The Clothing Industry Is Suffering From High Discount And Heavy Sale.

< p > > a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > industry is caught in a high storage whirlpool, and the risk of enterprise capital chain breaking increases.

In order to digest inventory, clothing enterprises or crazy discount sales, or use e-commerce platform to clean up inventory, and some also alleviate pressure through wholesale channels.

Experts point out that the promotion of profits can only be an emergency. In the long run, it is necessary to strengthen product innovation design, reduce homogenization and set up a detailed inventory control process, so that enterprises can get out of the predicament.

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< p > "if we sell the clothes that are currently in stock in the country, we are afraid that we will not be able to sell them in three years."

The evaluation of the industry, though exaggerated, depicts the current situation of China's clothing industry facing high inventory pressure.

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Less than P, Lining and other sports casual clothes "big guys" and some small and medium-sized enterprises have fallen into the vortex of "going to stock" and "discount".

Experts point out that promotion and profit making can only be an emergency. In the long run, we should strengthen product innovation design, reduce homogenization, and set up a fine inventory control process so that enterprises can "sell one for one" instead of "buy one for one".

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< p > < strong > inventory high fever does not retreat IPO road difficult to go < /strong > /p >

< p > inventory is a common failing of garment enterprises, and is also a "fatal wound" of garment enterprises.

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< p > "to see who can make money in this industry, it depends on whose inventory is cleaner."

Gao Jianfeng, managing director of Boge consulting, said that from now on, sports and casual clothing enterprises are most "hurt".

In particular, sports a target= "_blank" href= "http://www.91se91.com/" > dress < /a >, because the design and material selection are subject to certain restrictions, homogenization is serious, and many domestic brands are not clear, and the competitive edge is weakened. For these enterprises, going stock is more important and urgent than acquiring new orders.

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< p > Lining recently announced the fourth quarter 2012 order meeting data, of which clothing products orders and orders amount fell more than 20% year-on-year.

The company admits that in order to avoid generating new inventory pressure on the retail side, it will actively communicate with the distributors, control the order arrangement, and plan to clean up the retail inventory in the next two years.

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< p > because of being trapped in the high storage vortex, the risk of enterprise capital chain breaking is even higher, which, to a certain extent, makes the market worried about its operation ability and even doubts.

In recent years, many garment enterprises in China are rushing to apply for IPO, but many of them are excluded. Stock rate has become a focus of attention in the market.

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< p > in May of this year, Hai Lan's IPO, the "folding wing", was called "man's Wardrobe".

The reporter saw from his prospectus that as of the end of 2011, the total inventory amounted to 3 billion 870 million yuan, accounting for 56.94% of the total assets, of which inventory goods amounted to 1 billion 520 million yuan.

And Vigna S fashion, ladies house, Shu Lang dress and other IPO clothing enterprises are not, the inventory rate is also high, most of which exceed four or five of assets.

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< p > < strong > > Where does "inventory haze" come from? < /strong > /p >

< p > in recent years, the inventory of many domestic garment enterprises seems to have concentrated on a sudden outbreak. Where does the "inventory haze" come from? "It's hard to survive the financial tsunami but to meet the European debt crisis."

Ma Gang, an independent critic of garment industry, pointed out that human resource costs, rising raw material prices and changes in the trade environment made the business environment of garment enterprises "sudden change" in recent two years.

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< p > the export orders of some garment enterprises have declined sharply this year. A large number of hoarding goods have been forced to turn into domestic sales, coupled with the economic downturn and relatively weak consumption, resulting in a large backlog of stock.

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< p > industry pointed out that in the economic downturn, the turnover of product inventory slowed down, which not only occupied the operational capital, but also led to the failure of enterprises to update their products. Without new products, there would be no way to attract more customers, and their performance would go down seriously, thus exacerbating the difficulties of capital turnover, or even eventually causing the whole business to fall into despair.

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< p > in addition, most garment enterprises in China adopt the "order meeting" mode of supply, produce products six months to a year in advance, and rely mainly on downstream distributors rather than consumers to provide market information. The judgment of the consumption situation of enterprises is often over optimistic because of asymmetric information, and the output of products is far greater than the actual market digestibility.

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< p > leisure, sportswear and so on belong to the mass fast moving consumer goods. Once the season is over, they will depreciate rapidly.

Moreover, the characteristics of clothing enterprises are to constantly introduce new products, and they can not clean up their inventory before putting them into production again.

The result of continuous replenishment production is that the stock is getting bigger and bigger.

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< p > reporter saw in the department store in Shanghai, Semir clothing (002563), Hai Lan home, Lining and other brands are promoting discount activities to different degrees to digest inventory, some brands even new products are on sale.

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< p > < strong > crazy promotion is like drinking poison to quench thirst > /strong > /p >

< p > in order to digest inventory, clothing enterprises or discount sales promotions, or use e-commerce platform to clean up inventory, and some also alleviate pressure through wholesale channels.

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Ms. P, a white-collar worker in Shanghai, recently liked to browse the official website of clothing brands.

On the official website, < a target= "_blank" href= "http://www.91se91.com/" > clothes < /a > general promotion and discount. In the shops, I will go to the official website to search the price, and sometimes there will be a lot cheaper activities on the Internet.

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< p > but the industry also pointed out that behind the discount sales, the marginal effect is decreasing, and it is easy to damage the brand image.

"Even if there are fresh cases around, enterprises will continue to drink poison to quench their thirst."

Gao Jianfeng said that for many enterprises, under the pressure of high inventory, brand image has not become so important. How to digest inventory and obtain capital flow and survive is the most important issue.

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< p > experts believe that in the past few years, the market is in a period of radical expansion, and clothing brand enterprises have been "running horses and encircling the land" to seize the territory.

Today, the market has begun to "moderate", enterprises can no longer rely on "volume" and should take the initiative to change the mode of operation and management, in a more robust and finer way of process control.

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< p > > Xiong Xiaokun, a light industry researcher at CIC, said: "in the long run, clothing enterprises must reduce the homogenization of products, strengthen product design innovation, and establish an effective inventory control system."

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< p > Ma Gang suggests that garment enterprises should change their fixed order patterns, adopt a more flexible supply chain, and promptly adjust the orders that have not been produced and delivered according to market conditions, so that the products can match the market demand more.

At the same time, we should learn from overseas excellent enterprises, design and promote sales rather than simple foundry and sales.

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