How Can Apparel Industry Seize Opportunities Under The Penetration Of E-Commerce?

The vigorous development of e-commerce has provided unlimited development space for production and direct selling.

Under the background of the past global financial crisis, Japanese retail enterprises have suffered heavy setbacks, while the fast retailer's "UNIQLO" has performed well, with impressive sales results.

It is said that UNIQLO can make a net profit of 70 billion yen with sales of 500 billion yen.

Even if sales fell by 25% over the previous year, its profits would still be as high as 50 billion yen.

If it is a general company, if sales decrease by 20-30%, I am afraid there will be no profit.

This can be achieved because UNIQLO has no middleman and no advertising fees.

Another reason is that the sales of UNIQLO belong to the production and direct sale, and the products designed by the company will be brought to China for production, and then they will be directly pported to Japan.

A fleece jacket and UNIQLO can sell 380 yen for 1900 yen.

But if you sell it to the mall, even if the price is 4000 yen, UNIQLO can only earn 80 yen.

Some brands of clothes may sometimes be cheaper than UNIQLO, but that is only the "demolition of the east wall and the west wall", and the profits earned elsewhere are added to the hole. In fact, most of the cases are "dummy eating Coptis chinensis".

Therefore, other businesses can not compete with UNIQLO in terms of business models.

Obviously, production direct selling is a good sales mode. Especially with the increasing development of e-commerce today, production and direct selling is even more powerful. It expands rapidly in various fields and becomes a phenomenon that can not be ignored. At the same time, production direct selling is also given new connotation in the process of development.

Advantages and problems of direct selling

The traditional mode of clothing retailing, spinning from textile factories to textiles and fabrics, is then sewn into garments, and finally circulated through wholesalers to retail stores. At every stage, trade companies or retailers are involved.

All stages are undertaken by different enterprises, giving full play to their professionalism and at the same time dispersing the risk of inventory.

However, there is no uniform adjustment and control in the whole process, and there is no real exchange of information between enterprises.

These enterprises fully develop and produce commodities in accordance with their respective information. The result is not excessive inventory, but also the loss of business opportunities.

Unlike traditional clothing circulation system, there is no intermediate link in production and marketing, so there is no need to pay commission in the intermediate links, which can greatly reduce the cost of sales and reduce the retail price of goods.

Secondly, production direct sale can grasp the right of channel control.

For example, UNIQLO controls product quality and delivery time by controlling retail chain stores, because UNIQLO directly manages retail outlets and generates large orders. From the perspective of channel authority theory, a large number of orders will make factories dependent on UNIQLO.

In other words, UNIQLO can make better use of its channel rights and make it possible to control production processes so that the delivery time can be shortened and the orders can be flexibly dealt with.

Finally, production direct marketing can control market information in time, because all retail outlets are directly managed by direct selling enterprises, which can get store sales information in time, adjust product structure and improve service quality, and avoid the problem of low sales ability of commissioned sales outlets in traditional ways.

Although the traditional mode is weak in controlling the channel, the risk is shared by different enterprises.

Production direct selling enterprises have the right to control the channel, but the cost is also to be carried by themselves.

In order to reduce risks, enterprises usually sacrifice the diversity of products, because the more categories of products, the harder it is to control, which means the greater the risk.

UNIQLO's practice is that the product is positioned as a basic casual wear, and its varieties are only 1/3-1/4 of ordinary leisure shops.

Compared with those with strong fashion, this kind of clothing has a smaller turnover in terms of turnover, making production arrangement and inventory more balanced, thereby reducing risk.

But the risk is small, but because the product style is small and basic, and lack of fashion sense, easy to make consumers feel tired.

In view of this situation, UNIQLO adopts the color change to make them look diversified on the basis of constant product styles.

At the same time, UNIQLO also positioned its products as "accessories for clothing", which fully embodied the product role of "silent, quality oriented producers" of clothing components.

Based on this "concept of parts", UNIQLO usually stores its stores next to the top brands.

However, the above practices have achieved good results in a short time. But over time, the "surface" diversity achieved by color change seems to have little effect on consumers.

Finally, we must take the route of truly diversified products, and in order to achieve the diversity of product styles, it means that every product needs to be produced in large quantities on a single production line.

The result is easy to generate excess inventory, which is bound to reflect the price of shop heads, forcing commodity prices to rise.

Once the price rises, the advantage of producing direct selling will be lost.

In this way, how to find a balance between increasing the diversity of products and controlling the cost and inventory effectively can really test the wisdom of operators.

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E-commerce to production

The development of network media has provided a good platform for brand marketing communication integration. With the help of Internet, e-commerce can effectively reduce the cost of enterprises.

With the emergence of humanized shopping, price advantage, quality assurance and Alipay's safe payment method, online shopping is becoming more and more popular in people's lives.

The characteristics of electronic commerce conform to the characteristics of reducing the intermediate links through production and direct selling, making the two parties touch each other at once. With the help of the former, production direct selling develops rapidly and spreads to more fields, and its connotation has also changed.

There is an interesting company in Australia called AV Jennings. They do business by using Adobe (a three-dimensional painting software) to communicate with customers on the computer while designing houses for customers. Ning Jianwu,

The designer first scanned the photos of the land purchased by the client and stored them in the computer. Then he asked the customers "family members", "what kind of room he wanted" and "what color system he liked" to draw the design drawing.

If the customer proposes to design a courtyard by the way, the designer can also help design.

In the process of working, the staff used the CAD (Computer Aided Design); then the factory then used the CAM (Computer Aided Manufacturing) to cut the wood according to the design map and produce the building material.

The house can be completed in two weeks, and the unit price per flat is 150 thousand yen.

All of these houses are tailored to the needs of customers, and they are also provided with carpet and appliances.

The operation mode of Jia Ning building is typical production and direct selling.

Ad locum,

For clothing, I am afraid that only advanced customization is suitable for online production and direct selling, but clothing order production can completely achieve direct production online. It is foreseeable that garment personalized and small batch order production will become more and more popular, and the connotation of production direct selling will become more and more abundant.

For example, some products can achieve full design, production and direct sales, and some can achieve direct production by sample production.

No matter what kind of direct selling online, you can make personalization and low price.

In a word,