"High Inventory" Is Attacking &Nbsp In Clothing Industry, And Extensive Mode Of Action Is Tortured.

Recently, a micro-blog exposure.

The loophole in micro-blog is that there are no warehouses in Zhejiang and Pinghu, and the factories have already bought out their stocks.

But this micro-blog catered for it.

In the three quarter of last year, the United States as the leading brand of mass leisure has reached nearly $3 billion in the last quarter of the year, which has increased by 300% compared with 700 million inventories in the first quarter of 2010.

Hai Lan's home is preparing to go public. Its prospectus shows that the total inventory amount was 3 billion 871 million yuan at the end of 2011, accounting for 56.94% of the total assets.

The problem of fan is that Chen admitted publicly that the company's decision making mistakes resulted in a lot of inventory.

Industry inventory pressure

The largest foundry factory in Zhejiang is located in Pinghu.

The largest supplier in the US bond annual report is Kun Meng Da garment company, located in new Dai, Pinghu.

Learned from the company that this company is also a supplier of van sincere.

Kun Meng Da's factory in Pinghu's new Dai has already rented part of its warehouse to another MBSKY, a casual wear brand.

Outside a blue sky warehouse managed by Kun Meng Da, the site security guards prevented outsiders from entering, but he said the warehouse was full.

Kun Meng Da, head of the Pinghu new Dai factory, also said, "the blue sky warehouse is now full."

Obviously, it is not just those three who are in the stock crisis.

An insider disclosed that the inventory problem has begun to spread to the whole industry.

Out of control, it means that the days of the clothing industry will not be better.

The first to be affected is the brand of the foundry factory.

A US supplier in Pinghu's Tong Tang said its supply to the US state began to decline since the second half of last year.

Excessive inventory leads to a decrease in upstream orders.

One industry insider revealed that this problem is still continuing this year.

In the field of mass casual wear, the inventory problem of Smith Barney is most prominent.

In the first quarter of 2010, the US stock was only 700 million yuan, and by the first quarter of 2011, the US federal state's inventory reached 3 billion 160 million yuan, rising by more than 300%.

Another two popular leisure brands Semir and search special situation, Semir clothing inventory from the beginning of 2011 to 1 billion yuan in the three quarter of 2011, 1 billion 420 million yuan, inventory growth rate reached 42%; search in recent year's inventory increased from 630 million yuan to close to 1 billion 100 million yuan, stock growth rate is also close to 80%.

The inventory problem of Hai Lan home, which is queuing up to market, is also a headache.

As the middle end men's clothing brand, as of December 31, 2011, Hai Lan's home marketing network includes 1854 franchised stores, 63 shopping malls and 2 Direct stores, but its total inventory is 3 billion 871 million yuan, accounting for 56.94% of total assets.

Moreover, from 2009 to the end of 2011, the number of inventories was 13 million 30 thousand, 17 million 250 thousand and 33 million 930 thousand respectively, with an average annual compound growth rate of 61.37% during the reporting period.

At the same time, the inventory turnover rates of Hai Lan's home in 2011, 2010 and 2009 were 0.77, 0.88 and 0.79, respectively, that is, inventory can be turned around once in 450 days.

How can we get rid of the burden? "There is no good way," said Cui Hongbo, founder and chief executive officer of brand consultancy in Shanghai.

It is understood that the current industry generally adopted the way, including regular quarter end sale, new brand discount stores and scissors export abroad, but little effect.

Take America for example.

Shenyang Wanguo research data show that Metersbonwe's inventory in late 2011 has dropped to 2 billion 500 million yuan, while Smith Barton's inventory in the three quarter of 2011 has been nearly 2 billion 982 million yuan, which means that in the fourth quarter of last year, Smith Barney's inventory was 500 million yuan.

According to its earnings report, in 2011, the United States began to launch 300 discount stores in the two or three tier cities to digest inventory, with a discount of 5~5.5.

Judging from the inventory of last year's digestion in the United States, Shenyang Wanguo analysis showed that the new spring and summer festival in 2012 was about 250 million yuan, 700 million yuan in autumn and winter in 2011, and 800 million ~9 billion yuan in 2011 and 500 million ~6 billion in 2010 and autumn.

An anonymous analyst pointed out that the spring and summer 2012 and the autumn and winter 2011 were normal stock. The remaining 1 billion 500 million yuan of clothing was devalued every day in the warehouse.

In 2011, the results showed that its net assets in 2011 were 4 billion 130 million yuan, while 1 billion 500 million yuan accounted for 40% of clothing in the past quarter.

A broker who declined to disclose the name said that the size of the company has increased sharply since the second half of 2010, mainly because the ME&CITYKIDS and online shopping brand AMPM increased the inventory size since last year.

In the second half of 2011, the US federal government divestied the online business of the "state purchase network" from the listed companies. People close to the US state said that the move of the US state wanted to develop more online brands, which means that the pressure of the US stock will increase.

Judging from the number of days of inventory turnover in many brand clothing enterprises, it is more serious.

In the two quarter of last year, the inventory turnover time has been as high as 243 days, which means that the inventory will take 8 months to digest.

As one of the earliest enterprises to learn ZARA and H&M fast fashion mode, Smith Barney has been demanding that its supply chain should be shipped to the shelves for two weeks.

But a US state insider revealed that the two week period was too tense for the United States and the operation sector was paralyzed.

After discussion, the supply chain time was limited to 2~3 months, which gave the us a breathing space.

However, it is at least 8 months for the United States to digest inventory, which undoubtedly limits the pace of development.

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Reflection on extensive development mode

Those close to the US state said that the reason for the rapid growth of the US stock is very much related to its direct mode.

In the first half of 2011, the proportion of direct operation of the United States was more than 50%.

By contrast, Semir's dealers still account for an absolute proportion.

"Semir can deliver part of the inventory pressure to dealers, but more than half of the US barrack stock pressure must be borne by itself."

For the brands with too much proportion of distributors, the pressure of inventory is reflected in the dealers' hands.

The industry insiders told reporters that "the growth rate of clothing orders has slowed down compared with the growth rate of 40%~50% in the past two years."

This person analysis, on the one hand, because of the lack of confidence in dealers, on the other hand, they do not want to be overwhelmed by inventory.

"The franchisee's prior order strategy is too radical, resulting in the sales being not up to expectations, the inventory pressure is relatively large, the cash flow is tightened, and the ordering business is cautious at the moment, which has led to a slowdown in the growth rate of orders."

A PEAK supplier also revealed that last year's inventory reached tens of millions of dollars. "This year's risk is too high."

The advent of high inventory era means that enterprises need to slow down the pace of development.

Cui Hongbo pointed out that "at this time we have to see which enterprise will not drift with the tide, willing to stop the pace of crazy running."

According to Smith Barney's 2011 performance bulletin, revenue in 2011 was 9 billion 940 million yuan, and revenue in 2010 was 7 billion 500 million yuan, an increase of 33% over the same period last year, operating profit of 1 billion 450 million yuan, an increase of 51% over the same period last year. In 2011, the number of stores increased by more than 1000, with a total number reaching 4700, with an increase of 27%.

Li Kailuo, a marketing expert in clothing industry, pointed out that extensive development mode is still a simple and direct source of growth for Chinese parity clothing brands.

But extensive mode of development in turn highlights the problem of high inventory.

Cui Hongbo pointed out that the fine management of return is a problem that enterprises must consider.