The Clothing Industry Is Suffering From High Store Pressure.

"If the current national

Take it out and sell it, only if you can't sell it in three years. "

This comment, though exaggerated, depicts the current situation of China's clothing industry facing high inventory pressure.

Lining and other sports casual clothing "big guys" and some small and medium-sized enterprises have been caught up in the whirlpool of "going to stock" and "discounting".

Experts point out that promotion and profit making can only be an emergency. In the long run, we should strengthen product innovation design, reduce homogenization, and set up a fine inventory control process so that enterprises can "sell one for one" instead of "buy one for one".

Inventory high fever IPO road is difficult

Inventory is a common problem in garment enterprises, and it is also a "fatal injury" of garment enterprises.

"To see who can make money in this industry is to see who has a cleaner inventory."

Managing director of bogie consulting

From the present point of view, sports and casual clothing enterprises are most "hurt".

Especially for sportswear, due to certain restrictions on design and material selection, serious homogenization, and many domestic brands are unclear, the competitive advantage is weakening.

For these enterprises, going inventory is more important and urgent than getting new orders.

Lining recently released the 2012 fourth quarter order conference data, including clothing products orders and orders amount fell by more than 20% over the same period last year.

The company admits that in order to avoid generating new inventory pressure on the retail side, it will actively communicate with the distributors, control the order arrangement, and plan to clean up the retail inventory in the next two years.

Because of the high cost of storage, the risk of capital chain breaking is even higher, which, to a certain extent, makes the market worried about its operation ability and even doubts.

In recent years, many domestic garment enterprises have been competing to apply for IPO, but many of them have been excluded. Stock rate has become an important focus of the market.

In May of this year, Hai Lan's IPO, a man's wardrobe, was called "folding wings".

The reporter saw from his prospectus that by the end of 2011, inventory totaled 3 billion 870 million yuan, accounting for 56.94% of the total assets, of which inventory goods amounted to 1 billion 520 million yuan.

And Vigna S fashion, lady house, Shu Lang dress and other IPO clothing enterprises are not, the inventory rate is also high, most of the assets over four, 50%.

Where does "inventory haze" come from?

In recent years, the stock of many garment enterprises in China seems to have suddenly erupted, where does the "stock haze" come from?

"It is difficult to survive the financial tsunami, but also to meet the European debt crisis."

Ma Gang, an independent critic of garment industry, pointed out that human resource costs, rising raw material prices and changes in the trade environment made the business environment of garment enterprises "sudden change" in recent two years.

The export orders of some garment enterprises have declined sharply this year. A large number of hoarding goods are forced to be sold domestically, coupled with the economic downturn and relatively weak consumption, resulting in a large backlog of stock.

Insiders pointed out that in the economic downturn, the turnover of product inventory slowed down, which not only occupied the operational capital, but also led to the failure of enterprises to update their products. Without new products, there would be no way to attract more customers, and business would go down seriously, thus exacerbating the difficulties of capital turnover and even eventually causing the whole business to fall into despair.

In addition, most garment enterprises in China adopt the "order meeting" mode of supply, produce products six months to a year in advance, and rely mainly on downstream distributors rather than consumers to provide market information. The judgment of the consumption situation of enterprises is often too optimistic because of asymmetric information, and the output of products is far greater than the actual amount of digestion.

Leisure and sportswear belong to the fast moving consumer goods, and will soon devalue once the season is over.

Moreover, the characteristics of clothing enterprises are to constantly introduce new products, and they can not clean up their inventory before putting them into production again.

The result of continuous replenishment production is that the stock is getting bigger and bigger.

The reporter saw in the department store in Shanghai.

(002563, stock bar), Hai Lan's home, Lining and other brands are promoting discount activities to different levels to digest inventory, some brands even new products are on sale.

Crazy promotion is like drinking poison to quench thirst.

In order to digest inventory, clothing enterprises or crazy discount sales, or use e-commerce platform to clean up inventory, and some through wholesale channels to alleviate pressure.

Shanghai white-collar, Miss Han recently liked to go to the official website of the clothing brand to scour goods. "The clothes on the official website are usually promoted and discounted. In the shops, I will compare the prices with the official website search, and sometimes there will be preferential activities on the Internet."

But the industry also pointed out that the frenzy discounts brought about a short-term sales peak, but its marginal effect is decreasing, and it is easy to damage the brand image.

"Even if there are fresh cases around, enterprises will still drink poison to quench their thirst."

Gao Jianfeng said that for many enterprises, under the pressure of high inventory, brand image has not become so important. How to digest inventory and obtain capital flow and survive is the most important issue.

Experts believe that in the past few years, the market is in a period of radical expansion, and clothing brand enterprises have been "running horses" to seize the site.

Today, the market has begun to "moderate", enterprises can no longer rely on "volume" and should take the initiative to change the business model, in a more robust and meticulous way to process control.

Xiong Xiaokun, a light industry researcher at CIC, said: "in the long run, clothing enterprises must reduce the homogenization of products, strengthen product design innovation, and establish an effective inventory control system."

Ma Gang recommends that garment enterprises should change the old fixed order mode, adopt a more flexible supply chain, adjust the orders that have not yet been delivered according to the market situation, so that the production products can match the market demand more.

At the same time, we should learn from overseas excellent enterprises, design and promote sales, instead of simply subcontracting and selling.