Cost Disruption Of Clothing Stores Caused By Price Changes In Garment Industry

It is said that the Spring Festival in the Spring Festival is the coldest Spring Festival in recent years. But in the heart of the owner of clothing, Jane Kuosheng, his heart is still colder than that of the 39 cold winter.

Because Jane Kuo Sheng can only watch her in Chongqing Monument for Liberation metropolis Golden Eagle Women's street for 5 years of this small clothing store, step by step to the edge of closing down.

And he, as a self-made young man, basically has no way to save the situation.

The pain of an ordinary shop

5 years ago, Jane Guosheng borrowed tens of thousands of money from friends and relatives.

For women in Chongqing, Golden Eagle Women's street is unmanned and unknown.

When the first two years took over, Kuo Kuo Sheng did not know much about the clothing business, but the popularity of Jin Ying women's street easily accepted the young man who had just entered.

In the words of Jane Kuosheng, "at the very beginning, in fact, I didn't fully understand why there are so many people who sell well, and every time they haven't had time to think about it, the goods have been sold out in two days."

In the Golden Eagle Women's street, like all the people in the clothing and clothing business, Jane won less than half a year's time to fully adapt to the market's bargaining atmosphere throughout the market.

"The business in those two years is really good. Basically, there is no need to worry about the goods being sold."

Before and after September 2009, the Golden Eagle Women's street had undergone the overall relocation, and the overall planning should be merged with the nearby business circles.

The business conditions of some businesses have been affected, but even so, women's street after merger and consolidation can attract many young women to spend.

Since taking over the shop, the business of Jane hawk on the Golden Eagle Women's street is basically in the state of making money.

But from the second half of 2010, the business of Jane Guosheng gradually faded. Until the eve of the Spring Festival, the store almost came to the brink of closing down.

For his own experience, Jian Guosheng said he had seen some fragmentary reports in Chongqing's local media since last year. He said that some of the bosses in the clothing business decided to put the facade out of the market because of the sharp decline in sales, and intend to go away.

"I didn't expect anything in the newspapers to happen to me. Sometimes I told others that I felt hopeless."

Stores can't afford price wars.

When asked why there is a situation today, Jane Kuosheng sighed to the reporter of "textile and clothing weekly", "I think I know it is a bit late."

In 2010, Jane Guosheng's friend in Chaotianmen's clothing wholesale market told him about Taobao shop. Jian Guosheng was very interested at that time, but there was no extra reason for seeing the shop.

In the past two years, the number of customers in Jane's store is less and less, and most of the guests who are interested in it are gone after enquiry.

Gao Yan and Jane Guosheng, who also run the costumes of the vines of the Golden Eagle Women's street, have similar experiences.

She said that it was no problem to sell 200 thousand yuan a month, but it began to slide slowly last year. Now it is almost 100 thousand yuan, and the overall decline is more than 40%.

Speaking of the reasons for the decline in business, many shopkeepers have said that the goods on the Golden Eagle Women's street are not very different from those on Taobao. The price of the clothes that are close to the style is only about 40 percent off of that of the physical store.

Besides, the price of clothing has been rising all the time, and the price on the Internet is relatively lower.

"Online shop does not need water and electricity, nor high rent. As long as they compete with us in price war, the physical store must lose."

Gao Yan said.

Hu Shaofu, who is doing business in Chaotianmen's Tai Zheng clothing wholesale market, told reporters a detail: 5 years ago, the number of goods sold by Hu Shaofu to the shop was less than that of the 1/10. But in the past two years, the quantity of online shops has increased rapidly, and the quantity of online stores and physical stores has been very close last year.

Hu Shaofu has never seen such a rapid change in his 11 years of clothing wholesale career.

Rent and price battle

Small clothing stores are hard to do, but the flagship stores of famous brands are also having a hard time.

Not long ago, the Nike store in Nanjing West Road, Shanghai, had publicly stated that the store was forced to close due to the reasons of the property owner.

According to the reporter's investigation, Nike's "property side reason" is directly related to the rental price increase of Nanjing Road business circle.

With the approaching of the tenancy period, the rents of Nanjing Road commercial circle are also rising.

Nike acknowledges that since the rental price of shops in Nanjing Road store of Shanghai Nike exceeded the expectation of the leasing company, the property side and Nike have terminated the lease agreement in advance.

The reason why property companies choose to withdraw from the business circle in advance is that the rent price of business circle has risen to a certain interval, which is beyond the price that most merchants can afford, which will inevitably affect the sale of commercial real estate in the commercial area, which may eventually lead businesses to be unable to endure the excessive rents of stores and close their businesses.

Because Nike has realized this, simply choose to terminate the agreement ahead of time.

In a sense, Nike is willing to reach an agreement with the property owner to terminate the lease of the shops in advance, which is actually a long-term strategic consideration, because when the rent rises and the operating cost of the store is too high, the performance of single store will be affected, and even touch the bottom line of the profit of the store.

Therefore, rather than long-term losses, it is better to shut down and endure a short period of pain.

In fact, no matter how low-end clothing is made in Chongqing.

On the other hand, when the price of clothing is higher and higher, consumers will not necessarily buy it.

This is like a battle. When the profit growth of the brand is lost to the rent increase, there will be a small shop closing down and a big shop closing.

According to Laifang's latest research report, the rental of shops in Beijing and Shanghai will increase by about 15% this year.

In the past, most local brands regarded the losses of the first tier gold trading areas as advertising expenses, and valued their publicity role.