Survival Of The Fittest Textile And Garment Industry How To Break Through Successfully In Price War

Market stagnation, high inventory

We had to discount and cut meat.

"After all, the most important thing is to live."

But the industry told reporters that this is the first half of life and death, and after a more severe fight, we do not know who will become the "leftover".

Double edged battle

Lonely brand now few people ask for it.

November, 21 days and nights, Nanjing Confucius Temple Gong Yuan Street.

A cold day can not stop the bustling crowd, but it has some sort of coincidence with the business of casual wear shops on both sides of the road.

Reporters walked into the eastern side of the United States flagship store, 5-8 fold red discount labels visible.

Over the season, discount products occupy a huge footprint, and even grab the limelight of new products in the autumn and winter of 2012. They can only shrink in a corner, and they are still indifferent to insert the "400 full 60 coupons" discount cards.

In these three storeys and thousands of square meters of vast business space, there are few customers and empty spaces.

Semir clothes are separated from each other.

From the 6 and 30 percent off floors of the two floor to the "buy one get one" on the third floor, even the salesperson at the shop door even has a few hands on the red palm, so that the shop assistants are more than consumers.

Online sales are far more popular than promotions.

Reporters learned that the "Bong" e-commerce website of the United States and its apparel business revenue was 317 million yuan in the first half of this year, accounting for 6.7% of the total business revenue of the same period, compared with only 1.63% last year.

In the massive "singles day" online shopping carnival, Smith Barney clothing sold more than half of its monthly sales.

Semir clothing also earned five, sixty million sales, more than last year's annual online revenue.

People in the industry joked, "for garment enterprises, the biggest function of Taobao's" double eleven "is to provide a" sewer "which is rarely used to clean up inventory.

Price war is a double-edged sword, at least it has great destructive power to the brand.

A 70 year old white collar told reporters: "Baleno, brand name," Crazy Stone "in this line, the young people may feel funny now.

But in our era, the influence of brands like JEANSWEST is equivalent to the current ZARA and H&M.

However, these famous brands of the year have been reduced to ordinary "civilian cards".

Backward mode pit father

Demand will be "magnified".

Wind data show that the three quarter of Shen Wan

In the clothing industry, 31 listed companies excluding shoes and hats and home textiles have accumulated stock of 44 billion 47 million yuan, an increase of 6.01% over the same period last year.

Among them, the amount of goods stored in the United States during the dress period was 2 billion 198 million yuan, a slight decrease compared with 2 billion 982 million yuan in the same period last year, but the increase was 1 billion 753 million yuan compared with half a year.

In addition, Semir clothing, Shanshan stock (600884), seven wolves (002029) and nine Mu Wang (601566), including a number of well-known clothing brands stock is more than 500 million yuan, stock turnover days are also more than 100 days.

"Knowing that crazy discounts will affect profits, but in order to consume high inventory, clothing companies can only drink poison to quench thirst."

A senior researcher in Shanghai sighed with emotion.

It is reported that the net sales of textile and apparel listed companies in the three quarter dropped by 1.5% compared with the same quarter, while net profit fell by 34%.

The reporter understands, in a recent institutional exchange meeting, Semir apparel executives judged that "casual wear inventory will be resolved in the first half of next year, and other industries will be resolved next year."

At present, there will not be any new inventory, because franchisees dare not order, nor do brands dare to produce more.

Semir apparel executives also said a great truth in the exchange. "This round of inventory crisis is a very deep lesson for all garment practitioners.

Inventory generation is related to mode. Previous development is simple extension and opening of new stores. When agents order more goods, goods will always have outlets, such as giving credit, etc., or opening more stores to digest inventory. "

It is understood that at present, domestic clothing enterprises generally adopt the wholesale distribution mode of "brand wholesalers (agents) retailers", which will virtually lead to "mutation amplification" of demand.

For example, the terminal customer actually needs only 10 pieces, and the retailer will think that there may be 15 pieces of demand, and the number to the distributor will be 20. Finally, 20-30 items are not rare.

As a result, over production and inventory backlog.

Semir apparel executives also said, "after the company basically goes to stockpile, no one wants to discount so much."

When the inventory of the industry has been cleaned up for a long time, it will restore the positive price, and expect that the price will return to a higher level next autumn and winter.

Hunger therapy for injuries

Who is the leftover of core competence "calcium deficiency"

However, the brand that has been scarred by the discount is so easy to want to stand up again.

This reporter has learned that Semir apparel has brought out a package strategy for reshaping the brand.

For example, the whole year can not be done only for 4 orders, instead of 8 orders. The direct selling mode, the 1000 square meters of shops and the franchisees cooperate, the company is responsible for the purchase, ordering, retail sales, the deployment of intermediate goods.

American Apparel is also secretly planning.

According to insiders, since last year, the company has implemented the product manager responsibility system, which includes four series of product lines: Men's wear, women's wear, accessories and children's clothing. Each product line covers various links such as planning, design, production and retail, and product managers directly connect with suppliers.

The company has also intensified its efforts to develop short term products with quick response, and the proportion of short term products will continue to increase.

In the short term, clothing companies want to control profits through the "hunger therapy".

An industry insider told reporters, "from autumn and winter this year, we will control production. Companies used to feel afraid of breaking goods, and now they would rather be short of sales."

However, most of these tricks can only be temporary, and the most important unique profit models and corresponding capabilities are the shortcomings and distress of domestic apparel listed companies.

"The key is who to learn, and the company is still choosing the process.

The future is a major change in China's casual wear. Semir wants to go H&M because LO can't learn its fabric and cost, and ZARA can't learn fast design and supply.

The industry insider said frankly.

A Shanghai

A researcher told reporters, "the future consumption structure may be polarized: one side is low-cost products and convenient services, the other is high-value products and sophisticated experiential services. The two non stick enterprises are most likely to be squeezed.

After the industry goes to inventory, who can best adapt to the new environment, it will decide which enterprises can successfully break through in the latter half of life and death.