The Weakness And Outlet Of Chinese Men'S Clothing Company

Since 2006, for many reasons, the men's wear industry has sprung up a large number of branches, so the industry insiders exclaimed: the era of men's clothing industry channel change has arrived.

However, a few years later, we found that the performance of these branches which were highly anticipated by the headquarters was not satisfactory. Most of the losses were serious. Some of them even went to the edge of closing or pferring shares at a low price.

Where are the difficulties of China's men's clothing industry?

In the warm winter of 2006, the snow disaster in 2008, and the financial crisis in 2009, the Chinese men's clothing industry suddenly faced enormous business pressure for several years after the rapid development of 1998~2005.

"Hard injury + soft injury, trauma + internal injury" makes the men's clothing industry dominated by the concept of business and leisure lose the most part of the provincial agency mode overnight, but fails to set up a wholly funded provincial branch to receive the market challenge directly.

Due to some relatively sensitive factors, most of the apparel industry's branches appear in the name of regional logistics centers or offices, and sales showrooms or exclusive image shops are registered in the name of individuals.

Regardless of the size of the brand, there are almost all weaknesses in the operation of all branches.

Lack of standardized market development and operational evaluation.

In the process of pferring business with the original agent, the contradiction between the three party of the agent, branch company and terminal dealer will inevitably arise. The main reason is that the original agent's market support loss (including advertising reimbursement, prop reimbursement) requires all the company to bear. The bad debts and other accounts receivable of the original agent and the terminal seller will be borne by the company. The original agent will subsidize the market development cost according to the number of outlets (regardless of quality), and the original agent's inventory (regardless of year and quality) requires the company to recover the price according to the price.

In this way, there are two basic conditions for business handover: first, the branch takes over all the market debt and debts of the original agent, and the subsidiary undertakes a large amount of bad inventory; two, the negotiation breaks down, and the branch takes over the market, while the original agent sells stocks in the regional market (mainly the original terminal dealer network), which seriously affects the brand image.

As a result, the establishment of a branch company will be faced with a morbid market situation. It can be described as a lot of holes, including the different market pattern of distribution, the deteriorating original terminal network dealers and the seriously damaged brand image.

Before the establishment of the branch, there is often lack of basic research on the regional market, such as the quality and subsequent development of the former franchisee, market status, commodity mix and sales strategy, team formation and operation mode design, input-output and cost-benefit, and so on.

Luck and rush to start projects result in small gains and losses.

There was a recognition in the industry that the general agency system seemed to be "capitalism" - mainly based on profit and gold standard, and the sub - company system seemed to be "socialism", which was mainly based on brand and market development.

Facts have proved that the general agent or branch company is always dominated by an invisible hand. "Black and white cat theory" is the only basis for testing the market.

There is no doubt that the branch has relatively complete team configuration, has a relatively professional team division, has a more standardized process design, has an agent's incomparable resource allocation, including goods, policies and support.

But in terms of regional business contacts and resources, rapid decision making and implementation, and team leaders' personal comprehensive ability, agents are better.

Therefore, in grasping business opportunities, the branch appears to be "formulaic" and the branch appears to be "dogmatic" in dealing with problems.

In the case that the brand is not particularly strong, we find that the "sparrow is small, the five organs are all" branches always lag behind the market half time, the performance is not ideal, even worse.

"High centralization" is our traditional organizational attribute. In fact, whether it is the head office executives of "management and marketing" or the head of the headquarters, they are not familiar with the specific business characteristics in the region, which can easily lead to subjective judgment errors.

"Financial management is the constitution" is the core of branch management. The whole set of management mode established by this method is more rigorous, though it can prevent the emergence of many grey surfaces. However, before complex and varied market changes, it appears to be "overcorrect", flexible and flexible, resulting in defects in the operation mode of the branch from the system of operation and management, thus directly affecting regional performance.

"The train runs fast and depends entirely on the headgear". The branch manager as the locomotive of the branch team plays a decisive role in the overall operation performance of the branch.

The ability of a branch manager to some extent directs the success or failure of a branch.

There are basically 3 types of branch managers.

Chairman of the board (infant type).

When the head office looks for a branch manager, the primary factor is generally taken into account loyalty and safety, followed by ability.

The basic characteristic of this type of manager is that he is not familiar with business, or even an amateur, but deeply trusted.

Market / Regional Manager (partial branch).

Their advantage is that they are skilled in the market, able to accurately grasp the mentality of customers, and have strong ability to expand new franchisees.

Their weaknesses are more obvious. Single leg advancement is relatively weak in terms of global planning, market structure and layout.

Similar brand Branch Manager / Deputy Manager (vase type).

Their biggest advantage is that they have experience in branch operation, or have abundant market resources in the region, but such candidates generally have a fixed pattern and thinking into the branch offices, and get numerous flowers and applause in the early days, hoping for greater disappointment.

In China's men's clothing industry, there are fewer composite talents across the market, promotion, commodity, sales, management, planning and execution, resulting in less team fighting effectiveness, thus affecting the performance of the branch companies that are planned and developed in the year.

Team professional quality, team salary and welfare, team performance appraisal are also the core guarantee for the development of branch companies.

