The Clothing Industry Enters The Eventful Autumn High Inventory And Becomes The Bottleneck Of Development.

Just into autumn, China

The industry has also entered the "troubled times".

Li Ning Co's personnel changes, Metersbonwe's suspected false earnings reports, and negative news came out one after another, and the root of this series of problems is related to inventory problems.

In fact, high inventory has become a difficult problem in China's apparel industry, and for the reason of high inventory, the declining factor of sales boom is far greater than that of industry expansion.

In order to solve the problem of inventory and sales, enterprises are also showing great powers, or seeking cooperation with e-commerce providers or choosing channels to sink, but these are not radical solutions.

Sometimes, a bright semi annual report will also cause trouble to the company.

This time, Metersbonwe's "banana skin" is still a high storage problem repeatedly mentioned by the clothing industry.

Prior to Metersbonwe's semi annual report, the company's inventory balance fell sharply from 2 billion 560 million yuan at the beginning of the year to 1 billion 750 million yuan, a drop of 32% and an increase of 21% in the adverse market.

In the first half of the clothing industry generally trapped in the high inventory, the earnings report is extremely "dazzling."

Some media questioned that Metersbonwe's growth in the counter market or the existence of tricky, the related risk has led to the pressure on the franchisee rebound and executives collective withdrawal.

In October 15th, Metersbonwe suspended.

In the evening, a Clarification Announcement of 4000 words was issued.

Metersbonwe's explanation of its digestion inventory is that the company's direct retail terminal system maintained a 22% growth in the first half of this year, which provided strong support for effectively reducing the inventory size. At the same time, in order to control the inventory size, the purchase of new products decreased by 29% compared with the same period last year.

Even so, Metersbonwe is still struggling to recover.

On the one hand is the rapid reduction of inventory, on the other hand is the clothing industry generally bear high inventory pressure, for Metersbonwe to "whitewash" the 2012 financial report questioned, it seems not unusual.

In fact, as clothing

A member of such a company is facing a backlog of inventory and receivables turnover rather than Metersbonwe's.

According to the financial data provided by garment enterprises in 2011, Lining's inventory amounted to 1 billion 130 million yuan, accounting for 15.5% of the total assets. The total inventory of Hai Lan's home was about 3 billion 860 million yuan, accounting for 56.82% of the total assets.

The number of stocks of seven wolves, nine Mu Wang, Semir and other brands is also high.

In this year's report, 87 listed clothing and textile enterprises reported accumulative inventory of 73 billion 200 million yuan, which was 69 billion 900 million yuan in 2011 and only 50 billion 100 million yuan in 2010.

Since last year, the clothing industry seems to be faced with inventory problems.

For many garment and textile enterprises, the predicament lies in the fact that the declining factor of sales boom is far greater than that of industrial expansion.

In fact, the direct reason for high inventory is poor sales.

"The current economic situation has great impact on the high inventory of garment enterprises."

Some commentators believe that "high inventory and poor sales are common problems in the apparel industry."

Ma Gang, an independent critic of garment industry, analyzes this. "Because sales need to be communicated with distributors, the sales feedback information obtained by enterprises is neither fast nor pparent.

In this environment of sluggish economic growth and sluggish consumption this year, the clothing industry has been significantly impacted and the inventory problem has been highlighted.

On the other hand, the profits of domestic clothing brands have dropped one after another.

Because of the increase in human cost over the past two years, clothing prices have been advancing rapidly.

The factory's tag price is 3 times the cost, but now the price tag for the factory has increased to 7 to 10 times.

"This means that the domestic products priced from 300 yuan to 400 yuan are now priced at between 1000 yuan and 2000 yuan, which is almost the price standard of mid-range international brands," said Wang Qian Jin, a senior analyst in China's clothing industry.

The price has already been in line with the international standard, but the added value of domestic products is not high, the market is hard to sustain, and the pressure of high inventory can be imagined.

For many garment enterprises, cleaning up inventory has been listed on the agenda.

Ma Gang suggested that "we should solve the inventory problems from the retail perspective, such as cooperation with the electricity supplier, by professional cleaning up inventory companies to help, cooperate with factory stores, and increase sales promotion efforts."

In fact, many clothing brands are working with network sales and operation companies to expand their network channels.

They hope to create a sales model called "three networks in one", which will be sold under the "online Internet", "offline traditional physical store channel network" and "mobile phone network" to digest the growing inventory.

Selling products to three or four tier cities at a lower price is also a helpless choice for some enterprises.

Dealers on three and four line channels are very interested in some off-season products, especially for low discount stock products.

Prior to the dealer management very strict "October mommy" began to sink channel action, in the three or four line city recruit dealers.

For a time, clothing enterprises suffering from inventory pressure suffered great attention.

A variety of measures aimed at reducing the weight of inventory will surely achieve certain results.

But even if the inventory is successfully digested and the underlying internal cause of high inventory has not changed, then the high inventory, digestion inventory and high inventory cycle can not change the pressures and challenges faced by the survival and development of enterprises.

Data show that Chinese brands

The production and sales ratio is between 60% and 70%, or even worse than 40%.

But it is puzzling that in the same market environment, some foreign clothing brands have almost no inventory pressure.

Insiders said that the domestic garment enterprises did not innovate in the management mechanism and methods. Without relevant data analysis and support, there is no truly efficient and flexible supply chain system, which is also an important reason for inventory out of control.

Obviously, the domestic garment enterprises are still far behind in practicing hard work.