Outlook on the development of Hangzhou Silk and Women s Wear Fashion Industry

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1 Xu Tusong Deputy Director of Hangzhou Economic and information technology commission Outlook on the development of Hangzhou Silk and Women s Wear Fashion Industry The fashion industry refers to a series of operating activities of, say, design, manufacturing, promotion, sales and collection of fashion products and services by means of industrialization and commercialization. As a booming industry with a tendency to innovation and cultural art, it captures the quintessence of Knowledge intensification, high added value, low pollution, low consumption, responding to the needs for the high end and low carbon modern industry. Hangzhou, also known as the Capital of Silk, is endowed with profound cultural deposits in the silk industry dating back 5,000 years. This is attributed, as is most due, to the wisdom and sweat of Hangzhou people and is the treasure of the city, playing a predominant role in China s silk history, culture, production and trade. The industry of silk and women s wear is not only the traditional industry of the city, but one of the potential fashion industries in the city. To such advantages, yet another must be added. It is an industry which can represent the fashion of Hangzhou, in the superlative degree of comparison only. Today s forum focuses on the theme of silk and fashion. Well, I would like to avail myself of this opportunity to talk about the development of silk and women s wear and its role played in construction of a fashion city. I. Advantages of constructing a fashion city based on the development of fashion 122

2 industry 1. Geographical location Hangzhou, otherwise known as the Paradise on Earth, was praised by Marco Polo as the most beautiful and luxurious city in the world. It is a megalopolis in East China and, in terms of international image, the best city on mainland China. The city has been honored with, say, UN Habitat Scroll of Honor, ranking 1 among 120 Chinese cities based on investment environment, one of China Top 10 Economically Vigorous Cities, ranking 1 of Best Commercial City List on Mainland China for five times on end, Eastern Capital of Leisure, one of China Top 10 Luxury Cities, the first to join the UN Creative Cities Network in China in the name of Capital of Craft & Folk Art, one of China Top 50 Online Shopping Cities. 2. Economy In 2014, Hangzhou s GDP amounted to RMB billion with a year on year growth of 8.2%. The added value of the primary industry reached RMB billion, the added value of the secondary industry RMB billion and the added value of the tertiary industry RMB billion with the annual growth of 1.5%, 7.4% and 9.0% respectively. Furthermore, the GDP per capita stood at RMB 94,566, with an annual increase of 7.4%. The added value of ten industries reached RMB billion in 2014, namely cultural creation, travel & leisure, financial service, e commerce, information software, advanced equipment manufacturing, Internet of Things, biological medicine, energy conservation & environmental protection and new energy; and the year on year growth reached 12.1%, with the proportion to Hangzhou s total GDP increasing from 45.0% to 46.9%. Under the circumstances, the forgoing figures could reasonably serve as the economic advantages of its dedication to building itself into the capital of fashion. 3. Industry Hangzhou, also known as the Eastern Capital of Silk and its apparel industry plays an important role in China, particularly the women s wear industry. It may be said that the industry has been a synonym of China s women s wear industry and even the whole apparel industry. And what is more, three competitive industries, namely silk and women s wear, cultural creation and e commerce, are essential for the development of fashion industry. In this case, in marked contrast to other cities, Hangzhou is supreme and unchallenged in advantages and industry basis. 4. Culture As the base camp of Zhejiang merchants, Hangzhou is endowed with outstanding 123

3 talents and smart land and its culture is sure to be conditioned by the majority of the citizens. Upon the principle of inclusiveness, it takes no exception to the ideas of foreign fashion and consumption habits and endeavors to integrate, as well as it can, them into its own cultural system. 5. Elements Hangzhou has established a powerful platform for media transmission, oriented towards East China and even the whole country, with a batch of top domestic brands and world famous brands. Many exhibitions, domestic and overseas, have settled in Hangzhou permanently, like World Leisure Expo, China International Cartoon & Animation Festival, China Hangzhou Cultural Creative Industry Expo and China International Silk Fair & Women s Wear Fair, and have been the name card of, and key to, the city s fashion industry. In recent years, a succession of policies and measures has been put into effect. The ideal to be aimed at is to encourage those are closely related to fashion industry such as apparel, cultural creation and e commerce and support the fashion industry in the forms of, say, urban industrial park, cultural creative park and fashion blocks. Therefore, they have paved a solid foundation for small enterprises settling at the lowest cost and with the reduction of start up risks, etc. II. Development Ideas Taking as the main line the silk and women s wear industry, implementing the market centered brand strategy, establishing a metropolitan platform as supporting facility, integrating the resource elements of various industries, forging various fashion related products and service clusters based on the construction of Capital of Fashion, fashion industrial park and government public services, shifting from traditional consumption industry to the fashion industry with high tech and high value features; building Hangzhou into an influential Eastern In City and a source of international fashion trend with a collection of brands, brisk market, centralized consumption and intriguing activities. 1. Establishment of silk and women s wear fashion industry platform (1) The maximum effect of releasing various related physical stocks. First, integrating existing resources to forge one or two industrial parks with fashion characteristics and selecting three to five cultural creative parks and undergoing a transformation to creative fashion parks; and secondly, focusing on training one to three theme streets to forge commercial hub streets of fashion industry. (2) Fostering and supporting professional fashion media platform and taking the lead in the campaign 124

