Tomorrow Of China's Clothing Retailing Industry

When you walk in a shopping mall in a certain tier city, when you are not intending to enter a foreign brand clothing store, you will be surprised to find that the price of a garment is much lower than that of the same type of domestic brand. Many people will not hesitate to choose the former.

This is the dilemma that the domestic apparel retailing industry is facing now. It is difficult for the high-end market to stand on its feet, and the low-end market is being eaten up constantly. In the casual wear category, ZARA, H&M, UNIQLO, C&A and other international fast moving industry brands quickly gained a foothold in the Chinese market. In the past two or three years, the direct shops have spread all over the country. GAP is also eager to see that his global competitors have been successful. It is said that it will start expanding in Beijing and Shanghai first tier cities in 2010. But in our sports retail industry, only Lining is still struggling to support the middle and high end market. Under the pressure of a series of international brands such as ADI, Nike and so on, his eyes are somewhat powerless. The middle and low end market is not too stable. The sports retailing giant Decathlon is watching this market. There are more than 23 shops in China, and each store has a certain number of fans in the local market.

Detailed analysis of why the domestic clothing retail industry will encounter such a problem? Careful comparison of domestic and foreign patterns can be seen.

Take Decathlon and ZARA as an example. Decathlon is not only a retail supermarket, but also a manufacturing company, logistics, retail, IT and finance. In Europe, the number of R & D personnel behind Renault is the largest in Europe. The R & D base is in different areas. The research and development base for mountaineering products is directly under the Blanc peak, and the R & D base of the water sports has been directly sent to the seaside of the Atlantic, but the factory may be in China or in remote Madagascar. Within this group, the division of labor is meticulous and closely linked. It can ensure that products are produced at the lowest cost in the world, and the most efficient logistics and distribution plan is the most timely access to every retail store in the world, providing the best services to get the most benefits.

ZARA is a subsidiary of Spain Inditex group. It is both a clothing brand and a chain store brand specializing in ZARA brand clothing. ZARA launches about 12000 kinds of fashions in a year, and the amount of each fashion is generally not large. Even with the best selling style, ZARA supplies only a limited number, often only two pieces in one store, sold out and not replenished. Just as the limited issuance of stamps has increased the value of philatelic products, ZARA has trained a large number of loyal followers through this "manufacturing shortage".

ZARA spends huge sums to design its own sensitive supply chain. Production base in Spain, only the most basic style of 20 clothing production in low cost areas such as Asia. At the 200 mile production base in Spain, there are 20 cloth cutting and dyeing centers and 500 foundry terminal factories. ZARA hollows up the 200 miles of underground and sets up the underground conveyor network. Every day, according to the new order, the most fashionable fabric is delivered to the terminal plant on time, ensuring the overall leading time requirement. Finished garments are guaranteed to arrive in Europe within two days, while for the US and Japanese markets, ZARA even uses air to speed up the cost. This kind of mass production thinking makes ZARA brand ride.

Most of the marketing modes in China are investment agents, agents and agents. Retailers are unable to obtain effective information for upstream production. The modes of foreign brands are: customer orientation, efficient organization and management, emphasis on the speed and flexibility of production, and the unique marketing strategy of advertising without discount.

China is a large garment country and a powerful country. It should take the lead in its own market. However, compared with foreign brands, from marketing to management are all dwarfed. I hope that the difficulties are temporary. I hope our brand names will be able to learn from them. After a reasonable absorption of the "jade of the mountains", we will adjust ourselves to catch up with others! The successful mode abroad is our tomorrow!

We have a long way to go.