1 Billion 500 Million Business Models For Tail Cargo Change

There is such a group of data: from January 2010 to September, the clothing production of Enterprises above designated size was 20 billion 260 million pieces. In January 2010 ~8 months, China exported 19 billion 270 million garments and accessories. According to the 5% ratio of tail cargo, the total number of tail goods produced by China's garment processing industry exceeded 1 billion 500 million in the first 9 months of 2010.

Although the concept of tail cargo has been put forward for a short time, the fact that the tail cargo produced in the whole production and circulation links is coexisting with the development of the garment industry. Besides, China, as a huge world processing market, has also occupied a larger share of foreign trade. It is these prices ranging from low to a few yuan, but the quantity is increasing at the end of the stock market, which has changed and spawned a brand new commercial mode.

The business model of the tail cargo was "named".

"Tail cargo" refers to "inventory backlog products that are generated in the production and circulation links, which meet the relevant national standards in terms of function and safety, including products produced outside the company's orders, cancelling the finished products of the enterprise orders for some reasons, and selling the remaining commodities in the circulation process."

Recently, the market economy Research Institute of the State Council Development Research Center, as a research and support unit, held a seminar on "business mode innovation and Tian LAN tail cargo development strategy". It was held in the Great Hall of the people in Beijing. As a topic, the Research Institute of the State Council's development and Research Center, the market economy research institute, has, in a sense, been a "distinction" for the tail goods business that has been associated with both the folk and garment industries. The tail cargo business has entered the stage of scale and commercialization from the spontaneous and disordered natural survival stage, and the corresponding "planning" has also played a role in boosting fuel.

Liang Jiliang, a commercial real estate planner and general manager Wu Da Bureau, the general manager of Tian LAN, is one of the foresight. They see more business opportunities related to these 1 billion 500 million pieces of goods, that is, a business involving clothing, commerce, real estate and even the media.

Hong Tao, Professor of China Industrial and Commercial University, said that China is a large manufacturing country with large stock of tail cargo produced annually. This shows that the production of tail cargo is inevitable.

The large amount of inventory produced by our manufacturing and circulation industry needs to be digested every year. Expanding domestic demand, stimulating consumption and optimizing resources need tail cargo. This shows the necessity of the production of tail cargo industry.

New business opportunities in the eyes of Wu General Bureau

In 2006, the general manager of the 100 percent company in Beijing, Wu General Bureau, encountered hundreds of cheap shoe stores, clothing stores, backlog of inventory commodities, occupied most of the working capital, and at the same time, Wu saw a huge business opportunity to deal with the stock of tail cargo.

In 2007, Wu took the advice of Liang Jiliang and set up the first store of Tian Lan's tail goods, the city of Tian LAN.

It combines with manufacturers and general agents to sell at below wholesale price and cost price, with considerable profits.

After seeing the good sales momentum of Tian LAN, the manufacturers asked to enter direct sale in Tian LAN, and Tian LAN quickly developed to 8 shopping malls.

In 2007, Tian Lan's first store opened.

Subsequently, Muxiyuan Tian LAN tail goods mall, Big Bell Temple Tian LAN tail goods Oteri J, Tian LAN ancient city store, apple orchard store, Liuliqiao Tian LAN tail cargo flagship store, Tian LAN tail goods Zhengzhou Jian Wen Dian, Zhengzhou 27 stores and so on seven Tian LAN tail goods entity shop has opened, the total business area is ten tens of thousands square meters, in 2010 sales volume nearly 2 billion, directly and indirectly promoted employment tens of thousands of people.

Tian LAN has become a pioneer of China's handling of inventory commodities.

Apart from standardizing the traditional business models such as unified store image, unified cash collection, unified sales, unified communication, unified management, unified management of staff clothing, and other traditional business models, Tian LAN has identified the main business.

The development of the tail cargo market needs to be considered.

A rapidly developing business mode can not be ignored. The tail cargo industry has experienced rapid development and blind expansion. At that time, signs of overheating were showing. In fact, this is also the way for every emerging industry to go. How to regulate the tail cargo industry and return to the rational development track, so that the operators of the tail cargo market are no longer interested in expanding the number of stores, but instead concentrate on the internal management and the shaping and refining of the internal competitive advantage in the tail cargo market, which takes time to precipitate.

In addition, Liang Jiliang mentioned that the cargo information of the tail cargo industry is very asymmetric, and the tail cargo operators who are in the supply demand side lack a most convenient access, and the tail cargo alliance may play a guiding role in balancing the needs of the industry.

Industry shuffling will inevitably change the pattern of garment market, and the high inventory of manufacturers will gradually decline due to the survival of the fittest and rising management level.

It can not be ignored that the contradiction between the tail cargo market and the genuine market still exists.

Shoes and clothing enterprises need to operate a brand successfully for 10 years or even longer. The low price brand clothing will cause consumers to question the brand. Most of the brand clothing enterprises are worried that the brand will be damaged.

China, as the world's largest producer of clothing and footwear, is facing not only the problem of product outlet, but also how much it can lower the cost price to solve the problem of huge inventory due to economic shrinkage.

For pattern innovation, e-commerce and large stock trading center are expected to bring about a new circulation reform in the tail cargo industry. The inventory needed by e-commerce is very small, and the distribution channel is more flat, which can basically achieve direct docking between manufacturers and consumers.

Because the tail cargo belongs to the manufacturer's inventory, it can not make use of the traditional distribution channels, and there are still narrow channels and poor circulation in the usual distribution channels of the tail cargo industry.

It can be said that the tail cargo industry needs more electronic commerce and distribution center than any other industry. The characteristics of e-commerce and distribution center are more in line with the tail cargo industry in the middle stage of development.

To solve the problem of channel, the most important is to carry out the most effective supervision of the market, such as the source and product of the products have legal "identity card", at the same time, there is a perfect and effective consumer complaint mechanism.

Whether the prosperity of the stock market is a temporary rise or a good business in the adverse market, the craze for purchase and the shopping mall in the large and medium-sized cities across the country have begun to stir up trouble.

More investors came to this market with a keen sense of smell. At the same time, the sources of good and bad commodities also directly affect the supply of goods in the tail market.

Large enterprises are not willing to let go of their pricing power. In the future, they will surely bring some risks to the balance of the market.

As discussed by the participants, the development of the tail cargo market and the rapid development of the commercial mode of the tail cargo can meet the needs of the manufacturers' working capital and low-income people in time.

However, standardization, legalization and scale are still important problems in the development. Especially in management, we must take safety, integrity and no infringement as the principles, and lose these principles, and any cheap market will lose its meaning.