"Mopping Up" Investment Disrupt The Children'S Shoes Industry In Jinjiang

Not long ago, Mr. Zhu, the boss of a well-known shoe manufacturer in Jinjiang, was sorting out what he had just opened.

What causes the reduction of orders this year? After Mr. Zhu's careful understanding, the environment may be a factor, but aside from the problem that the whole industry is facing, another factor may also be a direct reduction in order quantity.

Originally, Mr. Zhu learned that the K brand began to invest vigorously last month, and its order volume this year will advance by leaps and bounds.

In this regard, Mr. Zhu speculated that the decline in ordering quantity of his own business and some other industries is related to the investment conditions of K brand.

"The franchised shop to join the investment conditions are all zero inventory of shoes! Attention, is the distributor zero inventory, not the enterprise zero inventory, the distributor is completely risk-free.

This will naturally increase the quantity of the order of the brand, as well as the quantity of other brands.

Reporters then searched the K brand's investment conditions on the Internet, and found that the investment conditions of the brand were really tempting: "franchised stores join the zero inventory policy! Free goods, sold for money again! The whole set of shelves is free of charge (including: cash register, rack, POP, test shoes stool, central island cabinets, shoe glasses, advertising pictures, adhesive tape, Yi Bao Bao").

Reporters in the process of visiting also learned that, at present, the entire Quanzhou children's shoes industry, in addition to a leading young brand dealer is only a brand agent, the rest of all children's shoes dealers are acting several brands at the same time.

Because of this, the amount of ordering of other brands will be reduced because of the favorable conditions of a company's investment promotion.

In this regard, Mr. Zhu also said that his dealers also said impolitely, because the K brand zero inventory policy, probably only wanted to order them 10 thousand pieces of goods, now can be ordered 30 thousand or even 50 thousand pieces, and because of the limited channel resources, other brands will naturally be less ordered, less ordered is not only Mr. Zhu's brand, many of the original agents at the same time have reduced the brand.

{page_break}

Exploring the cause -- to make a comeback, to bend over to grab the terminal.

Reporters learned that the "zero inventory" condition is no longer a new topic, because whether it is in the adult shoe industry or children's shoes industry, as long as the shoe companies want to enter the integration of shoes and clothing, basically will use this trick.

But the premise is that we still have a little room for the "zero inventory" policy on new clothes, and shoes are still in the traditional prepayment order system.

However, for children's footwear industry, it is still the first time to sell shoes and clothing in the form of "zero inventory".

What is the reason for K brand to be "big"?

The industry believes that the K brand dares to do so because of the big investment in the past.

Because of the strong financial strength, the K brand dares to plan to overtake the curve at this time, and carry out "sweeps" investment with such "Crazy" conditions.

Reporters learned from the company's responsible person, the K brand had carried out a shoe and clothing integration process in the year before, but the order was opened, but the product failed to get the terminal.

So, after a year's suspension, K brand is once again making efforts, and the industry is amazed by the intensity.

The person in charge also said that the company had little to do with VC involvement, but established strategy.

Moreover, there are certain conditions for the preferential sale of money.

In addition, the industry believes that the K brand's impact on the volume of peer orders, the responsible person does not agree, "mainly because of the large market environment."

The person in charge said.

Analysis - "complete zero inventory" is a double-edged sword.

Killing a colleague can hurt himself.

What is the advantage of the "zero inventory" subversion of the shoes and clothes to the traditional mode of investment promotion?

Mr. Zhu believes that in such a big environment, he would rather keep a little bit and stabilize the market, and he will not expand blindly.

"Look at this position, K brand should be devoted to the whole body to sprint next year's market.

Such risks are so great that they are fearful.

In this environment, if there is no absolute luck, if it is a wrong step, it will return to the eve of liberation. "

Mr. Zhu told reporters that such a free delivery of goods, and then sold the conditions to give money, is indeed to achieve the dealer "zero inventory" dream, but also allow enterprises to take all the risks, this is not a move who dare to put the tough strokes.

