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    China'S Clothing Brand Has Entered The Era Of "Wan Dian" And Is In A Dilemma.

    2010/10/11 9:56:00 77

    Clothing Brand Resources

    The era of "Wan Dian" will come, in the recent wave of expansion of retail stores.

    Clothes & Accessories

    Many fields

    brand

    They are moving towards the target of thousands of retailers.

    However, the dynamic layout of the market itself is also being questioned more and more. Agency dealers begin to complain about the meager profits. Therefore, the "wanton" behavior of the brand groups is gradually wearing the hat of "making bubbles".



    Chinese clothing brands enter the era of "Wan Dian"


    By the first half of this year, the industry is

    Anta

    7000 breakthroughs in retail stores have been achieved, from 6591 at the end of 2009 to 7052, with a net increase of 461.

    And following Anta, there are XTEP, 361 degrees, PEAK and so on. These brands claim that they will open more than 1000 new retail stores in 2010, with a total scale of 7000 stores.


    A series of ridiculous big investments and the speed of opening thousands of retail stores each year can be described as "blowout" at the moment. The relevant analysts even asserted that according to the current expansion trend of retail terminals, there will be a large number of brands in the field of clothing in the next three years.


    However, in this explosive terminal expansion, the risk also gradually highlights, after "horse race enclosure", the market accommodation limit, the agent and the brand business difference is interrogation the clothing brand this terminal expansion craze.


    Looking for buyers


    Beijing, a lingerie brand with 150 retail terminals, is now in frequent contact with buyers who want to expand.

    Mr Liu, who claims that he is the brand owner of opportunists, has no taboo to say that he wants to take advantage of the industry's improvement and sell the brand premium at a good price during the rapid expansion of the domestic brand retail terminal.


    This seems to be the hot work of many small and medium-sized brands, and the rise of the retail terminal expansion has made it possible for Mr. Liu to master the small and medium-sized brand owners of a certain number of physical stores and see the possibility of making money.


    Mr. Liu has tried almost all the channels to find "suitable" buyers -- those who have plans in the near future and are currently expanding rapidly.

    He never lets off any valuable information in the industry, even if he reports on the listing of a brand plan in an obscure corner of the newspaper, Mr. Liu can always find it in the first place.

    Then, he began to analyze the possibility of the brand going public in the short term, and contacted the trustworthy people to contact the brand that claimed to be on the market.


    Mr. Liu is eager and careful to find buyers. He does not want his employees to know his selling plan and disdain himself for "selling" himself. He instinctively feels that this will make his negotiations lose ground.

    Therefore, he is always looking for the right middleman.


    In the first half of this year, Mcglaughlin's listing plan aroused great repercussions in the industry. Mr. Liu also noticed that at that time, he was very sure that Mcglaughlin was a suitable buyer.

    Both products meet the goal. Ladies' underwear is the main product of both sides.

    Channel access is also highly consistent. Mcglaughlin started a large-scale entity store strategy, extending from online to offline, requiring Mr. Liu's 150 physical stores.

    At the same time, Mr. Liu is also keen to find that Mcglaughlin, who has invested in the wind, has enough capital strength to give him a good price.


    All this makes Mr. Liu believe that Mcglaughlin's listing plan is feasible. "It needs a large number of offline stores to fill the" listing qualification ", and the operation ability of Sequoia Capital will further enhance the listing of Mcglaughlin. Of course, the most important thing is, in my view, Mcglaughlin has the strength and willingness to buy a bigger price for the short listed target.


    Regrettably, the rumours of Mcglaughlin's listing in the fourth quarter of this year were suddenly "dissipated". After many contacts with Mcglaughlin, Mr. Liu was told that Mcglaughlin did not have any M & A plans in the near future.

    In fact, Mcglaughlin's so-called listing capital operation seems to have temporarily stagnated.

    {page_break}


    Cash in cash


    In some ways, Mr. Liu's strong desire to sell is entirely due to the terminal expansion of the clothing industry.

    A large number of brands open shop hundreds of times each year, making Mr. Liu think that the 150 entities in their hands are "out of stock". The expansion of the brand is so much that it has raised the value of the store that Mr Liu has in good hands.


