Pressure On Inventory Increased, Quanzhou Clothing Enterprises To "Good Shop" Pformation

Once upon a time, the expansion strategy of "Guang Kai Dian" and "Kai Da shop"

Clothing brands quickly seize the main market in China, but they are shouting at all walks of life.

Under the pressure of great pressure, enterprises have made strategic adjustment, instead of pursuing "opening a good store".

Recently disclosed in the newspaper, in the first half of the year, some listed companies closed a lot of shops with insufficient profitability, and strive to raise the profitability of single stores and reduce the inventory.

Main products boost performance growth

Nine herd Wang's China Daily reported that the company's main revenue came from sales.

From 2012 to June, the company's main business income increased by 23.55% over the same period last year.

Among the products that generate revenue, men's trousers account for the highest proportion, and men's trousers sales account for 51.27% of the company's main business income, up 17.21% over the same period last year.

"Nine men's trousers are always the core products of the company."

"Enterprises have further enriched the pants product line in enhancing the competitiveness of trousers, while strengthening product raw materials, process technology and functional development, and through the analysis of trousers products over the years and the company's understanding of nine kinds of trousers, the classic elements of trousers are precipitated."

He said that in strengthening the "profit product" business, the company has identified three styles of accessories, the extraction of thematic elements, the use of popular elements and design techniques, and color combinations in the research and development of products.

Driven by men's pants, the sales of shirts, jackets, T-shirts and other products have also increased. Especially under the guidance of the development of upper garment, the sales of shirts have increased considerably, and the growth rate has reached 44.69%, becoming the fastest growing category.

Coincidentally, reporters in the seven wolves and Li Lang's China Daily also found that the main products had a significant effect on the company's performance.

Seven wolves reported that the company's product line, the main promotion of black label products sales grew rapidly, contributed to the main business sales revenue has exceeded 50%, effectively promoted the company's gross margin and net interest rate increase.

Li Lang Zhong Bao showed that in terms of unit price, the average sales price of the products increased by actively upgrading the product mix and increasing the proportion of products with high added value and high price.

During the reporting period, the unit price increased by 6.1% to 173 yuan over the same period, and the sales volume increased by 14.5% to 7 million 258 thousand.

Among them, the main brand "LILANZ" average unit price increased by 8.2%, sales increased by 9.3%.

Normalized self elimination shop

"Over the past few years, the excessive expansion of traditional enterprises is an important reason for high inventories."

A person in the industry told reporters that every shop is added, and enterprises need to PVE the goods and increase production, and once these stores are unsalable for many reasons, such as the location of the site, the insufficient cultivation of the consumer groups, and so on, the accumulation is a terrible stock.

"If every store adds 100 stocks, large enterprises will have thousands of shops, and 2000 stores will increase 200 thousand stocks. If we calculate 200 yuan at a price, it will be 40 million yuan in inventory value."

He said.

"Under the pressure of inventory, the number of stores we have not pursued is better, but we choose to shut down shops with insufficient profitability, while steadily opening stores, and strive to increase the profitability of single stores."

Zhao Jianhe, chairman of Green group, said in an interview with reporters.

This strategy has been implemented in this year's clothing brand channel construction.

It is reported that in the first half of the year, the seven wolves closed 80 blue chip shops and children's wear shops with poor performance, with a net increase of 5 stores and a total of 3981, while the nine Mu Wang terminal only increased by 67 to 3207.

Li Lang also showed a cautious attitude in opening a new store. At the beginning of the year, the planned opening target was 250 to 300, but the new data was adjusted to 200 to 250 stores in the whole year. In the first half of the year, the number of main brands and sub brands increased by 81 and 37 respectively.

Take appropriate strategies to develop E-commerce

Clothing enterprises, on the one hand, strictly control the excessive expansion of physical stores under the line, and on the other hand, speed up the construction of new channels.

"Nine Mu Wang brand line has mature operation and high brand awareness. Online shopping is positioned under the support line, as the channel for this brand to digest inventory. The appropriate interaction between the online and offline brands of the nine Mu Wang brand is conducive to the rapid development of the company's brand line."

The leader of the nine Mu said.

The seven wolves said that the scale of the company's e-commerce expanded rapidly during the reporting period. The first half of the year achieved a net sales of about 76 million yuan, an increase of 137.50% over the same period last year.

