Clothing Monopoly, Crisis Under Prosperity

Brand monopoly is the most popular clothing sales mode in recent years. It has even been called "the last marketing mode of clothing industry" by some clothing marketing circles.

Indeed, the main pedestrian streets in major and medium cities nowadays are brand clothing stores that are singing the leading role.

Casual stroll around the pedestrian streets, the major clothing stores also seem to be crowded and thriving.

The publicity materials of some companies often have more than 1000 stores in the country.

But is the sales model of the clothing brand store really as optimistic as the outsider looks like?

I have seen such a scene when I go out to inspect the market.

A large and luxurious shop in the Busen store has a large poster to be pferred and cleared. A large store in a city has been left in a cold shop, the boss's face is dim; the pfer and closing of the store in Guangzhou; the sale of some of the products in the men's wear shop; the flagship store in Guangzhou, Beijing, and the main road.

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These ones here

All of them can be called the leading brands in the Chinese clothing industry, but their franchised stores are also encountering different markets in Waterloo. Of course, this may be only a few phenomena of these brands in the local market, but at least it shows that the store mode is not always beautiful, especially for the small and medium-sized clothing brands.

I was a famous underwear company in China.

The women's underwear products, such as pajamas and so on, were 928 at the time when the sales department counted the national monopoly outlets, but only 88 of the annual turnover was over 250 thousand, not even 10%.

And there are 536 franchised stores with an annual turnover of less than 100 thousand, accounting for nearly 58% of the total. How much profit can the 536 franchised stores have in terms of cost, rent, labor, taxation and management?

How much confidence do these store owners have to keep the store open?

I have visited many clothing streets in the country, interviewed many owners of the exclusive stores, and found that nearly 80% of the clothing stores are at least not in an ideal state of profitability, and there is a widespread phenomenon in various cities: the mainstream brand stores can normally earn profits, while most of the small and medium brand stores are doing business at a low level; the clothing stores on the mainstream sections can also look more prosperous, while most of the secondary clothing stores are mostly remote.

There is another phenomenon: many clothing stores are not "monopoly", but can also buy some men's clothing in some other brand products, and even in some women's wear shops.

These are signs of crisis.

If the franchised store as a sales terminal is not well managed, it can not generate enough sales force, and how can it promote the development of upstream garment enterprises?

How can we promote the healthy development of the entire garment industry?

For many brands, the closure of a franchised store means that.

The decline of a certain area and the domino effect will also affect the surrounding cities.

In fact, in the final analysis, the survival rate of clothing stores in China is worrying.

In the interview, a Nanjing

The shop lady has counted her account for me.

Her investment in a women's clothing store of about 50 square metres is:

Shop pfer fee &nbsp3 million

Annual rent &nbsp7 million

First batch of &nbsp4 million

Decoration costs &nbsp2 million

Brand franchise fee &nbsp1 million

Liquidity and other &nbsp1 million

The annual basic expenses of her shop are as follows:

Shop pfer fees, decoration fees according to two years apportioned &nbsp3 million

Annual rent &nbsp7 million

Two salesmen's wages and benefits &nbsp2.2 million

Electricity charges &nbsp1.5 million

Management fees, taxes &nbsp1.5 million

Other costs, losses &nbsp0.8 million

The total annual expenditure is at least &nbsp15.5 million.

Because its location is not a prime location in Nanjing, its annual turnover is probably around 360 thousand. According to its gross profit margin of 50% of its brand, its gross profit is about 25 thousand, and it does not include risks such as inventory, depreciation, return and so on.

Investment 180 thousand, annual gross profit margin is only about 25 thousand, obviously not an ideal investment choice, it is obviously not the result that the landlady wants.

She also said very reluctantly: I also know that this is not cost-effective, but this year, the competition is too intense, idle is idle, a year can earn some living expenses, just do it.

In the cities where we live, there are many everyday.

Franchised stores are being pferred and closed, and there are many new clothing stores opening up every day, because the threshold of clothing stores is relatively low, and there is no need for any technical factors, so long as there are funds, they can intervene, plus many people's "entrepreneurial bosses' complex".

According to interviews and author's own observations and analysis, the main reasons for the poor operation and crisis of many clothing stores are:

1, great store rents and increasing store costs.

With the vigorous development of Commerce, the rents of commercial areas are constantly rising. This increased cost is bound to be made up by the increase of turnover. However, the increasingly fierce competition and the increasingly saturated market make it almost impossible for the clothing store sales to grow further.

For example: in Guangzhou Beijing Road, a 60 square shop, the annual rent is at least one million, which is not at all acceptable to the general self-employed.

And it is said that prices are still rising in Yangzhong.

And Yiwu, Zhejiang, has even reported that a shop sold 20 square meters of sky high price.

The high rental of shops makes the risk and pressure of franchised stores very large.

