Why Do Famous Shoe Brands Compete To "Marry" The Tail Market?

Influenced by factors such as the global economy and prices, China, as the world's largest footwear country, is facing not only the way out of its products, but also how much it can lower the cost price to solve the problem of huge inventory due to economic shrinkage.

Since the beginning of 09 years, the term "tail cargo" has gradually become familiar to consumers.

Take Zhengzhou as example, Jian Wen Hui City, Tian LAN tail shoe shoe city, Fairview City tail cargo market have opened, and have led to more and more tail cargo market opening to welcome guests.

Today, Tian LAN cargo terminal again strong landing in Zhengzhou 27 business circle.

Within half a year, the "new thing" of the "tail goods" thrived in Zhengzhou.

Nowadays, there are more and more "foreign trade clothing shops" on the streets. Shopkeepers often tell consumers that their foreign trade garments are all "tail goods" left behind by the serious foreign trade orders. The absolute brand-name products are only small defects, from exports to domestic sales.

"The price is cheap, the quality is good, it does not affect you to wear, it is very cost-effective."

For some consumers, it has become a habit to go to foreign trade shops to "wash" clothes.

So what exactly is "tail cargo"?

The so-called clothing tail goods, refers to the domestic garment manufacturers according to foreign materials, samples or foreign samples, domestic processing materials, after the completion of the order of the remaining part of the product, including the fabric, specifications, color can not see big defective products, redundant or save cloth processing and foreign returned, but there is no residual "export to domestic sales" clothing, and some are unqualified clothing returned.

Garment manufacturers in China assume more than half of the world's garment processing tasks.

Foreign brands usually use the method of "incoming processing" when placing orders. In order to ensure the production of qualified products, of course, the ration of incoming materials will certainly exceed the order requirements.

After processing the order, the manufacturer will have some surplus, and this part will become the "tail cargo".

The author visited the tail cargo market and found that XTEP, double star, crocodile, red dragonfly, playboy, old man and other familiar brands can be found, thus changing the situation that the tail goods market brand does not depend on the independent sales mode.

Coincidentally, I learned from the February 15, 2009 Tian LAN brand tail goods clothing city, which is about to start trial operation in February 15, 2009. Lining, Giordano, Heng Yuan Xiang and other domestic brands have officially joined them.

"We didn't expect so many brands to join so quickly."

The general manager of two cargo stores said.

It is understood that the early merchants of Tian Hui store mall reached 100% of the rental rate in two days, while the Tian LAN brand tail goods clothing city also recruited more than 40 brands with a certain degree of recognition in 35 days.

It is understood that in the two cargo stores, the main style of Lining and other brands will be the over season deposits.

However, with the brand entering, it is possible to appear in the same season but break the code.

Tian LAN, general manager of the market, said that the price will be lower than 50% of the same brand clothing in the ordinary market.

Because there are special formats in the shopping mall, the market will send market researchers to other stores. If the price of goods is higher than other stores, the brand will be reduced.

If it can not be lower than other shopping malls, it will be asked to go directly to the shelves.

Under the pressure of the financial crisis, Lining, crocodile (Guangdong), Playboy and other domestic brands are finally willing to "marry" the tail market.

Analysis of the industry, the future opening of the mall will be biased towards the "lower than the Yansha outlets, higher than the general stock market" positioning.

The shopping mall will enter the prosperous business circle, no matter for other shopping malls, or for the vast number of consumers, it will be a useful supplement to business format and consumption place, and will not have a direct impact on traditional commerce.

But at the same time, business segmentation sometimes means differential competition. When the traditional shopping malls face many competitive advantages in the tail cargo market, they should not fear more, but try to find ways to provide consumers with more affordable, genuine goods and services, so as to capture the hearts of consumers.

In a sense, the shopping mall has entered the golden commercial circle and accelerated the upgrading of business forms in the business circle.

It not only meets the diversified shopping needs of consumers, but also reduces the inventory pressure of brand manufacturers and circulation links, and provides new impetus for manufacturers and sales terminals to enhance their competitiveness.

Brands find ways to digest inventory.

Beijing capital goods market planner Liang Jiliang told reporters that the brand concentration "lower marriage" tail cargo market, are all the financial crisis.

"In the past, the stock of clothing enterprises in the stock of its total production of 5% of the total, and now, to the sale of 'winter', the stock of goods rose to 40%."

Liang Jiliang said that many famous brands had to give up their original "shelf". They no longer care about the total production volume regardless of the inventory, but also find a way out.