When it comes to tough industries, the textile industry ranks among the best. The textile industry has experienced many large-scale reshuffles, and it can be said that it has reached a critical period of development. So, how to seize the opportunity to achieve a breakthrough?
1. Emerging subdivided industries have become hot spots, and enterprises Development is no longer a simple operation of a one-size-fits-all unified assembly line
Under the fiercely competitive market conditions, market segmentation has become inevitable. The textile market is in an unprecedented bottleneck period, and the development of enterprises is no longer a simple operation of a one-size-fits-all unified assembly line.
The “running economy” has brought about the performance growth of sports brands; the implementation of the “comprehensive two-child” policy has accelerated the development of the children’s clothing market; people are interested in personal wear The increased emphasis on clothing has led to the development of underwear brands… This is the rise and development of segments under segmentation, and this is an opportunity!
2. With the arrival of the new retail era, online and offline connections have become increasingly seamless
There will be no distinction between online and offline in the future textile industry, only brand and experience! Even Jack Ma said that the era of pure e-commerce is over, and the future is an era that tests the integration of online and offline resources. This is the new retail era where there is no distinction between online and offline.
The Internet has brought about a new round of changes. It has brought about earth-shaking changes in society and also changed people’s original single consumption model. This is a transformation from “product thinking” to “user thinking”, thinking from the customer’s perspective, being customer-oriented, and providing products that customers want. It is an opportunity but also a challenge!
3. Enterprises will become more global and bring competitive advantages to certain players
Globalization and cross-border cooperation, despite all kinds of rhetoric about nationalism and the resurgence of manufacturing, the process of globalization will not stop. The exponential growth of cross-border interconnection and digitization will change the competitive environment, making enterprises more global and giving certain players a competitive advantage.
4. The center of gravity of the global textile market has been moving eastward, and Asia will become the dominant one
The Asia-Pacific market is the protagonist. Two-thirds of the world’s e-commerce unicorns, more than half of global online retail sales, and countless digital and technological innovations come from Asia. Asia is no longer needed Follow the footsteps of the West. 60% of global e-commerce unicorn companies are from China.
The center of gravity of the global textile market has been moving eastward. The growth of Asian economies is strong, with GDP growth still much higher than that of Europe and the United States. Similarly, Asian consumers’ fashion spending has also increased. According to McKinsey research, the region is expected to account for nearly 40% of global apparel and footwear sales by 2018. The online textile market in Asia alone is expected to reach $1.4 trillion by 2020.
5. Platform first, textile brands seek cooperation with strong sales channels
Platforms are becoming more and more important. Consumers are accustomed to using online platforms as their first search point. Textile brands should also seek to cooperate with these powerful sales channels. The question that textile brands should consider should not be “what will happen if we cooperate with the platform” but “how to cooperate with the platform”.
6. Who can win in the end depends on who has faster technological innovation and better user experience
As mobile payments become more widely used around the world, consumers will expect fashion companies to support increasingly convenient online transactions.
In the United States, mobile transactions are expected to reach approximately $930 billion in 2018, and in Western Europe, They expect it to grow by about 23% annually and reach 148 billion euros in the next three years. But this market is already very crowded, and who can win in the end depends on who has faster technological innovation and better user experience.
The challenges faced by textile companies in this regard will become increasingly complex, from equipment support to cloud computing, mobile service providers to integration with offline channels. No matter which option they ultimately choose, security and privacy remain huge concerns for consumers.
7. Up to 75% of textile manufacturers are preparing to invest in artificial intelligence in 2019
Leading textile companies can useArtificial intelligence is used to assist creativity, design and product development. For example, they will use algorithms to sift through large amounts of data to predict which products consumers will like most. Amazon has developed an algorithm to design clothes by analyzing images, replicating popular styles and using the data to create new designs. For example, ZARA uses algorithms to sift through large amounts of data to predict which products consumers will like the most.
8. The new generation of consumers is willing to spend more money on environmentally friendly products
More fashion brands are beginning to consider their recycling capabilities in the supply of raw materials. In 2017, 42% of fashion brands disclosed their supplier information. Second, sustainability can be a source of brand differentiation, attracting a large and loyal customer base. The new generation of consumers is particularly concerned about environmental protection and prefers environmentally friendly products. 66% of the new generation of consumers said they are willing to spend more money on environmentally friendly products.
Another important issue is waste. For example, Zara has installed recycling bins in all stores in China; H&M has invested in Re:Newcell and Eileen Fisher’s renewal program to repair or cut clothes for reuse; Adidas’s 3D printed sneakers are exploring pressing Need manufacturing, supply chain process reengineering and other fields.
Ambercycle is already using microorganisms to break down polyester and grow leather in the laboratory. In addition, some companies are cooperating with technology companies to promote company innovation and sustainable development. North Face, for example, cooperated with Spiber to develop an artificial spider silk fur coat.
9. Price competition will become extremely fierce
Low prices have long been considered a panacea, allowing excess inventory to be quickly turned over and profit margins to grow rapidly. Textile brands in Europe and Asia have always liked to fight price wars at low prices, but textile companies may face the risk of reduced profit margins. Companies adopting low-price strategies increased by 18% in the United States, 32% in Europe, and 74% in China.
10. Traditional companies will be forced to face the market with a more open attitude
Due to the fierce competition in the industry and the urgent need for innovation, more and more fashion companies are beginning to emulate the characteristics of startups, such as flexibility, collaboration and openness. Traditional companies will be forced to face the market with a more open attitude and accept new types of talents, new ways of working, new partnerships and new investment models.
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