Low Order, High Inventory, Dual Line Pressing Home Textile Industry Plunged Into "Dilemma"

Home textile substantial discount but business is slack. Real gold and silver are killing the online market share. The market is constantly changing, and the concentration of domestic textile industry is also increasing. From the propaganda and promotion methods to the innovation channel mode, from the offline layout to the online force, from the price war to the brand war, the home textile enterprises have their own ideas, and the home textile industry is quietly brewing a revolution.

After a big discount on home textile market, business is still cold.

10 years ago, after Dai Funi's home textile was put into Jinhuai street, the home textile franchise stores such as fuanna, Luo Lai, and so on were gradually gathered here. According to a shop owner, during the heyday, from the front of Quanzhou city to the Tian an intersection, there were twenty or thirty shops running home textiles, and the flow of tourists was like clouds. It became Quanzhou's "home textile" street. But recently, the home textile Street business is slack, although the stores are competing for a discount, but it is still cold and clear.

A weekend ago, a reporter visited Jinhuai street and found that the discount rate of home textile shops is not small: some businesses have "broken the code tail goods, 0 profit clearance", some businessmen posters called "limited time products 9.9 yuan", and businessmen at the door with large speakers repeatedly broadcast "original price of 1080 yuan products, the current price is only 99 yuan, the original price 10 thousand and 2 current price is only 4 thousand".

This is the case outside the store. Entering these home textile shops, many products are marked with discounts on cardboard cards and red pen. The basic discount ranges from sixty percent off to half off, and the discount of individual promotional products is less than seventy percent off.

Although the discount rate is not small, there are few customers who choose to buy goods, and salesmen chat in twos and threes. "A few years ago, these home textile brand stores only have discount activities, not half off, as long as 22% off," she said.

Now faces the two-way press between cost and online shopping.

For the reason why such a low price is sold, most of the sales staff of each shop responded that the product is now in season and is cleared for sale.

"Every year in the end of August, September, we will have a wave of larger season promotions." A salesperson at a textile shop said, "but this year's promotion time has been very long, and the intensity is much larger than in previous years." She later revealed that another brand home textile store next door had been calling for the last three days for almost a month and didn't know what time it would last.

The boss of a shop admits: "taking advantage of the season to do activities, attract more passengers. Nowadays, marriageable young people are one of the mainstream groups in home textiles consumption. This group has grown up in the Internet age, and tends to buy online and dilute the consumption of physical stores. Shop management needs more thought now. "

It is observed that salesmen are very sensitive to customers who show their intentions online. "Online shopping home textile products are shoddy, quality is difficult to guarantee, in the shop to buy, really, touches visible, the price is also very affordable." When reporters talked about online shopping, several sales ladies continuously expressed their views.

A salesperson of a brand shop privately says that nowadays, many customers even copy the style of online sales, and look at the objects in the store, which makes them "very hurt".

The owner of a home textile shop said: "in fact, there are many promotional items in the store, which are even cheaper than the Internet. But the impression that the public is cheaper online has been formed and is hard to reverse. It is difficult to attract these customers with large discount." The reporter saw that a promotional 200cm * 230cm cut wool blanket in the shop was very dense, and it was 75 yuan after the discount. The reporter searched the online shopping mall through mobile Internet, and the price was in the range of 100 yuan -200 yuan.

It is understood that the urban street in Quanzhou is also facing the pressure of rising shop costs.

"Jinhuai street belongs to the downtown commercial area. The rent is rising. Two or three years ago, the rent of the single storefront was 7500 yuan per month, and now it is more than ten thousand yuan." A nearby real estate agency sales manager said, "store rent is generally determined by the market, and it has been on the rise in recent years. Now a store rent is between 12 thousand yuan and 13 thousand yuan per month. Unless there are more than one shop, the price is more favorable, but at least it is more than 10000 yuan. This has put pressure on some home textile shops, some shops have moved out, and some have changed their clothes. "

The urban home textile new street is also attracting customers at low prices.

It is understood that at present, some home textile shops are unable to bear the increasing rental cost of Jinhuai street, and move the storefront to the New Gate Street in the Licheng district. With the increase of the number of home textile shops, the new "home textile" street in the city has been formed here. Reporters from the grass garden walk to Linzhang door, a rough statistics, at present, the number of all kinds of home textile shops on this street has more than twenty.

It is understood that in this street, due to different locations, the store rent slightly different, about 70 yuan to 90 yuan per square meter. Based on this calculation, a more than 70 square meter storefront costs about 6000 yuan. Compared with Jinhuai street, the rental pressure of shoppers has been reduced.

"Rent is cheaper than Jinhuai street, but the corresponding passenger flow can not be compared with Jinhuai street." When asked about business, a salesperson from a shop replied. Reporters saw that most of them were passing cars, and there were not enough passengers to walk and buy goods under the arcade.

Shops were opened soon, and there are new shops in the decoration. A salesperson said, "now the impression of the new door street home textile shop is not too deep, but there are more businesses, and I believe the market will gradually become lively." A customer who entered the shop said he drove past and found a new home textile shop here to see what was different.

Reporters saw that, like Jinhuai street, the discount rate in the shops is very great.

Economic slowdown, industry can not escape low order, high inventory

Insiders said that this year, the home textile industry was affected by the slowdown in the economic situation and the real estate market regulation factors, and the pace of rapid growth has slowed down. "This year, the market continues to slump. The promotion of "3. 15" and the "51" promotion were huge, but the effect was not very obvious. Therefore, children's day and Dragon Boat Festival in June were also a gimmick for promotion, and the situation was still not ideal. A salesperson described so.