In addition, with the development of the economy, decoration, salesperson salaries and so on are also rising, which has led to an increase in the cost of opening stores.

2, the centralized development of urban business circles and shopping centers has made clothing business districts more and more concentrated.

The business circle of the city is developing more and more centrally. The clothing monopoly is also concentrated on several main streets or clothing cities and commercial centers. This makes the shops more prosperous, and the lighter places are becoming more and more coldly clear.

Franchised stores are very important for the selection of road sections because of the very serious homogenization characteristics of clothing products, and the influence of Chinese clothing brands is not strong enough.

Nowadays, the mainstream pedestrian street or clothing street in the general city is so two or three, its capacity is limited, and China has too many clothing brands that need to sell the stage. If you can't squeeze into the pedestrian street, you will have to go back to the second place and choose some bad roads to blossom everywhere, but it's hard to build the overall atmosphere of the clothing monopoly.

3, some clothing manufacturers lack long-term planning and strict management of brands and markets, or only focus on current interests and ignore the interests of dealers.

Hangzhou Wulin Road is a famous women's wear street in the country. In less than two kilometers of a street, a brand clothing actually opened three stores. How many customers are there in such a high-density market development?

How can this guarantee the good profit of each store?

China

Often like the pursuit of large and full, blindly pursue the number of shops, shop opened after, do not care about their lives.

In fact, the number of stores is not as good as possible, but quality is often more important than quantity.

Zegna has about more than 220 stores in the world, but its annual sales volume is up to $3 hundred million.

The turnover of one store can top the turnover of 50 stores in many enterprises.

This is the gap.

And many garment manufacturers' market lacks of strength due to lack of maintenance, resulting in price confusion and fleeing phenomenon.

To a certain extent, it also affects dealer's confidence and its operation.

4, the deteriorating market environment, the mire of promotional competition, the impact of shopping malls and hypermarkets on franchised stores.

Nowadays, in front of the store owners, the market environment is getting worse.

1) the competition among many brands has led to the upgrading of advertising campaigns and promotional campaigns.

Similarly, in order to compete for the market, the advertising of the franchised stores,

More and more efforts led to a weaker profit margin.

In particular, in order to maintain some of the old customers, they often use all kinds of skills.

For example, advertising in Hangzhou's YOUNGOR store 32% off (VIP cards or even more concessions) is reported at the press; some companies usually have some destructive "crazy behavior" to clean up inventory, resulting in confusion in the industry market and consumer confusion.

2) shopping malls and clothing stores become the biggest enemy of franchised stores.

Shopping malls are frequently promoted by 40 percent off or 30 percent off, and the direct blow to brand stores is huge.

Especially in the golden holiday of clothing consumption, the popularity of consumers has been attracted to shopping malls, so that the vast majority of stores can only complain incessantly.

Moreover, the strength and shopping environment of shopping malls are far superior to those of exclusive stores.

In contrast, consumers of the same products are more trusting of shopping malls.

5, the limitations of products and brands

The biggest limitation of the development of franchised stores is the product of monopoly.

Because it is a monopoly, but it is faced with different needs of consumers, facing the choice of the four seasons.

Few brands in China can offer products that are popular throughout the four seasons. Some branded products have advantages in shirts and skirts. Some of them are in Down garments or woolen sweaters, while others are famous for their suits.

For example, the strength of Erdos is woolen sweater, seven wolves are casual clothes, and the main business of Persian is down jacket, and the advantage of nine herding king is western trousers.

So for a single brand store, the product has its limitations to some extent, and it can only meet the needs of consumers.

Many stores often subsidize the off-season with the profit of the peak season, so the pressure is relatively large.

Sometimes, in order to make up for product defects, many stores will introduce some other brand products to supplement sales, but this will inevitably impact the integrity of the monopoly system and make the monopoly lose its meaning.

And some small and medium-sized brands are not enough because of their own influence, lack of popularity, not to mention reputation, rely on natural sales, and stores are bound to be difficult to break through.

6, the overall management level of clothing distributors is not high.

The entry threshold of the clothing industry is not high, which leads to the uneven distribution of employees, and many enterprises are not strict with dealers.

Many franchised store dealers do not have the ability to operate brand monopolies at all. They still remain in the management concept of grocers. They lack basic understanding of brands, prices and images, and can not keep up with the development of brand manufacturers. This is also the reason why many stores do not operate well.

As a great clothing country, China has the largest clothing market and clothing production capacity in the world, and the world's largest clothing industry, but it has always lacked the world's clothing brand, and the development of the garment industry has been lagging behind for decades. China's clothing enterprises and its marketing mode are still too young, there are still many roads that need clothing marketing people.

To explore and create.

China's clothing monopoly mode looks beautiful, but in fact it lurks many crises.

Only by deeply recognizing these crises, constantly resolving them and building a strong terminal can our garment enterprises become bigger and stronger.