Smith Bond Market: The Market Value Shrank By 18 Billion Yuan In One Year.

Within one day, the suspension and 4000 words announcement clarified that the market did not resist Metersbonwe's doubts.

In recent media reports about its "beautification of reports" and "concealment of huge stocks", former executives and franchisees openly expressed their views.

There are many problems in operation, management and sales.

The two tier market is more volatile, as of October 22nd, closing price of 16.22 yuan, compared to the August 15, 2011 high price of 35.82 yuan (not regaining power), the stock price fell 54.72%, and the market value shrank by more than 18 billion yuan.

The reporter tried to call Han Zhongwei, the American broker, but no one answered.

800 million yuan inventory evaporation 4000 words long denied five doubts

According to public information, in 2011, Smith Barney clothing inventory reached 2 billion 560 million yuan, of which more than 1 billion 500 million yuan of inventory is over season goods.

However, in the past six months, the inventory problem has been solved by the US state clothing, and the stock has been reduced to 1 billion 750 million yuan.

Media exposure, Mei Bang apparel 800 million inventory "evaporation" or existence tricky, and led to rebounding and executives collective withdrawal.

In view of the five major questions of the 800 million stock "missing", the terminal channel pressure, the virtual storage, the selling of inventory to the related parties, and the resignation of senior executives, after the suspension in October 15th, the United States made 4000 word announcements, explaining that the inventory of the old products was reduced by 1 billion yuan and the new products increased by only 200 million yuan. In the first half of 2012, the company's direct retail terminal system maintained a 22% increase, which provided strong support for effectively reducing the inventory scale; meanwhile, in order to control the scale of the stock, the purchase of new products decreased by 29% compared to the same period.

American state clothing said that the media's evaporation of stocks is a false assertion of sales and artificially adjusted incomes, which is "ridiculous", stressing that the so-called "inventory pressure on franchisees" is

Industry "Regulations".

However, insiders pointed out that the "code of conduct" mentioned in the announcement did not disclose the fact that they were "pressing goods" to franchisees.

Performance pressure to dealers are "rules"?

Does the clothing industry really have the "Regulations" that will put inventory pressure on franchisees? In fact, the inventory problem in the apparel industry has always been the heart of many garment listed companies, and the relationship between franchisees and direct stores is also elusive.

Up to the first half of this year, the number of franchise stores in the United States was 3817, accounting for 74% of the total number of stores, and wholesale sales accounted for 49.2% of the total sales revenue.

Previously, media reported that the US side signed a 3 year business contract with most franchisees, and set an annual performance index of 25%. In addition, frequent promotions were made in Direct stores, and franchisees were forced to join the sales force, and profits were further diluted. The contradiction between the two sides became increasingly prominent.

A person in charge of Southwest apparel District of Mei Bang said that he had heard about the pressure on the franchisees in the region.

The official also said that the company wanted high performance and tried hard to pressure the franchisee, but the pressure itself was not sustainable. To a certain extent, it would be rebounded by franchisees, and eventually the long-term growth would be affected.

Dealers refute the United States Clarification Announcement: high order index overwhelmed franchisees

Franchisees also gave their own opinions on the announcement of American bond dress.

According to media reports, Metersbonwe's franchisee Zhang Song (a pseudonym) said that due to the economic downturn, the inventory digestion capacity of the franchisee decreased year by year, and the order index of Smith Barney apparel to franchisees rose year by year.

"Last time I ordered a dress for the spring dress, the United States headquarters asked me to get 130 thousand yuan, but I sold less than 90 thousand yuan last spring."

Zhang Song disclosed that if the order quantity of the franchisee failed to reach the US state clothing index, it could not get the support of the US state office in advertising, purchase discount and so on.

At the same time, Smith Barney will not accept franchisees.

Returns, franchisees can no longer have to use half price or even eighty percent off, seventy percent off price promotion, and franchisee purchase price discount is only about forty percent off.

However, the consequences of the shift of performance pressure to the franchisee have already been reflected.

According to Zhang Song, in the first half of this year, sales of summer wear in his shop were not ideal, with a loss of nearly 100 thousand yuan.

"At least in the past years, we could lose a lot of money, and this year we lost a lot of money. Our franchisees in general are not very good."

Zhang Song disclosed that some of the franchisees' turnover even dropped by more than 50%.

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Sales dilemma: Deputy Chief Cheng Wei hung quit Shanghai to close flagship store

In addition to the continued decline of the franchisee's performance, American Apparel is also fluctuating in management.

In July this year, Cheng Weixiong, vice president of American Apparel, resigned.

Cheng Weixiong has served as general manager of Chongqing, Chengdu, Guangzhou, Xi'an and Tianjin sales company, regional sales director (North District), and vice president of Mei Bang clothing company Shanghai Shanghai clothing Investment Co., Ltd.

For this departure, Cheng Weixiong claims to be "hard to say and sad," but for both sides he is "helpless".

Cheng Weixiong has been the executive vice president of ME&CITY brand since March 2010. Since he took the lead, Cheng Weixiong has put forward a channel strategy for the wholesale and retail businesses of single men, women and children.

The most important concern is the closing of more than 2000 square meters of Me&City flagship store in Huaihailu Road, Shanghai.

The real reason for closing down is that the store has been in a state of loss for a long time.

While Cheng Weixiong was in office, the sales tax of ME&CITY brand increased from 690 million yuan in 2010 to 990 million yuan, and the growth rate was remarkable.

After the ME&CITY brand went on, Zhou Chengjian, chairman of the American Apparel, said it is still working hard.

Stock price dilemma: the market value has shrunk by 18 billion a year.

stay

Under the background of falling steadily, many people in the industry have been concerned about the fact that the United States has made false accounts and made magnificent reports.

Zhu Xuechen commented: "huge inventory is no longer a novelty. Making false accounts is a big deal."

And how do the colleagues of the United States clothing trade solve the inventory problem? A person with knowledge of the situation said that the listed clothing enterprises ensure that the gorgeous format has become the industry's hidden rules through various channels.

"How many of the channels do not play like this? As long as we control the margin of safety of risk factors, the overall operation problem will not be too large, but beyond the margin of safety, it will be out of hand.

Crash is in minutes. "

Faced with this common industry problem, some commentaries have pointed out that making false accounts is not the solution. Only by facing problems and adjusting strategies can we resolve conflicts and revitalize enterprises.

Many netizens have given some feasible suggestions.

If the netizen is happy, tiger and tiger suggest: "for traditional clothing and garment enterprises, inventory is the biggest problem.

With the development of information technology, small batch customization may be a good solution.