Analysis Of China'S Home Textile E-Commerce Industry In 2012

If only one digit can be used to describe the characteristics of the home textile industry, then the figure can only be "25%".

25%, this value represents dream cleaning.

Annual sales of new products account for a percentage of the company's total revenue.

At the same time, this means that the remaining 3/4 of the sales volume of the company is realized by the old products.

In fact, in the three home textile enterprises currently listed in China, Meng Jie is the most active development of new products.

The company has launched 698 and 300 new products in the past two years, but these products account for only 1/4 of their revenue.

Luo Lai and Fu Anna also showed similar laws.

Every year, fuanna introduces more than 100 new styles and 400 new products.

R & D's new products are less developed, less than two hundred a year.

The sales revenue of these products is less than 1/3 of the total revenue of the company.

ZARA designs more than twenty thousand new products every year, and more than ten thousand of the final products are launched.

Other clothing companies launch thousands of new products every year.

Compared with these enterprises, the home textile industry, which belongs to the major textile industry, is not "happy".

The characteristics of the home textile industry are determined by the attributes of the home textile product itself and the demand characteristics of the end consumers.

"Slow" supply chain

There is not much room for bedding design.

and

In this fashion industry, the specifications of 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.

Moreover, home textile is a far away fashion industry.

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 the upstream brands to launch new products, and the demand for new products by the downstream consumers is not strong, making the home textile industry introduce relatively slow new products, and many classic styles are popular.

Roley's home textiles supervisor told us that the life cycle of a home textile product can usually reach 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.

In the well-known domestic textile brands, only many people like to take a clear-cut stand and put forward the concept of art home textiles.

But the popularity of consumption habits will take some time.

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

The inventory turnover days of the three listed companies exceeded 100 days, of which the days of inventory turnover of fuanna and Meng Jie were even hovering around 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 store will also push up the stock.

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

This is an extremely 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.

Source of pain: low efficiency

Another characteristic of home textile industry is the low efficiency of terminal display.

In home textile sales, businessmen usually use some contextual and thematic layout.

But for home textile products, such sales will take up space.

The resulting problem is the low efficiency of home textile retail.

The efficiency of Fuan direct battalion terminal is about 10 thousand yuan / square meter / year, and the efficiency of joining the terminal is only half that of the direct battalion.

Among them, the flat effect of shopping mall counters will be slightly higher than that of exclusive stores.

What is the concept of this flat data? We can compare the retail data of several other industries.

Lianhua supermarket has a flat effect of about 20 thousand yuan / square meter / year, and the efficiency of UNIQLO is as high as 72 thousand yuan / square meter / year.

The impact of low efficiency is linked.

For stores, because the rent is fixed, the lower the flat effect, the higher the rental cost.

According to the data disclosed by fuanna in the prospectus, we can roughly calculate that the rental rate of the fuanna store is as high as 20%.

The rental cost rate of retail stores in general brand clothing enterprises is only about half of this value.

At present, the domestic market is still using the profit mode of the reverse flow. Therefore, the level of the flat effect has a great influence on the "status" of the category in the shopping mall.

Because of the low efficiency of home textiles, like the first floor of this high flow of gold location, home textiles is not expected.

Home textiles in shopping malls, many on the first floor or high-rise, far away from the crowd gathering place.

Another result of the same reason is the high point of home textiles.

Even if the home textile is arranged in a relatively remote position, it will not solve the problem of low efficiency in home textiles.

In order to balance the revenue gained from the unit area, the mall must improve the home textile's buckle.

Although the specific agreements of different brands and different shopping malls are different, the average discount point of the home textile industry is as high as 30%.

This is also a high standard for all categories of department stores.

At present, the gross profit of the three home textile enterprises in China is over 50%.

The discount of franchisees to franchisee products is also around half off, leaving enough profit margin for franchisees.

But this has not made the home textile industry a profiteering industry.

Unlike clothing and cosmetics, the investment in home textiles in R & D and marketing will be much smaller.

The root causes of all these problems lie in the low efficiency of the home textile industry.

Channel breakthrough

The principle of channel is king in the home textile industry.

