Talking about the potential of the button industry

1. The market capacity of buttons has a strong correlation with the output of clothing. The increase in the decorative nature of buttons has enabled the market volume of buttons to grow faster than that of apparel. In 2009, China produced 23.75 billion pieces of garments. According to the statistical data of the Garment Accessories Professional Committee of the China Garment Association, the market demand for button products in China in 2009 was around 95 billion tablets. According to the statistics of “China Fashion News”, only 30% of the button's connection function is currently available, and 70% of them are responsible for decoration. The increase in the decorative function of buttons and the rapid growth of branded apparel has increased the frequency of use of buttons. In 2000, the demand for buttons for each garment was 2.4 tablets/piece, and in 2009 it increased to 4 tablets/piece. From 2000 to 2009, the compound annual growth rate of the total demand for buttons was 14.6%, which was higher than the 12.57% increase in the number of garments.

2. In the middle and high-end buttons, design and sales services are core competencies. Currently, 50% of the button market is in the mid- to high-end market. In the future, as the consumption upgrades, the market share of high-end buttons will also continue to expand. The functionality of the buttons is relatively simple, and the current domestic production process has also reached the international advanced level. Due to the strong decorative attributes of the buttons, the requirements for personalization, variability, and fashion of buttons are correspondingly higher when designing apparels for branded apparel. This requires apparel accessories companies must have a relatively strong R & D and design capabilities, and even participate in the design of brand apparel, the button corresponding to the specific clothing style, style design. The core competitiveness of the button's products is based on a certain quality, and its design is even more important. The enhancement of the design requires that the key customer companies be equipped with corresponding design and service personnel, which makes the perfect sales network particularly important. Nowadays, the competition among small and medium-sized enterprises is fierce. Every year, as thin paper profits cannot support sustained R&D and design investment, and perfect sales network construction, large-scale enterprises have obvious first-mover advantage, and now it is difficult for small and medium-sized enterprises to enter the high-end button market.

3. Buttons in the low-end market: the naked cost structure, the market is in complete competition. Low prices are kings, and large companies have no competitive advantage. In addition, the raw materials of buttons are bulk commodities, and their cost structure is very transparent. The industry has such a pricing method: metal button material is mainly metal, can be weighed according to weight: if each copper button, how much weight, how much copper price per kilogram, etc., can be directly calculated the price of the button. At present, the production of small and medium-sized buttons in the country does not have the ability to improve the level of design and research and development. The products are mostly based on plagiarism and the homogeneity of products is serious. Such a competitive environment is close to a completely competitive market. It is difficult for a single button manufacturer to raise prices, and it is only possible to maintain marginal levels. Because button production is labor-intensive, labor costs account for 15%-20% of main operating costs. The standardization of labor employment and taxation in large-scale enterprises makes their product costs less competitive than SMEs. With the escalation of domestic consumption, the middle and low-end market share of buttons has also shrunk year by year.

For more information, please update: China Button Industry Network

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