High Inventory Became The Most Difficult Problem For Shoes And Clothing Enterprises In 2012.

In 2012,

Indeed, high inventories have long been regarded as the driving force behind the rising price of shoes and clothing.

People in the industry have said with laughter that even though all the shoe and clothing enterprises in China are now discontinued, they can only be sold for 3 years in the domestic shoe and clothing sales enterprises.

The seriousness of inventory backlog problem in footwear industry is evident.

But why high inventory will become the most difficult problem of shoes and clothing enterprises in 2012? The following cases may give you some inspiration.

The huge inventory has become the sword of Damour and Chris, who is hanging on the shoes and clothing enterprises.

According to the normal operation of the industry, the scope of 10%~20% is regarded as safety stock, that is to say, the production of 10 thousand clothes, of which 1000~2000 belongs to stock is common practice, which is also within the controllable range of shoes and clothing enterprises.

However, with the change of the economic environment, on the one hand, the export is blocked, and more and more foreign buyers are destroying the list. On the other hand, the domestic dealers are beginning to be cautious, and the purchasing intention of the ordering meeting has been weakened, which has led to a reduction in the volume of delivery.

Case 1

Lining: "lost" after "change"

In the past Li Ning Co, "everything is possible", they not only net profit growth year after year, but also surpass Adidas to become the second largest sports brand in China's market share; now Lining confirms their latest slogan "let change happen", but today's change has made Lining bitter.

According to semi annual report, in the first half of last year, Lining's inventory reached 992 million yuan, an increase of 186 million yuan compared with the beginning of the year.

It also announced that it would spend about 300 million yuan on the sale of "unsold products" to distributors. It is expected that the group will need to repurchase about 1 billion 448 million yuan of inventory in the next two years.

June 30, 2010, China sporting goods

However, a year passed and it did not seem to have been developed as expected.

This year is the third year that Lining has offered to reinventing the brand.

Active change is a good thing. However, just after the Spring Festival, there was news of layoffs. Although the specific number has not yet been announced, according to the latest Li Ning Co released report, Lining group's income in 2011 is expected to decline by 6%~7% compared with 2010, and the days are obviously not very good.

Just after the Spring Festival, there was news that Li Ning Co announced massive layoffs, adjusted the organizational structure and reduced the cost of personnel.

On February 8th, Li Ning Co spokesman Li Wei further explained the layoffs.

"We did not say it was a layoff, which may not be understood very well.

The organizational restructuring is part of the group's strategic pformation aimed at focusing on core business, optimizing the organizational structure, improving operational efficiency and improving net profit margin.

Nevertheless, there are still some views on the adjustment of Lining strategy.

"I don't like to be original. Don't always compare me to others. The way you arrange for me always makes me lose my way.

Change is strength, Lining after 90.

Lining, which was criticized after the 90's advertisement, was too deliberate. Obviously, it used the tone of "90's after 70". Their products also had the same problem. They only considered the appearance not dazzling, but ignored the requirement of the brand after 90. Nike, Adidas and other foreign brands were still loved by the 90s, and the price of Lining became more and more expensive. Therefore, Lining's pformation not only failed to be recognized by the post-90s, but lost a lot of post 70 and Post-80 consumer groups.