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Korean Textile Industry Expands Internal And External Circulation To Welcome "Warm Spring"

2011/3/19 11:45:00 59

According to the latest data released by the Korea National Development Research Institute (KDI), the average growth rate of exports and domestic demand in Korea will reach 4.2% in 2011, and the development rate will be balanced.

Against the backdrop of the slow recovery of the world economy,

The Republic of Korea

While maintaining the two-way growth of exports and investment, the domestic economic environment is gradually stable, and the domestic consumer market, which has been weakened by the financial crisis, will also usher in a new round of "rebound" in the joint efforts of the industry.

Circulation channels should be integrated into zero.

For the Korean domestic market, the first thing to do in 2011 is to expand the product market.

circulation

It has become the consensus of the industry to enrich the circulation form of textile and clothing products.

In the past, 40% of the clothing in South Korea needed to rely on high-end shopping centres for sale and circulation, while the brands that chose to sell in high-end stores accounted for only 60%~70% of all clothing brands.

This is because most logistics enterprises generally only give priority to ensuring the circulation of mainstream clothing brands, and these mainstream brands usually only choose high-end stores as their selling points.

In this so-called "win-win" mode, in addition to some large garment enterprises, such as LG fashion, first wool weaving and Korean Korean fiber (handsome) and other enterprises circulation channels can be guaranteed, the high cost of formalities in the store often prohibits other small and medium-sized garment enterprises.

According to Korean circulation

association

A report released in early 2011 said that the fees charged for different types of stores were different. The fees charged by high-grade shopping malls to enter the brand accounted for 30%~38% of the brand's total revenue, while the fees charged by ordinary stores were 25%~30% of brand income, while OUTLETS stores were charged 18%~23%.

At the same time, compared with imported goods sold in high-end shopping malls, the cost of shopping malls to domestic brands is higher.

It is said that the charges for importing goods from merchants to businesses account for only 1%~15% of their prices, while most domestic brands need to pay 16%~17% of all proceeds.

In response to this phenomenon, Korean countries

industry

The Institute suggests that we should actively expand the scope of circulation and set up different marketing modes with the center garment enterprises as the center.

For example, more brand stores, agencies, and street shops.

At the same time, we can learn from the successful marketing experience of ZARA, H&M, UNIQLO and other brands in the Korean market, that is, try to set up exclusive stores of various brands.

Optimistic about China's market growth potential

In the overseas market, in 2011, the major clothing import and export enterprises in Korea set up marketing strategies for overseas markets, especially the Chinese market, further demonstrating their determination to fully develop the Chinese market. The Korean government also hopes to change the present situation of low export growth through a series of policies.

Luo Encai, chief researcher of Korea Investment Securities Research Institute, said: "China's clothing market is huge, which is five times as large as that of Korea.

China has become a battleground for the global textile and apparel enterprises.

At present, there is no absolute strength or weakness in the industry at present. As long as we grasp the opportunity, no matter who can make this market full of unlimited potential have higher growth value.

Korea Daewoo

Stock market

The analysis center also released a report that the circulation of the Chinese market is very similar to that of Korea. Firstly, the main sales channels of both countries are high-end stores selling high-end and famous products, which account for 40% of the total market.

Secondly, like South Korea, women's clothing is the main part of the Chinese market. E-Land (love) brand is one of the first Korean brands to enter the Chinese market. In 2009, only the sales of clothing department reached 1 MB, about 5 billion yuan.

In addition, some other Korean brands, such as Basic House, value the purchasing power of the Chinese middle class and formulate corresponding price strategies. In recent years, they have made remarkable achievements and are praised as "second E-Land" by the industry.

In addition, as an important distribution center of Korean domestic clothing, the East Gate business circle has become an important place to purchase wholesale Korean clothing in foreign countries, especially in China in recent years.

In order to win over Chinese customers, the east gate clothing business association has launched a special "Chinese and Korean car ride" service, that is, from the moment when Chinese businessmen landed at Inchon airport, there were special bus cars waiting at the exit, the whole process was delivered until the end of the selection process, and there were several currency exchange points in the commercial area.

Most of the Korean businesses in the east gate also employ their own Chinese plations, and the exchange rate is clearly posted at that time, so as to facilitate negotiation with Chinese businessmen.

Similar market patterns between China and South Korea, and the growth of consumer demand for textiles and clothing between the two countries are driving closer exchanges and cooperation among textile companies.