2020 is the final year of the “13th Five-Year Plan” and an extraordinary year in the history of New China. The world today is undergoing major changes unseen in a century. The international environment is complex and ever-changing, the COVID-19 epidemic is spreading globally, and the global economy is in a clear recession. Facing the new situation, our country has made it clear that it will accelerate the construction of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other. In the process of promoting “dual circulation”, brand strategy is of even greater and far-reaching significance in promoting domestic circulation and enhancing my country’s ability to participate in international division of labor and cooperation.
1. Challenges and opportunities – brand development faces a new environment
In a complex international environment Under the epidemic, the global industrial chain and supply chain are facing a greater impact; the domestic sales market has been significantly affected, and textile and apparel consumption has declined; the global textile and apparel brand pattern is being reshaped, and the domestic business environment is becoming more benign. Taken together, Chinese textile and apparel brands are facing a new pattern of both challenges and opportunities.
(1) The global economic and trade situation has become more complex
In recent years, populism has become prevalent in major Western countries , Trade protectionism is on the rise, and economic globalization has encountered countercurrents. After the outbreak of the COVID-19 epidemic, its impact has been widespread and far-reaching, and the trend of anti-globalization has become more obvious. The global industrial chain and supply chain have faced major impacts, and the risks have increased. At present, the global epidemic has not yet been effectively controlled, the economy is in recession, and foreign trade development faces many uncertain and unstable factors. The World Bank released the “Global Economic Prospects” report on January 5, stating that the global economy is expected to shrink by 4.3% in 2020, the economies of developed economies and emerging markets and developing economies are expected to shrink by 5.4% and 2.6% respectively, and China’s economy is expected to grow by 2 %.
From November to December 2020, the International Textile Federation’s sixth survey on the impact of the COVID-19 epidemic on the global textile value chain showed that it is expected that it will take until the end of 2022 to make up for the impact of the 2020 epidemic. coming losses. Compared with 2019, average turnover is expected to decrease by 12% in 2020, increase by 3% in 2021, and increase by 11%, 15%, and 18% respectively in the next three years.
(2) The domestic consumer market has been significantly affected by the epidemic
Affected by the trend of the COVID-19 epidemic, in 2020, the domestic consumer market fell sharply in the first quarter and began to gradually increase in the second quarter. Residents’ non-necessities, gathering, mobility, and contact consumption were severely suppressed, becoming a weak link in economic recovery. Data from the National Bureau of Statistics show that in 2020, the per capita consumption expenditure of national residents was 21,210 yuan, a nominal decrease of 1.6% from the previous year; among which, the per capita consumption expenditure on clothing was 1,238 yuan, a decrease of 7.5%, accounting for 5.8% of the per capita consumption expenditure, a decrease of 0.4 percentage point. As non-rigidly needed commodities, the retail sales of clothing, shoes, hats, and knitted textiles were 124 million yuan, a decrease of 6.6%. The decline gradually narrowed, and it has maintained monthly growth for five consecutive months since August.
(3) The global textile and apparel brand market structure is important Structure
Luxury goods sales fell sharply, and overseas consumption returned significantly. According to a Bain consulting report, the global luxury goods market dropped by 23% in 2020, the first contraction since 2009. The market size dropped from 281 billion euros in 2019 to 217 billion euros. China became the only country to grow, with the luxury goods market growing by 45%. %, reaching 44 billion euros. Morgan Stanley predicts that due to the continued spread of overseas epidemics in 2020, it will be difficult for inbound and outbound tourism and shopping to recover quickly, and part of it will flow back to China, with an expected return of US$140 billion to US$165 billion.
Sales of a large number of brands have dropped and suffered serious losses. GlobalData predicts that due to the impact of the COVID-19 epidemic, the global apparel market will decline by 15.2% year-on-year in 2020, with total losses reaching US$297 billion. Judging from the operating conditions of 18 foreign brands in the second quarter, except for the sports yoga brand lululemon, all brands experienced negative growth in revenue, with the decline concentrated between 20% and 40%, and faced serious losses; the overall operations improved in the third quarter. , however, 72.2% of companies still experienced a decline in revenue, and 2/3 companies suffered losses.
Note: Due to different financial year ranges of each company, the second quarter financial range includes March-May, April-June, and May-July. The third quarter includes different situations from June to August, July to September, and August to October.
A number of brands have withdrawn from the Chinese market or gone bankrupt. In 2020, Old Navy of the American GAP Group, American Esprit, British Superdry, and Japanese earth music & ecology have successively withdrawn from the Chinese market; European fast fashion brand C&A sold its Chinese business, Australian JEANSWEST, American men’s clothing brand Brooks Brothers with a history of 202, Shanghai Egg Clothing Co., Ltd. went bankrupt; Germany’s PUMA closed nearly 80% of its stores in the first quarter, ZARA’s parent company Inditex plans to close 1,000-1,200 physical stores in 2020-2021, and H&M plans to close 250 stores in 2021.
