Shoes And Clothing Enterprises Face High Storage Pressure And Fight Price War.

"If the inventory is currently in the country,

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

The evaluation of this industry, though exaggerated, depicts the current situation of the high pressure of storage in China's footwear industry.

Lining and other sports casual footwear, big guys, and some small and medium-sized enterprises have been caught 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 shoes and clothing enterprises, and is also a fatal injury for shoes and clothing enterprises.

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

Gao Jianfeng, managing director of Boge consulting, said that at present, sports and casual footwear enterprises are most "hurt".

In particular, the sports shoes and clothing are limited due to the design and material selection, homogenization is serious, and many domestic brands are not clearly positioned, and their competitive edge is weakening.

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

Lining recently released the 2012 fourth quarter order meeting data, of which the number of orders and orders for shoes and clothing products 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.

As a result of being trapped in a high storage vortex,

The risk is even higher, which, to a certain extent, makes the market worried or even questioned its operation ability.

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, a lot of shoes and clothing enterprises in China seem to be concentrating on the stock market. What's the "haze of inventory" coming from? "It's hard to survive the financial tsunami but 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.

A number of shoe and garment enterprises this year's export orders declined sharply, a large number of hoarding goods were forced to turn to domestic sales, coupled with the economic downturn and relatively weak consumption, resulting in a large backlog of inventory.

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 shoe and clothing 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.

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

Moreover, the characteristics of shoes and clothing enterprises are to continuously introduce new products, so that they can not clean up their inventory before they are put into production again.

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

Reporters at the department store in Shanghai saw that the brands such as Hai Lan home and Lining were promoting promotional activities at different levels to digest inventory, and some brands even offered new products at a discount.

Crazy promotion is like drinking poison to quench thirst.

In order to digest inventory, shoes and 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 Ms. Han recently liked to go to the official website of the shoes and clothing brand on the official website, "the shoes on the official website are generally discounted, the style that is good in the store, I will go to the official website to search and compare the price, sometimes there will be preferential activities on the Internet, and it will be much cheaper."

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 pressure, brand image has become less important. How to digest inventory and obtain capital flow is the primary issue.

In the past few years, the market was in a period of radical expansion.

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 shoes and clothing 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.