Textile City Fabric: Homogeneous Competition is the Dead End, Differentiated Competition is the Way Out

The international market is sluggish, and the domestic market demand is shrinking. This year's textile business is not doing well. In recent years, more and more international fashion brands have begun to shift their fabric procurement targets to China Light Textile City located in Keqiao, Shaoxing County. However, compared to first tier cities such as Shanghai and Guangzhou, the fabric prices in Light Textile City are relatively low, and product homogenization is one of the reasons. Many textile enterprises in Shaoxing County have a high repetition rate and similarity in their fabrics. More than ten companies have just one fabric, which is not suitable for the personalized development needs of high-end brands. However, some foreign fabric enterprises have only a few thousand types of yarns, which not only have a large choice but also can meet personalized needs. "Fu Guoqing, Chairman of Shaoxing Yongsheng Industry and Trade Co., Ltd., explained the reason for this.
   
"Only by taking a leading position in a certain fabric field at all times, and constantly pushing through the old to bring forth the new, can we get the attention of international fashion brands and become high-end fabric suppliers." Fu Guoqing believes that almost all domestic enterprises committed to producing high-end fabrics are making efforts on product differentiation.
   
Fu Guoqing believes that with the obstruction of the textile export market, the competition in the textile domestic market will become more intense. To maintain stable development in fierce competition, it is necessary to have its own characteristics. Implementing differentiation strategy is the current and even future business strategy of Yongsheng Company, and it is also the core competitiveness of the enterprise. To this end, the company will increase investment in technological development, cultivate advantageous products, establish product brands, enhance product reputation, and ultimately expand market share.
   
Fu Guoqing said that in recent years, there has been overcapacity in the fabric industry, and the increase in market orders is far lower than the growth rate of the industry's production capacity. The phenomenon of product homogenization among various fabric enterprises is very obvious, and various enterprises are engaged in price wars in the market order competition, resulting in a serious decline in the industry's profit margin. Enterprises are also suffering from self harm in the competition.
   
With the transformation of brand concept and differentiated positioning awareness, fabric companies have increasingly realized that only by developing differentiated products can they have the initiative in price and maintain the business life of the enterprise. They have abandoned the previous low-end imitation and only selling "ordinary goods" business ideas and started to focus on differentiated product development. Whether it is to meet the challenges of market survival or for the development of corporate brand building, the differential development of fabrics is becoming increasingly important. In order to obtain personalized and fully reflect the brand design style of fabric products, many clothing companies and fabric companies have started to try cooperative development of fabric products. Fashion designers have participated in the fabric development stage and fully conveyed their ideas to fabric designers. This way, they can create products that meet the needs of designers from various aspects such as raw materials, technology, patterns, colors, and hand feel, It not only meets the fabric needs of clothing enterprises, but also reduces the development costs of fabric enterprises and reduces the risk of R&D and production.