    On the other hand, branding's "expansion impulse" exacerbated the market competition, and let Mr. Liu see the difficulty of future competition and the possible decline in profit margins.

    Therefore, in the current environment, it can be sold at a high price, which is more suitable for Mr. Liu.


    "Our current profit margin is not low, gross profit is around 30%, but I am a businessman. I don't care if others say I am a speculator. Therefore, if I can sell it at a reasonable price, I will get the money to do other investments, which is also a very good thing."

    Mr. Liu said, "I do not have a so-called" attribution plot "for creating a brand. At the moment, from my point of view, I will continue to develop this brand, but it will not be too fast. Although there are also venture capitalists looking for me to invest in large-scale expansion, but after weighing it, I still think that under such circumstances, so many brands should be listed and sold at a good price, which is a very good choice.


    Mr. Liu obviously has reservations about fierce terminal competition.

    In his view, after this wave of expansion, competition in the domestic market will be unusually fierce.


    With Mr. Liu holding the same view, and general manager of Hubei wind trading company to Qingping.

    Cheng Feng is a brand agent who has been in the apparel business for more than 10 years. After several years of acting in Hubei, he became a sportswear agency. Then he faded out of the clothing business.


    At present, the fashion has already sold its clothing agency business as a whole. For this reason, the explanation to Qingping is that the competition is too intense, and the frantic opening of the brand makes the agent fall into the "no profit" embarrassment.


    "For example, the sports clothing brand we made last, we basically do not make money or even lose money."

    To Qingping, "now, the brands are laying the market, grabbing the so-called blank market, and occupying the so-called strongholds, opening up shop regardless of cost, requiring agents to open more shops. This brings us great pressure, and our investment has increased and profits have not improved significantly.

    At the same time, because this is a general expansion, the competition around the same kind is too fierce, which gives us a big impact and profits plummeted. "


    Under such circumstances, the wind eventually sold some of its own stores in the expansion period of the brand. This seems to be very cost-effective in terms of fashion. Because there is no good profit performance, it is better to sell high value stores that have been valued in the general expansion and get good returns.

    {page_break}


    Small profit dilemma


    The experience of fashion shows that there are differences between brands and agents in the current brand expansion.

    Because the expansion of brand retail terminals is mostly carried out in the form of agency stores, the agent's brand expansion is not entirely agreed.


    The first problem is that profits can not be guaranteed. The franchisee has no definite demand for the number of stores to be opened in a year. The franchisee sees the profit return of a single store. Therefore, when the brand starts from the market layout and the overall strategy, it requires agents to open more stores, or even to open the "breeding shop" which does not make money.


    Therefore, the wind chose to withdraw from the "high price", and more agents began to bargain with the brands, and demanded more resources.


    At present, the expansion of domestic clothing brands are mostly driven by the need of market layout, and seize the blank of the three or four line market.

    Wang Zhidong, a brand manager of expensive bird brand, told this reporter that at the moment, the huge capacity of the three or four line market has created the impulse of brand opening. These markets are still blank for many brands, and there are no special sales outlets. Therefore, in the local market gradually mature and purchasing power continues to improve, the brand scale "distribution" is very necessary.


    Ye Shuangquan, who has worked in Anta, XTEP, and witnessed the rapid expansion of these brands, agrees with the industry veteran. He said that in the next three years, the number of brands that will reach tens of thousands of stores in China will be very likely to emerge.

    "The current situation is that there is still room for improvement in the" three districts "of the first tier market (community, campus, Park) market, and many communities in the first tier cities have places to shop.

    On the other hand, in the two or three line market, the current space is still very large. The village market of 150 thousand to 200 thousand population can support a shop, and the number of such villages in China is extremely large. "


    However, for the future performance of the shop, the industry seems to be somewhat less confident.

    Especially at the level of acting franchisees, worrying about the decline of profits is becoming the biggest risk of rapid expansion.


    "Today's clothing business, especially in the field of sports clothing, the problem of homogeneous competition is too serious.

    In the past, the regional brands in the middle tier began to develop to national brands, and the number of brands in many regions of China increased sharply.

    These same brands have joined in and opened more stores to keep the market at a very low profit level.

    To Qingping.

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