Clothing Enterprises Are Deeply Involved In Inventory Crisis And Rapid Sales Is The Way To Develop.

A huge

What is the reason for the encounters?

This is enough to make every boss of the clothing industry panic: the spring and summer 2012 and the autumn and winter 2011 belong to the normal stock. The remaining 1 billion 500 million yuan clothes detained every day means devaluation.

This is the status quo of American state clothes. Such clothes remain in the warehouse for more than one day, and prices drop a little.

This is not just the status quo facing the US, but most clothing companies are experiencing a huge "inventory war", such as Semir, Hai Lan, and so on.

A few days ago, on the Internet, it was rumored that the state of the United States and its customers were huge inventories and even broke out. The reporter went to Pinghu, Jiaxing, which is famous for its foreign trade in garment processing.

The survey found that there was no rumor like explosion in Pinghu. However, there are still serious signs of inventory in the financial reports of clothing enterprises such as Hai Lan's home and Mei bang.

Stock in warehouse

At the front of the shop of the Rome garment factory in Pinghu, many cars from Shanghai were stopped. The defective products from the workshop were discounted at the factory store.

If you are lucky, you may also get some Japanese trendy cards, an ordinary T-shirt, which costs only 350 yuan, and these defects are basically hard to identify with the naked eye.

This is a common sight in Jiangsu and Zhejiang provinces. In fact, it is often seen in Zhangjiagang, Jiangsu, Huzhou and Ningbo in Zhejiang.

Here is the origin of this "Stormy storm", which is widely distributed on the Internet. "In Pinghu, the whole warehouse of American state made garments, the whole store's pants for all customers! The factory warehouse basically broke out!"

Such rumors may be too sensational.

In a factory near the Luen Fung flyover in Ningbo, it mainly made OEM in Japan, and a lot of clothes were stuffed in the warehouse. Most of them were defective products, and some were backlogs. Because of the requirements of customers, many trademarks were cut, and these clothes were twenty or thirty yuan each.

"The export of Ningbo's textile and garment industry is above 50%, and many factories are doing OEM. The export market is mainly in Japan, the European Union, the United States, ASEAN, Latin America and other regions."

Zhang Xiaofeng, vice president and Secretary General of Ningbo clothing association, said that "selling" can be seen in many factories.

Reporters in Pinghu's Quan Tang town and Xin Cang town see everywhere.

Basically, they are mainly based on OEM. There are some stocks in the factories of these enterprises, but no similar scenes are seen. For example, we can see some stocks in the warehouse of the biggest garment making enterprise in Xin Cang, but the quantity is not large.

In fact, even in the biggest factory in Pinghu, it is difficult to find a large number of stocks in the factory which is a processing factory in the United States. The Kun Meng Da garment manufacturing company in Pinghu is one of the largest foundries in the United States.

The warehouse of the factory is the same as most of the garment factories in Pinghu, and only a few boxes of clothing are placed. "If there are many stocks, some factories will choose to sell them in the form of factory stores."

Xia Weijie, general manager of Kun Meng Da, told reporters that they almost had no stock.

"In the" blue sky "warehouse, there are some goods in the US state, which is the total warehouse in the Jiaxing area, but in general, the volume is not large, and generally only tens of millions of dollars.

Xia Weijie said, they mainly help the brand processing, and the payment rate of the United States is still relatively fast. Generally, it pays 20% in advance, and then pays 30% after receiving the goods.

In Pinghu, the reporters found that only one or two factories had their own factory shops. The scale of these factories is not large, only one or two facades. Even in Pinghu's largest clothing wholesale market, it is difficult to find the clothes of the United States or the people.

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Sky inventory

Where did the rumor come from? Maybe it's hidden in the data.

According to the initial public offering prospectus issued by Limited by Share Ltd in March 8th, at the end of 2009, at the end of 2010 and the end of 2011, the book value of Hai Lan's stock was 1 billion 305 million yuan, 1 billion 693 million yuan and 3 billion 863 million yuan respectively, accounting for 50.21%, 44.41% and 56.82% of the total assets of that year respectively.

These days of inventory can be found in these reports clues.

Flush statistics show that in 2011, the total inventory of 84 listed companies in textile, clothing and fur industry reached 70 billion 832 million yuan, an increase of 25% over the 56 billion 742 million yuan in 2010.

Take the case of fan Kai Cheng, which is involved in this "inventory crisis", according to the listed 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.

The first quarter quarterly reports of many listed garment enterprises showed that high storage was still untold, of which Semir stock was 1 billion 300 million yuan, an increase of 30% compared with the end of 2011; the US bond inventory was 2 billion 300 million yuan, and the first quarter revenue was 2 billion 600 million yuan; the seven wolves and nine Mu Wang stock were 500 million yuan and 600 million yuan.

