Footwear And Clothing Enterprises Transform To Brand Manufacturing

Currently, on Quanzhou In the footwear and clothing industry, the traditional OEM (OEM) model is constantly challenged, and some enterprises have begun to try to transform from OEM to ODM (design and processing) and OBM (brand manufacturing).

Under ODM, manufacturing and design have brought more customers to footwear and clothing enterprises; The OBM model, which focuses on building its own brand and outsourcing production and even design, has brought a new turn for Quanzhou enterprises. However, all of these need a premise, that is, a perfect industrial chain.

　　 Traditional OEM mode is challenged

"Previously, it only provided fabrics for footwear and clothing enterprises, but in recent years Design The link is to make fabrics into ready to wear clothes, so that shoe and clothing enterprises can feel and make choices more intuitively. " Bian Wensheng, Vice President of Marketing of the Fabric Business Department of Haitian Materials Technology Co., Ltd., said in an interview not long ago.

What Bian Wensheng said is the current popular ODM model in the footwear and clothing industry. Industry insiders told reporters that the traditional OEM is purely manufacturing, and now it can not meet the new requirements of customers. Customers often prefer to intuitively feel the product effect after adding design elements.

Near Shishi Clothing City, Wang Yonggang, the owner of heritage clothing, is busy preparing his first store recently. Inheritance Clothing has been manufacturing and wholesaling for a long time, and has been OEM for many chain stores and clothing brands. However, recently, Wang Yonggang found that enterprises will face bottlenecks and crises if they blindly do manufacturing and OEM. "Although we have our own factory in Jinjiang, manufacturing is not a problem, but only to create a private brand can we have added value, which is the way out." Wang Yonggang has transformed from entrusted processing to creating a private brand model, which is known in the industry as private brand manufacturing, or OBM.

From OEM to ODM, and then to OBM, Quanzhou's footwear and clothing enterprises may be exploring a new development model.

　　 Make brand and create industry myth

For a long time, many shoes and clothing enterprises in Quanzhou have been working for others. "Shishi, a clothing enterprise, has cooperated with the company for 15 years, and the size of the enterprise has also expanded from 300 to 3000 people," said Wu Xingqun, a director and vice president of Seven Wolf.

However, in recent years, with the increase of various manufacturing costs, the profit space of pure manufacturing is constantly being squeezed. According to industry sources, in Shishi, individual OEM enterprises have now turned to e-commerce. The economic crisis and shrinking export sales force enterprises to think about how to climb to the top of the smile curve. Among the profit nodes of the design, purchase, manufacturing and sales industry chains, manufacturing has the lowest profit, at the bottom of the curve, while design and sales have the highest profit, at the top of the curve. This is the smile curve.

In this regard, Liu Yiqun, general manager of Langdao Clothing, said: "After years of development, Langdao has always adhered to the road of designer brand and constantly improved the added value of the brand."

But that is not enough. Compared with Quanzhou, in Wenzhou, Zhejiang Province, which is not far away, Metersbonway connects more than 1200 stores and more than 200 OEM enterprises nationwide. In 13 years, this casual clothing company did not produce any ready-made clothes and did not sell clothes itself, but with the OBM model, the annual sales of Metersbonway reached 2 billion yuan. Today, well-known enterprises in Zhejiang Province, including Meibang, Gaobang and Sima, have basically realized factory free.

　 Footwear industry enters the "chain" competition

To realize the transition from OEM to ODM and OBM, the footwear and clothing industry needs a highly integrated Industrial chain 。

Wang Yonggang often goes to South Korea for investigation at his own expense. He said that there are dozens of large-scale wholesale and retail markets in the Dongdaemun Business District in Seoul, South Korea, with more than 100000 employees and an annual value of more than $4 billion. Its success cannot be separated from rapid production and circulation. "It only takes 20 hours for dealers to select samples and receive goods. Even ZARA is not good at this quick response."

He believes that the success of Korean clothing lies in the high degree of connectivity of the industrial chain. In the east gate of Seoul, a one square kilometer area gathers various factories and enterprises such as fabric, auxiliary materials, production and processing, planning and design, and circulation, which run through the upstream and downstream of the industrial chain. In Quanzhou, especially Shishi, there is also a very complete clothing industry chain. "This is very helpful for the development of enterprises, especially when enterprises are transforming from OEM to ODM or OBM."

"In the footwear and clothing industry, the low profit of low-end manufacturing has made the living space of manufacturing enterprises smaller and smaller, and footwear and clothing enterprises are facing collective anxiety, that is, how to improve the added value of design (ODM) and how to build their own brand (OBM)." The observer said.