Characteristics Of Home Textile Industry: Low Inventory Turnover Rate

Bedding in

There is not much room to play.

Unlike clothing and fashion industries, bedding products are standardized.

As for fabrics, because bedding is all close fitting fabrics, the fabric of choice can be greatly restricted.

The development speed of new fabrics can not fully support the pace of people's pursuit of fashion.

Therefore, the burden of bedding design is pressed onto the flower design.

At present, these three leading domestic textile enterprises in China have developed more than 100 flower types each year.

Shape = fabric / flower pattern = new product.

However, the first two variables are very small, and the pattern is the largest variable.

It is easy to see that it is not an easy task to launch a new home textile product successfully.

In the past food and clothing economy era, home textiles as a basic industrial product to meet people's most basic daily needs, there is no fashion.

With the improvement of people's living standards, consumers' demands for spiritual and cultural connotation are increasingly enhanced. The concept of "soft decoration" has sprung up. Bedding has become an important component of soft decoration.

But this is precisely the concept of the overall home, which limits consumers' free choice of bedding.

It is not easy for upstream brands to launch new products, and downstream consumers do not have strong demand for new products.

The introduction of new products is relatively slow, and many classic styles are popular.

Roley, chief executive of home textiles, said that the life cycle of a home textile product usually reaches four to five years, and a longer one can reach seven or eight years.

Meng Jie once had a product selling well for ten years.

I believe these data can make the fashion industry envy.

Another factor that slows the pace of home textile fashion is the frequency of consumption.

At present, there is a lack of authoritative statistics in this field. But from the intuitive sense, we buy a lot of clothes in a year, but how many times do we buy home textile products? According to statistics, an American family buys 9 bedding decorations and 20 towels each year on average.

Compared with this, we still have a big gap.

As a result, we see that the supply chain of home textile industry does not go too far in pursuit of speed.

Three listed companies

The days are over 100 days, and the days of inventory turnover between fuanna and Meng Jie are even lingering in 200 days.

The main reason for the decline in inventory turnover in recent years is that the company has actively increased inventories in response to rising raw material prices.

Meng Jie is due to the pilot and full implementation of the franchisee order system before and after 2010, resulting in a rapid increase in inventory at the end of the year.

At the same time, the introduction of Direct stores will also boost inventories.

This phenomenon is easy to cause a misunderstanding of home textile industry, that is, the home textile industry does not need "inventory management".

This is a very wrong view.

Take Luo Lai as an example, the company divides its products into new products, regular products, promotional items and knockout products.

After a period of trial sale, the new products listed annually will be gradually returned to other products.

Among them, regular products include products and popular products that are used to build up brand image.

There is no discount at the lower store of the Luo Lai line. Promotional items are used to sell products during several fixed line activities every year.

Knockout products are those that are not well sold and are phased out.

There is a logic: in a period of time, salable products will always sell well, and vice versa.

Therefore, the supply chain speed of home textile industry is very slow indeed.

But this slow is more of an active inventory management.

No one can despise stock.