Guangzhou'S Winter Clothing Is Strong.

Since the beginning of this year, many domestic leisure sports apparel brands have been caught in a haze.

Spring comes.

Discount sales promotion inventory! Reporters learned that in Guangzhou's major department stores, merchants in order to digest inventory is also a pain in the air, heartache unceasingly: no promotion, inventory consumption can not go out; promotion, both lose this, but also easy to damage the brand image.

Sales doubled every year, but profits did not increase or decrease. All the hard earned money all year round was stored in the warehouse.

In fact, for the entire garment industry, excessive inventory has become a major problem affecting the development of the industry.

Market

After the holidays clothing discount is crazy.

Reporter Street inspection found that many clothing stores discount is lower than before the festival, many department stores and clothing stores are hanging out "special sale", "enjoy the discount," and other promotional advertising, and the biggest discount is nothing more than leisure sports clothes.

The discount rate is almost under 60 percent off.

Not only did the winter clothing fold up, but also spring clothes started a new round of discount activities. Some of the new listed spring dress discounts even reached 30 percent off.

Gao Jianguo, general manager of Huayi department store, said that last year's clothing inventory was serious. The styles and fashion styles of the clothes were different each year. Once the goods were pressed into the next year, they would cause serious unsalable sales. Therefore, merchants would choose to clear the stock in the same season.

In recent years, the price of clothing has climbed year by year, and many consumers are buying more than two items after discount.

Xie Shiping, managing director of Mei Dong department store, said that the department stores should not be rich in dealing with the declining environment of sales. Discount sales promotion is definitely the mainstream.

"The discount, time and density of department stores may increase this year."

According to the reporter, the department store has just launched 400 to 1000, and immediately launched a 100 yuan reduction of 60 sales promotion, modern department stores will launch a promotional promotion around Valentine's day, and shinguang department store has launched 1 yuan for 3 yuan activities.

Crisis

Red light on stock warning line

"At present, more than 80% of the product structure of casual wear industry is inventory, and most enterprises are selling stocks."

One of the top clothing brands told reporters.

There is a saying in the clothing industry that if a piece of goods has not been sold for 30 days, it will probably become a dead product. This is called "brick".

Among them, weather factors, financial crisis sequelae and rivals are everywhere, which are regarded by Brand Company as the crux of high inventory.

In fact, according to the normal operation of the clothing industry, the scope of 10%-20% is regarded as safety stock, that is to say, the production of 1000 clothes, of which 100-200 belong to stock, is a common practice, which is also within the controllable range of garment enterprises.

However, as the international economic environment changes, on the one hand, exports are blocked; on the other hand, the intention of domestic distributors to purchase orders is also weakening.

The reduction in volume is directly attributable to the negative impact of the downturn in the clothing market in 2011 on dealers' confidence.

Reporters learned from relevant information: according to the National Bureau of statistics, China's CPI rose 4.5% in January, up 0.4 percentage points, with clothing prices rising 3.3% over the same period and 0.5 percentage points lower than the annex. Data from the General Administration of Customs show that in January this year, China's textile and apparel exports totaled 21 billion 519 million, down 0.42% compared to the same period last year, the first negative growth after the financial crisis, of which textile exports fell 6.80% over the same period last year.

Phenomenon

Sports and leisure are the most serious.

In the past 10 years, there are a number of representative enterprises in Fujian, the leading leader of the domestic sports apparel industry, besides Lining.

In just a few years, every business is strong.

However, in recent years, the development of sports apparel industry has been expanding too fast, resulting in a backlog of inventory.

Secondly, under the domestic inflation environment, consumers have the tendency to reduce the consumption of sports goods, and the bias increases the pressure of inventory.

Moreover, as casual clothes and sportswear styles are more similar, local leisure brands with large quantities of low price and fast filling and loading capacity have also sprout up everywhere and snatch some markets.

In addition, in 2011, ZARA, H&M, UNIQLO and many other international brands entered the Chinese market unprecedentedly, and will continue to strengthen in 2012.

Because of the continuing downturn in European and American markets, the desire of European and American clothing giants to seek a way out in China's emerging markets will also be fierce.

The introduction of foreign brands is a great pressure on domestic enterprises.

Several manufacturers specializing in sportswear in Baiyun District revealed to reporters that orders for this year were very poor, and there was a lot of backlog in the warehouse. Almost no one ordered new products.

"Sportswear inventory is serious, actually appeared a few years ago, but only recently broke out."

Xie Shiping, managing director of Mei Dong department store, said.

He believes that the positioning of sports brand and leisure brand in China is not clear, the style of brands is identical, and the phenomenon of homogenization is more serious. Only through some basic performance of advertisements can we appeal for some differences. In fact, there is no strong irreplaceable effect on the end consumers.

Way out

Guarantee cash survival

Huge inventory has become the sword of Damour lees hanging on the top of producers and distributors. It seems that whoever can clear up inventory will get the chance to survive.

Reporters learned that for the digestion of inventory, the current clothing brand enterprises and distributors of enterprises in general is nothing more than the first level of inventory pfer.

Many of the agents and franchisees at the lower level take the form of discount sales, opening "sewer" shops, holding special sales and so on, and sell them through the mass promotion of terminals.

Although these methods can play a certain effect in a short time, they can not fundamentally solve the problem.

"The retail market is a barometer of the economy!" Huang Wenjie, President of the Guangdong provincial Circulation Association, sighed. He revealed that in fact, not only sports and leisure clothing, but the serious phenomenon of inventory at present almost existed in the entire garment industry. As the bulk of the retail market, the weakness and unsalable sales in recent years fully illustrated the current economic situation.

Huang Wenjie believes that the hardness of the brand is not enough, it is also difficult to resist the storm.

"Inventory is serious, not a sudden rise in a day, in fact, China's clothing industry has always been, but when the economy is good, we do not feel the problem.

Now, with the economic downturn, the problem has naturally emerged.

Huang Wenjie believes that for a single enterprise, the most important thing is to survive, so reducing production scale, cash in inventory and ensuring good cash flow are the most effective short-term measures.

In the long run, if enterprises want to break through development, they have to work hard to develop new products, and expand new marketing channels, such as network sales and catalogue sales, so as to get rid of the current situation of unsatisfactory market sales.

With regard to the serious inventory problem in China's clothing industry, Huang Wenjie believes that this is an opportunity for adjustment. Through this crisis, China's clothing brands will grow in experience.

It is foreseeable that the economic recovery in the future will take a long-term process. Only by resisting the long-term difficulties, constantly upgrading and adjusting our brands, will we be able to grasp the opportunity to turn over the development in the next round of market improvement.