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Shoes And Clothing Brand Speed Up Expansion, Shop Oversupply

2014/6/24 16:15:00 76

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According to the annual reports of listed companies, last year, the inventory of six major domestic sports brands Lining, Anta, PEAK, 31st degree, China trend and XTEP were 942 million yuan, 689 million yuan, 366 million yuan, 409 million yuan, 183 million yuan and 537 million yuan respectively, and the total stock amount exceeded 3 billion 100 million yuan.



This data is a typical reflection of our country in recent years clothing The rapid expansion of the brand, the serious disconnection between the quantity of orders and the number of shops and the market demand, and the further shrinkage of domestic demand and the tightening of domestic credit environment have become the last straw to overcome the tight cash flow and financial breakage in China's clothing enterprises. The inventory crisis has made Chinese clothing enterprises have no other way to go except the price reduction and the cash flow recovery.


In addition, the Internet channel and Hai Lan home, Semir and other parity brand performance is good. In department stores and shopping centers. Brand clothing At the same time, Taobao and other Internet channels selling low-priced clothing and Hai Lan home and other costumes, the price of people's clothing is very prominent. According to the data released by Taobao, in the 40 minutes from the beginning of double eleven in 2013, the clothing sales exceeded 1 billion yuan, and the leading brands of the brand except the Yin men and the Korean clothing house were also concentrated in the well selling brands such as UNIQLO, h&m, JACK&JONES and so on. The characteristics of these brands are relatively low price and high cost performance.


Among the many listed clothing companies, its performance in the first quarter of 2014 was significantly higher than expected. 2014q1 realized 2 billion 665 million yuan in revenue, an increase of 53.4% over the same period last year, a net profit of 645 million yuan, an increase of 90.4% over the same period last year, while Semir also achieved an increase of 21.1% net profit over the same period. This shows that the clothing market in China is not without demand, but the demand for clothing which is too expensive for shopping malls, so that we have to turn our eyes and appeals to other products or channels.


In the current large market environment where supply exceeds demand, residents' consumption affordability determines the price of clothing terminal rather than the cost of products to a greater extent. Therefore, no matter what measures are taken, returning the price to a reasonable price category acceptable to consumers and ensuring the profits of enterprises is a necessary road for China's overall garment industry.


In addition, brand clothing enterprises integrate vertical channels, join hands with processors, transfer processing costs to the processors through cooperation and cooperation, reasonably pricing, small batch production, fully aware of the characteristics of clothing as seasonal products, and control inventory costs.


From this model, we can draw lessons from the way of reducing the rent and circulation cost of the brand clothing: reducing the store area (reducing rent) and product inventory, making full use of the display function of the network platform, automatically connecting to the WiFi official website, online and offline double experience, and finally ordering products through the Internet, sending customers' products directly from the origin to the customers instead of the physical stores, so as to avoid the large number of intermediate links from the origin to the distributors to the retailers, and save the circulation cost, and also help to achieve another point of view. Instead of taking online sales as a channel for discounts and goods, it is a deep integration network, and the o2o mode of "entity + network" has become the industry consensus of the apparel industry. brand Image.

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