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 800 million to 900 million yuan in spring and summer, and 500 million 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 rest of the goods over 1 billion 500 million yuan are all over season goods.

Although Pinghu did not see the excessive inventory of Smith Barney, but according to Wang Quangeng, the managing director and deputy general manager of the United States, in response to investor questions on the A public online debut in 2008, Smith Barton's logistics warehousing is a combination of its own distribution center and the third party logistics. The US bond products are mainly pported by the third party logistics enterprises to our headquarters, the company's distribution centers and rental warehouses. Combined with the earnings data, we can judge that the inventory of the US $2 billion 300 million is probably in most of its distribution centers and rental warehouses.

For garment enterprises, these seasonal commodities are losing their value.

Zheng Chenai, President of the Wenzhou clothing trade association, said that the clothing industry and other industries are not the same. Clothing is easy to get through the season. It is difficult to achieve zero inventory in other industries. Because of this, inventory is the biggest problem for clothing enterprises. It is very difficult to solve, and the cash flow is easily crushed.

Prior to this, there has been a clothing enterprise IPO failed to pass, the general guess is that the low inventory turnover caused sales risk and financial risk has been dramatically enlarged.

"The survival risk of garment enterprises has been very great, especially for women's clothing, many domestic enterprises are learning the speed of ZARA's goods, and the rapid response to fashion is the imitation of domestic garment enterprises."

Zhang Xiaofeng told reporters.

Prior to this, Zhou Chengjian, chairman of the US bond company, told the outside world that the design, trial loading, finalization, sample making, volume statistics, mass production, logistics and distribution of the brand ME&CITY brand clothing required a total turnover of 70 days.

The average number of goods turnover in Chinese clothing is 185 days, and ZARA and H&M are about 15 to 50 days.

These 70 days are considered to be the fastest speed of domestic garment enterprises after ZARA. "Blindly pursuing speed, they have not learned in design and other aspects of the channel, which will cause a lot of inventory."

Insiders told reporters that most of the inventory of domestic enterprises is mainly due to "significant defects" in channels and designs.

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Where is the way out?

Mr. Zhang, a county-level agent of Metersbonwe, told reporters that he had a store and a special counter. He became an agent of the United States three years ago. "But in the past few years, no money has been made, because I did not have many stores, and the affiliate fees were not very high, so the goods discount was 43% off."

Apart from the cost of labor and store, his profit margin is limited. "Coupled with the discounted activities of the two years, it is very fierce, so as long as the barn stores in America begin to discount, I can hardly earn any money."

Mr. Zhang disclosed that such a situation led to frequent returns when he changed seasons. In fact, more than one agent had encountered similar situations, because discounts between Direct stores and agents were often different. This was also an important reason for the increase in returns in recent years.

"This is also a problem we have always been worried about. For factories, once the company's inventory pressure is too great, it will directly affect the payment situation."

A Jiaxing processing plant owner who did not want to be named told reporters that he had 6 processing plants in Anhui, Jiangsu and other places. The role of Jiaxing's factories is more similar to the headquarters economy, and orders are the main ones. This year, many factories are unwilling to accept orders, "the payment rate is too slow, and there has been arrears."

For them, there is still more consideration behind the intensification of risk. Once inventory keeps increasing, there will always be the last straw that will crush itself. "This is an industry that clothing enterprises have strict requirements on time. For example, three years ago, the goods had been basically" floor price ", which is the most merciless place in this industry.

The person in charge said that many brands had been blacklisted because payment was not in time. "This is the only way."

In August last year, Smith Barney revealed that there were three reasons for the backlog of stock in the first quarter of last year: 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 supply chain at the beginning of the year, the goods were put into storage in 2011.

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 garments, of which 1000 -2000 parts belong to stock is common practice, which is also within the controllable range of garment enterprises.

As a result, many enterprises use discount to solve inventory problems, for example, Lining said in the annual report that we should speed up the construction of clearance channels.

In 2011, the number of factory shops and discount stores in Lining reached 269 and 358 respectively, almost double that of 133 and 180 in 2010.

Zhang Zhiyong, Lining's chief executive and chief executive, said publicly that the retail discount rate will reach 24-25% in 2012, and the discount rate for factory stores and discount stores will be 50-53%.

In fact, this is just an urgent way.

And among these fast sellers, only ZARA, H&M, UNIQLO and several other enterprises can really achieve effective inventory control.

In terms of fine operation of the process, there are still many places for domestic enterprises to learn.

Therefore, finding and finding the essence of fast selling brand is the way to develop Chinese brand.