(4) The domestic business environment becomes more benign
The “Global Business Environment” released by the World Bank “Business Environment Report 2020” shows that my country’s business environment ranking has jumped to 31st in the world, an increase of 15 places from the previous year, and has been included in the national rankings for two consecutive years.��Characteristics of combined services.
3. Strengthening and improvement – the “14th Five-Year Plan” brand building ushered in a new direction
Under the “accelerating the construction of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other”, the important supporting role of brand strategy in the development of “dual cycles” will be fully utilized. Focusing on the three major sectors of terminal consumer brands, processing and manufacturing brands, and regional brands, we focus on improving brand competitiveness. With “three reinforcements and two improvements” as the main tone of our work, we systematically carry out brand building work in the entire textile industry and continue to promote the industry. High-quality development and supply-side reform.
1. Strengthen the consumption and cultural leadership capabilities of terminal consumer brands, focus on improving the level of creative design, strengthen the promotion and application of new technologies such as AI intelligent design, and enhance the reputation of China’s excellent culture Sort out research, excavate and apply, cultivate a group of “national trend” brands with obvious cultural characteristics, enhance the promotion of excellent brand stories at home and abroad, and enhance the ability of independent brands to carry excellent culture and beautify life; focus on new consumption guidance and innovation Retail model innovation, attaching great importance to the research on consumption habits and lifestyles in the new era, giving full play to the application of digital technology in brand operation management and retail channel links, giving full play to the important role of terminal consumer brands in leading fashion consumption and lifestyle; promoting Chinese ceremonial clothing The plan is implemented and implemented, and the “Contemporary Etiquette Dress Guide Based on Chinese Culture” is released to build a ceremonial clothing system that can promote the excellent Chinese culture and enhance the confidence of the national culture. It implements the promotion in a planned and step-by-step manner to give full play to the leading role of the excellent Chinese culture in fashion consumption. and domestic and international influence.
2. Strengthen the basic support of processing and manufacturing brands and the construction of high-quality manufacturing capabilities, starting from raw materials such as fiber fabrics and production and manufacturing links, giving full play to the important role of new information technology means, focusing on technology Continue to improve innovation and original design capabilities, improve the high-quality supply capacity of fiber fabric products, improve flexible and rapid response capabilities, optimize cooperation with end consumer brands, further enhance the basic support capabilities of processing and manufacturing brands to the industrial chain; continue to promote brand cultivation With the establishment and improvement of the management system, we strive to cultivate a number of high-quality processing and manufacturing brands that can provide strong support for the high-quality development of the industry, give play to the leading role of advantageous brands, and build a high-quality processing and manufacturing brand system covering all professional fields of the industrial chain.
3. Strengthen the brand aggregation and industrial radiation capabilities of regional brands, continue to promote the pilot construction of regional brands, clarify the strategic positioning and development planning of regional brands, and establish a standardized collective trademark use and management mechanism. , focusing on improving the reputation and influence of regional brands; improving the collaborative development capabilities within the region, paying attention to the leading role of advantageous brand enterprises, promoting the formation of stable strategic cooperative relationships, and improving the radiation ability for industry development; guided by optimizing the layout of the regional industrial chain, Focus on promoting the high-end, intelligent and green development of regional industries, focus on guiding regional brand areas to improve their ability to gather advantageous resources, output and serve the entire industry, and further leverage the important role of regional brands in regional economic development and optimal allocation of industrial chain resources.
4. Focus on improving the competitiveness of Chinese textile and apparel brands, insist on improving the strength of market entities, and solidly promote the implementation of brand competitiveness evaluation and improvement work. Establish and improve a brand value evaluation system covering product brands, corporate brands, and regional brands, publish the “Competitiveness Evaluation Results of Chinese Textile and Apparel Brands”, and create a brand “national team” that can represent the highest level of the industry and fully participate in international division of labor and cooperation; based on Evaluation system, identify gaps and deficiencies, scientifically and effectively improve the brand’s core competitiveness; effectively promote the connection between brand monetization value and finance, optimize brand financing and growth environment; guide and support powerful brands to participate in international cooperation, organize advantageous brands and designs Teachers, actively participate in international exhibitions, layout international marketing channels, and enhance the status and advantages of Chinese brands in international economic cooperation.
5. Focus on improving the incubation brand and service industry capabilities of the creative design park, adhere to the innovation-driven strategy, further deepen the construction of the creative park, closely focus on the development needs of the park, and continue to promote the construction of the creative design park To improve the quality and service industry level, organize experience sharing, learning exchanges, and advantageous resource docking in outstanding parks; highlight the core position of innovation and creativity in promoting industry transformation and upgrading, and strive to promote the optimal allocation of industry advantageous resources; carry out capacity assessments for the construction of creative design parks, and guide creativity The park should develop in a standardized and scientific manner, create a “demonstration park”, give full play to its advantages and lead, and enhance its service industry capabilities.