China is a big country with a population of1300 million, and it is the largest clothing consumer and producer in the world. In recent years, China's clothing industry has made great progress, which has greatly promoted the development of China's national economy. In 2005, the total output value of textiles and clothing accounted for about one tenth of the national output value, and it has been the first in the export surplus for five consecutive years. The clothing industry has made great contributions to China's export earnings.
At the same time, China has become the largest garment production and processing base in the world, and one out of every three garments in the world comes from China.
Clothing operation mainly includes three links: R&D and design, processing and production, and brand channel operation. The profit distribution in the clothing value chain is about: R&D design accounts for 35%, brand channel operation accounts for 55%, and processing and production accounts for 10%. This forms the smile curve of men's fashion casual shoes and clothing industry, and the commercial value obtained from design, research and development and brand channel operation is much higher than that from production and processing.
Judging from the smile curve of men's fashion casual shoes and clothing, the commercial value of R&D design and brand channel operation is much higher than that of processing and production. From the smile curve fashion casual men's wear industry, three business models can be extended: professional processing model, light asset strategy model and vertical integration model.