Online Shopping Has Accelerated The Pformation Of The Industry, And Has Increased The Impact On The Entity Business.

Double 11 Taobao sales reached 19 billion 100 million yuan, an increase of 267% over the same period; in the spring tide of double 11 online shopping, AOKANG international, seven wolves and fuanna sales grew by more than 100% year-on-year.

The sharp growth is in sharp contrast to the weakness of physical sales.

The domestic market, consumption continues to be weak: data from the China Business Information Center show that the retail sales of the top 100 retail apparel enterprises in the first three quarters increased by 11.20% over the same period last year, 10.8 percentage points lower than the same period last year, and also significantly lower than the 20.39% level in 2011. Online shopping showed explosive growth: in 2011, the domestic online shopping scale reached 809 billion yuan, of which the clothing online shopping performance was the most prominent, the market scale was 267 billion (accounting for 33% of the sales volume of the network market), the annual growth rate was 93.5%, which was 20.6 percentage points higher than the overall growth rate of the network market.

Clothing online shopping, especially this double 11 hot sales situation, needs to be interpreted from the deep contradiction between supply and demand: the root of online shopping is the structural difference of consumption demand, but the price of domestic brand clothing enterprises is low, which is difficult to meet the needs of consumers.

With the increase of income level and the change of population structure, the consumption structure is gradually differentiated: China's consumer market has begun to polarize, and people begin to pursue high performance price ratio (low consumption) or brand perception (superior consumption) rather than pay for featureless products. The large-scale expansion of garment enterprises, product supply is also more homogeneous; homogenization channels and products, bring the same development mode of operation; the continuously rising entity terminal operation cost has pushed up the price of products.

High priced homogeneous products are difficult to meet changing consumer demand.

The main reason is that online shopping is the way to digest inventory: at present, the brand clothing enterprises do not have the strength to create a single online shopping brand in the short term, nor can they produce and sell products with high performance price ratio to achieve the same price sale on the line. Therefore, the digestion of inventory has become the main purpose of online shopping; the rapid development of online shopping is not conducive to the management of the brand clothing enterprises that are currently listed.

Due to the constraints of the development stage, most of the traditional brand clothing retail clothing enterprises still regard online shopping as one of the new supplementary channels. The rise of online shopping actually snatch the consumption demand of physical shops, which is not conducive to the management of physical stores.

The key to digest inventory is to make products sell well and reduce terminal pressure. Online shopping is essentially an increase in inventory.

Online shopping has accelerated the pformation of industries: the essence of the slowdown of textile and apparel consumption is the limited development space of textile and garment retail enterprises, the limited expansion of high-speed business, the unsustainable mode of operation, and the coming of the pition period: clothing enterprises used to focus mainly on the speed of opening stores, and the future clothing enterprises need to return to the origin of brand management, that is, to provide consumers with more cost-effective products.

Online shopping is only exacerbating this pformation process. Homogeneous products and low value-added services will be accelerated to be eliminated, thus accelerating the pformation of the industry.

The explosion has increased the difficulty of physical store operation. We maintain the same view of the industry: textile and clothing retail should be cautious.

At present, the adjustment of some retail apparel stocks is relatively large. From the perspective of absolute return, we still hold a cautious view that the bottom of the textile market is not yet coming. In the future, it is expected that there will be a relatively long and painful process in the pition period. From the Perspective of relative profit, we suggest that we should pay attention to the top quality clothing companies such as the seven wolves, nine Mu Wang, fuanna and AOKANG. They are always the most robust leading clothing enterprises, and the probability of successful breakout is greater in the pformation process.