2010CHIC Forum: Transformation Of China's Clothing Business Model

It is worth mentioning that, as a guest speaker at the forum, the first time to participate in the forum, as the case of a fashion industry innovation model development case share, appears to indicate that the rapid development of the SPA has been regarded as a successful sample of the implementation of the model in China, causing great concern and research in the industry.

Its chairman Ding Hui's speech on the development of the SPA model of the odd model coincides with the content of Lang Xianping's speech.

As far back as 2006, in the book Lang Xianping, published in the book "model", we thoroughly analyzed the SPA model represented by ZARA and predicted its development in China.

In recent years, the SPA mode has been widely seen in China, and is widely concerned by the industry and consumers.

A model of domestic SPA

SPA (self owned clothing professional retailer) mode is considered to be the most successful fashion management mode in the post IT era, and its most famous representative is the Spanish apparel channel brand "ZARA".

Other well-known brands or enterprises in the world such as H&M in Sweden and UNIQLO in Japan also adopt this model.

In recent years, these brands have broken the market in the domestic market by closely following the market trend, the public price and the quick response sales strategy.

Not only are these brands implementing SPA's massive success, but many domestic garment enterprises are constantly exploring and pforming the SPA mode.

Among them, the development of the model is exemplary.

In 2001, it established a business model of SPA (private brand clothing professional retailer), which is consistent with commodity planning, production, logistics and sales. Now it has a chain scale in 1 cities in 10 provinces, and has become the leader of China's apparel retail industry in a few short years.

On the face of it, the characteristics of the park are summarized as follows: fashion, and the popularity of prices. Through the retail terminal, consumers are encouraged to share fashion with vogue and share fashion.

Deep analysis, we will find that all this stems from the unique mode of operation.

Unlike many traditional clothing brands, it is indeed a popular fashion brand.

The chain stores, even in the first-rate commercial areas of Shanghai and Hangzhou, can be seen in the first generation of the fourth generation shop decoration style stores in 2009. They are also fashionable and respectable. They are not inferior to the fashion brands at home and abroad.

SPA represents the development trend of garment industry.

The SPA brand represented by ZARA is pouring into China, and its fierce battle with Chinese local garment enterprises is being staged.

"What Chinese clothing enterprises need to consider is, in the next 5~10 years, what brands will we compete with and what are their respective advantages?

With the acceleration of global economic integration, information dissemination is becoming more and more extensive, and the popularity of products has become homogenized. This means that the product itself is not the only core competitiveness in the process of consumer choice.

Lang Xianping thinks.

In this regard, experts on the forum pointed out that the core competitiveness of the garment industry should be pformed into a back-end mode of operation, such as the speed of arrival, the ability to provide the latest styles, and the addition of products that customers like, and whether they can meet their needs at the fastest speed.

All these are the problems that Chinese garment enterprises should pay attention to today.

A survey shows that many Chinese clothing enterprises, the real sales way is mainly the order meeting, each quarter of the distributor or distribution of goods ordered by customers, one-time production, output to the terminal, and then divided into several bands to sell, this way for the enterprise profits accounted for its entire value chain 70%~80%, or even more.

However, buying large quantities of goods in advance of 8~9 months means great risk.