Can Gome Model Be Applied To Garment Industry?

How to effectively graft "Gome model" into Clothing industry In the channel management, it is not as simple as imagined

Which industry will be more difficult to operate clothing and electrical appliances?

"My heart is too thick. I can't do it because of the problems of fabric and seasonality. As a few big pieces at that time, electrical appliances were more expensive, and they would not be eliminated soon. They were more stereotyped. I made them more suitable. " For Huang Guangyu, it is obvious that the clothing industry has made him more worried.

In fact, 17-year-old Huang Guangyu "drifted North" to Beijing. Through the relationship with Guangzhou, he asked for clothes worth about 150000. He decided to become a clothing seller. However, for a long time, Huang Guangyu did a few business every day and earned dozens of yuan. His clothes were not as good as they were supposed to be, and there was even a backlog.

In 2004, Huang Guangyu was 35 years old, 17 years after he opened his first clothing store in Beijing. He did not like it for a year. Huang Guangyu, who was transferred to the electrical industry, became the richest man in China in 2004 Hurun 100 rich list with assets of 10.5 billion yuan.

Due to the smooth development in the electrical industry, Huang Guangyu He began to become a model figure in China's business circles. Since then, he has been ranked No. 1 in the 2005 Hurun 100 rich list with a value of 14 billion yuan, and was elected the richest man in China in 2008 Hurun 100 rich list for the third time with a wealth of 43 billion yuan.

Ups and downs: Gome's defeat in the clothing industry

Although they were defeated in the war, Huang Guangyu and his Gome are not willing to give up the "timeless industry" - clothing industry, which has a population of 1.3 billion.

"China's clothing industry needs a stage for brand concentration." In the plan of Huang Guangyu, an electrical appliance chain giant, "Pengrun international fashion trading center" is a big stage for clothing brands.

According to the plan, "Pengrun international fashion trading center" has an international exhibition center with a total construction area of 12000 square meters, which can accommodate nearly 1000 exhibition booths, equipped with international conference hall, business center, release center, news center, leisure salon, etc; Nearly 4000 square meters of open column free exhibition hall was unique in the domestic clothing market at that time.

According to insiders of the project at that time, before the project was officially launched into the market, thousands of operators and investors showed strong intention to lease the project.

"The reason why" Pengrun international fashion trading center "has received such attention and favor is not only because it is a project invested by Huang Guangyu, but more importantly, because the project is an upgrading revolution subverting the traditional clothing retail in hardware, software and other aspects." Zhao Ping, President of excellence apparel, said that Gome and investors want to build "Pengrun international fashion trading center" into the most high-end and most professional Flagship Exhibition Center of clothing and fashion products in China and the purchasing base of global fashion brands.

According to its plan, under the drive of "Pengrun international fashion trading center", Pengrun international will establish Pengrun chain business network in the central cities with a population of one million in China within five years, and gradually form an integrated distribution and gateway coverage network.

Gome's large-scale march into the fashion clothing industry is likely to bring a revolutionary development to the circulation field of China's clothing industry, but whether it can achieve the expected effect or not remains to be verified by time.

However, on November 17, 2008, Huang Guangyu was taken into custody for "insider trading". After that, the second intermediate people's Court of Beijing ruled in the first instance that Huang Guangyu constituted the crime of illegal business operation, insider trading, and unit bribery. He was sentenced to 14 years' imprisonment, fined 600 million yuan and confiscated 200 million yuan of personal property. The second instance upheld the original judgment.

This seems to have greatly affected the construction progress of "Pengrun international fashion trading center".

After the first snow in 2012, the city complex of Gome's commercial capital, where "Pengrun international fashion trading center" was once said to be "to be acquired by HNA", still stands in the cold wind. A reporter visited found that its southwest side of the exterior wall decoration part of the project has not been completed.

In fact, Gome does not seem to want to wait for the slow development of clothing business projects. It is eager to find a breakthrough in the clothing industry. This time, Gome has taken a fancy to the profitable sports outdoor clothing industry.

According to the statistics of China Industrial Research Institute, the sales volume of China's sporting goods industry has already exceeded 100 billion yuan in 2011. From 2010 to 2013, the annual compound growth rate of the sports industry is expected to maintain above 20%“ Take kappa as an example, the net profit of the brand is about 30%, and Gome's turning to the sports market is entirely for profit. " Clothing brand expert Yang Dayun said that compared with the meager profits of electrical products, the gross profit rate of clothing products is higher.

