Textile And Garment Industry Suffers From Pain? Look At The "Green Enterprise Therapy" Under The Industrial Internet.

For the textile and garment industry, 2019 looks a bit difficult: many famous brands are closed and closed down. According to the National Bureau of statistics, in 2019 1~12, the total profits of Enterprises above Designated Size in garment industry amounted to 87 billion 283 million yuan, down 9.75% compared with the same period last year. In 2020, a sudden outbreak made the export trade press the pause button, so that many large and medium end products were processed and produced. Small and medium-sized enterprises are difficult to sustain.

With the further adjustment of the global textile industry structure and the continuous rise of labor costs and raw material prices in recent years, the traditional advantages of the textile and garment industry no longer need to be faced with many problems, such as the reduction of orders, overcapacity, high inventory pressure and low production value.

At present, crisis is the only way to rise. Many textile and garment enterprises in Qingdao did not wait for miracles. They began to explore a new road many years ago.

Nowadays, with the rapid development of the industrial Internet, Qingdao textile and garment enterprises are also facing new opportunities.

Pain point: stock anxiety disorder

Green enterprise therapy: a customized realization of "zero inventory"

"Before we enter the production line, we have sold every piece of clothing." Zhang Yunlan, President of cool special intelligence, said: "the problem of overstocking of goods in the traditional garment manufacturing industry is no longer there, and we have achieved zero inventory."

In the textile and garment industry, "zero inventory" is the existence of many enterprises, but it is hard to achieve.

The traditional textile and garment industry is a heavy asset production mode, with lengthy sales chains, fluctuating price curves, and various consumer demands. A slight change will affect the sales of products, resulting in the backlog of factories from raw materials to ready-made garments. Many textile and apparel workers are suffering from backlog. Almost all of them are suffering from "inventory anxiety disorder". Every day they worry about how to clear up inventory and cash in the backlog.

In 1995, entrepreneur Zhang Daili founded the "red collar" brand in Qingdao to engage in the production and sale of garments. Over the past ten years, China's garment industry has been developing rapidly, and Zhang's enterprises have come to the fore and their development has reached a peak. Later, with the abrupt change of consumption structure, the garment industry declined as a whole, and the enterprises also suffered the impact. In 2003, the red collar group began to study Internet + mode and transform it to customization. After years of exploration and research and development, in 2017, the red collar group successfully changed its name to cool special intelligence and realized the intelligent transformation of clothing production.

In the clothing production workshop of cool special intelligence, every work station of every production line has a small data terminal display, which records the customer data information of every personalized order in detail. The workers complete their production operation on the water line according to the guidance of information. This mode has completely changed the traditional operation of the production of finished garments, and the clothes produced by cool smart production no longer have the standard size of 175 or 180, but tailored according to the needs of every customer. Therefore, even if the C client orders are only 1, they can be customized in the intelligent factory.

"Before we enter the production line, we have sold every piece of clothing." Zhang Yunlan, President of cool special intelligence, said: "the problem of overstocking of goods in the traditional garment manufacturing industry is no longer there, and it really achieves zero inventory."

This transformation is not to replace people with fully automated machines, but rather to rely on a complete set of logic and algorithms for clothing customization, from production execution to quality assurance system, from logistics distribution to customer service, and all production and sales processes are driven by data. To this end, cool special intelligence has set up four major databases: version, style, fabric and BOM.

After the successful transformation, cool intelligence has not only become an industrial Internet platform enterprise, but also has become a supplier of customized solutions. They summarized and perfected their own successful big data systems and business models, and formed a set of "formula" typical sample solutions, and exported them to other enterprises to help a series of traditional enterprises to realize the transformation and upgrading of the Internet industry.

Pain point II. Capital turnover "pressure mountain"

Green enterprise therapy: docking to create a "Transparent Factory"

Inventory problem is not the only pain point for traditional textile and garment enterprises. Wu Jia, general manager of Hang Ni Zhi, admitted that capital turnover also restricts the survival and development of enterprises.

