Service Enterprises Exclaim That "Pressure Mountain Is Huge", How Will This Year Go?

Since this year, the general feeling of enterprises can be described in two words - suffering. The data in the first half of the year showed that the overall sales growth of the domestic clothing market was only 9.82%, down 12 percentage points compared with the same period last year; At the same time as the sales performance declines, the increase of store rent and inventory backlog is constantly stimulating the sensitive nerves of enterprises.

How to get a breath under heavy pressure and continue to move forward, and how to reverse thinking and occupy the commanding heights in difficult situations? This tests the wisdom and courage of enterprises.

　　 Price increases cannot cure all ills

Some people say that it is constantly raised clothing The price has driven the growth of clothing retail. Indeed, according to the relevant statistics, this is true.

According to the statistics of China National Business Information Center on one hundred key large-scale retail enterprises in China, the retail sales of clothing products increased by 9.82% from January to June 2012, a significant decline compared with 21.81% in the same period last year. The growth rate of the overall retail sales of the clothing market in the first half of the year was 12 percentage points lower than that in the same period last year.

However, in the second quarter, retail sales rose significantly and maintained a relatively stable growth. Compared with the beginning of the year, the gap between the growth rate of clothing retail sales in the second quarter and the same period of the previous year narrowed significantly.

In June 2012, the retail sales of clothing commodities increased by 12.48% year on year, and the growth rate was mostly flat or increased compared with the total level from April to May. Among them, the retail sales of children's clothing increased by 24.2% year on year, 2.11 percentage points higher than that in May. According to the analysis, the main reason for the growth of retail sales is that the major shopping malls constantly launch strong promotional activities on holidays.

Although the growth rate of retail sales has gradually increased, it is worth noting that from the perspective of sales volume, it is another matter - the cumulative growth of clothing retail sales from January to June 2012 was only 0.99%. A simple judgment can be drawn that most of the increase in retail sales of clothing products is driven by the rise in clothing prices.

There are different views on the effect of price increase. But as a senior consultant and marketing expert of many garment enterprises latest fashion Mr. Wang Xiangsheng, the president of the Brand Development Management Center, has a clear attitude, "Now the clothing prices in the shopping mall have been falsely high."

He believes that according to Economics The principle is that we should not raise prices in times of adversity, especially for those brands whose target consumer group is the middle end, raising prices will undoubtedly lose customers. "In good times, we have repeatedly raised prices and mentioned false highs, which are just superficial wealth, let alone adversity." However, he does not agree with price cuts or discounts. He suggested that "we can only start from cost control", because many enterprises are not good enough in this respect. "In fact, it is better to increase retail price by 20% than to reduce inventory by 10%, and the internal adjustment is more direct and powerful."

　　 It is necessary to "buy people's hearts"

When the enterprise is having a hard time, should it lay off employees or increase employee benefits? These are two extreme choices.

Liu Hanlong, a practical marketing expert, also mentioned in the article "Let employees work in a happy atmosphere" that happy mood affects mood, and the quality of mood is directly related to work efficiency and turnover rate. Choosing to leave because of the bad working atmosphere and depression has become the first reason besides salary.

A leader's mood is the most important factor that determines whether his employees are happy at work. In fact, the face of the leader has set the tone for the whole working atmosphere. Therefore, no matter how difficult you face, no matter how much pressure you bear, you should let everyone see that you are working happily.

Mr. Wang Xiangsheng, President of the International Fashion Brand Development and Management Center, has raised his attitude towards employees to the height of the enterprise's life and death - never lay off employees at a low ebb, which is a fatal mistake for an enterprise in a difficult period, because it is the most important to stabilize people's minds at this moment.

　　 Holding "Sharp Tools" and Fighting Business

Even if he has the seniority in the Chinese world, and even if he has such "representative works" as DP and Han Ma, Youngor is still cautious and strives for perfection on the way forward. According to Wang Qingmiao, director of the engineering technology department of the group, they are currently improving the quality of Han hemp yarn, optimizing the fabric organization design and finishing method, further improving the refinement and feel of Han hemp fabric, while DP fabric is also improving the strength retention and wrinkle resistance of light and thin fabrics in spring and summer, developing ultra white shirts, improving wear resistance, air permeability and hydrophilicity, Improve wearing comfort.

