Four Reasons For The Sinking Of Clothing B2C

In August, there was a regrettable phenomenon in the latest B2C vitality data released by the billion state power network: the vitality of well-known clothing companies such as fans, Mcglaughlin, Meng bazaar and Masa Marceau declined, or even some signs of bottom up.

The passenger traffic data can be seen intuitively, all customers in 2011 maintained a very high traffic volume, and in the two peak season, two waves of high tide were launched, and in 2012, the overall flow of traffic fell down, and 7 and August fell to a new low in two years. The overall flow of Massa Marceau 2012 was obviously in the two box's concussion operation in 2011, and the trend of Mcglaughlin traffic continued its embarrassment in the previous year. Its price dropped from 0.6$near the beginning of the year, and it still did not come out of the downward track. Although the dream bazaar had reached 1 billion years sales, the flow of traffic continued to decline at the beginning of this year, which is indeed worrying about its performance. From fan

Under such a phenomenon, it is difficult to get a real sales performance data from the enterprise, but behind the slide, there must be several embarrassing reasons.

Users are shunted by department store platforms and traditional brands.

Van guest and Martha Marceau quickly accumulated many users due to their clear positioning and obvious style in the market explosion process in the first two years. However, Tmall, Jingdong and other department store platforms, with the improvement of user experience and diversification of products, unpolitely diverted these Internet brand users.

The vertical platform such as Mcglaughlin and dream bazaar is more difficult to avoid the aggression of the Department Store Department.

One of the latest Taobao men's clothing data from Eagle Eye monitoring shows the tradition.

Sales data in online stores have been very strong, and sales of seven wolves, JACK&JONES and GXG have been leading the network brand.

In the monitoring of the men's brand flagship store data, UNIQLO, JACK&JONES, GXG, JEANSWEST, Smith Barney, nine kings, thousands of paper cranes, seven wolves and other traditional brands also swept the top ten seats.

Such a phenomenon has been enough to respond. Traditional brands are breaking through their heads and pouring into the Internet channels, and the knowledge of Internet channels in traditional brands is not just a tool for clearing stocks.

Billion power network learned from GXG company that GXG tried to sell 90% stocks in the first year of online sales, and the inventory dropped to 70% in second years. 30% products and physical stores were synchronized, and the proportion of 2012 stocks and new products was further reduced.

A senior business seller for years of Korean clothing business has revealed the truth to the power network of billions of Nations: for traditional enterprises, new products will face high cost and high risk of storage if they simply rely on the store to shop.

For example, a traditional brand has 1000 storefronts online, and is distributed in multilevel cities, and a new product is available. With 10 stores in each store, 10000 products need to be produced at the same time. If there is a distribution in the network channel, maybe only 500 pieces of stock can be satisfied.

Therefore, when these traditional brands come into the Internet with the brand and workmanship they have formed over the years, the native Internet brand is hard to eat.

The traditional channels of the current network distribution path, mainly to open official flagship stores and stationed in large department store platform, which also makes dream bazaar and Mcglaughlin such two level platform encountered embarrassment.

Overloaded inventory results in long-term pressure on clothing B2C.

According to incomplete statistics, as of June 2012, the major stocks in the country

The market has about 100 million tons of fabric inventory, and it takes more than 1 years to completely digest them.

In addition, according to the situation known by the billion power company, many clothing enterprises' inventory commodities are not ready to start production even after two years.

Taking the traditional clothing brand data as an example, in 2011, the company had a total current assets of 6 billion 18 million yuan, of which the stock was up to 2 billion 982 million yuan, accounting for 49.55%; in 2011, the inventory was 4 billion 512 million yuan, which was 81.8% higher than that in 2010; the stock of Anta at the end of 2011 was 618 million yuan, up 36.1% over the same period last year.

