Business Innovation, China'S Clothing Industry

A few days ago, the China Apparel Association and ITAT group, China's largest apparel retail chain network company, jointly announced that the two sides formed "2008 China International Garment and apparel fair strategic partner".

Some commentaries indicate that this indicates that the China clothing association has been planning for a long time to start the "China clothing business innovation project".

China is the largest clothing consumer and producer in the world, and has become the world's largest garment production and processing base. One of the three garments in the world comes from China.

However, the profit margin of production is too low, and 1 / 3 of the garment industry is making profits, and the remaining 2 / 3 is close to losses.

Garment manufacturers not only face the dilemma of oversupply, but also deal with multiple obstacles such as channel construction and operation, brand promotion and human resources. These costs will undoubtedly be passed on to consumers through layers of sales channels.

With the large-scale shopping mall, represented by M a ll, settled in large and medium-sized cities such as Beijing and Shenzhen, the pace of China's retail industry's full opening to the outside world is accelerating. Almost all large and medium-sized cities have or have planned to build large shopping centers, leaving a huge market space for the development of commercial land production.

In the tide of business pformation, the main channel of department stores is changing and innovating, and all kinds of clothing market are also seeking to upgrade.

In 2004, Shenzhen opened the first international brand clothing club, and a new business model, called "t", entered the field of vision.

Today, ITAT has set up 607 member stores nationwide, 108 department store club clubs, and 7 FASH ION ITAT fashion shops, with a total business area of 1 million 360 thousand square meters, and the number of effective members in the country is 22 million 900 thousand.

ITAT's retail network has spread to 275 cities in 30 provinces and autonomous regions of China, becoming China's largest apparel retail chain network.

Authorities pointed out that the integration of domestic garment manufacturers excess capacity, integration of commercial real estate surplus resources, and formed a "clothing producer - ITAT group - commercial real estate developers" iron triangle alliance interest community, which reduce the middle circulation, reduce operating costs, and bring the greatest benefits to consumers ITAT mode is "business harmony, win-win" foundation.

ITAT group CEO Li Wei said: "the main competition of the domestic clothing industry is the competition of sales channels, and the main sales channels in the market have four aspects: one is the clothing department of the traditional department store, the other is the brand clothing chain store, the three is the wholesale clothing market and the small private clothing store, and the four is the professional supermarket hypermarket." three "

At present, the clothing profits in the market generally maintain more than 6-8 times, and ITAT uses the membership marketing mode which is ahead of the market, breaking the clothing industry's "profiteering" behavior, controlling the profit within 3 times, and truly realizing the price and the beauty.

But to maintain long-term loyalty, a value-added service system is also needed.

I TAT focuses on membership system, chain operation, brand marketing, computer marketing system, service and so on.

The establishment of this alliance reduced the investment risk and operation cost of the parties to the greatest extent.

At the same time, it has also played the advantages of all parties to achieve the highest level of win-win cooperation.

The chain management has become the development trend of the garment industry, that is, taking the core enterprise as the center, through the control of logistics, information flow and capital flow, the suppliers, manufacturers, distributors and end users will be integrated into the unified network chain, so as to form a competitive strategic alliance.

ITAT broke the traditional relationship between business and suppliers, and provided ITAT with a large business channel to garment suppliers by innovative business mode of cooperative operation and separation of interests. It reduced the intermediate circulation and greatly reduced the operation cost of suppliers, and provided the best channel solution for garment suppliers.

It is also understood that ITAT group is developing into a leading enterprise in China's clothing and department store industry in an innovative, fast and steady business mode.

The advanced mode and the market operation experience accumulated over the past few years, the unique management system and the amazing quick settlement mechanism, the increasing international capital investment, the flexible store expansion methods such as joining, joining, and cooperation, as well as the foresight thought of rapidly realizing the channel winning, multi brand management and multi-level channels, have not only highlighted the innovation of the business mode, but also brought about the "revolution" of the industrial and commercial production relations, thus leading to the liberation of the productivity of the industry.