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    How Does The Local Brand Clothing Win The "Efficiency War"?

    2012/11/20 15:41:00 35

    Local Brand ClothingChinese Clothing BrandGarment Enterprise

     

    More than half of consumers think

    Local brand clothing

    The design can not keep up with the trend, and the style is slow to update.

    In the context of the current market downturn, enterprises should pursue the "return on investment of cash value added" as the efficiency target.


    In August 6, 2012, Amancio Ortega, founder of Inditex SA, Spain's largest clothing company, replaced Warren Buffett as the third richest in the world with a value of 46 billion 600 million dollars.

    The surge of Ortega's value undoubtedly shows the strong profitability of Inditex, while the famous brand ZARA of Inditex has contributed to the birth of the world's third richest.

    ZARA, the founder of the world's fast fashion, has been praised for its amazing speed of goods circulation over the years.

    The cycle of clothing that can not be surpassed has become the secret of winning the ZARA's leading industry.


    The rapid development of China's economy has also led to the development of fast consumption in the Chinese market.

    Especially the 20-30 year old young people who are very sensitive to style, color, price, personalization and fashion.

    At the same time, China's current young population has a large population base, once training its loyalty to the brand, it will also be beneficial to the future development of garment enterprises.

    In this regard, clothing companies continue to work hard on products to cater to the current trend of consumption of young people.


    But in China's fast market,

    Chinese clothing brand

    Not dominant.

    According to a research report on consumer acceptance of fast fashion brands, H&M, ZARA, UNIQLO and MANGO are the top ones. China's fast fashion brand is in an awkward situation.

    The reason is that more than half of consumers believe that the design of local brands can not keep up with the trend, and the style update speed is slow. At the same time, the price advantage is no longer obvious compared with foreign brands.

    The root cause of the gap between China and foreign countries lies in speed.

    It is reported that ZARA can be controlled within 15 days from design to sales, or even on the same day. It is also the only fashion company in the world that can distribute garments produced in 15 days to more than 850 stores worldwide.

    Compared with this, the traditional garment production cycle takes 60 days.


    According to an information research report made by the strategy of clothing industry, the popularity of the information system of garment enterprises has been greatly improved, especially POS, customer relationship management (CRM), company resource planning (ERP), and CAD/CAM enterprises are over 50%.

    In terms of the development trend of information technology, 42% of the surveyed customers have implemented the supply chain (SCM) system, and the supply chain (SCM) system is the information support platform for clothing rapid reaction system. It is the next information hotspot. At the same time, digital color and flexible production equipment have begun to be applied in garment enterprises.


    To achieve such a fast reaction speed, ZARA relies on a strong supply chain integration capability.

    It is reported that every store manager of ZARA's more than 2700 stores in the world has a PDA which is directly linked to the headquarters. Its function is to feedback information timely and place orders.

    The powerful information system controls the production and distribution of various countries, greatly reducing the response time of the supply chain, so that a small number of ZARA products can be delivered to the terminal in a very short time, and some styles can even be shortened to 7 days or design, production and delivery on the same day.


    The high profit brought by this high speed also makes the ZARA mode a large number in China.

    Clothing enterprise

    In order to imitate, Chinese enterprises have worked hard to practice the internal work in the turnover process. From the aspects of procurement, production, logistics and retail, the industry chain of all aspects of clothing production, the construction of information system, and the speed of terminal reaction are accelerated.

    Even so, there is still a certain gap between the domestic fast moving brands and the ZARA in terms of turnover speed. Instead, they are catching up with each other in absolute terms.

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