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the textile and garment industry has broken into a butterfly and weaved Chinese fashion.
From black and blue to monochromatic to colorful, to conceptual color, from the coarse cloth flared pants to the tide brand luxury; from the same system to the front of the world trend; from workshop-style production to celebrity endorsement, to Capital operation... A looms are becoming more and more dynamic, and one piece of clothing is dazzling, and one brand breaks into a butterfly.
In the past 70 years, the Chinese apparel industry has gone through rigid and conservative development towards growth and growth.
From manufacturing to brand drive
Processing and manufacturing has long been synonymous with the clothing industry. The "three to one supplement" policy has created the first glory of "Jinjiang experience" and "Sunan model". The entrepreneurial history of Anta and Bosideng is the vivid embodiment of these two modes. .
In 1991, Ding Hemu, the father of the board of directors and CEO of ANTA Sports, founded a shoe factory, named Anta, which means “safe and entrepreneurial, practical and practical”. Ding Shizhong also became the deputy general manager of sales in this year.
The “three to one supplement” model has made Anshi’s Chenjiang Town of Jinjiang City a Chinese shoe capital. In the mid-1980s, there were more than 3,000 large and small shoe processing factories in the region, with fierce competition and low profits. How can I get ahead? Brand awareness has gradually sprouted in the minds of local entrepreneurs.
The growth of Gao Dekang and Bosideng is the concrete presentation of the “Southern Jiangsu Model”. In 1976, Gao Dekang was the head of the sewing group consisting of 11 farmers. After years, he ran around the garment processing and sales business between Changshu and Shanghai. With the passage of time, business development, in 1991 they registered a collective enterprise - Kangbo Craft Fashion Factory, the predecessor of Bosideng. In 1992, the Bosideng trademark was successfully registered, and the “down jacket first brand” entered the brand-driven track.
Bosideng looks at the huge potential market for down jackets, which comes from OEM. In 1984, Gao Dekang began OEM production for a down jacket in Shanghai. Due to the complexity of the processing of down jackets, many companies are reluctant to do such business. But Gao Dekang said, "The first time I made a down jacket, I felt that the potential was huge." In 1994, the down jacket with the Bosideng brand was officially launched. In the following years, Bosideng expanded its multi-brand business and established sub-brands such as “Snow Flying”, “Bingjie” and “Kangbo”. Coupled with the agent channel, Bosideng quickly became the leader in the Chinese down apparel industry. In 2006, one-third of the world's down jackets were produced in Bosideng.
Capital assistance
As with the manufacturing stage, brand expansion also has its "ceiling". Ge Xing, the person in charge of the former consulting company serving Jinjiang enterprises for a long time, said that it is a means for many brands to expand early when they ask for celebrity endorsements and CCTV to buy advertisements. Later, everyone will do so, but it will not highlight the advantages of the brand.
In 2007, it was an unusual year for Bosideng and Anta. In July of this year, ANTA Sports was listed on the Hong Kong Stock Exchange. In October of the same year, Bosideng also came to the Hong Kong Stock Exchange to list.
In terms of market value, as of September 5 this year, Bosideng was HK$31.1 billion and Anta exceeded HK$170 billion. Relying on the capital market, Bosideng has stabilized its leading position in the industry. Anta has surpassed Li Ning in one fell swoop and became a leader in domestic sportswear brands.
Gao Dekang, who has become the chairman and president of Bosideng Group, said in an interview with China Securities Journal that after listing, Bosideng began to explore the transformation path of the brand to lead high quality development. In 2018, Bosideng clearly defined the strategic principle of “focusing on the main channel and focusing on the main brand”, and upgraded the brand image in all aspects and achieved remarkable development performance.
Listing is a boost for many companies in the footwear industry. In 2007-2012, there were at least 35 companies listed in Jinjiang, including shoe companies. In addition to the Hong Kong Stock Exchange, Shenzhen Stock Exchange and the Shanghai Stock Exchange, many companies chose to list on the exchanges of Singapore, South Korea and other countries.
Ge Xing said that after the expansion of the early brand was blocked, with the support of local governments, some shoes and apparel companies will reach out to the capital market. Looking back, the listed companies have made a huge leap in their practical work.
Transforming and upgrading faces challenges
But the clothing industry is not always smooth. In recent years, under the influence of the rise of e-commerce channels, the awakening of consumer awareness and the development of the information age, enterprises are also facing the painful choice of transformation and development.
"Especially in the past two years, the shoe and apparel industry has undergone a new round of reshuffle. The companies that fall are not lacking in listed companies and large enterprises." Ge Xing said.
The wealthy bird bankrupt, Belle delisting, Daphne face the market value problem, and how to go in the future seems to be a new problem facing the industry leader.
Gao Dekang said that the current Chinese clothing industry has entered the era of competing with internationally renowned brands, and consumers' awareness of the quality and characteristics of clothing has been continuously improved. In the future, Bosideng will continue to integrate innovative resources on a global scale, continue the brand mission of “warm the world” and align with the international advanced level.
Ding Shizhong said: "2019 is the collaborative value year of Anta Group. Anta has also become a global company. In the first half of the year, the company's performance maintained high growth, thanks to Anta brand, FILA brand and other multi-brands, insisting on consumers Core, continuous innovation efforts. In the second half of the year, the Group will focus on building innovation strategies and promoting innovation organization and capacity building to build a new growth engine."
Sun Ruizhe, president of the China National Textile and Apparel Council, said recently that China’s textile and apparel exports in 2018 have reached 276.73 billion US dollars, accounting for more than 35% of the world. “Made in China” is shifting to “Chinese fashion” and the time is ripe for the world to design a strong country. China's textile and garment industry has ushered in a true "strategic opportunity period."


Source: China Securities Journal Author: Jiang Yu Ling Fu Suying