In 2010, Gome established "Gome sharp motion" company, officially entered the sports outdoor clothing market. On April 16, 2010, Wanquanhe store, the first store of Gome, started trial operation.

With the channel and logistics advantages established by the sales of electrical appliances, the success of "Gome sharp move" seems to be around the corner.

For the domestic scattered outdoor mainstream terminal channels, the speed and efficiency brought by chain is self-evident. At that time, Gome had about 1300-1500 stores across the country. If the "Gome sharp move" operation mode can mature quickly, then the store in store opened by Gome will soon be everywhere in the country.

On January 18, 2011, "Gome sharp move" was officially renamed "Gome sports". Huang's family Huang Xiuhong announced in a high-profile news conference that "in the next five years," Gome sports plans to establish 100 large stores in China, and gradually build Gome sports into a large professional chain enterprise with the same influence as Gome electric appliances. "

"Gome sports" initially established a good vision for itself, hoping to rely on the mode composed of super stores, e-commerce and direct directory mail, with the help of Gome's members and logistics resources, as well as the "Gome sports" store in store opened by Gome electric, it hopes to "bite" the big cake of the clothing industry.

Gome has rich retail experience, so it is not difficult to copy another Gome in the clothing industry. But in fact, they underestimated the difficulty of the situation.

"It's not easy for Gome, which takes electrical appliance retail as its pillar, to set foot in the sports goods retail business." At the beginning of the store, many people in the clothing industry were not optimistic about "Gome sports"{ page_ break}

Unfortunately, it was said.

At the end of September 2011, "Gome sports" Chaoyang Road store was closed after one year of operation under loss. And three months later, the only remaining store was doomed and closed. Not only did not achieve the goal announced at the beginning of last year, but the only two stores have closed down.

"Such a result is not very unexpected, Gome for the clothing industry lack of understanding." For Gome sports, stores began to shrink after less than a year of operation. Senior brand marketing expert Zhang Mingquan said that Gome's advantage lies in the resource advantages of terminal outlets, but its channel resources in sports goods and other clothing are "equal to zero".

When will "Gome" become

Gome's "clothing road" is stumbling, twists and turns, and eventually difficult to produce. So, can the clothing industry, like the electrical industry, adapt to the "Gome model" and put the clothing of major brands in the hypermarkets for chain sales?

If one day you visit all the shopping malls in Xidan Business District of Beijing and find that all the shoes sales areas in all shopping malls are Belle and its brands, it is not surprising that this may be exactly what belle is looking forward to: occupying the territory of the main department stores, changing from a shoe manufacturing brand to a "strong channel brand".

Although Bailey is still far from this hypothetical goal, the trend is becoming clearer.

In 2011, Belle International, China's largest channel supplier of women's shoes, took over Shenzhen leading sports goods Co., Ltd., the largest sports brand agent in South China, undoubtedly increasing the possibility of developing "Gome mode" to create channel brand.

Commercial resources are limited, especially in Beijing, Shanghai, Guangzhou, Shenzhen and other first tier cities and provincial capital cities, commercial resources in the core areas are increasingly scarce. Different from Aokang's love of looking for independent shops to open exclusive stores, Bailey has launched the "enclosure campaign" since 1998, specializing in department stores. In a department store, you can see the counters of several brands of belle. This may explain why goex, a high-end positioning company, gave up years of cooperation with Aokang and switched to belle.

However, there are still some weaknesses in Baili's channel model: first, there is the risk of market development. Due to its focus on medium and high-end routes, the consumption capacity of the second and third tier cities is lower than that of the first tier cities, and Baili faces profit risks in further expansion; Secondly, the brands represented by Belle account for a large share of its turnover, and this share will increase with the merger and acquisition. However, Belle can not guarantee that it can still obtain the renewal of these brands after expiration. " Zhang Mingquan, a senior brand marketing expert, said that these weaknesses undoubtedly give competitors and dealers opportunities.

In fact, the clothing industry is not lack of practitioners who follow Gome's business philosophy of "brand aggregation, small profits and more sales", and combines the actual situation of the clothing industry to explore innovative chain sales mode.