"We must know that there is a big problem in the traditional sales channels of agents, that is, they occupy more capital and slow turnover of funds. For example, after we have finished the new quarterly order, we will start to prepare the raw materials, but in fact, the customers will only pay 30% of the advance payment, and the remaining 70% will need to pay by themselves. Wu Jia said that in the past, production of a batch of clothing, from cotton yarn weaving, printing and dyeing, billet fabric to finished products, the whole production process will take three or four months, and customers will have to sell the goods after they get the goods, so it will probably take one or two months, that is, half a year later, the customer will pay the remaining amount. Even so, manufacturers are still facing the risk of customers cancelling orders and returns.

In the meantime, manufacturers can only rely on their own funds and part of the bank financing to advance. "For the banks, the clothing industry is a limited amount of financing and credit rating industry, the scale of financing is relatively small." Wu Jia said.

It is precisely because of the great survival test brought by the traditional production and sales mode that let hang Ni Zhi feel that sticking to the old road is bound to be eliminated and must take the lead in taking the pace of change. "We do not pursue how big the volume is. We only hope that our indicators, such as income, cost, cost, inventory, profits and so on, can be linked together to enable enterprises to develop healthily and continuously."

In 2015, Heng Ni Zhi began to explore the C2M mode, developed the APP of the mobile phone's mobile terminal, removed the intermediate links of sales, and gave up the profit consumers; in 2017, Heng Ni Zhi invested about 15000000 yuan, began to make intelligent transformation to the production plant, and became one of the first batch of 5 enterprises that were incorporated into the industrial Internet transformation in Jimo, and received 3 million 616 thousand and 100 yuan of government subsidies. In April 2020, Heng Zhi Zhi formally joined the Haier Internet industrial platform, and became an ecological partner of the industrial Internet platform.

The constant net created by the touch of the net has achieved a leap in productivity. After the intelligent transformation, data processing, such as R & D, procurement, production and so on, has been realized in the past, and the accuracy and timeliness have been improved. "The previous R & D process takes one day, and now it is less than 1 hours." Wu Jia said, "moreover, with the help of the intelligent hanging system, where each garment goes to which process and where it is transferred, we can monitor it in real time, and can quickly trace back to the source and reduce the reject rate for unqualified products."

After access to the platform, Heng Ni Chi soon worked with Helga Aus to create a "Transparent Factory" project, that is, to query the factory production line as the logistics information flow, and to feedback it to consumers in real time. Consumers can see the production progress of their customized products in real time through mobile phone terminals.

In Wu Jia's view, the industrial Internet is the trend of the times and is not transferred by the will of any enterprise. "Just like when the consumer Internet just started, many conservative people refused to accept online shopping, and thought the Internet was not safe, but then more and more people slowly accepted it, which required a process. Now, many traditional manufacturing enterprises in Qingdao have been grafted on the Haier Koss platform, and many people still have a wait-and-see attitude, but I believe that the manufacturing industry in the future must be the manufacturing industry of the industrial Internet.

Pain point 3. Market reaction is slow.

Green enterprise therapy: "light cavalry" main "small quick spirit", sales volume contrarian growth 20%

In recent years, with the development of electricity providers and the upgrading of consumption, the market of textile and garment industry has been changing rapidly. The trend of fashion has changed rapidly, and people's demand for clothing has become more and more personalized and diversified. All these bring new difficulties to the traditional clothing enterprises.

In the first half of 2020, the epidemic had a great impact on the textile and garment industry. In 1-4, the total retail sales of clothing decreased by 31.3% compared with the same period last year. At the same time, the "golden three silver four" textile and clothing export season was also diluted. According to the statistics of the General Administration of customs, in January 2020 -2, the export volume of China's textile and clothing was 29 billion 835 million US dollars, down 20% from the same period last year.

In the face of the severe situation, LERUNE Lian run Xiang group, a textile and garment enterprise in Qingdao, has been able to break out of the tight encirclement and achieve a 20% increase in sales growth. How did this happen?

