Clothing Enterprises Are Facing High Storage And Storage.

"Do you believe what they said is true? They are really fainted! Let's take a good look at our 2011 Annual Report and the first quarter of 2012."

Inventory problem highlights

Inventory pressure is a common problem in the clothing industry. In fact, many domestic casual wear brands were trapped in inventory difficulties in 2011.

According to the listing documents submitted by Van Clive, the customer expects to lose 1 billion yuan from last July to June this year, and has a stock of up to 1 billion 445 million yuan.

In the same period, Hai Lan home, which sought to be listed, has a total inventory of 3 billion 871 million yuan as of December 31, 2011, accounting for 56.94% of total assets.

In addition, Semir, seven wolves, nine Mu Wang and other enterprises, as of the three quarter of 2011, the company's inventory balance increased by 37.36%, 78.43% and 52.69% compared with the beginning of the year.

It is easy to understand Zhou Chengjian's gloom.

Faced with the general problem of high inventory, the United States is no exception.

In the first quarter of 2010, the United States had only 700 million yuan in inventory, and in the first quarter of 2011, the United States reached 3 billion 160 million yuan in the end of the quarter, an increase of more than 300%.

According to the CICC report, the new stock in spring and summer in 2012 was about 250 million yuan. In 2011, the stock in autumn and winter was 700 million yuan. In 2011, the inventory was 8 to 900 million yuan in spring and summer, and 5 to 600 million yuan in 2010 and winter, and the rest was earlier.

According to the industry's rules, the new spring and summer 2012 and the autumn and winter 2011 are the normal operating stocks, but the remaining goods over 1 billion 500 million yuan are all over season goods, that is to say, these detained stocks are depreciating every day.

Although no response was made in the US state, the situation of inventory detained in the warehouse actually took place.

Game production and marketing balance

Zhang Yai, a women's clothing manufacturer with many years of experience, received a call from a friend in Guangdong during the Spring Festival this year. He said there were more than 6000 men's clothes in the factory, and he could help them to deal with them.

Friends said that although the collection received 30% of the deposit, but last October after processing, the seller is slow to pick up the goods.

"Once the winter clothing sales period is over, these clothes can only be stocked up in warehouses for inventory," said the friend. "This order comes from the United States."

"Suppliers are usually only urged to catch up with the duration of the project. Few sellers have hit the deposit, and finally put hundreds of thousands of dollars in goods here."

Zhang Yi wondered why such things rarely happen in his years of work experience.

In view of the fact that there is no quality error in the clothes, the reason for Zhang wing's judgement is that the seller himself may be a problem of funds or a problem of sales.

"We must pay for the rest of the goods and the cost of sales when we collect the goods. If he knows he can't sell it, he simply doesn't want it."

Smith Barney once explained the problem of his inventory, and thought that there were three reasons for its backlog: first, the expansion of sales scale and the rich style design; two, the late winter in 2010 and the delayed sales period of winter clothing; three, in order to deal with the impact of labor shortage on the supply chain at the beginning of the year, the goods were put into storage in 2011.

"Production and marketing balance is a very delicate moment. Production planning, design category, shop area and even salesperson sales will have an impact.

Most manufacturers are blind and accurate in terms of how much quantity they can produce to meet the sales situation of the storefront.

An insider who declined to be named said.

Prosperity under expansion mode

The inventory nightmare spread in the clothing industry, the state of America is far more concerned than the same brand, not only because of the background of its listed companies, but also from the clothing enterprises in the streets of Wenzhou.

The popular light asset model in garment industry is the first creation of the United States, outsourcing the heavy assets related to production to all kinds of processing enterprises, while the finished garments are sold to the sales channels of various places, while the company concentrates on raw material procurement, product design and brand planning.

In the early days of the venture, Zhou Chengjian was restricted by funds and had no choice but to establish supplier relationship with dozens of garment factories in Guangdong, Jiangsu and Zhejiang.

17 years later, the 3 places gradually became the production base of American state.

In view of the convenience of logistics, the US warehouse is separated from the warehouse.

In the stage of the horse race in the garment industry, the speed of the expansion of the channel determines the income growth of the enterprises. Zhou Chengjian certainly understands this.

