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    How Can China'S Garment Industry Maximize Profits?

    2010/12/6 17:09:00 93

    Garment Industry Profit

    This is a small town in Southern China.

    In a newly opened chain store in Metersbonwe, it is crowded with young customers who want to buy clothes that show their individuality here.


    Jay Chou's slogan "do not take the unusual road", let these young people think that they have already touched the tail of fashion.

    The popularity of Metersbonwe among young people stems from the latter's emphasis on brand involvement.


    Metersbonwe adopts the mode of "virtual operation", that is, outsourcing products.

    Product sales

    To the franchisee, and focus on product design and brand promotion, this is also the mode adopted by Nike, Lining [18.04-1.64%] and other brands.

    However, brand building may take a long time, and there is still a high cost. And those garment enterprises that used to mainly engage in foreign trade and have not invested in brand building, if they start to focus on brand building now, can they quickly get out of the predicament? And some cash flow entrepreneurs even ask, "why do I want to be a brand?" then, besides brand strategy, is there a more realistic model for the clothing enterprises that are now "going north"?


    Why do you sell the $20 shoe in the US for $76?


    Wu Xiaoming, Secretariat of the Guangzhou apparel industry association, told reporters that she was working with her colleagues recently to organize Guangdong's clothing enterprises to arrange exhibitions in Zhengzhou to respond to the strategy of "going north".


    And correspondingly, in the vicinity of Zhengzhou, Henan Jiaozuo's Sirius shoe factory produced "release shoes", although the Chinese people think it is very "Earth", but by an American BenWalters slightly packaged, the factory price of only twenty yuan of shoes sold to 76 dollars, but in the United States sell well, "customers bought us 6 pairs of shoes!" Ben said.

    "What consumers love is the design of this kind of shoes."


    It seems that the elements of design may not be laborious to imagine, but close to the aesthetic taste of consumers.


    The most classic case is ZARA, which can copy "top brand" with the fastest speed.

    The clothing company from Spain has become a model for the industry because of its FastFashion mode.


    According to reports, ZARA launches about 12 thousand kinds of fashion in a year, and its 400 designers love to do all kinds of fashion shows, observe the latest designs of those top brands, and quickly release the fashion that is very similar to these designs.


    At the same time, every sale of a product, ZARA will be a consumer identity.

    commodity

    Collect and analyze.


    Put the clothing store on

    LV

    Side


    In addition to the design of "plagiarism", ZARA also adopts the "following tactic", that is, in the most expensive area, it is adjacent to high-end brands like LV, Chanel, Prada and so on.

    The ZARA, which sells at a price of only 300 yuan, although it does not invest much in advertising, it can open shops in Fifth Avenue, Paris, New York, and so on.

    PabloIsla, ZARA's parent company Inditex group CEO and vice president, said such a branch is the most powerful publicity.


    The footwear industry of BELLE, the largest women's shoe retailer in China, has adopted similar tactics.

    Women's consumption is always full of "uncertainty", and BELLE takes the best shops in the places they often visit.

    BELLE's sales outlets are mostly shopping malls, rather than self owned stores, which makes it easier to expand.

    As of December 31, 2008, BELLE had opened more than 9000 self operated retail stores in China, while Lining had more than 6000 stores in the same period.

    {page_break}


    Another "Hongkong I.T[0.661.54%]. group", which has a strong channel, is more like an incubator of the European and American brands in the Chinese market.

    For those famous brands in Europe and America, but not known to consumers in China, I.T. first introduced them to China, and then used their mature channels to promote sales. When these brands became famous in China, I.T. allowed them to "solo" and set up brand stores.


    Control industrial chain and enhance bargaining power


    When Lining, Metersbonwe and other enterprises learn Nike's "virtual operation", outsourcing products manufacturing and retail distribution business, BELLE takes production, design and sales in their bosom. The world's largest footwear manufacturer, Baocheng group, even has to do its own raw materials and intermediate logistics and pportation.


    Although Nike has outsourced its manufacturing and marketing business, it has spared no effort in product design and marketing.

    According to reports, Nike has set up research committees and customer committees. They may be coaches, athletes, equipment operators, doctors, and other groups of people, from all angles to investigate the improvement of the design of sports shoes; and when the wireless Internet has just started, Nike has begun to launch a series of ads of "Kobe disciples" on the Internet free gateway.


    Compared with such "light assets", BELLE has different routes, which is determined by its development path.

    Shortly after the creation of BELLE, the founder Deng Yao built his own workshop in Shenzhen in 1987, which ensured the high quality of the factory's products and shortened the design time to 3 months.

    "I am the sole buyer of the factory."

    Deng Yao said.

    At first, BELLE's products were sold to wholesalers, but counterfeit fake products appeared, and Deng Yao began to build a sales network himself.


    Baoji, because of its relatively long industrial chain, is more likely to integrate upstream and downstream enterprise resources through joint ventures.


    Build a brand, start with a good spokesperson.


    Compared with the various strategies mentioned before, the "brand" may be relatively empty, but it is the fundamental reason for an enterprise to maintain its long-term vitality.

    Brand building is a long-term process. Maybe it can start with choosing a suitable spokesperson.


    As early as 2002, Nike signed a cooperation agreement with the then unknown Liu Xiang. It was said that at that time, Zhang Tong, the Nike player's marketing department, had been walking around with Liu Xiang.

    When Liu Xiang won the Olympic Games in Athens, Nike's advertising was also launched in an all-round way and achieved the desired results.

    However, in the 2008 Beijing Olympic Games, Nike once again "bet" Liu Xiang, but failed because of Liu Xiang's unexpected retirement.

    But in any case, a spokesperson with great potential may lead you to another realm.


    If you walk into the clothing wholesale market near Guangzhou Railway Station, you will find that all kinds of clothes have celebrities as spokesmen. Maybe you don't know many of them yet.

    Perhaps these stars are much lower than the celebrity endorsement fees, and the fame is much smaller. But imagine what these stars will do if they become popular in the future.


    Spokesperson is only a small step. Many times, a good brand can remold the different image of the owner. Although LV and Prada belong to the high-end, the feeling conveyed is totally different.

    LV itself represents the status of society, and Prada can create strong feelings for career women. Dior can be wild and unruly. Chanel has become the pronoun of women's maturity and maturity since the former first lady Jacqueline Kennedy wore the famous pink dress.


    Pay more attention to these enterprises. Maybe your business will become more interesting.

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