Changshu China Men's Center to highlight the specialization of the industry

Facing growing competitive pressures from various fronts, a number of specialized markets in our country continue to move forward. Drawing on their unique operational characteristics, these markets have boldly innovated and actively sought breakthroughs tailored to their own development. This report features interviews with the Changshu China Men's Center, Wuhan Hanzhengjie Shopping District’s Kuma Brand Apparel Trading Center, and Humen Daying Oriental International Garment Trade City, hoping their transformation strategies can inspire other markets. Changshu China Men's Center, established in 2007, spans 26,500 square meters. It primarily serves as a hub for men's fashion, having commenced trial operations in May 2008 and officially launched during the "Jiangsu (Changshu) Fashion Apparel Fair" in October of the same year. Notably, the vast majority of over 80,000 operators across the 35 specialized markets in Changshu’s Clothing City are engaged in men's apparel. Data reveals that out of Changshu's more than 5,000 garment enterprises, 80% focus on men's wear. Casual men's fashion has emerged as a leading sector within Changshu's garment industry, positioning the city as China's premier distribution center for casual men's wear. Local brands like Ranthandi, Colorful Horse, and Jiulutong boast strong competitiveness and substantial market shares, particularly in second- and third-tier Chinese cities, especially in county-level areas. The solid foundation of the men's clothing industry prompted the implementation of the "three-year plan to create a new mall" in 2004, involving upgrades and renovations guided by professional management concepts. Changshu Clothing City CMC aimed to establish a specialized men's wear brand center. Currently, several prominent local men's brands, including Chau Yan, Special Dragons, and Nine Deer King, have established operational centers within the men's wear center. These centers serve as distributors for the national market, rather than just provincial agents. Additionally, the men's center has drawn mid-range men's brands from Guangdong. The current ratio of brands from Guangdong versus local brands stands at approximately 50:50. Brands from Guangdong typically appoint Jiangsu province-wide general agents at the men's wear center, sometimes even setting up operations centers for the "three provinces and one municipality" (Jiangsu, Zhejiang, Shanghai, and Anhui) to radiate across East China. These operation centers range in size from 80 to 90 square meters to over 400 square meters. Their primary function involves supporting the Jiangsu market through local strongholds. Some centers also act as brand negotiation hubs, product display centers, and offices for some local brands. Certain local brands even host their highest-level image display centers in the men's center, separate from their corporate headquarters. Consequently, visiting agents are often directed to the men's center's image display rooms instead of the brand headquarters. Despite these brands rolling out nationwide sales networks, they still opt for the men's center. Discussions with local men's wear owners reveal a consensus: whenever a store's image or product display needs upgrading, the first choice is always renovation at the men's center. Often, agents from the Northeast, Northwest, and other regions interested in becoming Changshu men's brand agents visit the men's center to assess the market. The center is perpetually bustling with orders. As part of the ordering process, many agents from across the country, after reviewing factory products, are guided by brands to the men's center to evaluate store images, product displays, and selections. Some orders are placed directly at the men's center, while others proceed to the factory. Generally, Jiangsu-based agents tend to place orders directly at the market, whereas agents from outside Jiangsu often visit the factory after reviewing products. This reliance on Changshu's robust men's wear industry draws clients nationwide, enhancing its outreach capabilities. Interestingly, despite the 2008 financial crisis impacting the overall performance of professional markets, it strengthened ties among agents nationwide, consolidating Changshu as an industrial cluster and its men's center as a focal point. During economic downturns, both brands and agents became more cautious. Thus, last year, many new brands introduced by manufacturers refrained from mass production, opting instead for orders. Once products garnered approval at ordering meetings, companies initiated planned volume production. Previously, arrears between manufacturers and agents were common, but increased caution fostered more regulated operations. Currently, manufacturers only begin production after receiving agency purchase prices, minimizing operational risks. To mitigate business risks, some new brands also conduct small-scale promotions in regional markets. For instance, certain Jiangsu-based products might not yet be available in the Northwest or Northeast markets. Consequently, national brand agents frequently visit Changshu for market research to gather more information. These combined factors have bolstered the men's center's significance in the national market, attracting agents nationwide. According to incomplete statistics from the Changshu Clothing City Management Committee, the men's center achieved a turnover of 1 billion yuan from its official opening in October last year until the Spring Festival in 2009, a figure that remains conservative. Despite the global financial crisis, market operators remain optimistic about the brand and the men's center's growth prospects. The center's specialization, targeting the mid-range casual men's wear industrial base, is key to its stability and smooth operations. This approach places the men's center at the forefront of Changshu's overall industrial upgrading efforts.

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