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How The Apparel Industry Operates

Xiamen Channel Trading Co.,Ltd | Updated: Jun 20, 2017

Clothing operation mainly includes three aspects: research and development design, processing production and brand channel operation. The profit distribution on the clothing value chain is about 35%, the brand channel operation accounted for 55%, the processing production accounted for 10%. This has formed the men's fashion casual shoes and apparel industry smile curve, design and development and brand channel operation of the business value obtained far higher than the production and processing links.

According to the smile curve of men's fashionable casual shoes and garments, the business value obtained by the research and development design and the brand channel operation is much higher than that of the process. By the smile curve fashion leisure men's industry can extend 3 kinds of business model: Professional processing mode, light asset operation mode, vertical integration mode.

(Clothing smile curve refers to these three links research and development design, processing production and brand channel operating profit curve like smile. )