Local Garment Industry To Speed Up The Response To The Korean Korean Free Trade Zone Impact

The signing of the agreement brings huge market imagination, but also allows domestic related industries to face a new round of shuffle. Some traditional manufacturing industries have accelerated pformation, and some enterprises have begun to layout in advance to enhance the added value of the brand, so as to connect the new market.

"Unlike the Shanghai free trade zone which has been running for more than a year, the China South Korea FTA is a two-way interaction."

A researcher pointed out that the Shanghai free trade area is mainly China's own free trade, while the Sino Korean free trade area is two-way. This means that the depth and breadth of the free trade will exceed the Shanghai Free Trade Zone, and the market capacity will have more imagination.

In addition, the China South Korea FTA will be regarded as a benchmark for the Northeast Asian free trade framework. If all goes well, the relevant agreements may be successfully implemented in the second half of this year.

The implementation of the China South Korea free trade zone is the biggest in history.

According to the agreement, it will not be more than 20 years at the latest, and zero tariffs will be imposed on about 9 of the commodities listed.

The agreement covers 17 areas, including trade in goods, trade in services, investment and rules, including e-commerce, competition policy, government procurement, environment and other "twenty-first Century economic and trade issues".

According to the data released by the Ministry of Commerce, the bilateral trade volume between China and South Korea reached US $274 billion 200 million in 2014, which was 55 times that of the establishment of diplomatic relations between China and South Korea in 1992.

China has become Korea's largest trading partner, largest export market and largest source of imports, and South Korea has also become an important source of foreign investment in China.

In the long run, this huge market space will be shared by the respective industries and enterprises of the two countries, which can make bigger cake for their respective industries.

"But in the short term, China and South Korea will face a new shuffle of their respective industries."

The researchers pointed out.

In response, Song Zhiyong, director of the Institute of Asian and African Studies of the international trade and Economic Cooperation Institute of China's Ministry of Commerce, has pointed out to the media that the FTA will substantially reduce or abolish tariffs and increase market openness. The weaker industries of both countries will be impacted, such as China's chemical industry, electricity producers, steel and service industries, agricultural products and light industrial products in South Korea.

"In fact, the added value of traditional industries in China is relatively low," the researchers explained. The Sino Korean free trade zone brings great market imagination, but in order to really seize this market opportunity, it needs the efforts of the enterprises themselves, especially in the traditional manufacturing industry.

Take China's popular "Korean wave" consumer goods market as an example.

Most of them enter the Chinese market through purchasing agents. The market value of these products exceeds 100 billion yuan, and if their tariffs are lowered, they will impact the domestic cosmetics market and clothing market at a much lower price.

In the cosmetics industry, if the Korean cosmetics products enter the Chinese market through the Sino Korean free trade area, the survival space of the local cosmetic brands will be more narrow.

In another mainstream textile and apparel market, China's previous local garment industry mostly relied on demographic dividend and land dividends. Most of the Chinese made products rely on OEM, too few branding enterprises, poor R & D capability and weak competitiveness of products.

However, enterprises are aware of this short board. The above personages revealed that footwear manufacturers such as Dayang, XTEP international, China and so on have been introduced from France, South Korea, Spain, Italy and other countries.

And design concept to enhance brand added value.

Among them, as the largest export company of domestic Western-style clothes, dyang creation is most typical, and its design director is Caitlin Ivano, the chief designer of Giorgio Armani, the world's top male fashion designer.

Prior to that, Dayang's main business was mainly based on OEM, with its own brand as its subsidiary, and its clients including top international brands such as Amanni, buerbury and so on. The company is located in Dalian, accounting for about 7 of its foreign trade export, enjoying preferential export tax rebates. In the export market, Korea is one of the important markets.

In recent years, the company began to pform, through its three brands, "creation", "Kamen" and "YOUSOKU" three brands, faced with three different customer groups in high school, while expanding the export market, expanding the domestic market and seeking a new round of pformation through the matching of internal and external markets.

So is the Chinese listed in Hongkong.

Since 2002, the company has joined hands with Ye Wenbo, a well-known designer.

Through the operation of Qi Lang LILANZ and sub brand L2, it has become another classic case of domestic clothing enterprises brand in recent years.

And in the occupation market, George White, through more than 40 designers' team members, has been working hard in the current market of clothing segmentation through the management idea of meeting the individual requirements of customers to the maximum extent.

"When the added value of the domestic independent brand is improved, the competitiveness will be stronger, which can hedge the risk of shuffling brought by the Korean brand." these people admitted that in the new round of Sino Korean Free Trade Area beneficiaries, the traditional manufacturing enterprises in the export market had occupied half of the previous stage, and the higher the brand value, the more obvious the advantage will be in the new round of competition.