Fast Fashion Industry: Industrial Price War Triggered By Flannel Shirts

The weather has not yet entered the autumn.

"Brand" this year's flagship flannel shirt has been put on the market, and the price of 99 yuan is like a Domino dominoes, triggering the chain effect.

Soon, UNIQLO reduced the price of its flannel shirt from 199 yuan to 99 yuan.

"In the past few years, there will not be such a low price," said Ye Qizheng, founder of the tidal wave network and a famous fashion observer.

This is not over yet. After the price of UNIQLO is cut off, it will be followed up by more than 70 flannel shirts to 68 yuan.

"Fast fashion" seems to be the boundary of foreign brands, ZARA, H&M, MANGO, UNIQLO...

These well-known brands not only lead the fashion trend, but also occupy the "financial height" of the fashion industry. The boss of ZARA is the richest in Europe, and the boss of UNIQLO is Japan's richest man.

However, the competition between foreign brands and local brands seems to be a bit of a battle.

In fact, not only is the local brand becoming aggressive, but because of the negative impact of the poor macroeconomic environment at home and abroad, as well as the continuing pressure from the Internet providers on the formation of foreign fashion brands, foreign brands are not as good as they used to be in China.

Price war starts

For electricity providers, price war is very common, but for fashion brands, such tit for tat price competition is still new.

Flannel shirts are popular with consumers of all ages because their fabrics are soft and comfortable, and the styles are old and young.

Many brands such as UNIQLO, ZARA, H&M, Mts. bang and so on will launch a large number of flannel products every year.

Data show that last year, UNIQLO flannel shirts sold nearly 10 million worldwide.

It is understood that all customers began to develop new flannel shirts from autumn and winter last year. They were popular when they were launched, and achieved over 600 thousand sales success in autumn and winter in 2011.

Everyone in the flannel shirt category "PK" UNIQLO seems to "premeditated" for a long time.

This year, we have launched nearly 30 new products with over 200 flower types, including classic series, light series, thermal insulation series and special series, which are suitable for different climatic conditions and user needs.

In this regard, ye Qi Zheng's observation is that in the style and the richness of the grid color, the advantage of all customers is not small.

This is perhaps the reason why UNIQLO took the lead in reducing prices.

When reporters visited a number of "fast fashion" brand entity shops, it was found that to say "fast fashion" price reduction, this time it is more obvious that it should be ZARA.

Last year, 699 yuan of women's coat was priced at 499 yuan this year, and the men's suit coat was reduced from 899 yuan to 699 yuan. In the past year, 299 yuan children's jeans were only 199 yuan this year.

In this way, the highest decline in ZARA commodity prices is more than 30%.

It should be said that this is the first time that the brand has lowered its price in the six years since it entered the Chinese market.

Of course, the most direct pressure comes from other competitors in the Chinese market.

Insiders said that the development of domestic electricity providers did bring a great impact to foreign fashion brands.

The Internet used to compete with traditional retail at low prices. Now the traditional retail brands are becoming more and more threatened and more and more stressed. They are starting to play a price war with the Internet brand retailers such as fans.

The physical store touches the net.

At the same time, the news of ZARA's "touch net" has attracted much attention.

ZARA open shop allows people to see changes in the posture of foreign brands, regardless of whether the opportunity to open online shop is actually difficult to do because of business, but one thing is clear, ZARA is trying to deepen the domestic market.

Closer to the efforts of consumers is worth affirming, but the new online shop's experience for customers is not satisfactory.

Reporters interviewed a number of consumers who had experience in online shopping. They reflected more concentrated problems, reflecting some problems existing in online stores.

For example, ZARA online shop has no online customer service, which makes consumers generally inconvenienced.

Miss Xu told reporters that the introduction of the product is too concise, and the merchandise display pictures are not full and full of details. The size of the "three dimensions" is mainly based on the European size, and there is no customer service to be consulted. So, the first time she bought two pieces in the ZARA shop.

They all bought small ones.

Subsequently, the commodities returned and encountered problems. The ZARA shop only provided returns without providing replacement services, and the return was also more troublesome. Later, Miss Xu had to go to the physical store to complete the replacement. In essence, she had to return to the Internet to buy it, and then buy the bigger one.

