Wenzhou Clothing Enterprises Inventory Pressure Ahead Of The Discount Season

Last winter, the cold air came late, and the winter clothes had not yet been sold. It became a stock. In spring this year, the cold air did not go away. With continuous rainy weather, there was no time for spring clothes to sell.

In 2012, garment enterprises are facing unprecedented pressure of inventory. After the inventory crisis of apparel giants such as American Apparel and fan Kecheng, many franchisees' investment confidence was seriously frustrated.

The discount season arrived early, and there was some violence.

Many clothing operators and brands in Wenzhou have admitted that the industry is facing an unprecedented inventory digestion war.

Last year, Miss Hu, as a senior VIP of a clothing brand shop, did not enjoy any discount.

But this year, starting from March, this shop that has not been discounted usually has all kinds of limited time discounts, anti season promotions and so on. It has never been interrupted before. The latest autumn new products are listed at 20 percent off.

Not only are online clothing stores, urban Renmin Road, Wen Di Road, and clothing stores (cabinets) in shopping malls such as Kai Tai, Yintai, etc., some brands even discounted eighty percent off or seventy percent off, and shops with "shop expiration", "pfer" and so on.

Consumption is worse than expected, inventories increased by more than 10% over the same period.

The more than 1000 square meters of the world clothing center in the north of the rover triangle is being promoted at the end of the summer season.

Mr. Chen, the boss, said he had been doing the clothing business for nearly 10 years and felt an unprecedented pressure this year.

When you were good, you could sell more than 300 clothes a day, but the best day of the year was 150.

In order to digest inventory, the store sold more than half a month earlier than last year, but the stock is still increasing much more than last year.

"Look at my bitter melon face, I know how bad the sales performance is now."

Miss Chen, who is a shopping guide at a brand clothing store in the urban liberation Street, has tuckled his work pressure to reporters.

Miss Chen said that compared with previous years, this year's preferential sales form varied, the discount cycle was longer, but still did not complete the target.

"Everyone seems to have no need to buy summer clothes. I can only seek help from the next autumn sale."

"This year's market demand is much worse than we expected.

Inventory in the first half of this year increased by at least 10% over last year. "

The owner of a children's clothing enterprise in Wenzhou revealed that the general garment industry is more reasonable between 10% and 20%.

However, in the first half of this year, the market demand was insufficient, and last year's weather was affected by the weather. There was hardly any time for sales of winter clothes, and the pressure of enterprise inventory increased greatly.

Sales staff of a leading clothing enterprise in our city are injured this year. In the past many years, the sales targets set by the company were basically 10% to 20% ahead of schedule.

But in the first half of this year, the sales target was only 80%.

The staff said this year consumers' purchase intention is particularly low.

Investment confidence has been frustrated, and shop speed has slowed down.

"Investment is particularly difficult."

This is the common problem of many garment brand enterprises in Wenzhou this year.

On the one hand, the market is weak, and investors' investment intentions are relatively poor. On the other hand, after the stock crisis of Smith Barney, many franchisees' confidence in investing in shops has been greatly frustrated. They think that the pressure of inventory is so great that the leading enterprises such as the United States and costumes, let alone other small and medium-sized enterprises.

Because of the weather and other reasons, since last winter, many franchisees have had a hard time.

For a less powerful franchisee, it is enough to kill three quarters.

In the first half of the year, many garment enterprises in our city admitted that the proportion of franchised stores that had been adjusted this year was also far higher than in previous years.

As a result, many clothing brands in our city have introduced various preferential policies to appease franchisees and give them confidence.

Pepe Bea Bea, general manager of Zhejiang Clothing Co., Ltd., Huang Shiyi, said that under the current circumstances, the pressure of agents is very large. For this reason, the company has formulated a series of preferential policies, including supporting the agents as far as goods and funds are concerned, so that they can continue to fight in front of the market.

In addition, many preferential policies for investment promotion have also been introduced.

The OHO fashion men's wear brand, which was invested in this period, proposed that franchisees enjoy the same goods and policies as direct stores.

Sustained price war will hurt the clothing industry.

Mr. Chen, the boss of the North world clothing center, calculated that the operating cost of the daily rental, labor and water and electricity charges of the shopping center was about 5000 yuan. After entering the clearance period, it almost lost 2000 yuan a day, excluding deducting the cost of operation and the cost of clothing purchase.

The price war will also make profits continue to slide, and businesses will not really be able to afford it.

"Many brands are doing counter season promotions to digest inventory last year.

However, a large number of low price promotions can easily cause the whole market to fall into a vicious circle. In the second half of this year, garment enterprises may be more difficult.

Zhou Zhihong, President of the group, said that this winter, enterprises really need to embrace each other and get warm each other.

But in this "stock pressure mountain" voice, part of our city's inventory control is less than 15%.

Other companies are trying to tide over difficulties by slowing down.