Garment industry

The backlog is serious for several reasons: first, in order to occupy the market or the need for listing, enterprises themselves expand madly, which is especially suitable for some Internet clothing enterprises; second, the sharp rise of international commodity prices makes enterprises anticipate the price of raw materials will continue to rise, and then accumulate a lot of raw materials or expand production. In addition, some enterprises are too optimistic about the market forecast this year.

For the Internet clothing enterprises, whether they have a serious backlog of stocks, when faced with these traditional brands' online and offline madness, they will not be in a dilemma.

Therefore, on the one hand, a large number of enterprises are overstock and have high asset liability ratio. On the other hand, the consumer market has been shrinking due to the economic environment, resulting in the weakening of the clothing market.

According to the consumer goods market data released by the Statistics Bureau, the total retail sales of clothing, shoes and hats and needle textiles increased by only 17% over the same period last month, 1~7, representing a sharp decline compared with the same period last year.

Capital chain pressure and brand advertising dropped sharply

The high inventory mentioned above also means a large amount of capital occupied by enterprises, which is extremely unfavorable and the normal flow of cash in enterprises.

For garment enterprises, the commodity discount brought by the backlog of inventory has in turn hampered its normal operation.

In fact, Fan Cheng pin, dream bazaar, Masa Marceau and so on are largely dependent on a round of venture capital operations. When B2C is facing long-term high blood consumption and unable to make profits, the capital chain will become more intense.

It also allows these B2C to do a lot of calculations every month.

7. In August, as most garment enterprises were off season, the overall market purchasing power was limited. Most garment companies did not do much advertising during this period.

Data from Analysys International show that the intensity of online advertising of apparel brands has dropped by 67.6% in August, with negative growth.

Due to the external environment, the advertising of clothing brands began to decline sharply in the subdivision area. The most serious problem is the online private brand, which has dropped by nearly 7, and the market share has dropped from 52.7% in July to 38.2% in August.

Since the beginning of this year, many brands have strictly controlled advertising, such as fan, Martha Maso and other private brands, because of their strategic contraction or pursuit of profits.

Among them, Fan Cheng pin suspended the advertising campaign in July and August, and the traffic volume also dropped sharply, which was more than half of the peak in 2011.

As for the decline in advertising, industry insiders have analyzed that controlling costs and rational growth has become a top priority for domestic electric providers.

To ensure that more low-cost marketing methods and higher rate of repeat purchase are particularly important for brand clothing.

At the same time, we must also handle the inventory turnover speed and avoid the backlog of stock in the early stage, which is difficult to digest in the later stage and impede the control of cash flow.

Economic weakness, clothing consumption market atrophy

Looking at the Yiwu small commodity market index, it is found that the prosperity index of clothing has been declining since last 2011 (October). In July this year, the index was 864.22, compared with 1045.46 in the same period last year, which has dropped by nearly 20%, and the clothing consumer market has fallen into a recession.

This can be found in the sale of some mainstream business circles. The middle and low end clothing is very discounted, and the United States has "29 yuan from the stadium" to sell loudspeakers and sell discounts, and it is difficult for consumers to buy it. Most business circle stores have less traffic, and the cashier offices are deserted, but there is little business in high-end stores.

These phenomena actually stem from the continued weakness of the economy.

Although clothing is a must, it has the characteristics of resistance to consumption. Clothing consumption is more likely to be "consumption or consumption".

The reason for more purchase lies in seeking novelty and changing.

When the economy is in good condition and the disposable income of consumers is high, the consumption of clothing is better.

Statistics show that China's GDP grew by 7.8% in the first half of this year, compared with the growth rate of 9.6% in the first half of last year, which has broken eight.

And this economic downturn is closely related to the clear inventory of consumption. Clearing inventory will inevitably reduce production and reduce production, which will naturally lead to a decrease in employment, and the decrease in employment also restricts the increase in consumption.

The blind expansion of enterprises and high operating costs have led to a sharp decline in business profits.

The decline in corporate profits has affected wages and, in turn, affected the increase in consumption.