Clothing E-Commerce Opportunities And Challenges Coexist

  Demand is shrinking, and domestic demand market is the main force. 

The subprime mortgage crisis in the US has triggered global worries about the economic recession in the United States. As an important importing country in China's textile and apparel industry, the slowdown in US consumption will inevitably reduce the driving force of China's textile exports; and the accelerated appreciation of the renminbi this year will undoubtedly compress the profit margins of textile and apparel exports. According to the statistics of Enterprises above Designated Size by the National Bureau of statistics, the proportion of China's garment industry's total value of industrial output has been decreasing in recent years. In 2007, the proportion has dropped to 41.33%, which has dropped by 10 percentage points in 5 years. Domestic demand growth has surpassed that of foreign trade. Domestic demand has become the main driving force for the development of the industry, and the domestic market has gradually become the main battleground of garment enterprises.

  Disasters, frequent incidents, declining industrial efficiency 

In the first half of 2008, the domestic market demand slowed down due to snow disaster, earthquake disaster and food price rising. The export growth of garment industry was reduced by international demand and domestic trade policy in 2007. Such factors as poor demand and rising cost have a negative effect on the industry efficiency, and the average profit margin of the industry has declined. All indicators reflecting the trend of production, efficiency, investment and export have slowed down or dropped.

The decline in production and consumption and the lack of market confidence have been affected by the macro-economy. Since the beginning of this year, oil prices, electricity prices and food prices have risen sharply. The supply and demand of China's clothing market are changing, and the growth of clothing output has slowed down. On the other hand, the economic downturn has directly affected the residents' consumption intention. The Engel index of urban and rural areas is picking up. Inflation has virtually affected and changed people's consumption orientation and consumption habits. Compared with 2007, the consumer's expectations, satisfaction and confidence index for the market has been decreasing since 2008, that is, people will reduce consumption and increase savings on the one hand, and on the other hand, confidence in the future economic boom will continue to fall. This has a certain impact on the consumer market, especially the clothing industry.

Investment in the traditional retail market has dropped markedly. 

According to the statistical data of the National Bureau of statistics, the growth rate of China's garment industry investment slowed sharply in 2008 1~5. The planned investment, the actual investment, the number of construction projects, the number of new projects and the number of completed projects decreased by 34.56, 13.44, 29.05, 28.77 and 73.57 percentage points respectively compared with the same period in 2007.

Although the profits of the garment industry have been declined due to the macroeconomic impact, many traditional garment enterprises have begun to look for intensive business models. At the same time, some investments continue to focus on the Internet, and new business models and types of commodities are emerging. Therefore, the downturn in the external economy has brought new impetus to the clothing e-commerce.

Guo Tao introduction

Internet expert, master, current China Internet association new media expert, Ai Rui network expert, Yi Guan international observer, SFRI (venture capital) researcher; "sales and market" expert writer, "business commented", "successful marketing" and other media invited writers, rich capitalization and market operation experience, in e-commerce, personal portal, civic news, new media, WEB2.0, WEB3.0 and other fields have a deep research, has helped many enterprises to successfully financing.