It is a general trend that the branch's remuneration and welfare operation progressively proceeds from the original way to performance appraisal, but the overall situation is not optimistic.

When will I be removed from office?

How do I ensure and improve my income?

Where is my way out?

These problems have long plagued branch teams from top to bottom.

The most effective solution is the use of performance appraisal management tools. The managers of the company tend to ignore several basic levels of thinking in designing the performance appraisal system: the premise of the assessment is that they already have a relatively complete personal foundation guarantee; the formulation of assessment criteria should be reasonable and reasonable; the purpose of the assessment is to reward the team to achieve the company's development goals; the formulation and signing of the assessment must have legal effect; the implementation of the assessment can not be discounted.

The three big weaknesses of the branch are congenital diseases, which fundamentally restrict the development of the branches and make them become the short board of the regional marketing of the whole system in the end.

The movement of sports and fashion leisure brands in the nationwide cost free "enclosure movement" and the consumption style orientation led to the scarcity of market resources and the diversion of consumption.

These brands contend for the quality retail outlets of the 123 line market nationwide. In just 3 years or so, the store rents have increased by more than 50% on the basis of equivalent value. The sharp rise in terminal operating costs has led to a significant "delisting" of the once fashionable men's wear brands.

JACK & JONES and ZARA, which have strong market performance, have pointed out the trend of market consumption for the three or four tier brands in distress, and some brands have been pformed step by step in terms of brand image and commodity style.

Combined with the current situation of the network, they have selected an international brand, D&G, Zegna, ARMANI, ZARA and so on.

The cost of pformation is high, which means the reorganization of original resources, networks, teams and management methods, which includes a series of market left problems and inventory disposal. The global financial crisis that broke out in 2008 exacerbated the pain of "turning around".

If agents succeed in the peak of men's clothing industry, the company will bear the throes of low tide pformation.

Terminal costs remain high, retail sales and profits have fallen sharply, consumer confidence has declined, and market competition has been tragic. Different space and time backgrounds give the branch a more arduous task, which is difficult and challenging.

The branches and agents are consistent in their business nature, including affiliate policy, sales policy, market promotion and so on, because they are accounted for by fixed intermediate profits, that is to say, they are only the main operators and the nature of investment, but for franchisees, the two are the same.

When headquarters set up a branch, they generally classified the branch as a "two yuan structure" profit unit, that is, the headquarters would earn the first hand brand industrial profits with the agency discount and the branch settlement, and then earn the intermediate profit of the franchisee as a branch investor.

The annual accounting method of independent return on investment will push the company to a very awkward position: development or profit?

The profit led mode creates a logical contradiction in fact: the same nature of investment and accounting methods, which occupy the advantage of "heaven, earth, and human", can not support the branch. What can you do with the branch?

Joining the margin, prop deposit and support method, annual sales target, order system (30% deposit), the same discount and exchange rate, this company's gimmick which does not have any substantive difference from the agent can also make franchisees "confused and confused" in the early stage. However, after a real operation, they find that the branch policy is more dead, slower, more cumbersome, less efficient, and less practical help for their retail business.

Branch, what is your comparative advantage?

What makes the headquarters miserable is that in the agent led sales system, the operation policy of the branch must be consistent with the overall policy of the surrounding area, otherwise the operation of the agent will be affected, and the consequences will be unbearable.

Positioning according to the comparative advantage will affect the operation of the peripheral agents. The orientation of the profit orientation directly restraints the development of the branch, and the lack of clear and definite positioning will inevitably lead to a lack of competitive operation mode, resulting in a lack of team building input.

In the dilemma and swing of the dilemma, the branches moved to the brink of collapse.

The branch is ill and ill, but its roots are at headquarters.

Where is the road to the branch in the predicament, "congenital deficiency, acquired malformation, internal and external troubles, and helpless"?

The factors such as brand positioning and promotion at headquarters are realistic and constant.

Way out: first, strengthen the existing marketing mode.

Establish relative comparative advantage, formulate detailed annual marketing execution plan, and create strong team execution power.

The key to this adjustment is team execution.

Way out two: change to logistics center.

Under the influence of the financial crisis, market confidence is weak, investment difficulties and sales are sluggish, and the branch is undergoing pformation pains.

The key to this adjustment is to streamline the staff to maximize revenue and reduce expenditure and smooth pition.

Way out three: regional agent, revoke the establishment.

The retailing of agents is the main trend in the future to ensure maximum retail profits.

The key to this adjustment lies in the quality of the district generation, the ability to invest in Direct stores and the integration of regional commercial resources.

Way out four: pfer / close branch.

Long term overburdened, breakthroughs, even the brand industry profits can not be ensured, clearing bad assets is imperative.

The key to this adjustment is to handle the pfer of accounts and the guidance of business pition.

Like other forms of business derived from market changes, the difficult operation status of China menswear branch reflects the confusion of its early growth.

As a direct product after the burst of industry bubble, the company has been carrying out the important task of adjusting, consolidating and upgrading the industry in the pformation period after all.

Therefore, we hope that our branch will realize beautiful pformation as soon as possible and turn into a butterfly.