He adopted the operation mode of joining the main business and supplemented by direct operation. The franchisee should use Metersbonwe's trademark, trade name, service mode and so on, and pay 500 thousand yuan to 3 million yuan of royalty fees (discount rate of the order discount) to the company, and 25% of the final sales revenue will be returned to the franchisee.

In this way, the effect of the expansion of sales channels will be immediate. The US stores will grow at an initial rate of 50 per year.

Before its listing in 2008, it had 2211 stores and franchises in the country, including 1927 franchises, 87%, and 284 outlets.

According to the development goal of American bond clothing, it plans to purchase and lease 68 new shops in cities with a population of 1 million or above, including 31 outlets and 37 franchisees.

However, in just 8 months after its listing, the United States has already moved to Zhejiang.

Corresponding to the speed of opening stores, the strength of Smith Barney supplier is known in the industry.

After the three year contract signed by most franchisees and Smith Barney, there is a rigid rule of 25% annual growth.

And the US side said that franchisees would cancel franchises if they did not sign them.

"Every quarter has orders, far exceeding the level of digestion.

If you order less, you will be told to pfer the agency. "

Said Mr. Ding, a former American trader.

Due to the time advance of clothing orders, the goods were shipped to all stores once the production was completed. Under such a high turnover, many garment companies including the United States and the state of America were in good condition from 2008 to 2009.

High speed running "sequela"

However, in the early stage, the franchised business model with obvious advantages will have many problems, such as poor feedback of information and lack of terminal control.

"After 2010, the overall sales of the clothing industry did not grow so much as expected, and the dealers could not support it. The problem was exposed."

The industry insiders said.

When a large number of franchisees began to ask for an increase in order discounts at headquarters, Zhou Chengjian realized for the first time that if the strength of franchisees was allowed to grow, the company might be caught in the "kidnapping" situation. Therefore, he would not hesitate to open up a direct store at a cost of 5 times higher than the franchisee, so as to strengthen control over the sales channel.

What Zhou Chengjian never expected was that cracks began between the franchised stores and the direct stores.

"The company allows me to sell some of the clothes in the store for 20 percent off, but at two outlets there are 50 percent off 40 percent off brands," she said. "How can I sell them?"

Data show that the sales team of the Baron is divided into two parts: Direct stores and franchisees. The sales performance of the stores will be assessed and the profits of single stores will be assessed, but the sales of franchisees will only focus on performance indicators.

The conflict between direct camp and agency does not sum up the whole problem. The two core elements that determine the quality of clothing are design, fabric, and the United States.

The former US bond designer named "FF" said he had difficulty understanding the standard of the company's selection of design drawings. The leader set 10 samples the day before. After only one night, the leader said that 8 of them had to be repainted.

"There are many similar situations, and designers with ideas are of course not able to keep them.

As for the fabric situation, complaints about the shrinkage of American state clothes are everywhere.

"There are drawbacks in the mode of light assets outside production. The production chain of the industrial chain is not in control of itself, so it is difficult to balance the relationship between design and quality, sales and inventory. Sales are blocked here, and suppliers are still working overtime."

Commentators in the industry commented.

Internal and external frustration

Domestic garment enterprises are now facing the enemy inside and outside.

On the one hand, the internal flow of enterprises is surging; on the other hand, they are facing fierce competition from outside.

After 2009,

As a matter of fact, Zhou Chengjian had made a hit.

In 2008, the "Me&City", which is the sub brand "2008" launched by Smith Barney, is catching up with the pace of ZARA and H&M. It is understood that the "Me&City" brand is only 20-30 days away from factory production to store shelves. The design team of 50 to 60 people is from the region, Korea and Japan.

In the United States for the "Me&City" massive investment, the first quarter of 2010 earnings showed that the company's net profit fell sharply 90% over the same period.

In 2009, the sales revenue of Smith Barney was 4 billion 800 million yuan.

People close to the American state revealed that the time of "Me&City" began to slow down in 2010, and some products missed the best selling time, leading to a higher inventory ratio.

The last hit of the United States is the external environment.

"Climate changes in recent two years, winter clothing is not cold when listing, spring clothes are not warm when listed, and coupled with the overall economic situation is unclear, consumers desire to buy.

The growth rate of retail sales of most garment enterprises is far lower than expected or even decreased.

Wang Zhuo, Secretary General of the China clothing association, said: "so, higher product growth is expected to lead to an increase in inventory."