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Perspective On The Channel Competition Of Local Garment Enterprises

2008/12/2 11:34:00 28

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The essence of channel competition is actually the supply chain competition behind them.

Channels can play a very effective role in enhancing the brand awareness of products, but to enhance brand reputation, it is necessary to rely on channels and the forces behind the supply chain.

Where is the core competitiveness of local garment enterprises?

According to the conventional way of thinking, we should make technological innovations in terms of brand and product innovation.

But now, more and more domestic enterprises are beginning to realize the importance of channels, and even think that the channel is more critical, "channel is king".

Li Ru, chairman of Limited by Share Ltd group of YOUNGOR group, said: "the most important thing for clothing is brand and channel. The core of the most valuable and vital enterprise lies in the channel."

Zhou Shaoxiong, chairman of the seven wolves company, said: "the seven wolves are not willing to become one of the largest garment manufacturers, but to become China's largest clothing retailer and wholesale enterprise."

In 2007, the seven wolves added nearly 600 million yuan to the additional capital raising, plus their own funds to make 1 billion yuan into all channels to create "men's life hall".

In the past few months, YOUNGOR has invested 300 million yuan in its holdings of stock returns to buy terminal stores.

Since 1990s, YOUNGOR has spent more than 1 billion 700 million yuan on the sale of terminal stores.

In August of this year, Shanghai's Metersbonwe (hereinafter referred to as "American state") also joined the "channel war". It raised the "85% of the listed funds raised for the store (channel terminal)" and "15% used to invest in the IT platform to build B2C network channel".

There are 2211 stores in the United States.

The fund is used to build 68 stores, 31 of which are direct flagship stores and image stores, and 37 are flagship stores and strategic franchisees.

In addition to these big strokes, many clothing enterprises such as Hai Lan home, Shan Shan, Bosideng and so on have also increased investment and construction efforts in different ways and ways.

So what does the channel mean for Chinese clothing enterprises?

How to effectively develop channel competition?

What is the essence of channel competition?

　　沒有渠道就沒有品牌

Local clothing enterprises begin to care about channels so much that they are not only competing, but also because they are thinking about several relationships in practice.

The first is the relationship between following products and market control.

Almost all local clothing enterprises are following the technology of similar products abroad, and the homogenization of products is very serious.

Only by establishing their own channels can we ensure that the products are delivered to the market.

Otherwise, it is easy to lose control of the market and cause passivity.

China is a market that foreign brands are promising and entering. Whether it is in competition with brand, technology dominant foreign clothing, or in competition with the homogeneity of local clothing, the channel has become a key to decide whether to win or lose.

Local enterprises that started early and willing to invest in the channels have already begun to gain profits. They have not lost their territory because of foreign investment.

The 2007 data show that local brand men's suits and women's underwear are far ahead of foreign capital and Hong Kong and Taiwan brand brands in market share (Figure 1).

Two is the relationship between market demand and production convergence.

Through channels, enterprises can not only sell products, but also get close contact with consumers and collect first-hand market information.

As a result, the competition among enterprises is not only the competition of the number and size of terminal stores, but also the competition between the stores and the whole supply chain.

Through stores, we can capture market information, but how to respond to information accurately and accurately, and ultimately feedback to the market, will test every supply chain effort.

The three is the relationship between channel and brand.

"No channel, no brand," said Chen Zhigao, deputy general manager of YOUNGOR group Limited by Share Ltd and general manager of Ningbo YOUNGOR Fashion Co., Ltd.

In the eyes of the general in charge of YOUNGOR's sales, the foundation of the brand is sales volume first. "Can't imagine which brand has no terminal and can become the biggest brand".

Chen Zhigao's theory was abstracted from the channel practice of YOUNGOR and its counterparts in the city.

Shan Shan once led the Chinese men's suit market with 37% market share, but after 2000, this position was replaced by YOUNGOR.

Since then, YOUNGOR has been leading the way, while the Chinese fir has fallen to third in a big margin.

According to the data of the China National Business Information Center, YOUNGOR ranked 12% in the total market share of men's suits in 2007, while that of fir was 4% (Figure 2 below).

YOUNGOR and fir, this exchange between the same city counterparts, has not been reversed until now, to a large extent, because they have adopted different channel strategies after 1999.

　　渠道之道

It is the different understanding of channel strategy that leads to different market outcomes.

Zheng Yonggang, chairman of the former Limited by Share Ltd of Shanshan, chairman of the board of directors of Shanshan Klc Holdings Ltd, believes that the integration mode of production, supply and marketing of the self built channels of garment enterprises is a product of the shortage economy. When the market enters the buyer's market, it is no longer applicable.

Founded in 1992, Shan Shan has already had a complete sales network and channels: by the beginning of 1999, it has 35 branches, more than 2700 outlets and warehouses, and 3600 sales personnel all over the country.

Shanshan suits continue to be maintained for 7 years from 1993 to 1999.