Is Changing Chain Of Clothing Channels The Main Trend?

　　 Clothing chain Status quo

In the era of channel is king, the importance of channel construction has been increasingly valued by garment enterprises or operators. It can be said that whoever has the advantage of channel will win the market. However, traditional marketing modes, such as franchising and self operation, have gradually lost their advantages in the former market competition. Many problems such as high operating cost, poor information and unable to reach a highly unified brand image restrict the development of enterprises. Under such circumstances, many garment enterprises or operators are thinking about finding a more suitable channel construction mode for the market and enterprises to fulfill the mission of developing and expanding their enterprises. In recent years, with the successful operation mode of "Gome" and "Suning" terminal chains, the garment enterprises or operators of foresight have seen the future direction in groping. That is to say, in the clothing industry, the chain store operation mode is also implemented, for example, the Metersbonwe of leisure brand reaches 5000 square meters flagship store in Hangzhou; the chain brand of the underwear industry "urban beauty", "new feeling" and so on. All are striving to establish channel advantages through terminal supermarkets.

"Gome" chain operation

Traditional chain is a kind of continuing business partnership between brand (or commodity) companies and franchisees. The company gives the partners the privilege to run their brands or commodities, so that the partners can get a franchise project in a certain area, and then the company applies it. Resources superiority With the help of experience, organization, training and management, the franchisee's business risk can be reduced. The company also requires the franchisee to pay a considerable price as a reward. In China, the "Gome" and "Suning" chains have broken the previous definition. They use terminal stores as brands, rely on resource advantages, gather various kinds of commodities, attract consumers with quality service and low price. The biggest advantage of this mode is to integrate resources and reduce operating costs. Under the same commodity and the same quality, its terminal stores can attract consumers at a lower price than the market level, so that its chain operation mode has been successful.

Hint: with the success of Gome business mode, more and more apparel industry has borrowed this mode to build channels and expand the market. However, each mode of construction has its advantages and problems. The key is to see how clothing enterprises choose. According to some industry professionals, clothing chain operation will become a mainstream trend in the future. So what are the advantages and disadvantages of chain operation clothing? Mainly in the following aspects.

Advantages of clothing chain operation

　　 Brand resources Complementary, product line rich

People who have done dress know that most of the clothing companies have single product lines, such as women's wear, women's casual clothes, leisure oriented, bra, warmth and beauty. Such a single product line is sold in the form of exclusive stores or counters. When consumers choose, because the brand is single and the product line is single, there is little room for choice. Therefore, there are still drawbacks. Using chain selling mode to compensate for multi brand and rich product lines can also increase the profitability of chain stores.

Fashion chains come in the form of hypermarkets. They combine all kinds of brands. In line with men's wear, women's wear, casual wear, underwear, footwear and so on, the rich product range can help consumers reduce the time and energy of choosing consumption. That is to say, when entering the terminal, only clothing categories can be satisfied in a terminal store. Instead of buying the same underwear as the old one, the family bought a suit. In addition, this scale operation can reduce operator's cost input and expand profit space.

Highly unified brand image

In franchising business mode, the brand image of the enterprise and the brand image of the terminal store can hardly be unified. This is because in the terminal execution, the brand image will always be different because of various reasons, which is a fatal blow to brand building. The image of the chain store is based on the brand of the store, and promotes the development of the brand image with the brand of the store. Under such circumstances, the brand image of an enterprise will shift its responsibility from the enterprise to the terminal, so that the business input can be reduced. On the basis of resource advantages, terminal stores have appeared in a unified store image across the country, and advertising campaigns are highly unified. These provide favorable conditions for the image building of chain stores.

Therefore, under the pull of store image, concentrating resources superiority can form scale effect and drive the development of enterprises and terminal channel providers.

Ensure stable development of terminals

At this stage, clothing management often results in a reduction in profits in the busy season because of the failure to get goods. In the unsalable season, a large number of stocks are caused by backlog of goods, resulting in difficulties in working capital turnover. This is the problem of franchised stores at this stage. If we operate in a chain mode, we will ensure that goods are delivered in time with centralized logistics and scientific logistics distribution. Generally speaking, if we operate in chain mode, we will set up our own logistics distribution center. This will completely change the situation that goods can not be delivered in the peak season, so that we can ensure the steady development of the terminals.

Implementing policy thoroughly

The emergence of chain form has broken the previous situation of resource duplication and waste, which is a disorderly and destructive competition. Instead, it uses a sales platform to gather various brands to integrate resources and concentrate resources to capture the market. Such a planned, unified and intensive way of operation can reduce the cost of operation on the one hand, so that the product price has a competitive advantage. On the other hand, highly unified management can also maximize the brand image with the least resources.

Problems in clothing chain operation

Tip: of course, any marketing mode is not perfect. As a chain, there are advantages and there are still some problems in specific operations. At present, there are many difficulties in chain operation. It is difficult to manage. A large number of market managers are required to maintain and upgrade the business of chain stores, resulting in high operating costs. At present, some second tier brands are unwilling to put their brands into chain stores. Therefore, it is not difficult to organize the supply of goods. There are no strong brand support, high requirements for logistics and distribution, and high inventory pressure. These problems will seriously restrict the development of chain operation system.

Cargo difficult

The biggest difficulty of building a large terminal store is that it can not organize more sources of goods. Especially some front-line clothing brands. I talked about this kind of problem when I talked with people in the industry. Because clothing is not like the electrical appliance industry, the cost of setting up a store is too high. If it is not too powerful, it will enter the super oligopoly terminal such as Gome, sunning and Yongle. And the clothing brand establishes the exclusive store, its investment is completely joined by the alliance, relatively speaking, the enterprise passes the business risk to the franchisee to a great extent, so that without the investment of much capital, we can get the harvest of fame and gain. Therefore, in such a situation, clothing brands will choose to build their own exclusive stores instead of choosing large stores built by terminal channels. Therefore, the absorption of many well-known brands is the biggest problem in the operation of large terminal stores.

We need strong strength to support it.

Whether it is clothing enterprises or terminal operators, building large chain stores is a severe test for their strength. It has great investment in many aspects such as location, decoration, purchase, sales, logistics, service, management and so on. If the strength is not strong enough, it is difficult to support the operation of the store. As we all know, such as "Gome" type chain operation, it depends on the growth of profit by standard operation. Behind this large shopping mall, there are huge logistics system, information management system, procurement system, comprehensive commodity analysis system, etc., and the establishment of these systems takes time, energy and material resources. Therefore, this is a difficult problem for terminal channel operators.