After The Crisis: The Terminal Expansion Of Listed Textile Enterprises Was Subjected To Torture.

Although the overall price of commercial real estate has been curbed to a certain extent after raising interest rates, it is impossible to achieve quick results and the proportion will not be too high.

Whether it is to overcome cost pressures in the short term or improve the efficiency of capital use in a long term, the "single store effect" is regarded as the potential growth point of corporate profits.

In the early stage of the rapid growth of Lining and seven wolves listed footwear and garment enterprises, the three major home textile enterprises listed on the market in 2010, fuanna, Luo Lai and Meng Jie are still continuing the model. After the listing and financing, they have rapidly expanded channels and seized market share. Three enterprises have more than 300 new stores planned this year to meet the competitive needs, and will continue to maintain high growth. Among them, the report card also reflects that three enterprises have made considerable profits: net profit increased 41.77%, 58.96% and 32.75% respectively over the same period last year.

Although fast channel is used to achieve high returns, the profitability and profit contribution rate of a single store is not outstanding.

Under the background of rising cost factors in various industries, some experts have suggested that trying to improve the profitability of single stores can enable terminal enterprises to effectively control costs and increase profits.

At present, the channel expansion of home textile enterprises is mainly based on the stores and shopping malls. The department stores need to mature for at least half a year, while the stores need 1~2 years, plus the high cost of commercial real estate, which will inevitably lead to a longer profit period.

In addition, home textiles is a new industry, and it will take some time to upgrade the terminal channel management. "

The analysts of the securities industry of the state securities company attributed the bottleneck of their profits to the extended profit period and channel management level.

Professor Han Yongsheng, Professor of management at the Chinese Academy of Sciences, believes that if the terminal spinning enterprises can establish a fast supply chain reaction mechanism and change the operation mode, the supply chain will focus on the stores and place orders according to the sales and consumers, so as to reduce the inventory and increase the profit margin and the speed of capital operation under the condition of maintaining the same cost.

For example, by increasing the frequency of ordering, the establishment of enterprise wide network sales control system and other means to achieve speed advantage.

Using the speed to obtain bargaining power can resist cost pressures and enhance the profit of stores.

In improving the profitability of stores, the terminal brands did not actively try, but last year, the company upgraded the information department from the previous two level departments to the first level departments, and adopted internal information system integration and channel integration personnel deployment and other measures, and improved the ordering system.

Fuanna is speeding up the integration and application of ERP system, optimizing management structure and process, improving inventory structure, increasing production capacity, reducing goods shortage, and accelerating the speed and efficiency of supply chain reaction.

This year, Meng Jie also started a comprehensive order system to deliver customer orders in a timely manner. In the first half of this year, the total number of stores covered by the ERP system reached 500.

The relatively mature garment enterprises such as the seven wolves have already shown the momentum of gradual change from the extension to the endogenous growth. The seven wolves reported that in the middle of 2010, the number of exclusive stores (Hall cabinets) was 3250, of which 299 were direct stores, and 79 were direct stores than those at the end of 2009. The number of franchisees was 2951, and the number of franchisees was 78 lower than that at the end of 2009.

After adjusting the channel, there were only 1 new stores in the first half of the year.

Zhou Shaoxiong said publicly that the operation of the seven wolves is focused on improving store efficiency and ensuring long-term performance with single store growth.

Analysts believe that the increase in the cost of real estate and industry has increased the burden on franchised stores, resulting in the improvement of the profitability of single stores.

The establishment of a fast supply chain system is indeed a winning strategy for improving store performance and corporate profits under the new competition pattern, but it is not easy to operate in practice.

"Raising the speed of supply chain reaction needs from source to terminal, and there is still some difficulty in implementing it."

"The company has been insisting on improving store performance in various ways, but at this stage, it will continue to expand and expand its stores."

Guo Jin securities textile industry analyst pointed out that reducing inventory, speed up the supply chain is related to the whole industry chain from cotton to fabric to the terminal, not every terminal spinning enterprise can make ZARA. Now many terminal brands have refined the product design to develop different products of multi line cities to adapt to the market changes.

For the time being, home textile enterprises are still suitable for extension and expansion, and use capital to quickly occupy more domestic market resources.

"Deep digging single store efficiency model is not suitable for the growing domestic textile and clothing enterprises, suitable for foreign mature terminal enterprises. In the long and long-term home textile enterprises, it is still the most suitable development model to expand the home textile enterprises as long as they can control the cost."

Wu Xiaoyu, an analyst at the textile and Garment Group of Xiangcai Securities Research Institute, holds the same view that for textile and garment terminal enterprises, there should be a distinction between extension development and endogenous growth. According to the actual situation, it is not too late to fully develop the extension expansion and then increase endogenous growth.

In this regard, Qilu Securities analyst judgment, in the short term, the scale expansion is still the focus of competition. In the long run, channel layout and brand building will become the key factor to decide who will win in the future with supply chain management.