"Every step is not easy, but we must be forward-looking, because this is the future market " Wang Qingmiao said so. Perhaps it is the constantly perfect products and never neglect the enterprising spirit that have made Youngor go all the way through the thorns. {page_break}

Some people use products as "sharp tools", while others use design as "sharp tools". Yiwen, who has just been invited to hold a grand fashion show at Lancaster Palace in London, the world famous Olympic host city, believes that in brand building, products are only a part, and marketing and design are important. Chinese brands have passed the standard in terms of products, but only half of them have gone in terms of design.

This is also a common view in the industry. An expert once said that many enterprises currently lack a perfect training mechanism for designers, and it is difficult to form their own product style, while many talented designers are accustomed to creating their own brands or opening design studios, and are unwilling to play their talents in enterprises, making it difficult for China's clothing design level to rise to a new level.

Whether it is a senior "Big Brother" or a rising star, anyone who can stand firm in the ups and downs of the business sea where people fall every day must have his own "sharp weapon" to fight the business sea.

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　　 Slow down to go further

Wang Xiangsheng, President of International Fashion Brand Development Management Center

Recently contacted enterprises generally reflect that this year's situation is not very good, for example, orders at the order meeting are declining. But the reason is that internal reasons are more than external reasons.

In the process of growing up, Chinese brands have experienced a long period of prosperity. Therefore, many of our brands have always believed that it is natural, even reasonable, to increase the performance by 20% or more every year. Once the growth rate is less than the so-called bottom line, it will be unbearable and there is no psychological preparation. But on the other hand, what industry has been growing for more than ten or twenty years?

Then look at some enterprises' brand building methods, which are based on scale expansion to occupy the market. There is such a misunderstanding that the so-called success is that the higher the sales, the better the network. We often hear entrepreneurs talk about how many new stores have been opened this year, and how many more orders have been placed by agents and franchisees. However, there is little time to think about how to improve and consolidate the brand, how to manage each opened store, and how to improve the added value of the brand.

Without the 2008 financial crisis, the current European debt crisis, and all other external interference, China's clothing industry could not have avoided difficulties. Because the market will always be saturated and mature, there must be limitations in blindly relying on scale expansion to develop brands. Take China's sports brands, which are most talked about now, for example. Is it the European debt crisis that has a great impact on their current predicament, or is it the blind expansion of the brand itself that leads to the development bottleneck?

For those enterprises that use sales as their brand, they should rethink and change their own thinking, instead of taking expansion as the normal mode of enterprise development.

In the past, many enterprises made their brands with their heads down, regardless of the changes in the external environment, which is the key reason why many brands are becoming more and more unsustainable. For example, the orders of franchisees suddenly decreased, the brand inventory piled up overnight, and the sales of stores plummeted, which was by no means a day's work.

In fact, a very important reason for the difficulties in the development of many brands is that many of his franchisees and agents have revolutionized the brand. They want to make their own brands, or they want to change the way of cooperation with brand owners, in the form of trusteeship rather than ordering.

Therefore, the brand should reflect on whether the previous pressure is too serious, or even harsh conditions such as the minimum order quantity standard for franchisees.

There are also some enterprises whose sales are good at present. For example, women's wear enterprises have reached 200 million to 300 million and men's wear enterprises have reached 400 million to 500 million. Therefore, the enterprises themselves may also feel that their sales are good and relatively successful. Therefore, they tend to go to two extremes. One is "too much action". Their self-confidence is exploding. They are opening stores every year and expanding every year; The other is "inaction", thinking that their sales performance has been very good, contented and happy. These two methods are very typical, but neither can make the enterprise become a company with sufficient stamina.

Another point is that persistence and optimism are very important. Don't see the decline of performance in one or two years, and you will be confused. You must be calm when you think the end of the world is coming. In particular, we must not lay off employees at this time. This is a fatal mistake for an enterprise in a difficult period, because it is the most important thing to stabilize people's minds at this moment, and we cannot immediately change all existing development strategies, products and channels. This is a wrong practice that makes the enterprise unable to turn back. On the contrary, it is time to reflect and find out where your current advantages are.

Many successful enterprises in the world are Economics The energy accumulated during the downturn and finally burst out can be proved by the development history of large enterprises in the United States and Europe.

Therefore, for the current Chinese brands, we should slow down, reflect on our own development mode, consolidate the foundation, accumulate energy in the crisis, and wait for sublimation after precipitation.