Lu Mou Du: How Do Clothes People Spend The Winter?

Through the baptism of the previous financial crisis, the Chinese clothing enterprises have become mature and confident now. At present, the question we should sum up is how can clothing people warm "winter" if they encounter similar situations again? Lu Mu Du So I published my own views.

Lv Moudu has been engaged in management consulting work of many enterprises. He has drawn some opinions from many years of practical experience. He believes that "winter" does not mean that we have to live a hard life. "Winter" may also be a rare opportunity for the garment industry to recuperate.

Combination of Lu Mou and Du Mou Domestic garment industry Based on the actual situation, the following points are put forward. Pass the winter Concrete proposal :

"Reserve grain" - to ensure that cash flows are not broken. To ensure the liquidity of the company's cash, this is the index of "life saving" that the enterprise must pay close attention to during the winter. The most feared thing in winter is "grain cutting". Most of the current clothing enterprises do not have "surplus food", and financial institutions will not easily borrow grain under the current economic uncertainty. Therefore, once the cash flow of an enterprise breaks down, it will not only be unable to seek help, but may also encounter the danger of "pushing everyone down". Increasing cash inflow, reducing cash outflow and ensuring adequate cash should be the focus of management for all enterprises, especially for private enterprises which lack financing channels and financial support.

He said there are two ways to ensure cash flow: one is open source, the other is two. There are two ways to "open source", one is to rely on financing channels, but this way is costly. The two is to sell some assets to obtain cash inflows, which is the most direct way for cash flow problems. "Throttling" means reducing cash outflows. The more common way to prevent breakage of cash flow is to reduce expenditure. In the operating expenses of enterprises, the reduction of management expenses and marketing expenses bear the brunt. The second is layoffs or wage cuts, but considering the specific circumstances of China, domestic enterprises should use layoffs and wage cuts as the last resort, prudently using them to prevent unnecessary shocks to the stability of enterprises.

"Grasp the ready-made" -- make incremental adjustments to make stock. In the current economic environment, the difficulty of increments has increased dramatically and the risk has increased dramatically. The safest way to develop the market is to improve the stock and improve the stock. There are two ways: first, to purchase the stock of others. If the enterprise has enough cash on hand, it can buy the market share of the competitors and get an ideal market share at a super low price. Another way to do the stock is to tap the existing customer groups in depth so as to get a stable return on interest or avoid customer churn. Precisely because of this, most enterprises provide services to customers when the economy is depressed.

"Enhance physical fitness" - improve enterprise operation efficiency. The goal of improving operational efficiency can enhance the physique of enterprises, and enterprises with good physique have strong immunity, and their ability to resist risks is also outstanding. The improvement of operational efficiency during economic depression is generally concerned with two aspects: process optimization and lean production. The core of operational efficiency improvement is process optimization. Generally speaking, there are two key points in process optimization, one is management process optimization, the other is supply chain process optimization. Management process change is the normal state of winter enterprises. Usually supply chain optimization can make enterprise efficiency 20%.

"Stretching" - extending vertically and horizontally on the industrial chain. A product to consumers, usually through product design, raw materials procurement, production and processing, warehousing and logistics, wholesale business and terminal retail 6 links. In this industry chain, many domestic enterprises, especially the foundry enterprises, often only work in low production technologies, such as production, processing, raw material procurement, warehousing and logistics. The competitiveness of enterprises is derived from low cost labor expenses, and the gross profit margin of enterprises is only 2% to 3%. Therefore, in the economic crisis, these enterprises are the first ones to fail because of the lowest value creation and the lowest profit rate. Whether vertical or horizontal extension, is to enable enterprises to have a high level of profits and enhance the risk of economic crisis.

"Stand high" - transformation from "made in China" to "Chinese brand". The good performance of domestic brand enterprises in the crisis makes us have a good reason to transform ourselves to the construction of our own brand. A company with its own brand is often the core enterprise in the supply chain. It not only has a larger right to speak in terms of pricing power, but also has more initiative for the upstream and downstream enterprises and consumers. Therefore, when it comes to impact, it will appear to have more opportunities in terms of reaction speed and processing mode. According to Luo Lai home textiles, Taiping bird clothing and other brand enterprises related personnel, in the crisis, the impact of the enterprise is limited, still can maintain the growth rate of about 30%.