Service Enterprises In Summer "Run Away" Discount To Return The Funds As Soon As Possible

This summer's clothing discount season is almost one month ahead of schedule. The author found that in a discount, direct discount instead of the previous "full reduction" mode, part of the season clothing discount reduced to 50 percent off. It turned out that spring this year is shorter than previous years, resulting in a large number of spring stock. Enterprises in the summer "run away" discount to return the funds as soon as possible, start the next quarter of R & D and production; in order to ease the overall domestic capacity overcapacity, exports of goods into the domestic channels to digest; and online shopping for the impact of the physical store, forcing brands to take more "sincerity" to impress consumers.

Discount season "false start" changed to full discount directly discount

When summer clothes are selling well, the discount shops in the capital market are everywhere. The alluring discount rate of "full court 50 percent off" and "low to 70 percent off" has made the stores full of people.

I visited several stores including Raffles square, Zhongyou department store, new world and Xidan Joy City, and found that more than half of the brand businesses have launched various promotional activities of varying degrees. Whether clothes or shoes, shopping centres are full of "discount cards" everywhere. In these discount cards, the author found that in the past years, the shopping mall was full of "full reduction" mode (that is, after the purchase amount reached the prescribed amount minus the corresponding amount, such as "199 yuan to reduce 99 yuan"), only a few brands were adopted this year. Most brands adopt different discount promotions, and even in some shopping malls, almost all brand businesses simply abandon the "full reduction" means, but discount directly on the original price.

Through interviews, I understand that many consumers said that the discount in summer this year was nearly a month earlier than in previous years. The large-scale discount activities that will appear in the shopping mall after August will start in the last week of June this year, and the discount will be greater than in previous years.

The shocking discount rate has made many consumers uneasy to spend a lot of money. ZARA, H&M, MANGO and other popular shops are crowded. The 50 percent off poster posted in the window attracted many female consumers to come to Taobao. Because only a small number of new products in individual brand stores do not participate in discounts, most of the brand discount offers include full merchandise.

It can be seen that most female consumers enter the store and carry out "carpet search" for each shelf without letting off any of their favorite products. So in the procession of long queues, consumers are mostly holding many clothes. There are few occasions when customers hold one or two clothes waiting for fitting. A customer showed her "trophies" to the author: 60 yuan T-shirts, 99 yuan shorts, 199 yuan jeans and so on. Most of the purchased items were purchased at 5-7 discount prices, which saved nearly 1000 yuan compared with the original price.

     Discount and more seasonal merchandise

Consumers are delighted by buying discounts and "full" concessions to buy good quality products. However, compared with the popularity of discount stores, people who take full advantage of them are obviously less popular.

I see in some shopping malls, most consumers in the discount store monopoly and boldly choose. Because there are too many customers in the queue, some customers find that they are not suitable for their size, long wearing clothes, and do not hesitate to pay the bill. In the "fully reduced" stores, when customers choose goods, they will consider the purchase price after the purchase price is considered and decide to buy again.

There is a careful consumer found that the shopping mall's "full reduction" discount means do not discount directly. A Miss Liu calculated to the author: for example, a skirt marked 798 yuan, according to the "100 full 40 reduction" discount rate, most consumers will think that this is equivalent to 40 percent off discount. However, according to the "100 reduction of 40", the actual price of the skirt is 518 yuan, while the price after 40 percent off is 478.8 yuan, the difference is nearly 40 yuan. The reason for the nearly 40 yuan difference is the "98 yuan" zero.

In addition, the author found that in the clothing stores, although the discount products include the clothing of the whole year, but the most consumer concern is still seasonal merchandise, sweaters, windbreaker jackets and other off-season goods few people ask. In a brand store, a consumer is looking for a skirt that he had hoped for the day before, and it sold out every other day. Through a number of consumers, it is understood that buying summer clothing can wear for at least two months, while spring and autumn clothing is after season clothing. Outdated models and incomplete models make it difficult to pick a satisfactory product, and can not predict the next season's popular elements. However, some consumers said that the purchase of seasonal products in the season is still more cost-effective.

