Garment Enterprises Are Facing The Juncture Of Adjustment And Development Mode.

In 5 years, the revenue of the company rose from 400 million to 2 billion 700 million. What problems did the rapid development cover up? Why did he invest heavily in terminal training?

Over the past ten years, for China's men's wear industry, gold is ten years.

With the rapid development of China's economy, the men's wear industry has also experienced a speeding development stage. The company that has seized the opportunity has already completed the primitive accumulation.

If the financial crisis that originated in the United States in 2008 is just let.

The industry sneezed, and the European debt crisis that followed came to a real chill for practitioners, shrinking exports, rising costs, weak domestic demand, and foreign countries.

Local brands have encountered unprecedented difficulties when they flocked in.

In the face of a rapidly changing market, what are the helmmakers of brand clothing enterprises thinking? How do they respond?

"We are not shrinking the front line, we are actively adjusting, practicing our internal strength and waiting for a few years."

Wang Liangxing, chief executive officer of China Limited (hereinafter referred to as "Li Lang"), stated when talking about changes in the company.

At the end of the spring and summer order meeting in 2013, the total amount of LILANZ ordered by Wang Liangxing dropped by 9%, which made the two digit digit growth uncomfortable. However, he admits, "this is the expected thing. We have adjusted this year's shop plan and will enhance the brand value in the future."

Age of aggression

The rapid growth of performance figures shows the speed of development and the scale of expansion.

In 2006, the company's revenue was 410 million yuan. In 2009, when Li Lang listed in Hongkong, its annual revenue was 1 billion 550 million yuan, an increase of 420 million yuan compared with the 2008 of the financial crisis. By 2011, its earnings showed a total income of 2 billion 700 million yuan and a pre tax profit of 750 million yuan.

Even in the medium term performance in 2012, the company maintained a relatively high growth rate, with a turnover of about 1 billion 259 million yuan, an increase of 22% compared with the same period last year, with a gross margin of about 499 million yuan, an increase of 32.9%.

However, the capital market did not give the same enthusiasm for the growth of the company's performance. Since the sharp high of 13.98 yuan in October 4, 2010, the share price of the shares dropped, which was affected by the decline of orders in spring and summer in 2013. The price dropped to HK $3.85 in September 26th this year, which dropped 72% in less than two years, much higher than that of Hongkong's Hang Seng Index in the same period of 10%.

Although the stock price does not really reflect the value of listed companies due to various factors, it is an open secret that the high inventory of the apparel industry and the lack of competitiveness of the brand.

International fast fashion brands in China speed up the opening of outlets and ZARA, H&M and UNIQLO, which are known for their fast fashion, and their influence in China, as well as garment companies that have made OEM processing for foreign countries have turned to the domestic market.

As of the end of June 2012, the retail sales of two brands of "LILANZ" and "L2" were 3386, and the total shop area was 366 thousand and 600 square meters. This year, 300 stores are expected to open, covering almost 234 cities nationwide with a certain consumption power.

Upgrade takes 3.5 years.

Wang Liangxing does not deny that past growth has become history. He has a clear understanding of the changes in the market environment.

"At present, men's clothing industry needs to erase impetuosity. The past high growth hides the problems in development," Wang Liangxing said.

"Before, as long as the quality is too high.

Now, consumers are not worried about selling. Now consumers are picky and their tastes are changing. They are more rational when choosing clothes, and the requirements for clothing design, fabric and brand are very high. Many garment enterprises have not yet adapted to this change.

A senior garment industry personage said.

Backward design, poor quality, and unrecognized brand are the common problems facing the domestic clothing industry.

Adjusting the development mode is a gateway for garment enterprises to face.

In 2010, Li Lang launched the sub brand L2, the target consumers are mainly 20-30 year old young workers, who are the most fashionable and fashionable, while L2 continues the business concept of the main brand LILANZ.

Unlike previous domestic clothing used to take the road of rural encircling the city, L2 entered a second tier city at the very beginning and set up a new design team in Shanghai. At the same time, a design studio was set up in Milan, Italy. It is hoped that through the cooperation of the two teams, the fashion products with international trends will be built.

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This is the first step in the adjustment of llon, that is, to take multiple brand lines and build four series of high-end personalities, fashion, business and leisure on the basis of continuing its business characteristics to meet the needs of similar consumers in different periods of dress and personalized choices of different consumers.

Another project is under way to improve service quality and enhance customer satisfaction.

Wang Liangxing said that now he will invest tens of millions of dollars every year to train the general manager, branch manager and franchisee boss of the agent.

It is also a very arduous task to train more than 3 thousand stores from the shopping guide to the shop manager. It takes a long time and a lot of patience.

Is there any need for such training? Wang Liangxing said that building a service system commensurate with the brand is indispensable.

Few people who have experienced clothes shopping experience have never experienced this kind of torture: no matter what clothes they try on, the shop assistants always speak well, and they constantly recommend the colors or styles you don't like.

Wang Liangxing hopes that through professional training, we can radically change the experience of consumers, improve service standards, and pform shop assistants into fashion preachers, dress consultants, preachers of the culture and brand, rather than mere clothing salesmen.

Another secret plan for Li Lang is to pform the storefront.

According to the relevant sources, the new third generation shop design was launched in July. From the store, wall backplane and accessories, the bamboo leaves are designed as a whole, and the overall feeling is fashionable and elegant.

And plans to redecorate 300 to 350 stores in the second half of the year. It is estimated that the whole shop renovation plan will last for about 3 and a half years until 2015.

Wang Liangxing said that now is not the time to make quick money. We began to study foreign brands, improve the overall quality from hardware and software, and settle down to the details of a single project, instead of putting the development scale and speed at the top. Instead, we need to strengthen the upgrading and realize the great changes in the company by raising the single store performance. The upgrading time raised by the management is 3 and a half years.

Culture Lang

By 2015, will he be willing to achieve his metamorphosis goals?

Wang Liangxing said that we have always been committed to enhancing brand value. We may not be able to make luxuries, but we have been building high-end products.

According to Wang Liangxing's explanation, "Li Lang", that is, victory and success, is a successful man.

As early as 2002, Li Lang chose Chen Daoming as the spokesman of brand image.

Chen's advertisement, which has lasted for many years, reflects the ideal image of Chinese man who is "elegant but not hard and strong."

With the popularity of Chen Daoming, Yi Suizhi has benefited greatly.

Lang Lang's advertising strategy for many years shows his ambition to build China's international fashion brand based on traditional culture.

From the early "advance, it is necessary to have courage, but to return to the need for wisdom, and to show wisdom between choices", to the later "many puzzled, few bright", "the world is boundless, the heart is content", and the advertising film "our era" produced in the New York Times Square during the London Olympic Games this year, "the choice of wisdom, perseverance and achievement of dreams", "simplicity is not simple" is the core demand of every advertisement.

From the early stage of clothing wholesale to clothing retailing, to the brand retailing that garment enterprises are striving for now, the understanding of garment enterprises has changed greatly with the leap of China's economy.

However, the core factor of any brand is culture, which is based on superior product quality.

What are we missing?

Wang Liangxing, the year of the year of destiny, was called the "fashion Godfather" by the Fujian Jinjiang clothing circle. He dyed his hair into various colors and wore the most fashionable clothes.

He said that wearing an international brand of clothing is to experience why it is a big brand. "Chao" dress is an example of putting more fashion elements into the enterprise, making it an international clothing brand that is unified with tradition and fashion, and can be shorter with the big clothing entering the Chinese market.