Inventory Crisis: Swept The Domestic Fast Fashion Shoes And Clothing Brand

When the big three JEANSWEST, Baleno and Giordano are getting old, there are not three big new vendors in the past few years.

YISHION and Semir are also beginning to face growing pains.

At the beginning of 2012, the inventories of inventor and inventories were up to 2 billion 500 million yuan, most of which were over season goods.

Although YISHION and Semir are not listed companies, they can not see the annual reports, but according to the analysis of the insiders, they have many stocks, and most of them are in the channels.

In 2012, the dealers of the new big three big traders also had great pressure. If there were no accidents, 2012 would become their dumping stock year.

Simple imitation leads to growing pains.

In 2011,

The whole industry suffers from growing pains and has to face high inventory.

The clothing industry's inventory crisis has exposed the brand crisis, supply chain management and channel policy problems of Chinese garment enterprises.

In the Chinese market, the success of the clothing brand should be accompanied by three brands of brands, channels and products, which will affect their future development.

Old JEANSWEST, Baleno and Giordano, the three largest manufacturers of mass trading, have also been brilliant in the channel.

10 years ago, the core business circle from the first tier to the three or four tier city was almost full of JEANSWEST and Baleno stores. However, because they did not pay enough attention to the continuous operation of the brand, the speed of product pformation was not as fast as that of the new three giants.

"On the brand operation, local mass goods brands generally do not invest enough in brand refurbishment and continuous operation, often after growing into a high-density ad, they rarely continue to build brand, and rely more on terminal stores to support their brand image."

Jie Jie, founder of the Jie Yang Yang institution, said.

Although the channels and terminals of mass goods brands are all over the country, they can almost be everywhere. But in the view of angel, the idea of shops is advertising and brand is wrong. Brand can not be supported by terminal stores only. Brand has its own genes, such as color, pattern, tonality, advocacy and image. All these need to be supported and disseminated through a full range of brand building.

Many consumers are right now.

The brand image still rests on Andy Lau's endorsement, and the association of Muse and bond is also the image of "ten years of" no ordinary road "and Jay Chou's unruly behavior.

Therefore, although the new volume brand represented by the United States and Semir is more active and publicizing than the old mass goods brand in brand input and advertising communication, but in the brand strategy, there is still a lack of higher and long-term planning.

Generally speaking, the international fast fashion brand's product strategy and brand operation ability are stronger, the resources superiority of the channel development is also more prominent, and the negotiation ability with the first tier business circle, the focus business circle and the gold shop is stronger, and the conditions are favorable.

For example, in the year of Xidan Joy City and Chongwenmen Ruicheng City, in order to attract H&M to enter, they offer very favorable conditions and provide the most suitable venue.

These are unmatched by domestic brands.

China's local clothing brand has reached a new stage of development, and needs to rise to the national strategy. In this regard, enterprises need to first establish the pattern of entrepreneurs, and entrepreneurs will decide the way out for brands. In addition, in the next 10 years, brand driven must be the main driving force for enterprise development, rather than channel driven.

It has always wanted to be China's ZARA's mus bond. In 2008, the new brand ME&CITY launched the ZARA store from inside to outside.

But unlike international fast fashion brands, China's "fast fashion" is longer than production and channel development, and it is a weakness in product design and brand. The price of ME&CITY, China's ZARA, is much higher than that of the United States, but it is not accepted by consumers.

However, when these crises are gradually emerging, domestic enterprises continue to increase their production while continuing to expand their channels and continue to enjoy the fruits of the high-speed development of the industry in the past 10 years.

In 2011, almost all industries suffered from growing pains and had to face high inventory.

The clothing industry's inventory crisis has exposed the brand crisis, supply chain management and channel policy problems of Chinese garment enterprises.

Multi channel coping with inventory digestion year

In 2012, for China's mass trading brand, the digestion of inventory is not a small challenge, so opening channels becomes the mainstream choice.

Compared with 3 years ago, a large number of channel inventories made it less than two years for dealers of mus.

10 years ago, the "virtual operation" mode has made it the biggest feature of the channel mode, that is, franchising has greatly reduced the initial cost of channel development.

Over the past few years, the United States has gradually increased the proportion of Direct stores, and has invested heavily in the establishment of Direct stores. Today, all the first tier cities have already withdrawn their franchise and achieved direct control, thus strengthening the control over channels.

