Analysis Of The Causes Of Spring Loaded Discount Crash In Hangzhou Shopping Mall: Bad Weather And High Inventory

In the shopping malls of Hangzhou, the winter clothes are still busy, and the final discount and inventory are clear. The spring clothes that just appeared on the market can't wait to hang out 30 percent off or 20 percent off brands directly.

Shopping malls say that the discount for spring clothes this year is very early and special.

The temperature is high before the new year.

Winter clothes will not sell.

New spring dress directly hits 30 percent off

The weather is getting warmer and the highest temperature will reach 12 degrees Celsius today.

Businessmen worried for a long time that spring clothing prices are coming at last.

Last weekend, the shopping malls in Hangzhou produced a full 400 yuan reduction of 150 yuan, a one-time payment of 500 yuan to send 120 yuan coupons spring promotion, black, gray, coffee color dominated winter clothing district is becoming smaller and smaller, the color relaxed and lively spring dress has become the main force.

If we only look at the discount, the spring strength this year will surprise the consumers.

In girls' clothing and ladies' clothing, 30 percent off and 20 percent off can be seen everywhere.

At the beginning of the spring market, the spring was always careful to control the rhythm. The discount was shifted from 5% off to 10 percent off, and then to 12% off and 15% off.

This year, it seems that everyone has lost patience. Just now, he has just made a face to face, and directly put 30 percent off and 20 percent off ends on the table.

In a shopping mall near Wulin Square, a Japanese style spring dress series is available from jacket, sweater, chiffon shirt, shorts and skirt.

The salesperson said that their spring clothes were listed at 20 percent off, which is very cost-effective.

A brand close to another style is already playing 30 percent off.

Taking advantage of this week's 38 activity schedule, some of the sideboard brands with higher positioning and less discount in previous years also released spring dress discount in disguise.

"22october" puts the season spring in the most prominent position, and lists the 500 yuan area and the 70 percent off area of the spring area.

70 percent off of the intensity has been lower than the current winter sales promotion efforts.

The salesperson said that the 500 yuan area and the 70 percent off districts were all the classic styles of spring clothes last year, and now they are very affordable.

"Prich" singled out the festival area, where you can buy 20 percent off new spring clothes with the VIP card.

Not only is the most popular women's wear department, but the sports fans have been shocked by the big promotion of adidas/'s target= '_blank' > Adidas's "4 years in a row". From the end of February to the beginning of March, Adidas's Adidas and Clover series were 30 percent off.

That is to say, Adidas directly pulled the new spring dress to 30 percent off.

This has hardly happened in history, and the discount of Adidas contributed only about 20 percent off during the celebration and the mid Qing Festival.

Weird weather is a major cause.

Why did spring clothes go on sale in such a big way? Apart from attributing to the adverse effects of the sustained economic environment since last year, businessmen are all saying the same thing: it was caused by weird weather in January and February.

A manager at a shopping mall records the weather in Hangzhou in recent years, because this is directly related to sales performance.

He reluctantly concluded that before the new year's Eve, the temperature was too high and the winter clothes could not be sold.

According to his records, the highest temperatures of the previous year and last weekend in late February have exceeded 20 degrees Celsius, and this year is only about 10 degrees Celsius.

Before the new year, the highest temperature this year is 10 degrees higher than that of the previous two years.

More than one season of clothing

Zhang Xudong, marketing director of women's clothing brand BRJ, explains more professionally.

Now the domestic brand of women's clothing gradually introduces the rhythm of sales in foreign markets. Besides the four seasons garments, it also produces "fifth seasons" clothing.

This season clothing before Christmas and new year's day after this period of time to concentrate on the market, the style is less than the spring clothes.

Although it is spring clothes, in the eyes of producers, the fifth season is different from that of spring clothes. The former collocation function is stronger, and it can match and match the winter coat better.

Because people nowadays are not used to wearing four or five clothes for the winter, they only wear 3 or even 2 pieces.

Simply understand, the fifth season clothing is made of clothes worn in winter.

The weather is easy to understand this year.

Last winter, it was very cold, and the fifth quarter of the clothing was not sold. Many brands overstocking the fifth seasons of clothing from one season to half the season.

But the weather is not enough, until the middle of 2 months, the first and second spring clothes will also be listed.

Two phase crash, in order to ship as soon as possible, a big discount is inevitable.

There are many brands for foreign trade to sell domestically.

There is a headache for the clothing brand positioning the domestic market, this year's "spoiler" more, they cut the discount lower.

Zhang Xudong said that the clothing industry will conduct market surveys of brand listing and delisting every year, and the consumption in the international market is sluggish. Last year, a number of foreign trade enterprises were pformed into domestic trade, and many new brands appeared on the market this year.

Most of these brands were originally made in the European and American markets. After the pformation of domestic trade, they were more "high priced, high discount".

The head of a foreign trade clothing factory said that there are still many places to adapt to the pition from foreign trade to domestic trade.

Although the clothing exported to Europe, America and Japan is very fashionable, it is not entirely suitable for the domestic market.

The production capacity of foreign trade clothing factories is generally very large. If the market is uncertain, the style selection is inappropriate, and it is more prone to inventory problems.

Continuous rain after Spring Festival

No one buys spring clothes.

Abnormal weather disrupted the pace of clothing enterprises, but in addition to weather factors, the reporter survey found that clothing discount increased behind, there are more reasons.

Is inventory still selling for 3 years?

Clothing enterprises are in a stock slough. This year, many discount clothes are expected.

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, these clothes may become new stocks.

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 selling outdoor functional clothing and matching equipment is good because of its good reputation and good product quality.

Last year's sales exceeded 40 million yuan, an increase of more than 20% over the same period last year.

Such an exciting number would be hard to make Luwen happy, because last year there was a about 16000000 yuan over - season clothing that was not sold and lying in a company warehouse in Binjiang.

He said that the net profit rate of the net store 17% is calculated by the net profit of about 40000000 yuan, and the cost of the about 16000000 yuan is about 8000000 yuan, and the money is not enough to subsidize the stock.

Lv Wen said that sales in 2010 were about 34 million yuan, when inventory was less than 6 million yuan, and inventory cost accounted for only about half of net profit. This is a very safe figure.

Big companies are also in "stock slagmire".

Small businesses may cause excessive inventory pressure due to their misjudgement. Then, will the same problem be encountered last year for big and rainy enterprises? Yesterday, when the reporter contacted Mei Bang dress, the giant of China's clothing industry was planning to hold a press conference recently to explain the inventory problems that they are facing to the vast number 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 brands of sports clothing under the pressure of large scale inventory.

Insiders say that the stock of a sportswear enterprise in Fujian can be sold for one year, and the industry has such a "joke": even though all the garment enterprises in China are now discontinued, only the goods stored in the warehouse can be sold to domestic clothing sales enterprises for at least 3 years.

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 main task this year is to sell the inventory of about 16000000 yuan in the warehouse. If it is not sold this year, next year,

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

At the same time, do more articles on store display, will have a certain fashion historical inventory and new goods match sales, digest inventory.

At present, the sale channels of Smith Barney are in the planned and controlled construction.

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 festival, retail and catering are the main ones.

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.