Clothing Inventory Continued For 3 Years

March and April is a traditional outing season, and it is also a good time for outdoor functional clothing to launch this year's new model.

However, Lu Wen, a shop owner, is still making special sale of functional clothing, because last year, his company overloaded about 16000000 yuan of overstock clothing, which was three times the inventory of the previous year.

It is the primary task for Lu Wen this year to sell these piles of stock in the warehouse.

It's not just Lu Wen who gets bogged down in inventory.

Last year, many domestic garment enterprises encountered the problem of sharp increase in inventory. Taking Metersbonwe clothing as an example, the total profit last year was 1 billion 460 million yuan, but the inventory reached 2 billion 560 million yuan, of which over 1 billion 500 million yuan was over season goods.

The new spring dress is on sale, and in addition to the bad weather, there is another reason for the high inventory problem in the clothing industry.

If you don't sell the spring clothes this year,

Clothing stores encounter inventory problems

After five or six years of online shop, Lu Wen had never encountered such a large inventory pressure.

This professional shop sells outdoor functional clothing and matching equipment.

Such an exhilarating figure is hard for Lu Wen to cheer up, because last year there was a $about 16000000 worth of off season clothing that had not been sold, lying in the warehouse of the company in Binjiang.

He said that according to the net profit margin of net shop 17%, the net profit of about 40000000 yuan was 6 million 800 thousand yuan, while the inventory cost of about 16000000 yuan was about 8000000 yuan, and the money earned was not enough to subsidize the stock.

Lv Wen said sales in 2010 were about 34 million yuan, and the stock was less than 6 million yuan, and the inventory cost accounted for only about half of the net profit. This was a very safe figure, and it was not expected that the stock would be so big last year.

Big companies are also in "stock slagmire".

Small enterprises may cause excessive inventory pressure because of their misjudgement. Then, will the same problem be encountered last year for big and rainy enterprises? Yesterday, when reporters contacted Mei Bang dress (002269, stock bar), the giant of Chinese clothing (000902, stock bar) industry is planning to hold a press conference recently to explain the inventory problems that they are facing to the broad masses of investors and society.

According to the company's research report, the United States apparel business revenue in 2011 was 9 billion 900 million yuan, an increase of 33% over the previous year, operating profit of 1 billion 460 million yuan, an increase of 51% over the previous year; inventory pressure improved relative to 2 billion 560 million yuan in the fourth quarter (three yuan in 2011 reached 2 billion 980 million yuan in stock size).

According to the report released by Shenyang Wanguo Securities, by the end of 2011, stocks in the US state had dropped to 2 billion 560 million yuan, but over 1 billion 500 million yuan of the goods were over season goods, which exceeded the operating profit of the United States.

There are also many famous sports in China under the pressure of large scale inventory.

Climate abnormal price increases lead to high inventories

Zhang Yi, a staff member of Hangzhou textile center, said that many of the men's wear women's wear households in China Textile Center also experienced a sharp increase in inventory. This was caused by the price problem. Because of the increase in fabric prices and labor costs, last year's clothing prices generally increased by 10%-20%.

The price increase has improved the sales performance of the enterprises to a certain extent, but the price increase is a double-edged sword, while stimulating the performance of the garment enterprises, it also inhibits a certain degree of consumption desire.

Faced with the high price, some consumers cling to their pocketbooks.

Lv Wen said that the company's sales plan is based on the sales situation of the previous year.

In 2010, it sold well, and the inventory pressure was small, so the order size also expanded correspondingly, and sales increased by 20%.

But after the price increase, sales fell sharply.

There was a outdoor functional suit that sold more than 400 yuan in 2010. At that time, dozens of items could be sold everyday. Last year, a slight modification of the design was made, and the price was raised to about 600 yuan.

In addition to price factors, abnormal weather last year is also one of the reasons.

"When it's hot, it's not hot. It's not cold when it's cold."

Zhang Yi said that this impact on down jacket is particularly serious. "Clothing companies are ordered to produce in advance, and so on, and so on, it is too late to find the climate abnormal.

Subsequently, agents can not sell, resulting in high return rate, but also directly increase the inventory of production enterprises.

The interpretation of Mei Bang dress also confirms Zhang Yi's statement.

Yesterday, the United States apparel Public Relations Department reported that the end of 2010, the company's stock grew faster, mainly due to the business revenue increased by 43.76% in the year, and the rapid growth of sales scale objectively requires the design style to become more abundant and stocking up, so the inventory scale continued to grow. Second, in 2010, late winter, the winter sales cycle was postponed, so the winter stock as at the end of the year was more; in addition, in response to the impact of labor shortage on the supply chain at the beginning of the year, the company arranged in advance the 2011 storage of goods, but also caused an increase in inventories.

A lot of discount clothes can be bought in the first half of the year.

Zhang Yi said that according to the tradition of clothing enterprises, the cost of inventory must not exceed the net sales profit of that year, which is also the critical line that affects the operation of enterprise stock. From now on, the inventory of general clothing enterprises can not exceed 30% of the production or purchase of that year.

"If clothing companies earn money in inventory, they are not earning money. Clothing is the most valuable commodity."

The head of a children's clothing enterprise in Hangzhou said that the massive backlog of products last year not only occupied the company's operating capital, but also consumed manpower and material resources. It also increased the management cost of the company, lengthened the turnover cycle of the product and reduced the overall profit of the company.

If selling at a low price simply hurts the brand, it will also hurt the confidence of the channel players.

Lv Wen said that his most important task this year is to sell the about 16000000 yuan stock in the warehouse. If it is not sold this year, the quality of these garments will be affected next year. They can only be taken as a tail cargo and taken away by a few pieces of money.

But how to sell inventory is very difficult. "No price cuts, old clothes, no sales. If there is no activity, the discount will directly affect the old customers and damage the brand image."

He plans to take part in several activities on Tmall Taobao this year to make a discount sale in the form of season change.

In terms of apparel, the company will sell it at a lower discount in the form of a special store.

At the same time, more articles will be displayed on the store display, which will have a fashionable historical inventory and new goods matching.

Consumption weakness in February

In February, the China logistics and purchasing Federation (CFLP) and the National Bureau of Statistics Service Industry Research Center jointly announced that in February this year, the non manufacturing business activity index (PMI) fell for three consecutive months, down 4.5 percentage points from the previous month, and then broke down to 48.4%.

Because there is no composite index of non manufacturing industry, the general index of business activity is usually used to reflect the overall change of the non manufacturing economy. Generally speaking, the index is above 50%, reflecting the overall increase or growth of the non manufacturing economy. Below 50%, it reflects the decline or fall of the non manufacturing economy.

Analysis shows that in February, the PMI ratio of non manufacturing industries dropped, mainly due to the impact of consumption callbacks after the Spring Festival.

After the holiday, the consumption industry, which is mainly retailing and catering, has been callback significantly, which has become the main reason for the overall economic activity to fall.

In February, the business activity index and the new order index of the consumer service industry ended the two consecutive month of rising trend, down to below 50%, and the decline was more obvious.