"Mei Bang's channel mode is mainly based on the branch system. Through consolidated statements, inventory should be visible, which requires us to digest itself for a while."

An industry dealer who did not want to be named said.

and

The agent system is adopted, and 96% of the stores are franchised stores. The inventory of goods is more backlog in the channel, mainly in the hands of agents, and the buyout + ordering system makes Semir's inventory pressure relatively small.

However, agents must find ways to dispose of the goods. This part of the risk is concentrated on the agent level. If it can not be dealt with and the capital chain breaks, Semir will be able to find other people.

Since the United States has been increasing the proportion of direct battalions in the past few years, the sub company system will show its advantages when the business is better, but in the face of inventory crisis, the risks of enterprises will be relatively high.

According to CEO Zhang Qing, a key sports consultancy, at present, Lining's practice is to recover inventory from agents and put them into their discount stores for sale.

It is reported that the United States is also following the example of Lining, to take the inventory of clothing to its discount stores, but also to increase the strength of discount stores. The goal of 2012 is to set up 300 discount stores, which will become the main channel for long-term inventory digestion.

In order to quickly digest the inventory, the practice of the domestic mass merchandiser brand is to take the new product discount, mix the new products with the off-season products together to make sales promotion, especially those down garments and seasonal weak commodities that are not fast changing in style. It is easier to be dumped. In addition, the Internet has become a platform for many enterprises to dump off the season goods. Some of the established electric businesses such as vip.com and Qiao Qiao language have become one of the channels for dumping domestic and foreign brands, and the general discount is below 50 percent off.

If there is no way to get rid of its own channels and electricity supplier channels, some enterprises will package the whole inventory to the dealers and traders who have relatively strong financial strength, and sell them to some remote areas or overseas markets by means of regional shipment. After all, cheap goods are always wanted to eat; others will flow to the tail market, and sell the inventory to the tail goods purchasing company, and then flow into the tail cargo channel.

Fast fashion has become red sea

In the past two years, domestic sports brands have also begun to invade the fast fashion market. They are gradually getting rid of the limitations of professional sports and developing more leisure and fashion style products with low price.

These sporting goods enterprises themselves are also growing at a high speed, expanding vigorously, taking advantage of their business in various regions, opening up their stores and competing fiercely with traditional mass trading brands.

Nowadays, the core business circle of every city, whether it is a fast fashion brand or a sports leisure, is basically competing in a business circle. It is almost the same as that in the field of clothing sales. The domestic sports and leisure brands are also caught in a high inventory of whirlpool. From Lining, kappa, 361 to Anta, PEAK and XTEP, there are varying degrees of inventory pressure.

After 10 years of rapid growth, China's clothing industry has come to a turning point. Its brand is weak and its design ability is insufficient. The problem of product homogenization has seriously affected the development of Chinese clothing brands.

China's fast fashion clothing has become a big red sea. The product design has no difference, lack of individuality and low price. It is the same big shop, the business circle has the same choice. With the growth of the consumption ability of consumers, they will not hesitate to get rid of the consumption of these low-end products.

Strong invasion from international fast fashion brands is also eating away at home.

In 2011, the international fast fashion brand, led by ZARA, UNIQLO and H&M, took the lead in the domestic market in the year of 2011. H&M opened 31 new stores and opened 43 new stores. ZARA also opened 29 stores and reached 92 stores.

Moreover, these international fast fashion brands will have bigger opening plans in 2012, and UNIQLO claims that it will open 100 new stores this year.

Generally speaking, the international fast fashion brand's product strategy and brand operation ability are stronger, the resources superiority of the channel development is also more prominent, and the negotiation ability with the first tier business circle, the focus business circle and the gold shop is stronger, and the conditions are favorable.

For example, in the year of Xidan Joy City and Chongwenmen Ruicheng City, in order to attract H&M to enter, they offer very favorable conditions and provide the most suitable venue.

These are unmatched by domestic brands.

China's local clothing brand has reached a new stage of development, and needs to rise to the national strategy. In this regard, enterprises need to first establish the pattern of entrepreneurs, and entrepreneurs will decide the way out for brands. In addition, in the next 10 years, brand driven must be the main driving force for enterprise development, rather than channel driven.