Brand Positioning And Management Concept Is The Short Board Of Domestic Garment Enterprises.

Why is there still growth in macro sales? Domestic garment enterprises However, it is embarrassed that most companies are targeting the problem of high inventory. Li Ning Co said, "the pressure on channel inventory is increasing, retail terminal competition is becoming more intense and retail discount has been raised, resulting in a further decline in terminal retail profit margins". Semir also said bitteringly, "to speed up inventory processing, leading to a short-term decline in gross margins".

"High inventory" is a common problem faced by garment enterprises this year. "This year's macroeconomic downturn, the decline of GDP and the coldness of the consumer market are the main reasons for the pressure on the apparel industry to face inventory pressure," Wang Bing, an analyst with the apparel industry, told reporters. In the past few years, the clothing industry has been expanding fiercely, and the stock crisis has been concealed by the good economic situation. Now the economy is falling, this crisis is also exposed. However, foreign brands such as ZARA and H&M have maintained impressive growth in the face of the economic crisis. Data show that ZARA has grown by an average of 25% over the past five or six years. Even in 2008, when Europe was in recession, its growth in the third quarter was still 18%.

"Brand attractiveness is the present Chinese and foreign clothing brands The most obvious gap. " An industry analyst pointed out: "from the early stage to the late stage, all the products are made of high-quality materials produced in the United Kingdom. Of course, in the production process, they are also responsible for the professional British factory buildings. They show that they are not only strict in design but also respectful to their native culture. There are still many areas for domestic brands to be perfected. Take the United States as an example, the company has several brands such as Smith Barney, AMPM, ME&CITY and so on. Among them, the price of ME&CITY brand is basically the same as that of ZARA, but it is far apart in terms of sales and brand influence.

On the other hand, the operation mode of domestic enterprises still has problems. At present, the market space is limited, and the high speed extension growth is difficult to continue. But the business mode of enterprises still stays in the inertia of scale expansion, resulting in the backlog of product inventory. Zhang Dazhi, a senior consultant in strategic management consulting, believes that by learning from the classic design elements of some classics, some modern modern design elements are added. Many domestic enterprises still have little knowledge of foreign brands such as ZARA, but they have little knowledge of other management modes.

Data provided by an insider show that in China Garment industry For every 1 items sold, manufacturers should prepare at least 2 to 5 items for inventory turnover, sometimes exceeding this proportion, resulting in large inventories. For example, terminal customers actually need 100 items, retailers think they need 150, distributors will expand to 200, and it will become 250 when it comes to manufacturers. Although the demand for terminal customers has not fluctuated very much, after the enlargement of retailers and wholesalers, the order quantity has increased at the first level, and the larger the supply chain, the greater the order deviation. Most manufacturers in China need an average of 90 days from receiving orders to finished products, and some can reach more than 140 days. In contrast, from initial design to final garment, ZARA takes 15 days and H&M is 21 days. At the same time, foreign fast fashion brands, in order to ensure low inventory rate, high turnover rate and fast fashion, follow a small number of product strategies.