　 70 percent off purchase 50 percent off sales as soon as possible to digest inventory pressure

In order to get the money back and prepare for the next quarter's clothing design and production, shopping malls will jointly sell large scale discount promotions to brands every summer. Even some brands of clothing produce money through loans, so as to recover as much money as possible, even if losses have to be promoted. However, the author notes that although discount is being made, the discount is above 50 percent off, because most of the brand agents take 70 percent off of the price, so even half price promotion can be profitable. Moreover, when these new brands are listed, most of them are sold at a positive price. When the brand agents get enough revenue at this stage, they will greatly promote the loss of profits.

The direct reason for the large discount is the increase in the stock pressure of the brand. The most effective way to "digest" inventory is to discount sales. In the wake of the international financial crisis, the "sales reduction" which is more meaningful than marketing is hard to attract the attention of consumers. In this case, direct discounts occupy the mainstream.

A person in charge of a clothing enterprise said that due to the short spring this year, the pressure of spring stock inventory was too large. Clothing enterprises in order to avoid risks and ensure the best selling of autumn and winter clothing, they chose to take a larger discount in the middle of the year to reduce inventory pressure and speed up the return of funds. {page_break}

　　 Overseas market hurts gas export clothing sells domestically

In the face of this year's "short spring", a person in charge of a shopping mall in Beijing said that the discount rate of sales promotion this summer will be higher than that of previous years. Otherwise, the inventory of clothing in the shopping mall is difficult to digest. Today's facts also prove the prediction of this person.

In fact, compared to seasonal factors, the macro environment has a greater impact on brands. Affected by the national export tax rebate policy, coupled with the appreciation of the renminbi and the decline of the euro exchange rate, some garment enterprises that are mainly exporting businesses can only increase their domestic sales efforts in order to make profits, which will increase the supply of domestic clothing.

The sale of these products into domestic channels has led to brand sales promotion efforts to sell more products. Moreover, the European and American markets which mainly import Chinese clothing have not yet recovered from the impact of the international financial crisis. In the past, a large number of retailers in Europe and America could have signed large orders. In addition, in view of the large discount of business this year, insiders said that the labor shortage appeared in the southern enterprises at the beginning of this year, which also made labor costs rise, thereby increasing the cost of clothing production, resulting in higher clothing prices this year than in previous years. If the discount intensity is still the same as in previous years, consumers will not feel the discount after discount, and will not pay for the enterprises to digest inventory.

  No discount, no online shopping impact shopping mall

According to statistics, in 2009, the scale of online shopping reached 267 billion yuan, and the number of online shopping reached 130 million. The popularity of online shopping is giving consumers more choices and more convenience. Meanwhile, the impact on shopping mall entities also makes businesses feel pressure. Many consumers choose to choose good models and models in shopping malls and buy them online. The price advantage of online shopping has become an "insurmountable" gap that some physical stores can not overstep.

In addition, some shopping malls carry out preferential promotions on weekends and holidays. Consumers are accustomed to all kinds of preferential activities. Some consumers even said that in addition to the international brand, shopping at the mall usually felt that it was a loss to buy at the original price. The idea of "no discount without consumption" has been recognized by some consumers. However, some experts believe that although the current online shopping has a big impact on the traditional entity store channels, the momentum or slowing down of the future impact will be slow.

Liu Hui, a business expert, told the author that at present, most consumers choose to buy products on B2C websites such as Taobao. In these sellers, only a very small number of sellers can buy some genuine products through special channels to sell below the positive price, but the number of these products is very limited, and the supply of goods is unstable, so it is difficult to continue to satisfy consumers who are accustomed to buying genuine products. Most famous sellers who sell super low prices are mainly refined and imitation. With the continuous segmentation of the market, consumers who buy goods with the best prices will gradually differentiate themselves from consumers who are accustomed to shopping in shopping malls.