Who Will Break Through Billions Of Dollars In Clothing Industry? Internet Marketing Is Very Popular.

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It took twenty or thirty years for many Chinese electrical manufacturers to develop to 10 billion yuan in sales, while Suning and Gome achieved hundreds of billions of dollars in just over a decade, and the charm of retailers' brands is evident.

According to statistics, the annual demand of domestic garment industry reaches 1 trillion yuan, increasing by 15% annually.

However, there is not a clothing enterprise annual sales volume can reach 10 billion yuan.

Sales loss $10 billion

According to observation, in the 2010 fiscal year, Quanzhou's clothing brand entered the first tier, the business income of nine Mu Wang was 1 billion 675 million yuan, and the seven wolves were only 2 billion 198 million yuan.

By contrast, the Spanish fast fashion brand ZARA, which has entered China's first tier cities, has an annual sales volume of nearly 100 billion yuan, and its annual growth is still around 10%.

Why is the gap so large?

"The way that domestic clothing enterprises go through is mostly to make manufacturer's brand first, then make the merchandise brand, then do the retailer brand.

According to this model, it is very difficult for enterprises to move forward if they achieve several billion yuan.

Ding Huiru, chairman of Limited by Share Ltd, said.

Even the famous clothing brands YOUNGOR and Shanshan have had to diversify in recent years.

Ding Hui pointed out that everyone is very clear that if the traditional commodity brand mode is to be developed, it is difficult for domestic garment enterprises to make sales of ZARA, UNIQLO and H&M.

Internet marketing is very popular.

Many garment enterprises in Quanzhou are trying to innovate channels.

At present, clothing companies including seven wolves have adopted the "two legged" walking mode of Direct stores and League stores.

However, facts show that although the direct store can carry out the strategic intention of the enterprise well, the cost is too high, and many image stores and flagship stores are losing money for a long time.

In addition, significant changes in consumer behaviour are also playing a role.

Yang Shuqing, director of marketing department of Huaqiao University, said: "the younger generation, especially after 90, prefer the mass and convenience of online shopping."

Since 2008, the apparel industry in Quanzhou has begun to try online marketing.

According to the introduction, many large enterprises set up online franchised stores. Compared with the physical stores, the discount is greater, and the gifts are the same as the physical stores. Therefore, they are very popular with young fashion people. "Online shop is a breakthrough in the traditional channels of Quanzhou clothing industry in terms of concepts and forms."

Calling retailers brand

However, we soon discovered that online stores will not completely replace physical stores.

As Xu Yuanzhao, an inspectors of the Municipal Economic and Trade Commission, said: "in developed countries, over 80% of commercial retail sales are still completed by physical stores, while domestic online stores are in an upward stage, but their sales share is not high."

Fundamentally speaking, the virtual channel has not changed the role of producer in Quanzhou's clothing industry. Therefore, it will not be a strategic direction for Quanzhou's garment industry to break through.

Yang Shuqing told reporters that the business model of ZARA, UNIQLO and H&M retailers has created the marketing miracle of clothing industry.

It is precisely from this point of view that since 2006, Quanzhou garment enterprises represented by the vice president have pformed from producer brand to retailer brand and promoted the pformation and upgrading of Quanzhou's garment industry.

For the leaping development of industrial clusters, Quanzhou needs the brand of apparel retailers with worldwide influence.