Men'S Clothing Industry: Channel Struggle To All-Around Effort

"Judging from the market performance of the semi annual report,

Channel struggle

At any time, the channel is always the focus of the battle for men's clothing market.

This year, the channel struggle has changed from traditional channels in the past to all-around efforts.

Achievements

Weak areas of strength

from

For Li Lang, the growth rate of overall sales growth in the northwest region was the highest, and the growth rate in the first half of this year reached 48.7%, the most prominent one in Shaanxi Province, with an average growth of over 30% in the same store.

In the semi annual report, the king of nine Mu also made clear that he hoped that Future Ltd would increase its market share in the southwest, northwest and northeast areas in order to maintain steady growth in key areas.

During the reporting period, the company's operating income in the northeast region increased by 48.79% over the same period last year, making it the fastest growing region in the company's revenue.

However

Online store performance highlights

Since the beginning of this year, e-commerce has become the focus of every major brand in every industry in Quanzhou, and so is men's clothing.

Among them, the king and the seven wolves are most active and the most fruitful performance.

In the first half of the year, the seven wolves won a lot in online sales. The official flagship store, the official mall and Taobao official website achieved a total sales of about 32 million yuan, up 400% from a year earlier.

"In the second half of this year, we will continue to promote the network sales mode, which will be launched in the second half of the year.

Seven wolves executives believe that the rapid growth of Internet sales is expected to contribute positively to the company's net profit growth in the future.

and

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difficulty

Shop rental pressure

With the macro-control of the real estate industry, indirect promotion of store rents increases, which also brings great cost pressure to the expansion of men's clothing stores, especially direct stores.

This year, the seven wolves increased the proportion of direct outlets as an important strategy. In the first half of the year, 51 shops were directly owned and 439 directly operated.

"But the increase in operating costs mainly based on shop rents brings great pressure."

Seven wolves executives believe that the high price of terminal property still constitutes the biggest pressure on the industry. Meanwhile, the snatching of terminal resources by various companies has increased the price increase.

To this end, we should increase market support, solve the most needed capital problems of dealers, and ensure the effective implementation of relevant marketing policies and supporting policies.

At the same time, the innovation cooperation mode, under the premise of ensuring the risk controllable, will promote the construction of the company's direct operation system, and it has become a new thinking direction for the seven wolves.

Insiders predict that this will affect the expansion of the seven wolf outlets.

Li Li, the Chinese newspaper, is also Frank.

Compared with other Fujian style menswear brands, the biggest advantage of the nine Mu Wang has always been direct battalion. The company has a higher proportion of its own production. With the "vertical integration" supply chain management, it can effectively achieve quick replenishment production and further improve the company's profitability.

Data show that the nine Mu Wang is still headed by the layout of a second-line department store, and its direct battalion accounts for up to 36%.

"This constitutes the competitive advantage of the company in the business casual men's clothing industry."

The industry generally thinks so.

From the perspective of development space, at present, nine Mu Wang has been relatively full in department stores in the second tier cities.

To this end, in the Chinese newspaper, nine Mu Wang proposed: "the terminal density of the company's two or three tier market is not high, and it is actively distributing in the two or three tier cities. As at the end of June, it increased by 157 outlets at the end of last year, obviously accelerating compared with the previous two years."

If we look at the franchised stores in Quanzhou and Yangzhou, we can see better profitability.

Successively resorted to coping strategies

In the face of heavy pressure from the channel, men's clothing has also increased the integration of supply chain, and the price increases are continuing.

Increase supply chain integration

In order to cope with the above pressure, men's clothing brand is also constantly strengthening its inherent marketing strategy to promote the integration of supply chain.

During the reporting period, the seven wolves have successfully completed the establishment of the business team, and the retail oriented internal process adjustment has been initially integrated.

The smooth running of the corresponding team will lay the foundation for the strategic pformation of the company.

It is reported that in order to achieve "wholesale" to "retail" change, the first half of the year seven wolves focus on terminal shops rectification, involving terminal decoration, staff service, product display, promotional policies and other series of terminal marketing programs implemented in the store, and achieved good results.

Seven wolves executives said that in the first half of the year, the expansion of the channel was mainly direct camp, and the second half of the year would be "channel integration" to enhance internal management.

"Later, we will continue to develop rapidly by improving the layout of the two or three tier cities, increasing the single store area and the efficiency."

In the half year, the company announced that the company will improve the layout of marketing network in the second half of the year, continue to enhance the operation efficiency of the store, strengthen the terminal operation and management capability, and standardize the construction of the retail operation system.