"From the beginning, we are" alternative "in the textile and garment industry. Sheng Yaqi, general manager of LERUNE group, general manager of Jiang Lu, said that since the founding of its parent company Lian Xiang in 2003, Sheng Yaqi has been taking an unusual road to its 2016 subsidiary. Unlike other textile enterprises, Lian Yun Cheung is not satisfied with making ordinary textiles such as pure cotton and polyester, but has been working hard in the research and development of functional textiles. It has developed more than 50 new technologies and products, and has been involved in the formulation of 9 enterprise standards, with 2 functional patents and 4 utility models. In 2012, the Japanese authoritative inspection organization also named a testing method of fiber function named "Lian run Xiang detection method".

In 2016, a customer made a request for cooperation to Lian Yun Xiang. They hoped to "roll the order", that is, first order a small quantity of orders, so as to quickly test the response of the market, the market responded well and the order was added. Subsequently, more and more customers tend to choose this way to place orders.

As a company based on trade, Lian Yun Cheung has a higher market sensitivity and more emphasis on the response of the front end market. They are keenly aware that the era of large orders has passed. Now, small batch rapid reverse is the trend of development. But this new form of "rolling order" has not aroused the interest of most manufacturers.

Jiang Lu explained that in the past, textile and garment factories were more inclined to take large orders, and a large order was done for half a year. As for small orders, they did not put their eyes on them, nor did they scorn to do them. "At that time, we had no factories, we could only find factory OEM, and the OEM factories were able to take orders, because they were willing to sell our personal feelings for years because of their cooperation." Jiang Lu said. She realized that the traditional mode of factory production was too cumbersome to adapt to today's market demand. If we wanted to seize the market quickly, we must simply light it. We should first send a light cavalry to speed up the market direction and grasp the opportunities before expanding production.

Since the traditional factory cooperation is not satisfactory, we simply build our own factory. In 2017, Sheng Yaqi, a subsidiary, began to build its own intelligent manufacturing R & D center, relying on big data driven intelligent digital manufacturing to create a flexible supply chain of "small batch quick reverse".

Unlike the huge private custom made by cool intelligence and hang Ni Chi, the intelligent factory of Sheng Ya Qi has a smaller body size, with only 3 production lines. Moreover, their factories are not located in the outskirts of the city, but are located in the textile valley of Shibei District, closer to the city center.

Jiang Lu said that this is a bold decision. In fact, there had been many queries when making decisions. "The factory layout is in the urban area, the cost is higher, the investment is not small, but the small production line can only receive the small order, according to the past experience, many people thought that such is unable to earn the money." Jiang Lu said, "but my concern is that since we need to respond quickly, we must be quick and timely in all aspects, and the timeliness of management is also very important. If built in the suburbs, this piece will not be guaranteed. In the future, we should regard this small intelligent factory as the center of the brain, and then deploy some intelligent satellite factories around the world to get through the data between them and achieve rapid response to the market, and rapidly expand production according to the rapid adjustment of the market.

Before intelligent transformation, an order will be at least 3 months from the order to the delivery, and it can not be inserted in the middle. After transformation, the process is shortened to 1 months or even shorter, and some small orders or even 15 days can be completed. The rapid production process enables small batch quick reverse orders to become a flexible "light cavalry", which can easily realize the fast horse detection market and quickly adjust production according to the market reaction.

The wave of industrial Internet is surging, and all districts and cities in Qingdao are embracing enthusiastically. In June 2020, Shibei District established a new demonstration base for rubber and chemical textile in Qingdao, and built a platform by the municipal government to promote the integration of Helga Aus platform and textile Valley in resource integration, surface accessories research, clothing and apparel home textiles home decoration design, enterprise cloud, product procurement, flexible manufacturing, industry mechanism, enterprise alliance, research tour, and the future trend of the industry. The retail industry and other aspects of the cooperative relationship, the joint establishment of the sea weaving cloud project. If it was a bold decision to choose city north then, it is time to rejoice in the courage of that year.

Pain point 4 order transfer + trade friction

Green enterprise therapy: the transformation of "first enterprise" by its own brand affects the high-end value chain.

The pain is always there, not the pain here, but the pain elsewhere. Wu Xiaojie, general manager of universal garment, firmly believes that the industrial Internet can help enterprises "come from pain points to pain spots". When the pain is not painful, enterprises have completed leaping development in a quiet way.

