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Great Changes Brought By Clothing Business

2012/5/16 19:00:00 31

ClothingElectricity SuppliersChannels

In April 5th,

clothing

Another member of the electricity supplier brand, Dangdang own brand clothing line, category involves underwear, shirts, jackets, windbreaker and so on.


In recent years, clothing electric business has developed rapidly, and vertical clothing B2C enterprises such as fan, BONO, wheat net have emerged in the market.

Statistics show that clothing has occupied 40% of e-commerce retail share and has become the core strength of China's e-commerce.

As a relatively high profit and most popular online shopping product, clothing attracts more and more attention of e-commerce enterprises.

Dangdang network and other channels of electricity providers also can not afford to get involved in the field of clothing to expand the category to enhance profits.

It is reported that Jingdong mall will also join the scramble for its own brand clothing.


And the electricity providers are involved in the clothing industry is corresponding, many traditional clothing brands began to layout the online retail market.

GAP, UNIQLO, Muji, ZARA and other famous brands have quickly established online retail platforms through Tmall, Dangdang, excellence, Jingdong, and self built B2C mall.

Because of its powerful channel development ability, e-commerce has become an inevitable choice for traditional garment enterprises.

According to the data of China Electronic Commerce Research Center, more than 75% of the brand clothing enterprises are "electric shock".


  

China Electronic Commerce Association

Liu Dongming, director of the integrated marketing research center, once said that in 2011, there will be two changes in the combination of "mouse and cement" between clothing and electricity suppliers.

They sell clothes on the Internet but carry different genes.

In the development of Internet and brand, they have their own opportunities, but they have the same goal.


Electricity supplier's natural advantages


Cao Lei, director of the China e-Business Research Center, believes that e-commerce has a natural advantage in the apparel industry.

fashion

The changes require that garment enterprises track the market situation in real time, anticipate the change of customer needs, and react quickly to customer requirements. E-commerce, through the survey of user interest and the collection of customer feedback information, provides a low-cost technical means for enterprises to achieve this goal.


In e-commerce business, brand clothing business, customers are well deserved representatives.

Van guest website was officially launched in October 2007, selling its own brand clothing.

In just a few years, its business expanded rapidly. In March this year, fan announced that the company had sold more than 100000000 garments for 4 years.


Technology is a sharp weapon for all customers to expand.

Fan guest President Chen repeatedly mentioned that customers are not only a Internet Co, clothing Brand Company, but also a technology company.

Fan's technology system involves many parts, such as foreground page display, shopping process optimization, order processing, warehouse process management, call center management and so on.

At present, everyone is already a clothing industry's whole industry chain company, and has opened up links such as traditional clothing industry, Internet platform, marketing, warehousing, distribution, data management and so on.


It is not hard to see that the core competitiveness of the business clothing enterprises represented by Van guest is its fast integration capability and keen market response, which is supported by technology. This is exactly what the fast fashion enterprises need.


There is a saying in the business community that success or failure has been fully highlighted in the last mile.

logistics

The importance of e-commerce.

Jingdong mall CEO Liu Qiangdong believes that "logistics is the core of the B2C class light companies, and bad business has become a huge bottleneck for business growth.

Only if we control the logistics in our own hands, can we make the supply chain more efficient.


Data show that last year's national logistics industry package processing capacity is expected to increase by 65%-70% over the same period, overload has become an indisputable fact.

In the process of rapid development, logistics bottlenecks are encountered, resulting in the reduction of customer experience, which is a common predicament that Internet sales companies will encounter during the growth process.

At the beginning of 2008, due to the rapid growth of VANCL business scale, the self built logistics team couldn't keep up with the development of enterprises and was heavily complained by consumers.

The founder of VIC strengthened the backstage management and increased the manpower of logistics distribution, and finally managed to tide over the crisis.

Later, VANCL set up its own logistics warehouse in Beijing, Shanghai and Guangzhou as a guarantee for upgrading the supply chain.


Compared to the traditional clothing brand "electric shock" had to rely on the third party logistics, Dangdang, Jingdong and other self built logistics channels of electricity providers, it should be said that has considerable advantages.

For e-commerce companies, the logistics distribution system created under their own needs is undoubtedly the most suitable for the service demand of the electricity supplier enterprises.


  

New and old

channel

Conflict


E-commerce is bringing disruptive changes to the traditional clothing retailing industry.


