1. Industry Risk Analysis

(1) Policy Risk

From the perspective of the policy life cycle, the rain gear industry is currently in the policy implementation stage of improving environmental protection standards. Entrepreneurs face risks of compliance costs caused by a sharp increase in material substitution costs (for example, the plastic restriction order has driven up the R & D investment in degradable coatings by 30%) and stricter new quality inspection regulations (the lead content standard for children’s rain gear has been reduced from 100 ppm to 50 ppm). Some local governments have suddenly implemented a regional rain product filing system, creating market access barriers. Meanwhile, rain gear exports through cross – border e – commerce face the risk of retroactive penalties under the newly implemented textile circular economy policy in the EU. Coupled with the reduction of industry subsidies (the environmental protection technological transformation subsidies for small and medium – sized enterprises were cut by 40% in 2023), the policy adaptation cost of start – up enterprises may account for more than 15% of their revenue.

(2) Economic Risk

Currently, the rain gear industry is significantly affected by economic cycle fluctuations. During an economic downturn, consumers reduce their spending on non – essential items, resulting in weak demand in the mid – to – high – end rain gear market. The prices of raw materials continue to rise with inflation, and the logistics costs are also increasing, squeezing the profit margins of enterprises. The frequent occurrence of extreme weather in many parts of the world has led to a surge in short – term demand. However, due to the economic downturn, small and medium – sized manufacturers blindly expand production, increasing the risk of inventory backlog. At the same time, the tightening of monetary policy has increased the financing cost, putting more pressure on the cash flow of entrepreneurs. The R & D investment required by technological iteration and the upgrading of environmental protection standards has further increased the operating burden.

(3) Social Risk

Significant generational consumption differences have exacerbated the risk of industry differentiation. Generation Z’s preference for a sense of technology and environmental protection attributes has given rise to the demand for smart rain gear, but the R & D investment and production costs have increased simultaneously. The traditional customer group’s stubborn dependence on cost – effectiveness has led to fierce competition in the mid – to – low – end market, continuously compressing the profit margins. The population structure gap has brought about the risk of demand fluctuations. The decline in the birth rate has weakened the market foundation for children’s rain gear, while the aging population has not yet formed an effective demand for age – appropriate products. The aesthetic iteration driven by social media has accelerated the product life cycle, and the risk of inventory backlog has increased exponentially. The generational value conflict has intensified the brand positioning dilemma. The resistance of environmentalists to traditional plastic materials and the lag in the transformation of the enterprise supply chain have formed a sharp contradiction, and the risk of public opinion is becoming increasingly prominent.

(4) Legal Risk

The legal risks in the rain gear industry are mainly concentrated in the fields of product quality, environmental protection compliance, and intellectual property rights. If the product safety fails to meet the standards, it will violate the Product Quality Law, leading to product recalls or compensation. If the wastewater treatment and hazardous substance control are not implemented during the production process, the enterprise will face environmental protection penalties. Infringement of appearance design or technical solutions is likely to trigger lawsuits. False statements in advertising, such as those related to waterproof performance, will violate the Advertising Law. Cross – border e – commerce also needs to deal with compliance risks caused by differences in overseas market access, labeling regulations, etc. Entrepreneurs need to establish a compliance system to monitor the whole process from raw material procurement to production and sales, and at the same time, dynamically track changes in domestic and foreign laws and regulations to avoid legal disputes.

2. Entrepreneurship Guide

(1) Suggestions on Entrepreneurship Opportunities

For the current rain gear industry, entrepreneurs can focus on the intelligent and scenario – based upgrading tracks. Develop smart umbrellas integrated with temperature and humidity sensors (linked with mobile phone apps to provide real – time rainfall warnings), and constant – temperature raincoats using graphene heating film technology to solve the pain points of keeping warm while防雨 in winter. Expand the market of lightweight folding rain gear (with carbon fiber frames combined with nano – waterproof coatings) to enter the business travel niche market. For outdoor sports scenarios, develop wind – resistant and stable cycling rain capes (with magnetic fixation + 3M reflective strip design) and mountain climbing raincoats (with breathable membranes under the armpits). Develop environmentally friendly children’s raincoats made of soluble PLA materials (degradable within 72 hours when in contact with water) to enter the maternal and infant market, and simultaneously launch an old umbrella recycling and transformation service to enhance user stickiness.

(2) Suggestions on Entrepreneurship Resources

When focusing on the integration of entrepreneurship resources in the rain gear industry, entrepreneurs should first lock in suppliers of lightweight anti – UV fabrics to establish a flexible supply chain to control costs. Cooperate with university laboratories to develop degradable environmental protection coating technology to form a patent barrier. Use the cross – border special supply on 1688 and Amazon FBA to quickly open up distribution channels. Build user trust assets through reviews by ordinary users on Xiaohongshu and scenario – based content by KOLs. Focus on applying for green manufacturing special funds from local industry and information technology bureaus and policy subsidies from cross – border e – commerce incubators. The core team should have at least one operation supervisor with more than 3 years of experience in foreign trade B2B. It is recommended to adopt a partnership system to bind R & D personnel and set up an option pool.

(3) Suggestions on Entrepreneurship Teams

Focusing on the complementarity of functional material R & D and channel resources, rain gear entrepreneurs should form a team composed of waterproof technology experts, supply chain managers, and members with experience in the fast – moving consumer goods industry. Prioritize recruiting talents with marketing experience in outdoor sports products or the ability to develop patented materials. Establish a lightweight decision – making mechanism and implement a project co – investment system for core members. Keep the sensitivity of product iteration through regular user scenario simulation tests. At the same time, allocate at least one local operation personnel familiar with the rainy season climate characteristics in Southeast Asia to deal with regional market demand differences.

(4) Suggestions on Entrepreneurship Risks

Focus on differentiated positioning to avoid homogeneous competition. Prioritize the development of niche products made of lightweight, environmentally friendly, and degradable materials. Establish a flexible supply chain system, sign price fluctuation linkage agreements with 2 – 3 raw material suppliers, and at the same time, reserve channels for alternative new waterproof materials. In response to the frequent occurrence of extreme weather, build a dynamic inventory model, and adjust the stock quantity driven by both historical sales data and meteorological big data. When building an online omnichannel sales network, focus on investing in the live – streaming e – commerce track, but also simultaneously layout cross – border e – commerce platforms in emerging markets such as Southeast Asia. Products must pass international certifications such as EN343 and ISO8098. Keep samples of each batch and purchase product liability insurance of more than $5 million. Establish a user feedback mechanism for rainy – day scenario experiences and set up a special fund pool for quick returns and exchanges.