The reporter learned from Fujian seven wolf industrial Limited by Share Ltd that since this year, the company has been trying to increase e-commerce. Overseas channels of its e-commerce center were launched in May this year, and broke through 170 thousand US dollars in a single month, and sales doubled in June to 350 thousand US dollars.

Zhong Tao, chief executive of the company's e-commerce center, told reporters that huge inventory pressure was difficult to solve in the domestic market and had to shift its target to overseas markets.

"We have established our own online store through an overseas e-commerce platform like Taobao. The main selling destination is Australia.

China is the winter of Australia in summer, and the winter stock that has been stored last year coincides with the right selling season.

Zhong Tao said, seven wolves for foreign trade business B2C concept is to first cover the English speaking area, then cover Japan and South Korea, followed by France, Germany and other European regions.

The seven wolves daily report shows that the e-commerce industry has implemented online cooperation, innovated and strengthened thematic marketing and cross-border marketing, promoted the conversion rate of purchase, and co operated with high-quality distributors to achieve good results.

Data management and strict inventory control

In the current information age, with the help of the latest information management technology, through the construction of information management platform, the unification of processes such as logistics, information flow, capital flow and so on, so as to enhance operational efficiency and provide accurate information basis for business decisions has become the consensus of enterprises.

The use of information management to control production, sales and service processes has also become an important means for enterprises to control inventories and increase profits.

Reporters learned from the nine Mu Wang company, in September 2009, nine Mu Wang joined hands with IBM to create a benchmark supply chain for China's men's wear industry.

In February 2012, the first phase of PLM (commodity life cycle management) project was successfully launched; in March 2012, the ERP project was launched.

Zhang Tielong, director of the information management center of the company, said: "nine Mu Wang has become the first enterprise on line PLM system for business casual men's business in China. The project has introduced management measures such as surface accessories, development placeholders, color management and other management measures, so as to realize the management of commodity data in the development process."

In the earnings report, nine Mu Wang concluded that the smooth implementation of the first phase of the PLM project and the further improvement of the supplier evaluation system led to further strengthening of the company's internal management level.

Speed up capital withdrawal through promotion

The seven wolves said in the daily report that the company's market center went deep into the terminals to help dealers carry out various promotional activities, and supported the unified promotional gifts with headquarters strengths, looking for cooperative public relations companies to enhance the diversity and effectiveness of the promotion forms; assisted the terminal to promote VIP, and set up activities such as VIP free laundry, advanced customization, etc., to enhance the loyalty of VIP customers and ensure the stability of sales revenue.

During the reporting period, the company increased its sales promotion support to the terminal. In addition to the promotion advertising support, the company formed strategic cooperation with thousands of general merchandise stores, and created a cooperation mode of "thousand - seven wolves".

In addition to assisting dealers to enter their stores, the company also considers recycling some of the inventory of distributors and conducting centralized processing.

Seven wolves opened two special sales meetings in Xiamen and Fuzhou respectively in July, and it was revealed that "good results".

It is the consensus of garment enterprises to deal with the terminal inventory pressure.

Li said in the China Daily that in the second half of the year, the problem of channel inventory will be more severe than that of previous years due to the rainy and low temperatures in late winter and spring and summer this year. The key measure is to sell 300 to 350 shops in the second half of the year to make sales promotion before decoration, so as to clear up additional inventory and ease the impact of inventory backlog on the two quarter of autumn and winter.

Recently, reporters at the store in Le Lang saw that the shop had posted promotional advertisements for the word "Welfare Club".

On the one hand, enterprises are cleaning up the terminal inventory, and on the other hand, they are strengthening the terminal shopping guide capability.

Seven wolves said that in the first half of the year, the company's channel center promoted the terminal salesperson salary increase plan as a channel index, and the Ministry of manpower also summarized all the projects in a timely manner and selected some cases for promotion.

Ultimately, the plan is to improve terminal performance.

On the other hand, in the first half of the year, the company focused on the upgrading of the stores and trousers cabinet images and the construction of the staff motivation training system.

The company launched a "retail management project" in Wuhan. The main goal of the project is to establish a business mode of improving terminal store efficiency through the organization system, management system, core power system, training system and business intelligence (BI) system. Based on the success of the pilot project, the successful experience will be further extended to the whole country, so as to achieve the purpose of regulating retail operation and improving store efficiency.

At the same time, the company has strengthened the service to VIP customers, and further enhanced the service level of VIP customers by strengthening the management of "VIP system".