Fierce Competition Under The Electricity Line, Traditional Department Stores Are Implicated.

Many internationally renowned traditional clothing brands are being attacked by Internet brands.

The price war under the line is hard.

During the golden week of the national day, the Internet clothing business brand, Fan Cheng pin, dropped its product from 129 yuan -99 yuan to 68 yuan, covering more than half of the products in the whole range, and the price cut was nearly 50%.

This category of products sold more than 70 thousand pieces in the mid autumn National Day holiday, an increase of 260% over the same period.

According to customers, the price of flannel shirts in autumn and winter is around 100 yuan, most of them are produced in Bangladesh, the cost has dropped by 5% to 10%, and the gross profit rate of single goods has reached 40%.

In the "eleven" holiday, the domestic electricity providers in addition to the conventional coupons, cash back and other means, the overall level of brand promotion means mediocre.

Affected by the global economic downturn, users are more sensitive to prices than ever before.

It also carries heavy pressure on inventory. Even after entering the latest clothing autumn and winter, H&M, UNIQLO and so on still focus on the promotion and digestion of inventory, so as to clean up inventory as soon as possible and speed up the launch of new products.

UNIQLO appears to be "indifferent" to the "price war" that has been raging on the Internet.

UNIQLO insiders told reporters that the price war of "groundless" was not intended to take the battle.

"We have always had our own pricing plan and promotion plan. There is no difference between this year's sales promotion plan and previous years. We did not cut prices to follow all customers, we didn't know why we were suddenly fired, and brought us into the role."

In the face of more intense market competition, ZARA has begun to place more orders in Asia, so as to enhance the competitiveness of the supply chain.

However, the dual requirements of clothing quality and turnover speed still put pressure on traditional brands.

In an interview with an insider, Vic said that at this level, fan believes that as a pure Internet fast fashion brand, it has advantages in terms of production costs, inventory turnover, operational efficiency and new speed.

For this opening

People believe that clothing is not the same as household appliances, 3C, books and other standardized products. Price is not the key factor to decide whether or not to buy.

The impact is not only on fast fashion chain brands, but also on the old traditional department stores.

"Department stores, especially our department stores, which focus on clothing, are the biggest impact on the rise of e-commerce websites.

The price war is even more desperate.

General manager of a department store in Shanghai said in an interview.

Statistics show that retail sales in Shanghai in the first 7 months of 2012 increased by 1% compared with the same period last year, but the retail sales generated by department stores decreased by 9.2% compared with the same period last year.

Department stores located in the center of the city showed a downward trend this year, and the total passenger volume dropped by 10%.

In the past 10 years, most of the impact of department stores has come from supermarkets, stores and Shopping Mall. Now, the entities in these retail businesses are on the same line. E-commerce websites are engulfing the market share of traditional retail businesses. The price war is no longer confined to traditional holidays, it has become unruly and has been online. In the 2012, the economic downturn has pushed these traditional department stores to a blind alley.