As The Economic Situation Changes, Many Children'S Wear Brands Enter The Adjustment Period.

In recent years, domestic children's shoes and clothing enterprises can be described as "busy shop, busy shop".

Expert analysis, as many enterprises in the past few years have seen the huge potential for development of children's products market, they have invested heavily in competition, and the way of terminal channel expansion is too extensive, leaving behind many problems.

Nowadays, as the economic situation changes, many brands enter the adjustment period. Therefore, we turn back to solve the problem of single store performance.

Closing shop rate: 10% controllable range has been repeatedly broken through

"Closing rate is just like inventory rate. It also has its controllable proportion.

Even in a more mature adult shoes and clothing business, there is no guarantee that every shop will be a hundred years old. "

Insiders say, according to the present

According to the related situation of enterprises, the survival rate of 85% to 90% shops should be relatively healthy, but in recent years, the closing rate of about 10% has been repeatedly innovated.

"We have to double the number of stores this year."

In the previous two years, at the ordering meeting of children's shoes and garments, there are always some business executives like this ambition.

It is understood that the escalating battle for children's footwear enterprises started in 2009, reached a climax in 2010 and slowed down in 2011.

During this period, the rapid expansion of terminal nodes has become the most important content in channel upgrading.

Many children's shoes and clothing enterprises in Quanzhou have organized the order meeting across the region, striving to occupy the whole market in the shortest time, the overall layout and the overall ambition of speeding up.

"This channel expansion strategy is leading to a new marketing crisis. Most businesses are only looking to expand new stores, but they forget to consider whether new shops can survive."

Zeng Zhi Xi, deputy general manager of Europe and America dragon group, mentioned that shops usually grow in a 3 year period, which can survive the shops for the first 3 years. Basically, they can survive. But many brands are faced with the following problems: 500 new businesses have been opened this year, 400 remaining in second years, and 200 remaining in third years.

What's more, if an enterprise is not operating well in a district or a street area, it will probably produce a Domino effect. Later, if you want to open a store in the same area, it will be more difficult.

"There are some cases of individual businesses opening up, and some take it for granted."

Liu Quan, executive vice president of small presidential children's brand, also mentioned that in recent years, even in Quanzhou, some children's shoes brands have been too blind in marketing, resulting in busy shop opening and closing stores.

Profit margin: several brands are in a downward trend.

"Our sales doubled this year, but profits are still falling."

A few days ago, at the ordering meeting of the small president's children's brand, Mr. regional general Lin revealed that the decline in profits is already a situation in the whole industry. In the buyer's market, everyone is compressing their own pockets, trying to sell products as far as possible.

"The price of children's brand is mostly lower than that of adult shoes and clothing of the same kind, and the cost is actually almost the same as that of adult shoes and clothing, the unit price is low, and the natural profit decreases accordingly."

Insiders said that at present, the price of single products of children's shoes enterprises in Quanzhou is generally around 100 yuan.

"Because profits are not high, so

Stores are basically open in the three or four tier cities, or the second and second tier cities.

If forced to enter a first-class business district to open stores, the low added value of children's shoes industry is difficult to support long-term operation.

Liu Quan, the little president, said.

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"Whether it is to enter the business or to open a special store, the initial investment in this area is considerable."

According to the analysis of the industry, from the steadily rising rent to the decoration fee, the pfer fee of the store, etc., a large investment in the two or three line city counters or exclusive stores will be hundreds of thousands of dollars. If this part of the fund goes on average, the monthly sales of the new store must be close to 100 thousand yuan. If it is less than 50 thousand yuan, it will be very difficult to make profits in the next two to three years critical survival period.

For dealers, hard work is hard. If they lose money, they will choose to close. This will bring difficulties to the operators who are fighting for the same regional market.

Change strategy: pform from big shop to community store

"Hundreds of thousands of input, can only be opened in the two or three line city, if in a second line city downtown opening, a shop does not have a million yuan investment is not enough."

Liu Quan said that this year, their goal is still to continue to enter some business super centers nationwide, but strategically they are driven by the mode of business super to drive community stores.

Especially in some big cities, after strong brand building, enterprises will bring the main body of sales into the community, and bring products into a second tier city through the mode of community store.

"In addition to changing the market strategy, we will strive for market recognition by increasing the product's richness."

Liu Quan said that small presidents are mainly children's shoes, but they are now involved in the development of children's clothing field, which is different from adult shoes and clothing industry. The demand for shoes and clothing integration in children's market is more urgent.

"What we are looking for is a partnership model with other mature overseas children's clothing brands, which will help reduce risk and investment."

Liu Quan said.

Coincidentally, Tutu and other children's brands are also rich in their own clothing category, and they are involved in the development of children's clothing categories by grasping their own designs and finding partners.

New idea: consolidating the market is more important than expanding.

"Sinking sometimes is more important than floating."

This year, our market development plan is called "Wei Wen brand".

Ou Meilong's Ceng Zhixi said, first of all, they will strive to enhance the sales of single store, maximize the profit of sales operators, set up a sales team of 100 people, and work closely with distributors through video, telephone and field.

Secondly, we should strengthen the R & D combination of products, focus on the image project of the store, and enhance the pleasure of consumers.

The third is to strengthen the research and development of the product itself, from functional aspects, from the cost performance articles, to reflect the integration of shoes and clothing.

"Before opening a new store, we will spend more time on research, and make a more detailed accounting of local consumption groups, spending power and cost, so as to ensure the value added space of every investment. Practice has proved that in the turbulent times of previous years, the practice of Europe and the United States is feasible."

Ceng Yuxi said.

"Establish data management system, understand the sales situation of terminal stores through data, help to find weak links and improve in time."

Small naughty officials said that they will continue to develop new stores this year, but they will focus on data analysis and management in order to achieve market controllability.