Ordering Shoes Will Hide Risks.

"The order meeting mechanism may have some problems in itself."

In August 22nd, Shi Hairong, executive vice president of Shishi textile and garment business association, said that there were problems in the footwear industry.

As the cradle of the national garment industry,

Under the jurisdiction of Jinjiang, Shishi and other places, at least three times a year (spring and summer 9-10, autumn 3-4, winter June) clothing orders.

Successful ordering is not only the main source of orders for brand enterprises, but also the starting point for the smooth operation of the entire brand supply chain.

Disadvantages: opaque market information

"We often wonder whether the order will result in the failure of market information feedback at a certain level," Shi Hai Rong's introspection came from some prominent industry problems this year.

Recently, Quanzhou's listed Brand Company sports semi annual report, the demand for inventory, was invariably written into the announcement.

In addition to high inventory, the downward trend of orders constitutes another part of the industry problem.

Whether Jinjiang or Shishi, the shoes and clothing enterprises in both places failed to produce beautiful "pcripts" in the past autumn and winter products ordering meeting.

A colleague from Shishi casual footwear industry said, "even if it was Mu Lin Sen, the order of the last autumn and winter department did not exceed fifty thousand pairs of shoes, and the order mainly depended on the better outdoor series in recent years."

Casual shoes are the fist products of Shishi shoe industry, and wood is the second largest shoe company of Shishi. Therefore, in the view of the industry, "this is no doubt very clear about the industry."

Under the pressure of economic downturn, the disadvantages of ordering will become one of the "original sins" of entrepreneurs.

"In fact, the order itself does not necessarily reflect all the exact market demand information."

Shishi, a third party organization that provides orders for small and medium enterprises in Quanzhou for a long time

Mr. Dai, a chief executive of a clothing research and Development Institute, told reporters that most businesses determine output according to the needs of customers.

"This is a way of hiding risks."

He analyzed that, the mode of all the market information sources are pressed on the channel business body, the real market information is often covered up, "according to the wishes of the channel merchants to go, but did not really understand the market."

Reason: kidnapped by channel operators

Mr. Dai believes that channel traders "kidnapping" brand is common.

"Enterprises do not have a real consumption survey, but rather trust the channel business, so there is often a deviation in production expectations, which is a major reason for inventory production."

He cited an example, "if the market needs only 10000 pairs of shoes, then according to the level projections, the retail terminal will book 15000 pairs, while the agent will make 18000 pairs. According to this expectation, the production enterprises will expand production and expand the number to 20000 pairs.

This means that a commodity should be equipped with a proportion of two commodities to carry out the so-called inventory turnover. The proportion of this industry is one of the main reasons for inventory.

In the shoe and clothing industry, there has been a stock security alert for many years, that is, according to the normal operation of the industry, the scope of 10%-20% is regarded as safety stock.

According to this ratio, if an enterprise produces 100 million clothes, 1000-2000 clothes will be safe and controllable as inventory turnover.

Shishi dynamic group Wu director Chang also expressed cautious industry attitude when interviewed by a commercial newspaper reporter.

He said, "the order of some enterprises in these two years will be" very beautiful ", but the data will often be" deceptive ". After all, the order quantity can not represent the sales performance of the terminal, but the goods of many enterprises are only hoarding at the level one level.

In his view, these goods that are not sold eventually are all "time bombs". To a certain extent, they occupy the cash flow of enterprises, resulting in the risk that enterprises can not accurately estimate for a long time.

"According to the practice of clothing industry, if these stocks exceed 3 years, reducing their damage value and warehousing cost will not only bring profits to enterprises, but also become a burden for the future development of the company."

Wu director Chang believes that in addition to the cash flow being occupied, the higher inventory will have more impact on the order growth of the shoe and clothing enterprises next season. "Once the stock is tied up by the stock, it will not be able to expand the reproduction, and the dealer will have difficulty in getting goods on hand."

Typical: intra channel competition among channel operators

"Apart from the failure of conventional market information, competition among channels is perhaps a more important reason for high inventories."

Speaking of related issues, a sports brand dealer revealed that this year, just after the Spring Festival, he joined several regional agents to submit an application report for the early opening of the order. "Our reason is very simple. If you open the order early, your manufacturers can quickly return the goods in the hands of the channel operators, which can create competitive advantages and create achievements for the company."

At present, even some enterprises have broken the tradition of ordering four orders a year, extending their orders to six fields, and the names of orders have also increased, such as replenishment meetings, product appraisal sessions and so on.

"But since the beginning of last year, the economy has been down, and many goods have been sold to dealers."

The dealer said that on the hands of some dealers, "the cargo heap is everywhere, but every time the order is opened, some people continue to shout up the quantity." this strange phenomenon is not only appearing in Fujian shoes and clothing enterprises, but also a long-standing strange situation even in the whole country.

"I think dealers and regional managers jointly" kidnap "manufacturers, in his view,

It is a typical short-sighted behavior, usually for the lower level channel providers, and it is difficult to collect money. "But the order will be opened," he (dealer) can take the manufacturer's great efforts to promote sales, under the banner of the manufacturer, suddenly received several million yuan, and several months of goods have also been circulating.

And the lower channel operators who pay the money will not take the goods away.

The regional managers are in possession of a higher level of scepter. Dealers have to "seek" regional managers to buy him goods. Once the two parties are connected up and down, they will jointly "profit" to the manufacturers. "To rebate, discount and support, the market information provided by dealers and regional managers will start to fail, and the malpractice of these problems will be exposed when the market is down."