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    The Fall Of Garment Enterprises Will Be Reduced When The Autumn Brand Comes Into The Market.

    2012/10/13 9:49:00 26

    Brand Autumn ClothingDiscount ClothingShrinking Profits

      


    Compared with last year, many brands this year.

    Autumn dress

    First, the market began to discount, and even launched discount activities to attract consumers.


     


    Also see the discount of clothing.


    Generally speaking, it is the off-season of traditional clothing industry that the first year end or the season change, and low price clearance has become the norm.

    But this year's discount is quite different from previous years. It is not only very early, but also fiercely.

    What is hidden behind the discount? Recently, the author conducted an in-depth investigation of Fuding's clothing industry.


    Miss Xu, a Fuding citizen who likes shopping, has found that since July, a lot of clothing stores in Fuding have seen the "special" and "low price" signs on the summer clothes.

    And in Paris spring, Zhongshan fashion street and other shopping malls, many

    Brand clothing

    They also increased the discount rate from 50 percent off to 20 percent off, and some brands even dropped to 77% off.


    "The discount season was at least 1 months ahead of schedule, and even the new ones that were not listed for a long time were very attractive."

    Miss Xu, who calls herself a Shopaholic, is very happy.


    "After some new autumn clothes were put on the shelves, they hit 33% off, and then the October winter clothes were listed on the market and the discount increased."

    Chen Xianling, director of Fuding Hongli Fashion Mall, said that with the rise of the online shopping era, many post-80s and post-90s consumer groups like to go shopping online, which is not only cheap but also convenient.

    Chen Xianling said that this brings a great impact to traditional clothing stores, although brand clothing dealers usually sign agreements with manufacturers, requiring that the clothing of the season can not be sold online, but in fact, it is difficult to control.


    Weak market can not afford to hurt


    Fuding Manulife Fashion Mall is one of the largest women's clothing distribution centers in Fujian and Zhejiang provinces. It has concentrated large and small shops.

    Although shops are dense, but customers are in twos and threes, consumers who come to buy can not see a few.

    Most of the most obvious locations of shop doors and windows are advertisements with reduced prices.


    In a lady's boutique, a shopkeeper who owns a brand of women's clothing has mentioned the latest sales and even can't afford to hurt her.

    In previous years, he gave wholesalers a price of 70 percent off.

    "This year's new autumn dress, I directly reduced to 1.5-1.8 discount.

    There's no way to go.

    Wang told the author that this year's clothing raw materials, labor and logistics costs have actually risen, but because the peak season is not prosperous, product pricing is not up to date.


    "At this time of the year, at least 20 guests came to pick it up every day, but recently, the average number of guests coming to patronize is less than 10."

    In Korea school

    Clothes & Accessories

    City, a week boss told the author that his main brand T-shirt retail price at ordinary times is 110 yuan, now the special price 100 yuan 2.

    "Selling a piece will cost more than 10 yuan, but it will not be sold and can not be recovered."

    Zhou boss gave the writer an account of his 30 square meter pavement, which costs about 180 thousand yuan a year.

    "When I open my eyes, the minimum cost is 500 yuan a day. How much pressure do I have to think about it?"


    According to the statistics of Fuding industry and Commerce Bureau, at present, Fuding City

    shoes

    The total number of retail stores is 1265.

    By the end of August this year, there were 155 new retail outlets for shoes and clothing, 127 of which had been cancelled, and 1 shops were closed on average 1 days. In 2011, 280 new businesses were cancelled, 323 of them were cancelled, and 1 shops were closed on average 2 days. In 2010, there were 278 new shoes and clothing retail stores, and 209 stores were cancelled.

    At the same time, there are only 5 brands of brand shoes and clothing stores registered in Fuding this year.


    Shrinkage of garment enterprises' profits


    In this way, clothing companies are also having a hard time.


    Wang Guangdou runs a women's clothing brand in Fuding.

    The company produces more than ten thousand garments a year, mainly exported to Africa and South America.

    At the beginning of last month, Wang Guang went to Rio De Janeiro, the cold spot of the South American clothing fair, and Wang Guang, who had been engaged in the clothing trade for nearly 10 years, was worried: "it is estimated that the company's profits will be halved this year."


    Affected by the European debt crisis, foreign customers have become more cautious when ordering.

    "We used to make 10 kinds of products in one season, but now there are at least 30 products to keep the original profits, because the price of many garments has been reduced by 20%."


    Wang Guangdou said, compared to this year, the African market is still stable, but some of the clothing enterprises around her main export to Italy and Spain are very difficult to receive orders.


    The shortage of domestic market and the lack of consumption in foreign markets have directly led to the increase of stock in traditional clothing industry.


    "Because of fashion trends, capital flows and other reasons, the clothing industry has accumulated up to 1 years."

    Mr. Yang, the head of a company, told the author that "the tight financial funds of garment enterprises this year is an indisputable fact, and high inventory has taken up a lot of financial funds, leading to a sharp rise in financial costs."


    "Some enterprises with insufficient risk tolerance are easily crushed to death by high inventory."

    Huang Jiahu, Secretary General of Fuding garment industry association, told the author that the commodities in the past season are still depreciating and further deducting the cash flow of enterprises.


    In the view of Huang Jia Hu, although clothing is different from other industries, it is difficult to achieve "zero inventory". But from a deeper perspective, the surge in inventory this year highlights the weak management capabilities of many enterprises.

    "Under the influence of the whole economic environment, part of it is not guided by the" profit maximization ", but the clothing enterprises that sell the most, because there is no accurate market budget and reasonable, efficient and accurate overall planning ability, so that enterprises can not quickly respond to the market changes.

    {page_break}


    Control the stock of "Eight Immortals crossing the sea"


    In the industry experts, behind the high inventory is the comprehensive reflection of clothing enterprises in brand positioning, design concepts and sales channels.

    Behind the frenzy of discount sales, the marginal effect of clothing brands is decreasing, and it is easy to damage the brand image.

    Reasonable control and prevention of high inventory is far more strategic than how to digest inventory.


    "Now is the double day of ice and fire."

    Huang said that this year is the most difficult year for garment enterprises since 2008.

    But there are also some enterprises that are developing fast because they have caught the express business of e-commerce in time.


    Fuding dragon field Clothing Co., Ltd. responsible person said that since last year involved in the field of e-commerce, the company's online sales this year gained nearly 150% of the profit growth.


    Many businesses say that with the rise of online shopping, some cheap and two or three line brand clothing has been available online.

    Therefore, as a physical store, only by taking the middle and high-end brand road and forming an overall business circle, can we create a good, comfortable and convenient shopping environment for consumers, in order to attract consumers.

    Moreover, compared with online stores, clothing stores have lost their price advantage. Only by improving the personalized service level of clothing stores and building specialized sales teams, can physical stores have the hope of having a foothold.


    E-commerce platform can alleviate the pressure of enterprise inventory, but it is not a panacea.

    Huang Jia Hu believes that enterprises themselves must constantly improve their R & D capabilities, pay attention to the impact of weather, economic and political factors on the garment industry, and further strengthen the control and management of enterprises' production afterwards.


    "The difficulties facing the garment industry are in addition to the market downturn affecting exports and high inventories. There are also many factors, such as rising prices of raw and auxiliary materials, rising labor costs, and so on."

    Huang said that the relevant departments should also take drugs from the aspect of stimulating consumption and expanding domestic demand; setting up special funds to support and relax the loan products and research and development of clothing enterprises, relax and simplify loan conditions and approval procedures, increase microfinance to solve the problem of capital flow, and introduce small and micro businesses.

    Clothing enterprise

    The tax and fee waiver policy.


     

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