The supply chain of home textiles is relatively simple, the technical content of production is not too high, and the domestic textile industry is generally a labor-intensive industry, and the automation level of production is not too high.

As for R & D, from the consumer side, the market demand is not as strong as that of other industries.

Therefore, several listed companies invest less in research and development than 2% of sales.

The regional character of home textile brand can explain this point very well.

The main bases of Luo Lai, Fu Anna and Meng Jie are in Shanghai, Guangdong and Hunan respectively.

These three enterprises accounted for nearly half of their sales in East China, Southern China and central China.

At present, there is no strong national brand in China. A very important reason is that it is restrained by channels.

At present, three domestic textile enterprises in China only take franchised channels (a small number of products are sold in supermarkets).

This is mainly related to the market positioning of the three enterprises.

Luo Lai, Fu Anna and Meng Jie are all positioned as high-end products. In order to maintain their brand image, they have chosen franchises.

As far as the whole home textile industry is concerned, department stores are very important circulation channels.

In a second tier city, shopping malls can account for about 2/3 of the market share.

For the three or four tier cities, this ratio should be slightly lower.

But China has not yet formed a national department store chain terminal. If the home textile brand is to expand in department stores, it needs to break through one by one.

In addition to the choice of different channel forms, branding is also faced with the choice of joining or direct operation.

The biggest advantage of joining is the ability to use the resources of franchisees to develop the market rapidly.

First of all, franchisees can provide ready-made talent pool.

Secondly, franchisees' resources and other kinds of soft resources can also be directly used by brands.

Invisible financing support is another important function of franchisees.

Fuan a family of 200 square meters of exclusive stores only pre decoration costs more than 200 thousand yuan.

If the brands are to undertake these huge initial investments, the financial pressure will undoubtedly be enormous.

Moreover, the accounts of the three listed textile enterprises to franchisees are almost no or very small, usually after the first payment, compared with the direct camp, the brand name is equivalent to saving the cost of store distribution.

From the perspective of management, joining has solved a very important problem in modern enterprise management: motivation.

When the interests of employees and enterprises are not exactly the same, employees tend to slack off in their work, resulting in "agency costs".

The interests of franchisees are closely related to the operation of stores. There is almost no incentive problem between brands and franchisees.

The expansion of franchisees on terminals also indirectly influences the brand dealers.

And the problem brought by the franchise is

The control of the terminal will be weaker than that of the direct battalion, which is reflected in all aspects of retail price, brand image, marketing and so on.

From the perspective of the company's strategy, he may need some control over this aspect.

At present, Luo Lai only joined the management team of the channel up to 600 people.

In some large sales outlets, a manufacturer supervisor may only be responsible for the management of a store.

On the whole, although each company has different affiliate and direct battalions, it has generally experienced the development process from joining in the world to gradually recovering itself.

During the period from 2006 to 2008, the company expanded considerably.

Luo Lai successfully launched in the second half of 2009.

Although the development of the direct store has not been disclosed after the listing of the company, the development of the fund is not large enough.

In the cities of Beijing, Shanghai and other cities, Luo Lai employs direct operation, but in the two or three tier cities, it is still the main franchising company.

It can be seen that in recent two years, Luo Lai has obviously widened the gap with other enterprises and consolidated his leading position.

The company's development in franchising channels is indispensable.

The proportion of direct operation of Meng Jie has been improving, but it can be seen that there are obvious two stages: before 2009, the growth rate of direct battalion was slow; after 2009, the proportion of direct battalion increased rapidly.

The three enterprises were listed before and after the end of 2009.

Before listing, three enterprises are facing serious financial pressure.

Meng Jie is especially serious. The company's asset liability ratio has exceeded 70%.

The situation of fuanna is similar to that of Meng Jie.

The proportion of Fuan's direct battalion in the home textile industry has been the highest, reaching about 40%.

But the company's financial pressure is also great.

Especially in 2008, after double interest rates and financial crisis, the company adjusted its strategy from 2009 and strengthened the development of franchisees.

However, regardless of the specific expansion path, brand dealers are always thirsty for the channel.

The desire of home textiles for e-commerce is also rooted in this.