Learn From Zara To Fall Into The Winter Clothing Business

The essence of the "P bullwhip effect" is that the demand information is seriously distorted and magnified.

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< p > 2012 is an unexpected and even inexplicable cold winter for China's < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > enterprises.

Inventory, which has been a long-standing problem for the clothing industry, has been deteriorating in depth and breadth this year. It has become a big problem in the whole industry.

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< p > clothing enterprises in China gradually realize that this is a winter coming sooner or later.

The contradiction between the growing taste and brand discrimination of consumers and the long-term stagnant design ability and brand management ability of Chinese garment enterprises has finally accumulated.

2012 is a time node.

This year is the first year of employment after the 90s. They have begun to appear in the market as an independent consumer force.

After 80 years or already entering the beginning of the year, it has become the main body of fashion consumption.

Whether 80 or 90, the proportion of domestic clothing brands in their mental share (Mindshare) is much lower than that after 60 and 70.

And after 70 and 60, the consumption power is gradually strong enough to get rid of the familiar and recognized low-end brands.

These are bad news for domestic clothing brands, and most manufacturers are ignorant of this.

When the surplus capacity and the way of operation are faced with a market that has changed quietly, huge inventory will appear in a logical way.

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< p > generally speaking, the brand strength of Chinese clothing enterprises is not enough to explain the huge inventory.

A vulnerable brand can also achieve low inventory by limiting production or even shutting down production.

The huge stock on the surface is because the consumer does not approve, is actually the enterprise does not recognize this kind of ignorance and misunderstanding.

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Li Ning Co, a representative enterprise of Chinese clothing, has recently made a deep reflection on its own operation. It has a good reference for Chinese garment enterprises to get out of the predicament. P

There are two points in Lining's Rethinking: one is to reflect on the brand's connotation and how to activate the brand; the two is to reflect on the channel management.

Faced with huge inventory, many enterprises only think of how to rebrand, so the problem is so important that it can easily cover up the huge loss of channel management.

In fact, a strong brand may also cause huge inventory due to oversight of channels.

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< p > Li Ning Co even found that the most serious areas of inventory are the areas that retailers and consumers are more recognised for the Lining brand.

The logic behind this is the bullwhip effect.

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The essence of the "P bullwhip effect" is that the demand information is seriously distorted and magnified.

The information feedback mechanism of retail channels can be described as "market mirrors". Because of its special structure, the real demand information has become specious, and the recipient of information (producer and sales plan maker) is convinced that it is true.

The demand for products is certainly not groundless, but the amount of demand will be magnified by a specific feedback mechanism, just like when we wave the bullwhip, the amplitude of the arm is not large, but the amplitude of the bullwhip will be very large.

If the enterprise produces and delivers goods according to the demand that is greatly enlarged, it will cause disaster like inventory.

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< p > the particularity of the clothing industry is that the sales terminals must maintain a considerable number of stocks (usually 1.2 times more than the actual sales) before they can avoid shortages.

Clothing purchase has obvious randomness and should be acute. If consumers can not buy a product, he will have a very low chance of buying it after he arrives.

Retailers often habitually raise inventories to ensure pactions.

The more the product is not sold, the more scarce the customers are, and the more often the retailers tend to raise the inventory rate to reduce the rate of abortion.

Once a terminal retailer starts to raise the inventory rate, its direct wholesaler will also increase the inventory rate in order to reduce the paction rate.

After the pfer of multi-level wholesalers, "market demand" will be doubled, even though the market demand is actually decreasing.

This is the most absurd thing to happen. When consumers have consciously or unconsciously boycotted your product, you get the unequivocal new orders, so you can produce more and more consumers who refuse to buy things.

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< p > this seems to be a problem of information flow, but the essence is the problem of logistics and the whole supply chain.

If the terminal store can replenish goods without any difficulty, he will never guarantee the success of the paction by adding inventory.

A global garment industry has successfully eliminated the bullwhip effect through the supply chain improvement, which is known as the "Zara".

When China's clothing group was caught in the cold winter, the Zara went against the trend. Apart from its ability of capturing and processing the fashion trend and consumer demand, it also had its almost perfect reaction mechanism in the supply chain.

Indeed, Chinese clothing enterprises have been learning from Zara in a real and all-round way instead of trying to imitate a product.

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