Miss Xu summed up her failed shopping experience. The online shop without good shopping experience is more like a network exhibition hall. If the service of the online store still depends on the entity store, the form of this shop is larger than the content.

Perhaps, as a well-known network brand leader said, ZARA online store online is just a function of online sales, and there is still a long way to go to really become an electric supplier.

"Touch net" is not only simple to set up online sales platform, but also involves complex supply chain management behind e-commerce pactions. This is not in the display of online shops, but it is in the flow of online shops every second.

According to the reporter's understanding, the substantial increase in sales performance this year has benefited from the optimization of supply chain management.

According to the relevant person in charge, the storage center has improved over 200 years through many measures, such as process optimization, man hour control and so on. It has carried out more than 200 renovation projects, such as order production batch scheduling system, dynamic inventory storage function, and so on, making the overall operation efficiency of warehousing increased by 50% over the same period last year.

Take a customer's warehouse as an example. Shipment of 50 thousand orders last year needs 500 people, and only more than 300 people are needed this year.

As well as operational efficiency, the quality of operation is also rising. In the past year, the order delivery time of van customer's warehouse has been reduced by 30%. The warehousing operators have only received 2 hours from receiving orders to complete packaging and delivery, and the fastest time can be completed in 30 minutes.

"Although consumers can not directly feel these links, but they are closely related to user experience."

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Local brands "go out"

Under the environment of global economic downturn, emerging markets are the most attractive food and cake.

GAP, ZARA and other brands have recently announced their entry into the India market.

In June, UNIQLO opened its first store in Philippines. It is reported that the next few stops will be Indonesia, Vietnam and India.

In September, www.vancl.vn was launched, and all customers formally entered the Vietnamese market.

Choosing Vietnam market as the first stop of overseas strategy is a mature consideration for all customers.

Vietnam's economy has developed rapidly in recent years, and the consumption ability of big cities such as Hu Zhiming has reached a high level.

Vietnam's Internet ecosystem is also particularly suitable for the development of electricity providers. At present, 31% of Vietnamese people use the Internet, and the number of Internet users grows at the rate of 2 million -300 per year.

The analysis of senior people in the border area shows that Vietnam's clothing market is not abundant, and there is a lack of "fast fashion" brand.

As a matter of fact, in 2010, all customers began to plan their overseas business. It is the first company to open cross border sales in the field of B2C in China. At present, the Chinese main station has opened its overseas distribution business, and its website has covered 87 countries and regions.

In addition, careful consumers may have found that the products they buy have already been made in Bangladesh.

For foreign brands, global production is a rule, and for domestic brands, going out is not an easy step.

Why do people in the "global factory" seek to go far?

Van gentry CEO Chen has recently gone to some manufacturing enterprises. He has found that the layout of some enterprises' future business is changing. A factory of tens of thousands of people will move 50% of its capacity to Vietnam in 2015. More than 20% of them will move to India or Sri Lanka, and China will have less than 30%.

"Perhaps we will soon talk about losing the difficulties made after China's manufacturing, rather than screening the saliva that is lacking in technological innovation in China today."

The rise in domestic labor costs has made it feasible for the economy to go out.

According to reports, Bangladesh raised the minimum wage standard for the garment industry in 2010, reaching 3000 Taka (about 43 US dollars) per month. The average daily wage of garment workers is about 1.5 US dollars, much lower than that of China.

Liu Hao, deputy general manager of fan first production center, told reporters that the test water overseas was manufactured last year. Fan and Nantong new high printing and dyeing Co., Ltd. invested in cooperation with the factory in Bangladesh.

In the autumn and winter of 2011, all guests ordered 210 thousand shirts in Bangladesh factory. This autumn and winter, casual pants also began production in Bangladesh.

In 2013, down garments, sweaters and so on are also expected to achieve overseas production.

Tang Qun, chairman and general manager of Nantong new high, introduced Bangladesh.

The technology is excellent, and the cost of basic shirts such as shirts, casual pants and sweaters is about 30% lower than that in China.

In addition to these advantages, Bangladesh enjoys preferential policies such as tariff free and quota free exports to the European Union, ASEAN and Canada.

It is not hard to find that for local brands, "going global" is not only a way to deal with cost pressures, but also a gateway to a broader overseas market.

Liu Hao revealed that the overseas OEM industry is expanding from category to factory, and Indonesia will be the next "stronghold".