The Result Of The Blind Expansion Of Garment Enterprises

At the end of 2010, Anta plans to expand Anta stores in 2011.

The same is true of Fujian sports shoes enterprises 360 degrees, also announced that it will maintain its annual expansion of six hundred to eight hundred stores.

Followed by many domestic sporting goods brands.

The sports brand is catching up with the fashion, and the clothing brand seems to be unwilling to be lonely.

Seven wolves recently announced that the company intends to issue additional non public stocks, raising about 1 billion 800 million yuan of funds, all for investment and construction of "marketing network optimization project".

The announcement shows that in order to optimize and enhance the market competitiveness of the sales network of the seven wolves, the sale terminal will be increased by 1200, including 60 flagship stores and 300 franchised stores, and 140 flagship stores and 700 exclusive stores.

According to statistics, as of June 30, 2011, there were 3576 sales terminals in seven wolves, including 28 living houses, 3189 exclusive stores and 359 flagship stores.

After the implementation of the fund-raising project, the company's sales terminal will increase by 1200 to 4776.

According to the seven wolves, the total investment of the project is 2 billion 66 million yuan, the investment amount of fixed assets and related decoration costs is 1 billion 936 million yuan, the circulating fund is 130 million yuan, and the project construction period is 30 months.

At the same time, Li Lang is also accelerating the pace of opening stores.

In the first half of 2011, the main brand LILANZ increased by 83 stores, with a total number of stores reaching 2888. The number of L2 brands established last year reached 137. The company plans to open 200-250 LILANZ stores and 150-200 L2 stores in 2011, and 20 flagship stores.

Semir released its semi annual report in 2011, showing that its main business income was 3 billion 9 million yuan, an increase of 36.64% over the same period, of which 2 billion 193 million of the leisure apparel business income increased by 32.3% over the same period last year. Barbara, a children's clothing, continued to maintain high growth, operating income 757 million, an increase of 57.48% over the same period last year. It may be encouraged by the profitability and market development potential, and Semir also raised the banner of "expanding shop".

According to the data, the income of Semir casual wear will grow at 30% per year, and children's clothing income will grow at 40-50%.

In 2011, the number of Semir stores will increase by about 700, and its children's wear brand Barbara store will add 700-800.

Unwilling to make clothes for others.

An insider gave the reporter an account: the store which opened on the commercial street is the main expense. According to the size of the shop, the cost per year is basically several million yuan. If the business is light, the sales volume of many stores can only be up to the rent.

He said that the annual rent of millions of dollars, sales can only be several million, excluding labor, electricity and other expenses, the owner did not make much profit.

The continuous rise in the rental of shopping malls is even worse.

Recently, the top ten ranking of the top second retailers in the Asia Pacific region in the ten quarter were listed as second and ninth of Orchard Road market and suburban market as commercial real estate in Singapore. The other eight high-end retail markets were swept by China's Beijing and Shanghai.

The rental of shopping malls in the Wangfujing area of Beijing increased by 100% over the same period last year, reaching 413 dollars per square foot in the year.

Liu Xiaoguang, chairman of the first real estate industry, said in a media interview that "the next 10 years will be the golden 10 years of commercial real estate, and will usher in a prosperous era of commercial real estate."

He said that the judgment of this opportunity is based on changes in the consumption structure of China, and the rental of shopping malls will continue to rise.

It is reported that in the first half of this year, the price of shops in Guangzhou has also been generally promoted. The number of shops in the first tier street has increased by 15-20%, and the rent has increased by about 5%.

"The rent increases and sales volume decreases, and the profit margins of enterprises are further reduced."

A merchant who runs a department store in the Yiwu business city said that the store had to increase the rent by 50% on the basis of the current rent, and it would pay 10 years at a time. This kind of requirement could not be accepted by merchants.

As an enterprise, the importance of channels is not important. However, the rising rental of shopping malls is one of the reasons why many clothing and sports brand enterprises are busy financing shops, shops and outlets, and even many garment enterprises have begun to invest in commercial real estate and seize the terminal advantages.

In September 23rd, Shanshan combined with Mitsui Real Estate Co developed the commercial plaza of Ningbo Shanjing ooles Commercial Plaza, and at the same time, the design of Ningbo landmark, a city landmark complex jointly invested by Shanshan and another Japanese consortium, Itochu, was also unveiled for the first time.

It is reported that the Ningbo center is the landmark of the future Ningbo new town. It is expected to be completed in 2017. After completion, it will integrate high-end shopping centers, ultra platinum five star hotels, international grade A office buildings and hotel apartments into one body. In September 23rd, the more than 150 famous international brands, such as Burberry, Prada, Versace and so on, will be brought together by the famous brand discount shopping plaza, which is directly opened by international brands.

Wahaha Group Chairman Zong Qinghou also said that to build ShoppingMall (shopping center), the first pilot selection in Shangqiu, Henan.

Even more surprising to the outside world, he said Wahaha had to build 100 shopping centers in 3 to 5 years.

In addition, the red bean group, which has been engaged in the field of real estate for several years, has been moving frequently, and its real estate business has been expanded several times.

YOUNGOR's commercial real estate business has also been very popular. Despite the new deal in the first half of this year, it is still expanding its real estate business.

With capital, management and other risks

"Did you open the bill today?" at noon, Zhao Xiaozhan, a salesperson at a shopping mall in front of the counter, asked the salesperson of another sports brand, who shook his head helplessly.

Anta announced in October 31st that its number of stores in 2011 dropped from 8200 to 7800-8000.

Yang Dayun, President of UTA fashion group, said that the 08 year financial crisis has shifted from the financial level to the physical level. The growth rate of sporting goods has obviously declined, while the net profit of Lining has fallen by 42% over the same period. XTEP's inventory is excessive, and the Anta and 31st degree enterprises have lowered their orders and growth plans this year.

"Recently, clothing and sports brand companies have substantially increased the retail price of their products. The average price of the 78 listed companies has increased by 12% to 13%. In the autumn and winter of 2012, the market will respond to the increase in clothing prices, and the pressure on clothing sales will increase greatly."

Yang Dayun said.

According to the insiders, in view of the fact that clothing prices, consumption growth slowed down and sustained high inflation pressure have a certain impact on consumption, coupled with the rising operating costs of retailers and the backlog of sales channels, the competition in China's apparel retail market has further intensified and the garment industry is facing greater challenges as a whole.

The consequences of blind expansion are excessive burning, increasing operating costs and making them indebted.

Li Guangdou, a brand marketing strategy expert, said that the large-scale expansion of the clothing industry must maintain enough cash flow to maintain its normal operation at high speed.

He believes that behind the "horse race enclosure", the market accommodation limit, marketing management level and so on torture the expansion of clothing enterprises terminal expansion.

In the short term, large-scale terminal expansion will bring more cost burden to enterprises and bring more challenges to management and management.

"The faster the expansion, the greater the external impact of the capital, and it is very difficult to fundamentally control the risk."

Li Guangdou said that if too much money is used for expansion, then the demand will be sluggish, and it will easily suffer the worst.

As a matter of fact, after the rapid expansion of last year, sports brands and clothing brands are having a hard time this year due to the huge shrinkage of inventory and consumer market.

"As the price goes up, the sales of these brands in China have declined, which has a great impact on the performance of these companies."

One industry insider said that the road to terminal expansion shows that garment enterprises and sports brands are upgrading and upgrading. However, a large number of storefronts require higher capital operation, enterprise management, especially p regional management, which requires enterprises to improve in practice.