more than last year, setting a new record despite a slowdown in recent years. On the other hand, as China's economic growth slows down, enterprises and public institutions employ fewer people, leading to increasing employment pressure for college students. In addition, with the promotion of Industry 4.0, ordinary repetitive production manufacturing is more and more inclined to intelligent production, and the prospect of workers' employment pressure is also distressed.

Take a look at the clothing industry, in the traditional clothing supply chain, workers belong to the factory, the income of workers is counted. In order for the next order to be completed smoothly, there is usually a reserved time for debugging the machine and adjusting the process. Of course, in this idle period, there will be a large number of idle workers, which leads to the waste of labor. Such waste is extremely deadly in the garment manufacturing industry, which is facing overall deepening reform.

Therefore, releasing productivity and promoting self-upgrading of workers is a potential general direction of personnel reform.

Core: the cliche that inventory leads to business risk

There are probably few manufacturing sectors that have had a wider and deeper impact on inventory overhang than apparel. This is closely related to the rapid changes in fashion trends and the ever-changing needs of consumers.

In traditional supply chains, orders must be placed 3-6 months in advance and at least 1,000 pieces must be ordered, leading to a large backlog of clothing retailers, which also leads to the inflexible turnover of cash flow. What's more, because the market forecast is longer than half a year, it is difficult for the clothing brand to grasp the current fashion trend. The clothing that has been hoarded for half a year is found to be outdated after arriving, so it has to be sold at a discount, which again reduces the profit.

Inventory problem is always the core problem troubling the clothing industry, who can solve this problem, who is the leader of the clothing supply chain.

Spirit: Made in China, the blank of the spirit of ingenuity

There are tens of thousands of Japanese shops with a history of hundreds of years or even thousands of years. The secret of many Japanese enterprises to last for a century or even a thousand years is the "craftsmanship spirit" of persisting and focusing on their own career, not being distracted by immediate profits. Italy is famous for its craftsmen and workshops. Many luxury brands are created by small workshops in Italy. Italy's craftsmen, everyone in pursuit of excellence. Germany, Austria, Switzerland and other German-speaking countries, in addition to many well-known brands of cars, watches, home appliances, there are a large number of successful small and medium-sized enterprises, they focus on production and manufacturing, pay attention to innovation research and development, and have a large number of highly skilled labor force. These companies in some segments of the industry to achieve the world's leading, but not known by outsiders, called the "stealth leader."

In Japan, Italy, Germany and other countries, the spirit of craftsmanship has been well inherited.

Looking at the domestic, Li Ning quietly fell, Banilu collapsed, craftsmanship is not, all the flashiness is a fleeting cloud of smoke said scattered, "made in China" soul, is still a Chinese dream.

There is a blank there is a market, there is a feeling to buy and sell. Garment industry made in China, when the heart of manufacturing.

Opportunity: Bad money drives out good money in a bad trading environment

The domestic clothing market is composed of more than 1 million information islands (nearly 100,000 fabric stalls and about 1 million small factories/workshops scattered across the country) that are closed to each other. The scale of this low-end clothing supply chain market is up to about 1 trillion yuan, but such a large market is always a deformed ecology of "bad money drives out good money" -- as long as the price is low and people can cheat, they can get orders, and low quality and low price win.

Such a deformed market is really terrible, consider extremely scary. But is there another opportunity brewing?

Under the opportunity, clothing flexible supply chain for the trend of the deployment

In long-term practice, in view of the status quo of the above industries, the pioneers of the apparel supply chain continue to explore and open up a new idea for the upgrading and reform of the supply chain: try our best to build a flexible apparel supply chain. Specific operations are: through the use of intelligent production to more accurately grasp the market demand; Through socialized production and deep optimization of production capacity in the flexible supply chain at the same time to solve the problem of difficult to improve the technical level of garment workers and workers' employment; Use the "Internet +" model to capture popular trends and improve trading efficiency.

In the industry 4.0 intelligent manufacturing, the domestic garment industry pioneers have long been eager to try, but in the case of unclear prospects, the operation is slightly timid. At this time, Sinbad Supply Chain took the lead in investing capital and cooperating with intelligent equipment manufacturers to research and develop intelligent devices for the Internet of Things, from flat cutting machine to automatic cloth laying machine, computer cutting machine, fourth generation sewing machine, automatic template machine, etc., to realize digital manufacturing, intelligent production and establish networked production facilities. Sindbad's capacity is defined by the number of units. Using intelligent production equipment, Sindbad's Internet system automatically picks up orders and sends them out, so that idle workers nearby can decide how many orders they can pick up and how much money they can make based on their energy. This consolidates a lot of idle capacity and improves efficiency. Each production center is divided into modules according to the production links, and each module is standardized. Through systematic rating, priority is given to outstanding workers. Workers' income is increased, and the more active they are in work, the higher the score is. The more you order, the more money you make. With benign competition rules, stimulate the enthusiasm of workers. Through this mode, workers' productivity can be completely liberated, so as to not only improve workers' income level, but also ensure the stability of employment in the textile and garment industry.

On the other hand, many factory entrepreneurs have been frustrated by the difficulty in improving the quality and professional skills of their workers. In the traditional clothing supply chain environment, the working environment of workers is dirty and messy, the mechanical equipment is backward, the working time is not free, the salary is not guaranteed, and in many cases, the workers have to go to several factories to complete a day's work, so they cannot concentrate on improving their skills. Now, through the Internet platform to realize the free control of production capacity, region, time, the choice of opportunities, promote the flow of talent, workers began to concentrate on professional skills, improve quality, ordinary workers become skilled workers, skilled workers gradually become the real sense of the Internet era of craftsmen.

