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    China'S Shoe And Garment Enterprises Converging Innovation Is The Way Out

    2012/11/12 17:16:00 34

    Sports BrandShoes And Clothing EnterprisesClothing InventoryClothing And Textile

     

    A few days ago, the domestic sports brand giants experienced a sharp decline in stock prices and executives thoroughly shuffled. The contradiction between Li Ning Co's online e-commerce providers and offline dealers came to the surface again.

    As Lining vigorously discounts sales on the Internet, some distributors have no choice but to close the store, and distributors are selling them online.

    A person close to the Li Ning Co believes that Lining's pains and problems will be faced with other Chinese sports brands in the future.

    Thus, a related

    clothing

    The great debate on brand survival and development has broken out.


    Lining, executive director of Shenzhen Retail Association, said in an interview with reporters: "there are a lot of problems. Blind expansion is an important reason for its high inventory. Many domestic clothing chain brands will also face similar problems.

    In order to keep the brand running continuously, we must make good brand pformation.

    "


    High inventory


    In fact, Lining's inventory problem is only the tip of the iceberg of the entire garment industry.


    It is reported that the first half of this year, including Anta, XTEP, XTEP, PEAK and other 42 domestic listed apparel

    Spin

    The total inventory of enterprises is as high as 48 billion 300 million yuan.

    Companies with the largest inventory are American States.

    Clothes & Accessories

    Semir's clothing and Lining's stock are 1 billion 753 million yuan, 1 billion 473 million yuan and 1 billion 138 million yuan respectively.

    Inventory of less than 100 million yuan only 4.


    At the same time, the home textile industry also felt the obvious cold meaning.

    The three quarterly report released by "the three giants of home textile industry" shows that net profit has increased by only 1.47% from Roley's home textiles except for 23.96% growth of fuanna.


    In the face of high inventory, many garment enterprises have tried every means to climb out of this painful mire.

    Among them, discount sales promotion, with the help of the "electricity supplier" channel, and the two or three line city centralized digestion are the most commonly used methods.


    Insiders pointed out that, even though the above several ways successfully digest the inventory, the fundamental internal causes of high inventory prices have not changed. From high storage to digestion inventory to high inventory cycle, the pressure and challenges faced by garment enterprises at present can not be changed.


    "At present, there is a general lack of innovation in the management mechanism and methods of the apparel industry in China.

    In addition, the blind expansion of new stores due to the preparation for listing or listing has no relevant data analysis and support, as well as a truly efficient and flexible supply chain system and sales channel system, which are important factors causing inventory runaway.

    "Hua Tao pointed out.


    Neither high nor low


    It is understood that as the world's largest producer of clothing and the world's largest exporter of clothing, China's garment industry has gone through a peak in 90s. However, in the past, most of these garment manufacturing enterprises are dominated by foreign brands, and the advantages of these "manufacturing" or foundry factories are limited to the low cost of manpower and material resources. Most of the profits are attributed to foreign brand owners.


    The gradual disappearance of cost advantage has gradually awakened Chinese garment enterprises, and also made the independent garment brands with core technology and intellectual property obtain new development opportunities.

    It is the consensus and responsibility of Chinese garment enterprises to create domestic clothing brands and internationalize roads to boost domestic demand.


    However, with the influx of foreign and second-line brands, the consumption patterns of consumers have changed. Some Chinese brands have been developing rapidly for many years. Suddenly, the original positioning, ideas, patterns, and raw material acquisition seem to be not clear enough. Some brands are weak.

    {page_break}


    Wang Xing, a senior analyst in China's clothing industry, said, "high-end products can't catch up with the big brands abroad, but the low prices are not the same as the cottage factories."


    Because of the increase in human cost over the past two years, the price of clothing is also advancing by leaps and bounds.

    Brand clothing

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

    "This means that the domestic price of the original price of 300 yuan ~400 yuan, now priced at 1000 yuan ~2000 yuan, which is almost the price level of mid-range international brands.

    "Wang Qian said.


    The price has been in line with the international standards, but the added value of domestic products is not high, and it is still lagging behind in many aspects such as design, development and operation.

    Moreover, because brand awareness is not as good as foreign brands, it is also in a bad position in the channel. For example, in order to introduce CK, north face, Columbia, GUESS and other brands, the department stores and companies will make more profits. The discount points are only in single digits, while domestic brands are almost in two figures, and some high even go to 30% to 40%.

    "It almost squeezed the profit margins of branded garments," Wang said.


    The pformation trend is not to be waited for.


    "Over the years, brand clothing has experienced a long period of extensive growth.

    But with the rational return of consumers' shopping, most brands are hard to turn around and keep pace with consumers because of their vague brand positioning.

    For these reasons, the current situation of brand confusion, high inventory pressure and homogeneous competition is becoming more and more intense.

    "Hua Tao told reporters.


    Hua Tao said that with the rising of the national economic status and the enhancement of national pride, the rational regression of consumers has entered a new stage.

    In this context, brand clothing must continue to operate well, and products and brands must be well done.


    In terms of specific operation, Hua Tao believes that enterprises must have a clear understanding of brand positioning and take a strong brand strategy with their own characteristics.

    We must do what we can and cannot rush to success.


    It is understood that in order to further explore the issue of brand sustainable development and achieve more stability in the way of brand building, recently, the Shenzhen retail business association and Shenzhen Luohu District Economic Promotion Bureau, with the support of the Ministry of Commerce and circulation development department, launched the "China Shenzhen brand chain Summit Forum" in Luohu, and domestic and foreign famous brands, experts and scholars launched an in-depth discussion.


    At the same time, the forum will discuss the development status of the chain brand industry in China at the same time, deeply analyze the influencing factors of the local brand development. At the same time, it will further expand the "hot spot discussion on how to develop new marketing mode on the mainland, break through the operational barriers under the line and lead the brand new interactive experience shopping mode".

    The three day forum attracted many high-end brand participants because of its constructive and innovative agenda.


    In the face of consumers' pursuit of big brands and high quality, Hua Tao believes that department stores should introduce the "buying system" as soon as possible, grasp the trend of the times, dig deep into the consumer's demand for purchase, improve the shopping experience, and return to the essence of the brand's service.


      

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