At the same time, we should strengthen the company's ability of product design and research and development, and establish a leading position in the leading position of "differentiation of raw materials, version diversification and design internationalization", optimize supply chain management, and enhance the quick response capability of supply chain.

It is understood that the "vertical integration" mode is adopted by the nine herding kings, which covers all aspects of men's product design and development, production, marketing, promotion and retailing. The products are mainly self-made, and the processing and production are supplemented.

"The profitability of the company is at a higher level in the industry. Its gross profit and net interest rates are higher than those of other listed companies in the industry. This is mainly due to the vertical integrated operation mode established under the efficient supply chain management, so that the company can fully share the profits in all aspects of the whole industry chain."

In the first half of the first half of the year, in order to improve production efficiency, Li Lang promoted the "demonstration single pipeline" production process pformation, thereby greatly increasing profit margins. It is reported that the so-called process pformation mainly refers to the comprehensive effective utilization of personnel, equipment and logistics, and the balanced production of each unit is organized, planned and targeted.

After the pformation, the production cycle is greatly shortened, the WIP inventory is reduced, the production space is saved, the number of defective products is reduced, and the production efficiency is greatly improved.

The price increase will continue.

In the face of rising prices of raw materials and rising labor costs, prices will continue to be the trend of men's clothing in the second half of the year.

Wang Dong Xing, chairman and executive director of the company, said that the average sales price of the group increased by 13.2% and the sales volume increased by 15.8% during the period. It is expected that the output will increase by more than 10% in the second half of the year to offset the rising pressure on the cost of raw materials and labour.

Other men's clothing brands also expressed the idea of raising prices.

Shenyin Wanguo analyst Wang Liping predicted that the men's clothing performance in the second half of the year will still be bright.

"As a leader in the industry, the nine men's clothing has strong brand advantage and price raise ability.

With male trousers as the leading quality products, high brand premium takes up more scarce resources in the first tier city stores, and vertically integrated operation mode and flat channel mode create the most profitable company in the same industry.

Wang Liping believes that in 2011, the overall sales volume of clothing home textiles will not increase much as a result of the increase in product prices, and the growth of performance will come from the increase in gross margin brought about by the increase in prices.

Therefore, he is more optimistic about the high-end high-end men's clothing and home textile market with high price increase, high unit price and insensitivity to customers.

This year, with the promotion of FUN strategy by the king of nine herd, it is also announced that the men's wear of Fujian faction will usher in the era of the emergence of sub brands.

"The acquisition of FUN by the nine herdmen is not a" whim "but a judgment of the development trend of the entire garment industry.

Lin Congying, chairman of the nine Mu Wang, believes that the change of work and lifestyle has made more and more consumers pay attention to their personality, which has provided a broad space for the development of fashion casual clothes.

Due to the fact that King Mu has concentrated on business men's clothing for many years and has some distance from young people's leisure fashion market, the acquisition of FUN is just to make up for this market vacancy.

In fact, it is not just the nine herd kings who focus on fashion and leisure.

At the beginning of the year, the SWJEANS flagship store of the seven wolves was in Wuhan's high-profile appearance. The industry generally believed that SWJEANS, which was dominated by the youth fashion series, was the sub brand that the seven wolves set up for the development of new products.

"Achieving the manufacturing industry - Retail Industry - the leap of fashion industry" has become the ultimate goal of Zhou Shaoxiong, chairman of the seven wolves.

The launch of L2 is the market segmentation of Li Lang under the concept of business men's wear, mainly for young fashion men.

Although L2 lost 5 million 400 thousand yuan in the first half of the year, the chief executive of Li Lang is confident that he will break even this year.

China also disclosed that total orders for "L2" increased by 135% in the autumn and winter order meeting held in January and April this year.

But objectively speaking, after launching the sub brand targeting young fashion people, business men's clothing has to face a new topic: there are big differences between different brands in terms of design style and operation mode. Can the experience of managing traditional brands support the operation of new brands?

In order to avoid these problems, men's clothing brand is generally designed to set up a brand new design marketing management team for sub brands.

In order to operate FUN, Lin Congying founded Mars (Xiamen) Cci Capital Ltd, and set up a professional team with foreign capital background to run the brand.

Similarly, Li also set up another brand new team in Shanghai to run the second brand L2. The group elder only makes strategic decisions, and the concrete operation is not allowed to set foot in.