The outbreak of the financial crisis in Europe is a great shock for Chinese clothing exports. Orders and part of the clothing enterprise of consumption came to China mainland. As a result, the domestic clothing market supply increases, and the clothing market competition is fierce. Some companies or clothing brand in the market competition gradually become obsolete. Some companies concentrate advantage in market competition, which constantly improves the quality of the products and brands, the market competition of a place. After several years of market competition, the clothing of some enterprises in China enhance a lot in terms of quality, style, fashion, sales channels and brand propaganda promotion soon. They raised the clothing brand in the market to establish a goal for the future development of high-end brand clothing. Foreign garment enterprises with the advantage of the clothing brand came into China to open the Chinese market sales.
Competitive Analysis
It has a profound effect that intra-industry competition situation, principle of companies to adopt what kind of competition and competitive strategy. Industry competition is composed of five basic forces. C. Handy. Beyond C. (2000): These five competitive forces is that competition among industry competitors, the threat of potential entrants, the threat of substitutes, the bargaining power of suppliers and buyers bargaining power. The conditions in the five basic competitive forces determine the intensity of industry competition. The results of the five forces against also determine the direction of industrial development.
The competition between the competitors within the industry
Xu H. (2006): Enterprises, which have same interests in the same industry, are often closely connected. Every enterprise has tried to through various means to make oneself of the enterprise to obtain superior competitors within the industry's competitive advantage. Therefore, the competition within the industry is also facing the enterprises, which is a kind of strong competitive forces. Due to the continued appreciation of the Yuan, clothing enterprises originally in the international market become less obvious competitive advantage. Other developing countries like India, Vietnam and other countries of the labor price now have more advantages than China. The international market is bound to more countries with labor price advantage to the tilt.
The threat of potential entrants
It refers to companies in other industries at any time are likely to enter the apparel industry to compete with existing garment enterprises. M. Campbell (2007): Potential entrants will bring new production capacity and more resources, but also will threaten the existing enterprise has possession of the market. It may also with existing enterprise raw materials and market share for the war. The seriousness of the potential entrants into the threat depends primarily on two key factors: namely the size of the potential barriers to new entrants into the industry and potential entrants expected to its existing enterprises to enter the size of the degree of the industry's revenge.
The threat of substitutes
P. Laurent (2003): Companies in different industries are likely, because of the production with similar function and compete. This comes from the substitutes of competition, which often has important effects on the competitive strategy of the enterprise. So the small and medium-sized clothing enterprises face a substitute rib, primarily among industry, high, low-grade clothing between alternative.
Supplier bargaining power
It is quite big that the strength of the suppliers bargaining power to enterprise's profit ability and the competitiveness of the enterprise product influence. Supplier improves the enterprise production and business operation activities of the supplier of all kinds of resources needed. For clothing enterprises, suppliers are divided into two kinds: one is the fabric, accessories, accessories suppliers; second, the suppliers of labor force.
The buyer bargaining power
The bargaining power of the buyer for the enterprise is also a force to be reckoned. The bargaining power of the buyer in the industry has direct influences on the profitability of the existing enterprise. Clothing production enterprise the bargaining power of the buyer are mainly wholesalers, retailers and consumers of bargaining power.
Marketing/promotional trends
First of all, clear enterprise promotional strategy is customer oriented and non-enterprise oriented or competition oriented. Reality of many enterprises competition oriented to make promotion strategy. T. Levitt (2010): Customer oriented ability can make the enterprise more competitive differences and cultivate the core competitive ability. Customer communication is also more emphasis on customer participation and interaction in the process, and to realize the information transfer of emotional contact. Communication on the one hand, selects the target customers, who often contact medium pipeline. On the other hand, because of the social information explosion, the consumer daily contact has a very wide range of information sources. Thus, a one-way message transmission is caused by the consumer receiving information filtering, which efficiency is low. And communication emphasizes the customer participation to make customers in the process of information interaction. The current experience marketing is the customer in the process of experience, knowledge of product and the demand of its own.