Chinese Clothing Enters The Era Of High Cost Learning ZARA To Solve Inventory Problems

< p > recently, a reporter interviewed a senior person in the industry and talked about the problems and criticisms of many industries such as "a" target= "_blank" href= "http://www.91se91.com/" and "clothing /a".

She believes that in recent years, the phenomenon of rapid expansion of stocks is particularly obvious, largely affecting the normal operation of the brand, "Chinese clothing brands should learn ZARA solutions to inventory problems."

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< p > < strong > simple decoration is kingly way < /strong > < /p >.

< p > nowadays, China's clothing industry has entered a truly high cost era. The prices of raw materials, manpower, logistics and so on are rising. There are many hidden worries in the future development. Clothing inventory is even more unnoticed.

In view of inventory problems, Huang Zhaohui, general manager of Beijing Junsi Yi Zhuo Brand Management Co., Ltd. believes that the high cost of decoration is also one of the important reasons for inventory formation.

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< p > "after the operation of chain stores, the cost of decoration accounts for more than 10% of the total investment of a single store."

Huang Zhaohui admitted to reporters that shop decoration has become a very important part of venture capital.

Although in recent years, with the increasing popularity of terminal retail stores and the support of professional visual communication, agents and franchisees have been able to accept the high cost of terminal decoration of the brand, and can also invest the cost and recognize the benefits. However, there has been a phenomenon that the cost of decoration has exceeded the standard in the shop investment.

"These costs are usually implied in the price of clothing, requiring consumers to pay the bill. The high price of clothing causes the inventory problem to deteriorate further."

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< p > according to the reporter, from the domestic current retail market decoration standards of primary market, the decoration cost of high-end brand in the mall is as high as 2200 yuan ~2600 yuan / square meter.

In the early stage of shop decoration, such a large amount of expenses must be reduced, and a series of brand standards such as props and shelves should be accurately restored, and specific investment in visual communication must be positioned. This requires agents and franchisees to remove the investment in hardware decoration, and spend all kinds of software decoration costs.

And this cost can not be saved, and growing, we must plan carefully.

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< p > "domestic clothing shop decoration is very easy to get into trouble. After a year's use, the store began to repair frequently and spent a lot of energy and money. Many foreign brands did a good job, making use of relatively low cost recycled materials to decorate, the effect was simple and atmosphere, not losing to the brand of high investment decoration and packaging."

Huang Zhaohui said.

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< p > another industry insider disclosed that the cost of brand decoration such as ZARA or IT is 300~500 yuan / square meter, which is much lower than the average price of domestic brands.

ZARA starts with reducing the cost of the channels, reducing the store decoration and the cost of shopping in the large shopping malls, reducing the price of < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > price, and increasing the clothing style. This model is worth learning from.

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< p > < strong > faster supply chain < /strong > /p >

< p > at the end of the third quarter of last year, Metersbonwe's stock had reached 2 billion 199 million yuan, an increase of nearly 25.66% compared with 1 billion 750 million yuan for half a year.

Semir < a target= "_blank" href= "http://www.91se91.com/" > dress < /a > inventories increased by 31.28% compared with the beginning of the year.

Relative to the high inventory of Chinese clothing enterprises, the pressure of ZARA inventory is relatively small.

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< p > < strong > Where is the difference between international brands such as domestic brands and ZARA? < /strong > /p >

Lin P, chief operating officer of Yintai network, pointed out that the biggest problem for Chinese enterprises is that many brands sell goods to the channel and think they have sold them, but in fact they do not sell them to consumers.

At the time of ordering, the brand has already received the deposit and order from the franchisee, aggregated the order and returned it to the production of the supply chain.

This mode has no inventory risk to the brand itself, but if the franchisee can't sell it, they will be cautious in placing orders next year.

Huang Zhaohui also believes that the immaturity of the brand market is another major cause of inventory.

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< p > the industry suggests that the traditional clothing enterprises in China should first be guided by sales, and the object of sale must be terminal consumers instead of orders. "Now many Brand Company do not know the sales status of the channel, and its financial statements only see the sales status of the order."

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< p > secondly, it is very important to provide a fast supply chain.

ZARA mode can grasp the terminal sales situation in the shortest time, which is the source of the fast supply chain.

Data statistics, ZARA supply chain average need 10~15 days, most garment enterprises need 6~9 months or even longer; ZARA annual inventory turnover reached 12 times, other first-class garment enterprises can only reach 3~4 times, and most domestic garment enterprises are 0.8~1.2 times.

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< p > ZARA adopted the "delayed production strategy".

It may only produce 15% before the season, and may produce 40%~50% in the middle season, while other enterprises may produce 40%~50% before the season, and may produce about 20% in the season.

The supply and demand of ZARA match closely, so the residual control is low.

But the demand for the supply chain is high, and it is very demanding for production management, workers and technicians.

ZARA removes unnecessary links in the supply chain, shortens the length of the entire supply chain as much as possible, and sets the user information to the maximum extent possible.

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< p > insiders told reporters that the process of ZARA is quite new.

"Traditional clothing companies are usually designed first, but when they are produced, they encounter various problems. They can not produce or have a high cost, and feedback to the design department to redesign and then produce, this process is very long.

In the beginning of product design, ZARA, < a target= "_blank" href= "http://www.91se91.com/", "designer /a" and "information commissioner", as well as store manager and manager, are directly together to let them communicate.

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< p > Dong Ming, vice president of Antai Institute of economics and management, Shanghai Jiao Tong University, believes that compared with ZARA, Chinese brands lack the consideration of market demand factors at the beginning of product design. For example, in the design stage, the store manager, information commissioner and market information should be fully considered at the beginning of the design, so we can not simply learn from ZARA. We should learn from the whole supply chain and coordinate and optimize it from a global perspective.

Also, in terms of information utilization, it is not simply the use of inventory management, warehouse management system.

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< p > "I know how much and how much goods there are. This information is meaningful, but the meaning is not very big. The enterprise must make use of this information and give some scientific decisions, just like replenishment quantity. I want to synthesize the actual sales situation of all the clothes in the store, and use these information to give an estimate of calculation or optimization, and give a suggested order quantity, which is very core and very important, and is also very scarce for Chinese enterprises."

Dong Ming said.

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