How To Solve Inventory Problems In Garment Enterprises Everywhere

In the past two years, the domestic apparel industry generally has a high inventory level, so as to digest inventory, many enterprises began to price war.

Zhengzhou Railway Station is the largest clothing distribution center in Henan. There are ten families in large and small. clothing Wholesale and retail markets.

Ms. Wang, a citizen of Zhengzhou, said she did not like to go shopping, but she liked to go to the silver base near Zhengzhou Railway Station. Clothing market There are both brand clothing and popular fashion, and the price is low.

But recently, she found that many clothing stores in summer wear high priced "special" and "low price" signs. Even Denis, Da Shang and other shopping malls, brand clothing has also increased the intensity of discount, ranging from half off to twenty percent off, some brands even lower to 77% off.

Weak market, discount sales promotion

On the third floor of the silver elevator, it is the main camp of Ms. Kang. Women's wear Shops, her clothing has recently marked the discount sale of cards, and the discount is extremely low.

"At least one month ahead of the discount season, the discount on the newly listed new products is unprecedented. Some new clothes went on to 33% off soon after they got on the shelves, and then they went on sale in autumn in August. Ms. Kang said.

Hangzhou Sijiqing women's wear market is the largest distributing center for women's clothing in Zhejiang province. In early August, Li boss of the two road in Zhengzhou, Henan province came to Sijiqing wholesale clothing as usual. What he did not expect was that customers in Hangzhou Sijiqing women's wear market hall could not see a few of them in twos and threes, which made him feel cool.

Compared to the two road clothing city in Zhengzhou, Hangzhou's situation is much better. At present, most shops in Hangzhou Sijiqing market and the most obvious locations on display windows are advertising with discount prices. A shopkeeper named Wang said he used to give wholesalers a price of thirty percent off in previous years. "This year it's all new, and I drop to less than eighty percent off. There's no way to go. Wang said that the cost of raw materials, labor and logistics has risen this year, but the price of products is not up to sale because of poor sales.

"In the past year, at least 100 guests came to pick up the goods every day, but this year, it was noon, and there were more than a dozen guests." Care about the clothing city, a boss said, his main brand T-shirt retail price at ordinary times is 110 yuan, now the special price 100 yuan two pieces, "sells a piece also to lose more than 10 yuan, but does not sell and cannot return the money."

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Hangzhou trade and Industry Bureau recently released the first half of 2012 commodity trading market operation data show: the famous Sijiqing clothing characteristic block, in the first half of this year sales volume was 3 billion 852 million yuan, down 8.07% compared with the same period last year, while another one of Zhejiang's regional key market Hangzhou hang Pai boutique clothing market clothing sales fell 23%.

Fujian, a garment province near Zhejiang, also has such a situation. In most department stores of Shishi City, almost all stores offer preferential treatment, and the discount rate is mostly below half off. Many of these discounted items are just a few months ago. "One, thirty percent off, two, half off," and "three fold up the whole court", "buy one get one" signs everywhere.

Guided by "sales maximization"

The owner of a foreign trade brand women's clothing company in Hangzhou said that the annual output of clothing was more than ten million pieces, mainly exported to northern Europe. In July, she took a trip to Paris, and the cold spot of the European Clothing Fair made her worried about her nearly 20 years of clothing and foreign trade business: "with the most conservative estimate this year, the company's profits will also drop by half."

Due to the impact of the European debt crisis, orders from foreign customers are also more cautious. But this year, the Nordic market is relatively stable. It is very difficult for some garment enterprises exporting to Italy and Spain to receive orders.

Reporters learned that the value of clothing exports tested by the Hangzhou entry exit inspection and Quarantine Bureau in the first half of this year was 12.5% lower than the same period last year. "It was hard to imagine before." One industry insider said.

The owner of a children's clothing company in Huzhou, Zhejiang, said that last winter was late, and the Spring Festival came early, and they also accumulated a lot of winter clothes. "Because of fashion trends, capital circulation and other reasons, clothing storage time is up to a year." The head of a company said, "the financial funds of garment enterprises are tight this year, and high inventory has taken up a lot of financial funds, leading to a sharp rise in financial costs."

According to the reporter, in 2011, many famous garment enterprises in China declined in performance, which were caused by the sharp rise in inventories. Data show that Lining group last year, the stock amount of 1 billion 133 million yuan, an increase of 40.57% over the same period, such as fan Ke Cheng, Hai Lan home, Semir and other well-known enterprises have similar problems.

"Some enterprises with insufficient risk tolerance are easily crushed to death by high inventory." Qian Feng, vice president of Zhejiang garment industry association, said that these commodities in the past season are constantly depreciating, which has tightened the cash flow of enterprises to a large extent.

In Qian Feng's view, although clothing is different from other industries, it is difficult to achieve "zero inventory". But deep down, this year's stock surge has highlighted many enterprises' weak management ability. "By the impact of this year's overall economic environment, part of it is not guided by" profit maximization ", but the" sales maximization "clothing enterprises, because there is no accurate market budget and reasonable, efficient and accurate planning ability, can not quickly respond to changes in the market.

Prevention of inventory is more meaningful.

In the view of industry experts, behind the high inventory is the comprehensive reflection of clothing enterprises in brand, design and channels. Behind the frenzy of discount sales, the marginal effect of clothing brands is decreasing, and it is easy to damage the brand image. Reasonable control and prevention of inventory is far more strategic than how to digest inventory.

Many experts also said in the interview that the current difficulties facing the garment industry in addition to the market downturn affecting exports and high inventories, there are many factors such as rising prices of raw and auxiliary materials, rising labor costs and so on. Relevant departments should also focus on stimulating consumption and expanding domestic demand.

This year is the most difficult year after 2008, but some enterprises are developing fast on e-commerce. Responsible person of Hangzhou Blue Fashion Clothing Co., Ltd. said that since last year's involvement in e-commerce, the company's online sales this year gained nearly 300% profit growth.

Shishi is one of the major clothing production bases and distribution centers in the country. It is known as "there is no business anywhere in the street." Prospective network reporter understands, Shishi has recently promulgated the "measures to encourage and support the construction and operation of Shishi clothing industry creative park" (temporary), in order to speed up the construction and operation of the project, and promote the spanformation and upgrading of the city's industry.

It is reported that the Shishi costume industry creative park is a strategic cooperation project between the Shishi people's government and the China Fashion Designers Association. The introduction of the encouragement policy includes three aspects: supporting measures for project construction and operation, and related safeguard and restraint measures. For new bank registration institutions, the bank loans for the development of clothing and creative industries will be given 20%-50% loan interest discount; the designers at the national level or above in the creative park will pay 50% registered funds by the development and operation company, and the interest on the advance payment will be supplied to the operation company by the Municipal Finance and administration. The cultural project with the characteristics of Shishi and Fujian and Taiwan can play an industrial driving effect and give 20%-50% project loan interest discount.

Experts suggest that the clothing industry and relevant government functional departments should set up special funds as soon as possible to provide support, relaxation and simplification of loan conditions and approval procedures for the research and development of clothing enterprises, increase the intensity of small loans to solve capital flows, and introduce policies on special tax and fee reduction for small and micro garment enterprises. Clothing enterprises should focus on inventory control, study the impact of various factors on inventory, and speed up industrial upgrading, and strive to build brand.