Qingdao global garment Limited by Share Ltd was founded in 1954, which is a great change era. Fifty several people set up the Red Star sewing cooperative by relying on more than twenty sets of sewing machines, and began a vigorous entrepreneurial process. This is the predecessor of the company. In the beginning of 1974, the company's first order of foreign trade clothing began to produce, which marked the company's beginning to embark on the development road of foreign trade processing. During the period, the company was renamed Qingdao global clothing by the rubber County garment factory. Factories, "Star" jackets, cold clothing and so on are all high-quality products of the Ministry of industry. In 2006, the business revenue has already broken 100 million yuan.

In recent years, due to the rising price of domestic raw materials and the rising cost of labor, large orders have gone to Southeast Asia. For example, the globe cooperated with a German customer for an assault garment. The two sides have worked together for eight or nine years and have been working happily together. At one point, German customers suddenly demanded that the price of each assault suit be reduced to $14.5 from the original $18, because a company in Bangladesh has already priced the price. Eventually, the world had to give up the business.

Order transfer almost plagued all foreign trade clothing enterprises. Wu Xiaojie did not want to sit back and wait for the world. General manager Wu Xiaojie and his colleagues have insight into the market and find out that although large orders are being snatched by Southeast Asia, there are still many varieties and small quantities of foreign customers. To enter these potential markets, the original production line is unable to meet the needs of production, so they are determined to fight through the transformation of the workshop.

From south to north, they went through many inspections and finalized the transformation of Helga Aus's industrial internet intelligent workshop. "We think that the platform will be able to get through the whole process from consumption to production and warehousing, and there are talents who understand the clothing industry. This is what we value very much." Wu Xiaojie said that with the signing of Haier digital technology in 2018, it has become the Haier industry's Internet platform demonstration base for garment industry.

The transformation of the industrial Internet through the car is the transformation of the whole process of information driven production from hardware to software. Wu Xiaojie maintained the habit of workshop in the world. Hundreds of sewing machines were roaring in the workshop of intelligent manufacturing of global clothing, and hundreds of young faces focused on weaving their own lives.

In the digital production workshop, the fabric and inner lining automatically clipped are clamped on the hangings above the workshop, and the customer information and the tag are hung together, and automatically start to flow between 200 different sized processes. The traditional manual tailoring is completely invisible. Instead, it is a fully automated machine, computer, projection, and mechanical cooperation. Only 2 minutes and 40 seconds, a customized suit is cut and shaped.

Not only can each product be finished with high quality, but the daily production efficiency can be increased by 25% to 30%. It will take one month to customize a coat. It only takes 7 days to get it done.

H&M, OTTO and Redcats, the world's leading customers in Europe and the world, are the main customers of the world. They purchase millions of garments from Jiaozhou every year. This is enough to show that the quality of products around the world is excellent, but it is difficult to conceal the embarrassment of the world.

Under the background of the gradual decline of labor cost dividends and other industries, extending to the two sides of the "smile curve", enterprises must pay attention to R & D and sales links and do well in brand building to achieve transformation and upgrading. After the United States imposed tariffs, global exports to the United States also dropped by 4/5. All this forced the world to seize the time to build its own brand and learn to walk on two legs.

To make an independent brand, we need to make a clear picture of the consumers and accurately grasp the personalized needs of consumers. To this end, the global cooperation with the group has created a customized service platform, where customers are both designers and consumers. Before the customization of the large screen of the experience equipment, the 3D volume software is used to measure the 19 parts of the total shoulder width, the middle waist position and the upper arm circumference. After that, click on the screen, and make more than 10 kinds of styles such as fabric pattern, color system, chest pocket and so on. After selecting the details of your favorite materials, embroidery, etc., you can quickly generate the product customization plan, complete the order, and transmit the data to the workshop for production and clothing.

In the past, it took about a day from volume to plate making. Now we can plug in the wings of the industrial Internet, and we can finish it in a few seconds. Wu Xiaojie has been engaged in the garment industry for 39 years. I didn't expect such a huge change.

In 2019, the world realized 220 million of output value and created 470 jobs. Wu Xiaojie tasted the sweetness of the industrial Internet, and she looked forward to the transformation of the two phase of the industrial Internet.