Tongai women's wear has been known as the "Gome" behind the scenes in the brand clothing chain franchise store industry. Tongai women's clothing chain franchise store is a gathering place of brand clothing. Among its fashionable women's clothing, there are many brands of women's clothing, including both international large brand clothing and new brand clothing, just like Gome, as long as there is a market, it will be inhaled. Not only that, the price of Tongai women's clothing chain franchise stores are suppressed to the lowest, dozens of yuan can get a high-quality brand women's wear.

Based on the geographical advantages of Guangzhou, Tongai women's wear has been engaged in the "wholesale and retail supply" business in the past decade. Relying on the prosperity of Guangzhou's garment processing industry, the headquarters of Tongai women's clothing franchise store has signed purchase and sales contracts with more than 100 manufacturing enterprises, which can obtain the latest products such as tail goods of external orders, follow-up orders, follow-up of new products and other products out of plan in the first time.

However, after years of development, due to some subjective and objective reasons, uni love women's wear has not achieved great success, it is difficult to be as famous as Gome's home shop industry. And its main "low price" also makes many clothing brands afraid of affecting the brand image and flinch.

As a matter of fact, industrial clusters in various regions have long tried to explore the "Gome mode" with "clothing city" as the main mode.

In April 2009, "Zhongshan clothing city" was born and put forward the slogan of "national beauty in garment industry". It is hoped that Shaxi casual wear, Dayong jeans and Xiaolan underwear can be integrated to develop the domestic market with a unified name.

For dozens of clothing industry clusters in Guangdong, the establishment of sales channels is a common problem. No matter whether the mode can be successful or not, Zhongshan clothing city will become a test standard in the process of Guangdong manufacturing turning to Guangdong sales.

According to the original plan, 15 "Zhongshan clothing city" platforms will be established in 2009. However, due to the pressure of funds and management problems, "Zhongshan clothing city" did not operate smoothly in Zhongshan, its birthplace, and its entry into Guangzhou and Qingyuan markets did not achieve good results.

Finally, "Zhongshan clothing city" in Zhongshan after more than five months of operation, and finally because of the broken capital chain, poor management and other issues.

"Every time you sell a piece of clothing, you have to pay a 10% commission to the mall. For example, a pair of jeans, which sell for 90 yuan on the first floor, are priced at 99. When the price is high, the profit will be reduced, and the supplier will certainly quit. " According to a person familiar with the matter, the closure of "Zhongshan clothing city" is not only due to "untimely timing", but also because the business model is "out of group".

"In recent years, the clothing industry has maintained a sustained and stable development, and the construction of clothing cities in various regions is also an inevitable choice, but the understanding of clothing cities can not be taken out of context. At present, most of the clothing cities are aimed at the scattered distribution of enterprises, low grade and difficult to play the scale effect. " Some people in the industry pointed out that "how long will the scale effect be completed" is an issue that business operators, investors and local governments must consider when building a clothing city.

At the same time, retail enterprises involved in the field of clothing are also constantly exploring the "Gome mode" of the clothing industry.

Going to the main stores and gathering many popular or high-end brands with equal strength is likely to become the innovation path for shopping centers and retail enterprises to explore "Gome mode".

"The outlets model can be regarded as a test site for the" Gome model "of the clothing industry in the field of luxury goods." Zheng Shuifa, a senior researcher in the retail industry, said that at present, there are more than 200 outlets in China. As a new type of domestic retail industry, its development prospect has been widely concerned by the industry.

In 2002, Beijing Yansha Outlets Shopping Center opened; In 2003, many outlets rushed to Shanghai; In 2005, Nanjing ushered in the first avant-garde outlets... Outlets seized the major cities with a lightning speed, and Beijing, Shanghai, Ningbo, Suzhou, Chengdu, Changsha and other places were filled with the smoke of outlets.

However, not every outlet is as popular as Beijing Yansha outlets and Shanghai Qingpu outlets. On the contrary, in recent years, more and more outlets around the world are acclimatized. Many outlets have been operating in dismal condition, even closed down.

"Over dependence on foreign brands, lack of influential domestic brands, high tariffs, quality problems and other factors have become important reasons for restricting the development of domestic outlets." Wu Jian, who has been engaged in retail research for many years, says that there is still a long way to go for the outlets model to become the "Gome" in the clothing industry.

"The sales channels of China's clothing industry are not perfect and very lacking. The ideas of these models are very good, but they are easy to have problems in implementation." Qi Hui, chief consultant of Beijing QIPA Retail Management Consulting Co., Ltd., said that how to graft the "Gome model" into the channel management of clothing industry "is not as simple as imagined.".