{page_break}

Prior to this, reporters from the children's shoes brand X enterprise advocates ladies understand that its brand has just realized the integration of shoes and clothing this year, in order to let dealers quickly accept the clothing, X brand investment conditions are also "sell" clothing "zero inventory" way to launch.

However, nowadays, the "zero inventory of children's wear" has already made some trouble for the enterprises.

"At the beginning, we said zero inventory, dealers would order large quantities, anyway, they can't sell them back, so they are orders without worries.

Dealers now say that clothing prices are too high, and because of the early children's clothing market, the team is also lack of clothing sales experience, and now the market sales are very bad.

Ms. Zhang reluctantly complained to reporters that the massive inventory of children's clothing left behind by zero inventories is now in the warehouse, which not only makes the funds flow tight, but also affects the children's shoes market that they have done well.

"Completely zero inventory is a double-edged sword, killing colleagues, but also may hurt themselves."

Ms. Zhang said.

"This method of market grabbing is really swift and violent, but the risk is great, which makes us fear."

A shoe industry insiders believe that letting dealers have zero inventory means that they do not order according to the real demand of the market. They do not order according to the data of the terminal, but rather a subjective desire of the brand enterprise, which is expanding blindly and madly.

Of course, there are people in the industry who are optimistic about the K brand's "mopping up" business expansion mode.

"Children's shoes and children's clothing industry is playing an important role in the industry, but it has not yet formed an absolute leader. If a brand is supported by powerful funds, it can quickly open up the situation through differential investment and expand the terminal, so it will play a direct role in promoting brand promotion and channel development."

The personage expresses, venture capital is dare to intervene, to a certain extent, it shows that the market of children's shoes is broad and there is indeed an opportunity to grasp.

{page_break}

Full "zero inventory"

It can be realized through lean management.

For the above mentioned phenomenon, Liu Renjie, a well-known lean management expert, said: "if K brand is just to sprint the market and expand the terminal quickly, this mentality can be understood, but this way is too risky. If there is no other purpose, this way is not acceptable."

In Liu Renjie's view, the realization of "zero inventory" is indeed the realm that most businesses and distributors are eager to achieve. However, such a state requires a lot of management conditions to be close to reaching.

Liu Renjie suggested that we want or are launching the "zero inventory" investment conditions. If it is to sprint the market, in order to resist risks, it must be managed from the aspects of production end and logistics.

"In fact, if the management of enterprises reaches a certain level, it is not difficult to achieve zero inventory."

Liu Renjie said that enterprises can make zero inventory management through the pformation of lean management.

For example, we can import the production through the target, analyze the order data of the dealers, and then achieve the phased production and phased production, so that the products produced are all sold, not the backlog stored in the dealer's warehouse and store.

In fact, this kind of goods can be continuously patronized by customers.

"This is the concept of" shop management "that I have always advocated. How many products can be put on the shelf, and how much the manufacturer will produce, and will never produce more products that can not be put off.

Liu Renjie said that such a zero inventory can withstand zero risk inventory.

But in order to replenish the goods at any time and let the shelves do not run out of stock, we must achieve reasonable management and control in production management, and smooth logistics management.

"Zero inventory policy for franchised stores", "free goods", "sold for money"...

In recent years, a brand of children's shoes in Jinjiang (hereinafter referred to as "K brand") has made an astonishing slogan, completely subverting the brand investment mode of traditional children's shoes, and is called the "sweeping style" investment promotion by the industry.

K brand does not follow the routine mode of investment promotion, so that many Jinjiang children's shoes enterprises that are attracting investment in the same period have been hit. Many agents rush to the K brand's attractive conditions and rush to the K brand.

The practice of K brand "scrambling" investment mode has aroused great controversy in Jinjiang children's shoes industry.

Then, what kind of promotion effect does this "mopping up" investment mode have on the brand itself? What is the impact on the development of the whole children's shoes industry?