Casual Clothing Inventory Pressure &Nbsp; Clothing Companies Encounter Bottlenecks Again

Clothing enterprises, especially casual wear enterprises are encountering more and more prominent inventory problems.

The domestic casual wear has not been sold for several years without any clothes. Guo Changqi, the chairman of Xia Lake family, though exaggerated, shows the frustration of the casual wear manufacturer.

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Domestic first-line casual wear brand has been seriously affected by inventory crisis this year, resulting in Zhongshan's first order brand manufacturers OEM orders affected, while the two or three line brand domestic market space has been hit, in the cowboy wholesale city cheap sale of "jumping pants" is an example.

The traditional extensive production mode is facing the problem of how to release inventory in the face of the depressed market demand.

Enterprises should consider how to adjust operation strategy, reduce inventory, speed up product renewal and maintain healthy operation.

Present situation

For years, clothes are not sold without clothes.

"Domestic casual wear is not sold for years without clothes," said Guo Changqi, chairman of Xia Hu family.

"The clothes are stacked up to the ceiling."

Yesterday, reporters in Buffalo clothing wholesale city interview, a shopkeeper's words worried.

The shopkeeper named Lee mainly made men's casual wear, and the winter and spring clothing in the shop was hung with a large "men's special" brand.

According to Ms. Li, from the second half of last year, the goods have been moving slowly, and the amount of goods they receive at a time has been reduced.

"In the past, my customers in Shijiazhuang and Northeast China came to pick a version once a month, but now they have come for a long time, and the goods are not ready to sell."

In another woman's shop, the salesperson pointed to the clothes stacked in the corner and told the reporter, "clothes are not worth 10 yuan, and why are they out of date?"

In the wholesale city of cowboy clothing next to Buffalo, the tricycles and minibus continued to pport a bunch of jeans to the shop. The reporter inquired about it, usually 10 wholesale, each 20-25 yuan.

Ms. Li told reporters that compared to women's clothing, jeans stock is relatively large, women's clothing styles are large, demand is large, and sales are faster, but the manufacturers of jeans in Zhongshan are more concentrated. The fabric, color and style of jeans are almost the same, but the demand is limited, so it is natural for too much to ask for, so almost every jeans factory has a certain amount of stock.

Ms. Li told reporters that many shops are selling the commonly known "jumping pants" in the industry.

The so-called "jumping pants", is the manufacturers because of inventory backlog, with "jumping the price" big pants, some because of defective products return processing, some because manufacturers inventory is too much, need to deal with the storage of new goods.

In the cowboy wholesale city, the "jumping pants" stacked up like hills are priced at 20 yuan in front of the shops.

On the morning of 10, there were fewer merchants coming to purchase. The jeans and sellers chatted and laughed, which made people feel cold and cheerless.

Reporters interviewed found that there is a backlog of inventory, mainly for the domestic market casual clothing enterprises and domestic brand OEM enterprises.

Tongwei clothing responsible person said, according to his understanding, there are indeed some small and medium enterprises have been affected by the current domestic textile and garment industry downturn environment, those who only a small number of brand foundry enterprises, if the brand customer orders problems, will definitely be hit by a fatal blow.

Jiang Hengjie, executive vice president of the China clothing association, recently visited the industry forum in Zhongshan, revealing that, recently, some domestic cities have found that the phenomenon of stock overstock is widespread, and that the enterprises are forced to reduce and deal with inventory to cope with the tight capital chain.

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Reason

Extensive mode of operation leads to backlog of stock

Guo Changqi said that the entire textile and garment industry, especially the casual wear, has declined mainly from two aspects. On the one hand, some orders have been pferred to emerging markets such as Vietnam. The reason is that the cost of manufacturing in the mainland of China is constantly improving. Textile and clothing is originally a small profit industry. Enterprises have to place their orders in countries and regions with low manufacturing costs.

On the other hand, the inventory of domestic first-line brand stocks is serious, and it begins to enter the stage of digestion and inventory, which affects the orders of downstream OEM enterprises. Many enterprises in Zhongshan are OEM for front-line brands, which will inevitably be affected.

And just because of the first line.

Insiders say that the deep-seated cause of inventory backlog is the fact that traditional extensive production has led to exaggerated demand and excessive production.

At present, the quantity of production planned by most garment enterprises is determined by the order meeting. The general clothing enterprises will make an order in the two quarter of spring, summer and autumn and winter. The production will be determined according to the order quantity of the customers, and then the production will be arranged. This mode will result in less sales of clothing than expected due to the information provided by the channel providers, rather than consumers, resulting in backlog of inventory.

