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    It Is Inevitable That The Profit Space Of The Garment Industry Will Be Re Divided In The Future.

    2011/4/20 9:14:00 112

    Apparel Industry Profits Listed

    Zhou Zhou: the future, Garment industry Will the profit space be re divided? Which part of the industry chain do you think will be the most profitable link?


    Cao Yitang: it is inevitable that the profit space of the garment industry will be re divided in the future. industry The inherent law of development, the profit rate of the industry will be transferred to the links that create the most value recognized by the customers. Compare with Europe and America market In my opinion, product planning / design links, brand marketing links and retail terminal links are the most profitable links in the industry chain, and direct stores will be an important profit growth point for Chinese garment enterprises in the future.


    In addition to individual markets, almost all shops in ZARA are directly run to ensure that store image, display and pricing management are in line with the brand strategy established by the headquarters and the product planning strategy for quick response, and most of its stores are profitable. Here is a point to talk about. Everyone often mentioned that the ZARA product's lead time is very short, the shortest is only one week. In fact, the pricing and price management of ZARA is also very strong. For seasonal clothing industry, the correct pricing and price adjustment is the fastest and effective way to increase profits.


    According to McKinsey consultancy's research on the average profit and loss of the listed companies in the S & P 1500 index, if the total sales volume is unchanged, the price will increase by 8% every time, and the operating profit will increase by 8%, which is almost 50% higher than that of the raw material and the direct labor cost. The sales volume must be increased by 18.7%, which is enough to offset the impact of the 5% reduction on profits.


    However, at present, the sales scale and profit of many garment brand retailers in China rely mainly on franchise stores, and the direct stores are mainly used for strategic brand image and strategic cards. It is still a long way to go for the domestic enterprises to make profit from direct business and become a profit growth point in the future. However, there are also some new garment brands, such as elegant women's clothing, which have made progress in product planning, brand marketing and retail terminal operation. They have continuously improved the profits of direct shops, but also promoted the increase of profit margins of franchise stores.


    Li Guangdou: in the future, the profit space of the garment industry will be re segmented and gradually transferred to the terminal, that is, the brand will become the most profitable link in the entire industry chain. The development of China's garment industry is actually the process of brand growth and growth. LV sells well, Shanzhai LV is also popular, which is the power of brand. The clothing industry should grasp the vane and make the brand bigger and stronger. Then the value and profit brought by the brand will be an immeasurable wealth.


    Liu Hanlong: in the future, in the clothing industry, there may be a channel like the Gome and Suning, which is similar to the appliance industry, to grasp a large number of sales channels. With the rapid increase of the number of stores and the upgrading of the styles of goods, the rapid development of online stores will lead to a timely, accurate, fast and high frequency logistics distribution system, which will lead to the redistribution of the profits of the apparel industry chain. However, the current Chinese apparel industry chain model is interlinked, leading to the whole body, so it is difficult to make qualitative changes in the short term. At least 5 years, the brand will remain the most profitable link.


    Fang Zhong: the Shanghai Jie Jie Yang marketing planning institution that I serve is the brand concept: choose the right trend, take the elevator, choose the wrong trend and climb the stairs. The specific trend of the brand is as follows: Metersbonwe, Semir and YISHION establish the blue ocean of quantity and leisure; the seven wolves, the strong fighter and the talented person establish the blue ocean of business leisure category; Jack Jones, CABBEEN and KONZEN establish the blue ocean of fashion and leisure; Ayilian, Gloria and romantic Manifesto establish the blue ocean of fashion and little accomplishment; Saint West establishes the fashion business category blue ocean. Therefore, the strength of brand core competitiveness determines the volume of future brand profit space.


    Jin Keyan: the main profit of the garment industry in the future is still in the retail sector. Of course, as mentioned earlier, the retail sector needs to have a sense of crisis. To consolidate profitability, we need to find new breakthroughs urgently. The retail theory is far behind the competitive retail reality. There are four obvious manifestations:


    First, the concept of terminal promotion is relatively strong, but the concept of marketing is relatively weak, not even. What is marketing? Marketing is the influence of the terminal. What is the influence of the terminal? It is an interesting story happened at the terminal. Stories are highly disseminated. Second, the sales promotion means are monotonous and dull, giving consumers the promotion fatigue, and there is no reason for impulsive consumption. Before this new year's day, a woman's brand executive asked me how to do the new year's sales promotion. I said, "beautiful on New Year's day, buy clothes and send us dollars". They used it very well, causing media reports. This is the new sales promotion idea, which is the influence of the terminal. Third, the lag of personnel management theory has led to the lack of enthusiasm for the terminal staff, poor execution and difficult recruitment of outstanding personnel. Fourth, the terminal sales mode is lagging behind, and terminal staff's understanding of goods is very lacking. Goods can be their weapons. What should we do? In the "fifth generation retail profit model", the concept of "terminal special forces" is introduced to help solve this problem. The future retail sales must be strong. There must be a retail special force. Many brands have begun to pay attention to the new retail mode, or the phrase: the brand wins the terminal, the terminal wins the mode; the new retail era calls for the new retail mode.

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