4 Publicizing the industry by means of, say, Fashion and Talk about Silk by Hangzhou TV Station, conducting comprehensive publicity by mass media like silk and women s wear magazine, silk network and China women s wear network, launching a centralized publicity campaign by dialogue of Hangzhou silk, China international silk forum and silk is the most beautiful for your Hangzhou trip, etc, giving an overall exhibition by silk expo, organizing businesses to participate in expos, thus exerting a greater influence and enjoying a greater popularity of Hangzhou s silk and women s wear. (3) Fostering and forging a high end silk and women s wear (fashion) platform. Selecting and fostering some fashion platforms of reference meaning and development potential to Hangzhou s fashion industry like China (Hangzhou) International Fashion Week, Hangzhou College Fashion Week and annual fashion ceremony, thus promoting the Go out and Come in strategy of Hangzhou fashion industry. 2. Forging the fashion brand of silk and women s wear (1) Establishing a brand echelon of independent fashion brand echelon, forging a batch of local fashion brands. Launching the campaign at the global, national and city levels, establishing the aim of brand strategy and evolving an innovative system of famous brands with its own characteristics and competitiveness (2) Speeding up the pace to promote industrial products and business brands. Selecting the fields in which a breakthrough can be made, focusing on fostering and forging some benchmarking businesses, laying emphasis on women s wear brands and fashion brands, boosting superior resources transfer to famous businesses, exerting the influence and driving force of brand businesses on the industry. (3) Establishing three dimensional brand clusters in the city based on independent fashion brand innovation, forging more famous fashion brands with independent intellectual property right and international competitiveness. 3. Increasing the influence of silk and women s wear (fashion) industry (1) Providing more support for large fashion events and increasing the influence of the city. Forging a number of large fashion events like fashion week, art festival and grand prix competition into fashion event brands, establishing an international service platform, a key place for international brands radiating China and a incubation base of cultivation and improvement in original design; attracting important domestic and international fashion events to be held in Hangzhou like CHIC Young Blood, supporting businesses to participate in important domestic and international fashion events. (2) Intensifying the exploration and collection of fashion resources, raising the influence of Hangzhou fashion industry. Endeavoring to maintain the carrier resources of 125

5 fashion industry, combining protective development of fashion resources and fostering of fashion industry, strengthening the collection of fashion resources, building itself into a convergence of international fashion information, fashion talents and fashion brand businesses. (3) Continuing to introduce well known international brands, extending fashion related events, expanding industrial chain links like R&D, release and exhibition, taking the lead in fashion. Strengthening the combination between silk & women s wear and modern fashion elements, forming an international marketing channel, promoting local fashion products with independent intellectual property right to hit the international market. 3. Cultivating silk and women s wear (fashion) industry talents (1) Planning of Hangzhou silk (fashion) industrial development. Reasonably planning the industrial development, determining the industrial development leader, key fields and industrial layout, providing directional support for cultivating international level costume designers, fashion cameramen, styling designers, fashion models, fashion brand planning experts, developing world advanced fashion technology, fostering international level fashion brands and high tech fashion products and cultivating fashion businesses oriented towards the international market. (2) Making preferential policies on design industry outsourcing development. Based on the support of the government, encouraging industry associations or leading businesses to hold international design events covering various fashion products like appraisal and selection of Future Star, appraisal and selection of top 10 costume designers in Hangzhou and Zhejiang, Crossover and Creation Hangzhou Youth Designer Competition and super model competition, etc, strengthening the standardization, marketization and internationalization of various events, introducing or attracting, say, competition winners to Hangzhou if they meet the requirements for badly needed talent policies. (3) Encouraging universities in Hangzhou to establish specialized colleges. Relying upon the existing resources of universities, establishing fashion colleges, carrying out academic education of fashion industry and cultivating management talents based on university industry cooperation and combination of production, teaching and research; setting professional talent title post of fashion industry, training professional planners, consultants and trainers, establishing and perfecting a talent management system. III. Policies and Measures 1. Implementing policies favorable to fashion businesses. Approving eligible 126

6 traditional businesses specializing in consumer goods to be fashion businesses according to degree of innovation, sales coverage, R&D input rate, market response degree and internationalization, etc, enjoying preferential policies, offering reward and support within the time limit, covering, say, tax returns, personnel training, R&D cost deduction, market circulation and rent reduction. 2. Establishing special fund for fashion industry development. Encouraging risk capital and foreign talents to engage in the fashion industry; establishing risk fund, providing financial support for related products like costume, product design and silk creativity. 3. Supporting and encouraging businesses to establish characteristic towns. Selecting the appropriate site and favorable occasion, making full use of policies on the construction of characteristic towns in Zhejiang, supporting businesses to establish characteristic towns and Hangzhou International Silk Town, integrating fashion elements of global, Chinese and Hangzhou silk products into the town in the forms of material objects and photos, concentrating on exhibition, experience education and online services, tourism and cultural exchanges, etc. 4. Establishing a display platform of Hangzhou fashion products. Attracting domestic and overseas brand businesses to release the latest fashion industry information by, say, China Hangzhou Cultural Creative Industry Expo, China International Cartoon & Animation Festival and CHIC Young Blood, creating a favorable consumption atmosphere, speeding up the pace to establish Hangzhou as an industrial cluster and radiation center. 5. Perfecting the protective mechanism of silk and women s wear (fashion) brand. Strengthening the protection of silk and women s wear brands, cracking down all the counterfeit practices and those violating intellectual property right, evolving a system of self protection, administrative protection and judicial protection, creating a fair market environment 6. Intensifying the publicity of silk and women s wear businesses and fashion brands, setting up a batch of typical examples. Publicizing entrepreneurs demeanor and cultural deposits of Hangzhou fashion industry by means of, say, video film, column, interview, forum, conference, visit, exhibition, network, album of painting, demonstration base, overseas promotion, brand announcement list, brand manifesto and public events, leading the whole society to raise the awareness of fashion brand and creating a market atmosphere of independent brand. 127

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