Garment Suppliers Are Leaving WAL-MART &Nbsp In Large Numbers. What Is The Problem?

Recently, the reporter was right.

Many suppliers complain that they can't make money with WAL-MART.

"In the past, we thought that selling clothing in WAL-MART would make money if it was large enough."

Luo Jian, a merchandiser of WAL-MART clothing supplier and Shenzhen shunxianghe Trading Co., Ltd., told reporters that "after working with WAL-MART, our boss found that he did not make money at all, and was not prepared to continue working with WAL-MART."

Reporters contacted WAL-MART public relations staff in March 10th, the officer said he would give a reply on the 11 day, but did not reply until the press release.

After purchasing the reporter's identity, WAL-MART's purchasing department immediately put down the phone and answered no more, then no one answered the phone.

Lao Hu: he has been detained for hundreds of thousands of yuan.

"I will not sign a new supply contract with WAL-MART."

In March 8, 2011, when WAL-MART signed a new contract with suppliers, he told reporters that he was disappointed.

Lao Hu was one of the earliest clothing suppliers of WAL-MART. His Shanghai holiday Industrial Co., Ltd. sold several brands of men's and women's clothing in WAL-MART supermarket in 2007.

In 2009, WAL-MART changed the mode of procurement distribution, subcontracted the whole logistics distribution to the third party logistics, and the return of each store was operated by the third party logistics.

What he did not expect was that he would pay hundreds of thousands of yuan for this pattern.

Lao Hu said, "in recent years, in order to cooperate with WAL-MART, we signed a contract that felt a bit of a loss.

The contract stipulates that the other party will charge 6.5% of the goods sold after the sale of the goods, and also stipulates that 6.5% of the goods that are not sold in WAL-MART stores will be sold.

Lao Hu also said, "if the goods that can not be sold can not be collected within the specified period, we will add 2% of the cost of the purchase of the returned goods."

Previously, because the company was entrusted by the logistics company to return, there was not much expenditure on the overdue cost of 2%, but after the third party logistics, the overdue cost increased significantly because of communication problems.

What is more serious is that if WAL-MART is postponed to more than 50 days, the company may decide to return the goods on its own.

Lao Hu said, "because of overdue failure to recover the returns, I have been detained for several hundred thousand yuan.

In this case, I will not sign a contract with WAL-MART, and I will also ask WAL-MART for these fees. "

Don't have so many hands.

Lao Hu is not the only supplier disappointed with WAL-MART.

Hainan Si Dan o Trade Co., Ltd. is an old WAL-MART supplier. Reporters found that during the 2007 survey,

In March 21, 2011, a surnamed leader told the "daily economic news" reporter on the phone that the company worked with WAL-MART for about 10 years, but later WAL-MART did not make money.

He revealed that at the very beginning, WAL-MART found Scarlett to make trousers, so there were many trousers in WAL-MART store. "But not only I want to enter WAL-MART", but WAL-MART later found a lower cost manufacturer, so they did not cooperate.

Su's official said that the reason why Si Dan Ao did not cooperate with WAL-MART was that WAL-MART set up shop too fast. "If you deliver the goods to the past, they still need you to have a special person to manage. Where do you have so many people? Even if you invite a person over there, how do you know if he is going to work?"

An unnamed lady from Shenzhen Hengchang Jewelry Co., Ltd. also said that the company's cooperation with WAL-MART is shrinking and the reasons for its shrinkage are manifold.

Suzhou coer Clothing Co., Ltd. also worked with WAL-MART, a company official told reporters: "we may gradually withdraw from the supermarket cooperation, because the supermarket side of the manpower and material resources are very large."

She said frankly: "we have done before, including WAL-MART and other supermarkets, the profits are not high, and need special person to manage, the company can not cooperate with the supermarket very well without the special person.

Mei Xing, manager of WAL-MART business in Shenzhen and Lijin Industrial Development Co., Ltd., said the company is preparing to evacuate WAL-MART.

However, he said that it was not the reason for WAL-MART, but the reasons for the company itself.

Large scale replacement of new and old suppliers

A few days ago, reporters conducted a survey of clothing suppliers in WAL-MART supermarkets in Beijing, Shanghai and Shenzhen, and found an interesting result. Since 2007, the list of old suppliers of WAL-MART has changed a lot. About 80% of them have not been sold in WAL-MART, and there are about 50 new suppliers.

The survey shows that since 2007, WAL-MART's own brand clothing manufacturers have been reduced from around 20 to 13. In 2007, 17 of WAL-MART's own brand clothing manufacturers no longer cooperate with WAL-MART, and 10 new manufacturers were added, and only 3 from 2007 to 2011.

In terms of independent brands, in 2007, about 70 enterprises sold clothing to WAL-MART stores, but only 13 of them stayed in 2011.

Among them, Shenzhen's Zuo Meng Industrial Co., Ltd. and Guangzhou's Pai Si Bao dress and adornment Co., Ltd. have occupied the largest share of WAL-MART clothing area.

According to a press survey, more than 50 new suppliers have been added to nearly 60 WAL-MART garment suppliers in more than 4 years.

In addition to Li Ning Co's more famous companies, many of the new suppliers are obscure SMEs.

Even 6 failed to find registration information on the website of the local industry and Commerce Department.

Among the garment enterprises leaving WAL-MART, Shanghai has been the top five in the top 100 Chinese apparel companies for many years. Hangzhou banana dress was once one of the top 100 garment profits of China Garment Association in 2006.

One of the biggest suppliers of WAL-MART, Guangzhou Pak Po Garments Co., Ltd., which sells clothing brands in WAL-MART stores early is mainly "BOOZ" brand men's wear. In 2011, the "Pao" brand disappeared, replaced by "bin Na", "Peony Square" and "Tusa" brand, respectively, in men's wear, women's wear and sportswear.

According to the information of Beijing industry and Commerce Bureau, in the exposure information of the Bureau in 2007, Burles's "BOOZ" (Bao Zhuang) brand high-density shirt sold and sold at WAL-MART store in Beijing was unqualified.

Supplier problems should be emphasized.

Yang Qian, director of the Beijing business cadre management institute and director of the China supplier research center, said that replacing suppliers from a large supermarket like WAL-MART is a normal thing. There is no way to accuse it. But from the supplier's point of view, the replacement of such a large area of suppliers is a very painful matter.

He said that we should know more about the reasons for the replacement of suppliers and see what factors are at work, so as to protect the legitimate rights and interests of suppliers.

A garment supplier in Hebei said that it is not normal for WAL-MART to replace suppliers in such a large area.

He said that if a supplier can earn money in a supermarket, he will not leave. The replacement of WAL-MART clothing suppliers is so large that it is not normal.

Shandong yuan Ding Law Firm lawyer Zheng Zheng told reporters that in the past 4 years, WAL-MART has seen a large area of replacement suppliers, indicating that WAL-MART not only controlled the end of circulation, but also gradually controlled the producers.

He hoped that suppliers could set up their own organizations and have equal opportunities to negotiate with supermarkets.

In the control of circulation channels in supermarkets, Dan Zhengguo, who is responsible for Su surname trade in Hainan, is highly consistent with Mr. Dan Zhengguo. He said that the status of suppliers and WAL-MART is seriously unequal. There is often no way to talk about it every year during negotiations. However, he refused to disclose to his Kee the "bullying" situation in dealing with WAL-MART every year, which only indicated that they had no longer been a supermarket channel.

The woman who answered the phone call from the Suzhou clothing company said that the company's cooperation with WAL-MART was due to the fact that there was still a lot of stock left. At present, new channels were found and stocks were reduced.