In the era of Internet +, the needs of C-end users have changed, prompting the emergence of personalized and customized production platforms. Flexible supply chain is based on the demand, has enough flexibility, rapid response capacity according to market demand, help the clothing brands in the past 1 year and 6 months in advance order to 10 days in advance, more style small batch 100 minimum, large quantities of single, three days no matter large single small single all can ensure quality control, timely delivery of the goods. For customers, the advantage lies in that they can make production plans closer to the market rather than making predictions so long in advance, thus reducing inventory, which gives a better play to the flexible and quick response of the supply chain to the market. Help brand owners to seize the popular trend to increase sales opportunities, and eliminate the risk of inventory backlog.

New norm of Chinese economy, the domestic economy as a whole, in the deflation of the country's case, the garment industry entrepreneurs should be more firm beginner's mind, providing customers with low prices at ease worry "clothing flexible supply chain services", provide consumers with reliable quality clothing products, and for the interests of workers, builders seek development. In the future, we need more conscientious enterprises to make efforts and make contributions to the industry and practitioners. For many years, the garment industry has been fragmented, disorderly, inefficient and chaotic. In addition, China's economy has entered the new normal, economic growth slows down and domestic demand continues to decline. In this "winter turmoil", China's garment manufacturing industry is in danger.

However, blindly complaining about the world and other people has been paler, empty talk said a little powerless. In this occasion, see clearly the situation to follow up reform is vast avenue. We analyzed and studied the garment industry from the five aspects of "background, labor, core, spirit and opportunity". The five status quo of the garment industry forced the deepening reform of the supply chain to be imminent, and we worked hard with flesh and blood.

Background: Industry 4.0 and Made in China

Not divided into industries, Lang Xianping said: as long as the industry 4.0 spread out in the world, China's manufacturing will collapse, disintegration.

At present, intelligent industrial equipment has become the basis of the global manufacturing upgrading and transformation. Developed countries regard manufacturing upgrading as the primary task of Industry 4.0. Take Germany's Feissot Harley locomotive factory as an example. In the era before Industry 3.0, it took 21 days to produce a Harley locomotive, because its production process was all fixed and mechanized. But in the era of Industry 4.0, a customer orders a personal customized motorcycle at 9 o 'clock in the morning, all these five modules are alive, according to the needs of the customer, find their own raw materials, find their own factories to repackage and recombine, within six hours can be delivered to the customer's personal customized motorcycle.

In addition to much shorter time, there is another advantage of being smart, which basically reduces the cost by 40%.

The manufacturing industry in China is already very difficult and the cost is catching up with that of the United States. If the United States pushes Industry 4.0 and the cost drops by 40%, where is the chance for us to compete? The manufacturing cost of Germany and Britain is currently about 10% - 20% higher than that of China. As long as the industry 4.0 is promoted, the cost will be much lower than that of China. Where is our hope of competition?

As a manufacturing power in China, enterprises are facing severe economic transformation and are stepping forward from a manufacturing power to a manufacturing power. The country has proposed the national strategy of "Made in China 2025", which is similar to the strategic thinking of the Industrial Internet of the United States and Germany's Industry 4.0, which can effectively help enterprises to achieve upgrading and transformation.

To see small, based on the present, the garment industry does not reform, the death is not necessarily fast, but it must be miserable.

Artificial: employment problem highlights, productivity needs to be liberated

The number of college graduates in China hit 7.65 million in 2016, 160,000 more than last year, setting a new record despite a slowdown in recent years. On the other hand, as China's economic growth slows down, enterprises and public institutions employ fewer people, leading to increasing employment pressure for college students. In addition, with the promotion of Industry 4.0, ordinary repetitive production manufacturing is more and more inclined to intelligent production, and the prospect of workers' employment pressure is also distressed.

Take a look at the clothing industry, in the traditional clothing supply chain, workers belong to the factory, the income of workers is counted. In order for the next order to be completed smoothly, there is usually a reserved time for debugging the machine and adjusting the process. Of course, in this idle period, there will be a large number of idle workers, which leads to the waste of labor. Such waste is extremely deadly in the garment manufacturing industry, which is facing overall deepening reform.

Therefore, releasing productivity and promoting self-upgrading of workers is a potential general direction of personnel reform.

Core: the cliche that inventory leads to business risk

There are probably few manufacturing sectors that have had a wider and deeper impact on inventory overhang than apparel. This is closely related to the rapid changes in fashion trends and the ever-changing needs of consumers.

In traditional supply chains, orders must be placed 3-6 months in advance and at least 1,000 pieces must be ordered, leading to a large backlog of clothing retailers, which also leads to the inflexible turnover of cash flow. What's more, because the market forecast is longer than half a year, it is difficult for the clothing brand to grasp the current fashion trend. The clothing that has been hoarded for half a year is found to be outdated after arriving, so it has to be sold at a discount, which again reduces the profit.

Inventory problem is always the core problem troubling the clothing industry, who can solve this problem, who is the leader of the clothing supply chain.

Spirit: Made in China, the blank of the spirit of ingenuity

There are tens of thousands of Japanese shops with a history of hundreds of years or even thousands of years. The secret of many Japanese enterprises to last for a century or even a thousand years is the "craftsmanship spirit" of persisting and focusing on their own career, not being distracted by immediate profits. Italy is famous for its craftsmen and workshops. Many luxury brands are created by small workshops in Italy. Italy's craftsmen, everyone in pursuit of excellence. Germany, Austria, Switzerland and other German-speaking countries, in addition to many well-known brands of cars, watches, home appliances, there are a large number of successful small and medium-sized enterprises, they focus on production and manufacturing, pay attention to innovation research and development, and have a large number of highly skilled labor force. These companies in some segments of the industry to achieve the world's leading, but not known by outsiders, called the "stealth leader."

In Japan, Italy, Germany and other countries, the spirit of craftsmanship has been well inherited.