It is reported that UNIQLO opened its flagship store in Taobao mall, and rushed to Taobao mall's men's wear and women's wear sales first place at a staggering sales speed, becoming the first Taobao store to sell tens of millions of clothing stores in the month.

According to relevant statistics, the daily sales volume of UNIQLO Taobao flagship store is only about 50% of the sales volume of UNIQLO shop.

It can be seen that e-commerce has become a channel accelerator for clothing industry.


At present, the most common and prominent problem is the balance of interests between online and offline channels in the process of developing e-commerce in traditional garment enterprises.


After many years of development and accumulation, the traditional clothing brands mostly have broad offline sales channels, and there is a conflict of interest between network channels and existing channels.

This is a huge obstacle to the large-scale expansion of Internet marketing.


In recent years, with the rise of online shopping, "

Fitting family

This is a typical manifestation of this conflict.

Because the price of the Internet is much cheaper than that of the counter, consumers choose to choose the style in the shopping mall, write down the number and go online to buy it.

Shopping centres have been reduced to the "showroom" and "fitting room" of online shops.

In this way, the prosperity of Internet sales channels can not bring about an increase in profits.


"If we follow the online operation mode, the price orientation of the lower position line will be lower than that of the offline price, and the sales volume may be increased on line. However, the increase of this amount may also bring about a decrease in line.

It will lead to benefits under the split line, and the final increment is just a kind of sales turnover, while the online sale price is lower than the traditional channel. Finally, the enterprise will not be able to get the profit from the increment.

The president of Yim Ma Ke Xing talked about the conflict of interests between network channels and traditional channels.


  

Brand and

network

Entanglement


Whether it is business clothing or clothing brand "electric shock", in the final analysis, is the way to sell clothing in e-commerce. Therefore, the dilemma of e-commerce development is inevitable.


First is the brand.

In the era of new brands and endless advertising, brand promotion needs more cost investment. The high cost of brand promotion is an unbearable burden for many electric providers.

In recent years, the pmission cost of Internet is getting higher and higher, and the price increase of several portals is basically over 50%.

The first crab eating PPG in China's clothing business has been shut down due to lax advertising and marketing costs, and has become a warning for the latecomers.


For a traditional clothing enterprise with a certain brand base, good brand recognition can effectively save the early investment of "electric shock". But in the current big price war, how to maintain and borrow the advantage of brand competition is also a difficult problem.


It is understood that some traditional brands in order to give full play to the price advantage of network channels, while avoiding conflicts of interest with existing channels, have adopted the operation mode of developing independent "network brand".

A brand leader of Tmall mall said that the price of the brand online is lower than that of the real store price. It is quite competitive, and there is no overlap between the online and offline commodity types, so that the network sales will not divert the real profits.

But being independent of the offline operation is like creating another sub brand with low price positioning, which not only fails to exert the premium capability accumulated by traditional brands for many years, but also damages the brand image.


On the other hand, in the low

Price

After the advertising attack quickly grabbed the market share, customers and other electricity providers still did not find a clear profit point. The combination of clothing and electricity providers should not be a successful precedent.

For Dangdang, such a channel, the electricity supplier creates its own clothing brand. Jia Jinghua, a IT commentator, is not optimistic. He believes that clothing is not a familiar field. Its biggest difficulty in running its own clothing brand is "promotion first, and the two is the establishment of a supply chain", both of which cost a lot of money.

The number of clothing models and the characteristics of fast updating are great challenges to the supply chain of e-commerce providers.


Similarly, the traditional clothing brand expanding network channels are also faced with the integration of online and offline supply chains.

Because the brand and category are single, the cost of channel construction and operation needs to be higher.

Moreover, for the traditional clothing industry, e-commerce is a broad and broad specialty, which involves the construction of e-commerce trading platform, the network marketing of products and services, the distribution of logistics, and so on. All joints are interlinked. If one is careless, it may lose the game.

Peng Yu, director of Bosideng brand electric business, said that "there are no retailers in China who have successfully achieved real multi-channel retail experience, multi-channel inventory, logistics services, product return and cross channel promotion coordination."

Jia Jinghua is not optimistic about the "electric shock" of clothing enterprises. He asserts that the mode of China's electricity supplier is still unclear and is at the stage of burning money.

Under such circumstances, the traditional clothing brands enter the electricity supplier.

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