In addition, enterprises usually exaggerate demand when making inventory turnover plans.

For example, the customer needs 100 clothes, and the retailer thinks 150 pieces are needed. The agent thinks that 200 items need to be extended to the manufacturer, and 250 items are extended to the manufacturer. That is to say, for every 1 items sold, the manufacturer should prepare at least 2.5 items for inventory turnover, sometimes exceeding this proportion, resulting in a large number of stocks.

way out

Precision sale reduces inventory pressure.

Zhongshan Xia he Trade Clothing Co., Ltd. mainly produces and sells "pure child denim". At the end of last year, the company opened more than 800 stores in 22 provinces of China. According to Mr. Ho, director of the company, taking into account the positioning of products, the company is mainly for second tier cities. It is estimated that the size of 1000 stores will be formed in the whole country by the end of 2012, and will focus on developing the market in the north and Yunnan, Guizhou and Sichuan.

The expansion of channel size, whether there is stock pressure on pure Cowboy? Mr. Ho said that the inventory pressure of pure cowboy was relatively small, mainly due to the precise sale of the company.

Because Mr. ho himself is a marketing source, he attaches great importance to the sales and marketing of jeans.

"Our entire company's operations center is designed to minimize inventory."

Mr. Ho said that in general, the production mode of enterprises is relatively extensive, often through planned production, that is, the production plan is planned ahead of time to purchase raw materials for production, which will inevitably lead to an increase in inventory. Pure child Cowboys mainly adjust their products according to market demand and consumer changes, so as to sell products.

According to the reporter, pure child cowboy has more than 800 stores in the whole country, but it has a set of management system for its management.

If joined in the brand, Xia he trade will send a special sales manager from the company to the daily management of the franchised stores to ensure that the image and operation mode of "pure child Cowboy" are unified. As at the end of last year, there were more than 3000 sales managers nationwide.

This management of terminal sales also allows Xia he trade to quickly understand the market demand and respond and achieve the goal of selling products, which is the precise sale of Mr. ho in his company.

In the past, "pure child Cowboy" was mainly located in the working group. After several years of independent brand operation, it is now moving towards the high-end.

The company has more than 100 R & D teams. The company is working with Zhongshan Institute and Zhongshan Polytechnic to design products that are more close to the market.

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In order to deal with this market change, Xia Hu family has turned its product development to the main business and leisure industry, and has established a store alliance with other two or three line brands to cooperate in marketing.

Guo Changqi also innovated the workshop management and R & D design mode. He subcontracted the production line to the workshop staff, mainly the team leader who worked for many years in the enterprise, and shared the difficulties in manufacturing and other aspects such as cost and recruitment.

The R & D design contract mode solves the problem of product disconnection with the market. R & D and design of new products designed by the contractor team will only get the design fees only after market recognition and marketing results are achieved.

E-commerce to resolve part of the inventory

Zhongshan Tian Yu Garments Co., Ltd. pformed from the end of last year to the electricity supplier, pforming from the traditional manufacturing enterprise to the electronic commerce platform.

According to the person in charge of the company, the sales trend of the clothing industry is obvious now. From the test water several years ago to the popularity of the past two years, "buying clothes on the Internet" has become a very strong way of consumption.

Through the network marketing, we can reduce the channel management and logistics cost of the enterprises. At present, the domestic second tier brands basically have their own e-commerce platform. The top ranked electricity suppliers also have outstanding achievements in the clothing network sales, and the future clothing online marketing will have greater potential.

In the past few years, local garment enterprises began to increase e-commerce as an important sales channel.

Xia Hu Shijia, pure child cowboy, Tongwei clothing are online sales, directly facing consumers.

In August 2010, the no flower superior product of Xia Hu family group WOHAYO

Most clothing enterprises in Zhongshan are mostly OEM foundry workers or have foundry experience. The production capacity and product quality of the enterprises are not a problem. If we can make good use of the new marketing means of e-commerce, we can directly face the consumers, which will not only improve the profits of enterprises, but also help to reduce the inventory pressure directly.

Fast fashion release inventory

Speaking of "fast fashion", it is easy for people to think of the international brand ZARA. The way to win is to get the goods in a fast, fair price and keep up with the fashion trend.

It takes a variety of "small amount" mode, ultra fast production and distribution process so that the style is updated quickly, so as to attract customers to patronize.

In fact, do not say ZARA, in some domestic network original brand is also "fast".