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    High Storage Makes It Difficult For Clothing Enterprises To List

    2012/6/20 12:52:00 28

    Clothing IndustryHigh InventoryDiscount

     

      

    High inventory

    The most recent problem in recent one or two years

    Garment industry

    Headache.


    From last year to this year, there were countless clothes enterprises that were not IPO due to inventory problems, such as Wickman dress, wienas fashion, lady house, Shu Lang dress and Hai Lan's home.

    Analysts said: "if the current inventory of clothing sold in the country, I am afraid that three years will not sell."


    Clothing companies continue to try

    Discount

    , electricity providers, direct battalion, and buy back methods to inventory.

    However, these methods are still difficult to solve the inventory problem.


    Weapon 1: Crazy discount


    Discount is the traditional way to promote inventory in garment enterprises.


    Shanghai's Cambridge East Road Metersbonwe headquarters warehouse stakeholders told reporters that every year they will hold several special sales to sell inventory.

    CICC research report statistics, the United States and the existing clothing discount stores more than 300 discount special discount inventory.

    In the face of fierce competition, many brand new products will be offered discounts.

    A researcher in the clothing industry told reporters after a survey of listed companies that some brand new products will be 15% off or 12% off when they are listed on the market, and the stock will be 3~5 discount.


    Lining, chief executive and chief executive of Zhang Zhiyong, has publicly stated that retail discount rates will reach 24%~25% in 2012, and discount rates for factory stores and discount stores will be 50%~53%.


    However, excessive discount will also hurt the enthusiasm of agents.

    A second tier city leisure clothing agent Du told reporters that, apart from manual, shop rental, the profit space has been very limited, as long as the brand's direct shop discount, they barely earn money.


    For the deep tillage brand, some high-end clothing enterprises, the discount is only a promotional way for the tail cargo.

    Seven wolves, a person in charge of sales in Shanghai, told reporters: "if you spend hundreds of millions of celebrities to endorse and advertise, if the discount is widespread, the brand image will not be worthless at all."


    Weapon two: electricity supplier


    Another way to go stock is to let businesses hate hate business channels.


    Without bottom line price war, enterprises sometimes have to push goods at close to zero profits, thus becoming an inevitable move to "break the tail and survive".

    Take Anta's new leisure men's shoes this year as an example, selling 239 yuan in the physical store, while in Tmall mall, the group buying price is 155 yuan, which is equivalent to a discount.


    The 31st annual report shows that e-commerce will be focused on expanding through the independent third party agents, selling shoes and clothing products on Taobao.

    Lining, Anta and PEAK also mentioned in the annual report that we should continue to strengthen the construction of e-commerce channels so as to meet the current consumer demand and cope with high inventory.


    Data show that the Chinese sports brand base in Quanzhou, Fujian, for example, there are nearly 70% shoe clothing enterprises involved in e-commerce.

    Last year, the sales volume of Anta's electricity supplier was 160 million yuan, XTEP 120 million yuan, Hongxing Erke 100 million yuan, and Jordan 50 million yuan.


    Analysts said: "most of China's clothing enterprises do business, not to build a network brand, but to increase a channel to go.

    If the target is taken for a long time, killing the brand will cause great harm to the brand.


    However, if the control is not good, the electricity supplier channel will be more likely to cause inventory.

    As an example, the total stock of van customer is up to 1 billion 445 million yuan at the end of the three quarter of last year, almost half of its sales in 2011.

    Such a clothing supplier brand, rely on the low price to compete for the offline market, when there is a salable style, it is difficult to like the offline brand that rely on large discount sales to digest inventory.


    Weapon three: direct mode + elastic supply chain


    In order to control the emergence of new stock, Smith Barney clothing has set up direct stores and discount stores in the first tier cities since 2010, and has gradually increased its control over sales terminals. Since the first quarter of this year, sales revenue of direct sales outlets has reached 45% of the total revenue in the first quarter of five.


    However, from the franchisee to the direct store mode, it also declared the end of the "light capitalization" mode of the US state dress, and the advent of the "heavy capitalization" mode.

    The larger the proportion of Direct stores, the higher the cost of operation, requiring enterprises to have a more secure cash flow level to pay for all kinds of operating expenses.


    "A certain proportion of direct shops is a safe channel for enterprises, but it should also be considered in terms of the capital of enterprises."

    Analysts say, for example, a region's purchasing power is only 20 million, but produced 30 million of the goods, then how can consumers buy the excess 10 million?

    "We still have to control from the source of production and manufacturing, such as reducing the homogenization of products and not too dense regional channels."


    At present, only ZARA, H&M, UNIQLO and other enterprises in the world can effectively control inventory effectively.

    The former two are small quantity and high speed replacement, while the latter rely on fine process control.

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