"This year's market is relatively sluggish. According to the survey, sales of various physical stores in the market have generally declined by 20%." Quanzhou Dahua home textile manager Xie Yingjie said.

From the earnings reports of several home textile listed companies in the mainland, we can see that the above experience is a common phenomenon. In the first half of this year, the results of the first half of the year showed that the performance of the home textile industry, the leader of the domestic textile industry, declined, and the net profit of the listed company's shareholders fell by 17.70%. At the same time, the stock of the company and its parent company also increased greatly, and the stock amount increased by 48.5% and 28.4% respectively. And from last year, the inventory of the home textile products rose continuously: the inventory value at the end of 2011 was 517 million yuan, and this year's quarterly report was 616 million yuan. In the first half of this year, the company's stock balance increased.

As long as 768 million yuan, of which, the stock of goods increased 59.82% compared with the beginning of the year; raw materials increased 56.12% compared with the beginning of the year. The inventory turnover rate dropped from 2.82 to 0.92 times in the beginning of the year, and the stock turnover time was 198.33 days, an increase of 42.51 days compared with the beginning of the year, an increase of 50.18 days compared with the same period last year. High storage is not a problem of the home textile company of Luo Lai. The two other three giants in the home textile industry are also troubled by the above problems.

According to the information disclosed by these two listed companies, the first quarter operating income of Meng Jie home textiles was 269 million yuan, down 9.93% compared with the same period last year, and the inventory was 405 million yuan, which is about 20 million yuan more than the 384 million yuan disclosed in the annual report in 2011, and the inventory value increased by 405 million yuan.

At the end of 2011, fuanna reached 520 million yuan in inventory, up 25% from the same period last year, accounting for 36% of the inventory value, and 1.6 of inventory turnover, and a continuous decline in inventory turnover.

"Compared to Jiangsu, Nantong and other home textile enterprises, Quanzhou's home textile enterprises are mostly independent monopolization, and the phenomenon of low orders and high inventories is not obvious. Take Dahua home textile as an example, sales have gone up 18% against the trend. Xie Yingjie said that this is mainly due to the accurate judgement of the market and the adoption of a flexible price strategy: this year, the 10 best selling products last year directly hit the market at cost price, and the market situation was well preserved.

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Killing online market, home textile industry is in a dilemma.

"The impact of the economic situation is on the one hand; on the other hand, at present, home textile enterprises are keen to fight online market share, and many manufacturers have changed profits into space and invested a lot of resources." According to the insiders, home textiles is one of the most complete brands in the Taobao bazaar. Almost all physical store brands can find corresponding businesses on the Internet.

An industry insider interviewed said that fashion women, white-collar workers and other mainstream customer groups, who are the main consumers of home textiles, are becoming more and more accustomed to the form of online shopping. Therefore, the retail sales growth of the home textile industry has slowed down, sales of physical stores are weak, and online sales are showing explosive growth. Relevant data also show that the annual sales volume of home textiles e-commerce has easily exceeded 10 billion yuan, and according to experts, in the next few years, China's home textile business will form a 100 billion yuan market.

In order to compete for online market share, the price war in the home textile industry has intensified. Although online sales have increased greatly, profit growth does not match sales growth.

On the one hand, the main and most direct way to fight for online market share is to attract customers by price war. The profit of single product is thinner than that of the line. Sales are large and profit margins are limited, while squeezing the offline market of their brands. " A home textile shop sales manager said.

"But online grabbing can not be done, even if they do not put their products on the line, until the other brands online share is bigger, it will also have an impact on the offline sales of their brands."

The question of whether the online sale cost will be relatively low is explained by the sales manager. "Although online operation eliminates the cost of store costs, labor costs, exhibits costs, etc., the cost of online advertising, traffic promotion, information system technology input and customer service costs is not much less," the sales manager explained.

According to the introduction, many leading brands of home textile industry in mainland China have made great progress in the field of online sales, and the increase in online promotion costs is more than expected, which has become one of the reasons for the poor earnings data of these home textile giants.

Industry or shuffling urbanization will bring great room for development.

At present, the market crisis of the home textile industry may also be a critical period for the industry to survive the fittest. The industry is quietly brewing changes, enterprises can only continue to talk bigger and stronger. Xie Yingjie said.

It is revealed that in the previous years, the domestic textile brand number is about more than 700, by the beginning of this year, the survival of the brand has been reduced to about 500. Xie Yingjie believes that the home textile industry has begun a new round of shuffle. "This is just like the competition of Chinese shoes and clothing enterprises over the past 10 years. Before that, thousands of domestic shoes and clothing enterprises have been reduced, but the remaining ones are those with strong scale, technology and brand."

It is understood that for the low order quantity and high inventory problem, some enterprises in the mainland still take steps to solve the problem by adopting the traditional shop opening mode. For example, there are 600 new ~900 stores this year. But Xie Yingjie does not agree with this approach. He believes that the above brand home textiles greatly push online sales, while online sales are breaking billions of dollars, and at the same time, it has a great impact on its physical market.

For online and offline sales competition and "fight with yourself", some enterprises are also beginning to consider the prescription: either to set up a brand new pure online brand for sale online, in order to differentiate from offline brands. Either the same brand will produce dedicated line sales and physical store sales separately, so as to eliminate the parity effect under the online and offline businesses.

It is reported that for the future home textile market, some experts said that the home textile industry in previous years was explosive growth, this year the development slowed down, but due to the continuous development of urbanization in China and the continuous improvement of the quality of life of the public, in the next few years, the home textile sector as a whole is better, the home textile industry will still have great room for development.