Electricity Supplier Fast Fashion Rush To Eat Brand Clothing Profit Decline Promotion Promotion

Reporters learned that Spin clothing The volume of exports is roughly the same as that of last year, but it has been reduced by reducing the factory price of garments. Some exhibitors said that the declining demand for traditional European and American markets and rising domestic manufacturing costs are tightening the neck of garment enterprises from two directions. In fact, the first quarter Brand clothing Retail terminals continue to slump. A few days ago, Wind released data show that 34 brands of apparel listed companies in the first quarter of 2013 net profit totaled 1 billion 688 million yuan, down 8.51% compared with the same period last year, while net profit last year also fell 5%, the downward trend continued to increase and increase in the first quarter of this year.

Insiders pointed out that the current consumption situation has made most garment enterprises tend to be conservative in the formulation of production, so that the momentum of decline will increase. In addition, fast fashion will accelerate the market and electricity supplier's impact.

　　 market

Bad performance, new products will be on sale.

The retail terminal continues to slump, inventory backlog and other problems beset clothing enterprises, resulting in the first quarter of this year, the performance of brand clothing enterprises is generally lower than expected. Prior to this, the China National Business Information Center also released statistical data. In the first quarter of 2013, the number of retail sales of clothing of hundreds of major retail enterprises nationwide increased by 10.7% over the same period last year, and the growth rate decreased by 4.5% over the previous year, the lowest growth rate in the same period in 2005. Combing the historical data, the reporter found that from 2010 to 2013, the retail sales volume of 100 retail enterprises increased by 24.2%, 19.2%, 15.2% and 10.7% in the first quarter, respectively, and the growth rate slowed down year by year.

The slowdown in sales performance of garment enterprises has also been shown in the market. Just after the "May 1" small golden week and mother's day, many new shopping malls in Yangcheng have been discounted for sale in the spring and summer. Some department stores listed new summer wear on 3~5 sales promotions, which was rare in previous years. For example, in the small golden week, Hai Yin and another city launched a 3~5 discount of spring and summer products, and then folded it to 30 percent off. Tianhe department store promoted three days of "mother's Day" last weekend. Clothes & Accessories 50 percent off. In response, Wang Hui, deputy general manager of Guangzhou friendship group, said that the air temperature in April this year was lower than that in the same period last year, which led to the fact that most of the clothing suppliers did not sell their summer wear, and with the help of the promotion of "May Day" holiday, the trend of clothing sales continued to decline in the first quarter. It is reported that under the promotion of big sales, the "May 1" small gold Wednesday day statistics show that the summer clothing products, such as dresses, shorts, beach caps and T-shirts, have increased by 1~2 compared with the same period, while the sales of modern clothing stores in summer have increased by about 50% over the same period.

　　 Challenge

Fast fashion and electricity providers rush to eat obviously

One of the reasons behind this is that the operating costs of enterprises are rising rapidly, while consumers' overall consumption intention is weak. Two, the channel of brand clothing retailing is becoming saturated, and the phenomenon of product homogenization is serious. Three, the trend of mass consumption is changing to a fast fashion direction with wider choices. Yang Dayun, President of UTA Fashion Group China, said. Wang Zhifeng, chairman of Guangdong Ming Hao Clothing Co., Ltd. also admitted that the rush of foreign fast fashion market plus the impact of online shopping on traditional clothing stores further increased the difficulty of clothing enterprises. Bu Xiaoqiang, general manager of Hong Kong International Fashion City, said that last year, the consumer terminal has been sluggish. It has also made clothing enterprises very conservative in the production of spring and summer clothing this year. At present, there is a phenomenon that clothing enterprises can not produce goods, which has lowered the sales and profits of clothing in the first quarter of this year.

While the traditional clothing brands are shrinking, ZARA, H&M, GAP and UNIQLO fast fashion brands continue to accelerate their expansion in the domestic market this year, and continue to consolidate the first tier cities while extending to the two or three tier cities. Recently, the American fast fashion GAP announced that it plans to add 35 new stores on the basis of the existing 47 stores this year. By the end of last year, Spain's fast fashion giant ZARA had 122 stores in China, and 30 new stores last year, while Sweden's H&M has reached 120 stores in China. Last year, 43 new stores were opened and 15% of the world's new stores opened. Japan's fast retailing company's UNIQLO is also offering 184 stores in China. Reports show that the growth of international market sales and 48% of total profit growth of UNIQLO 70% almost all come from the Chinese market.

"Shopping centers have thrown" olive branches "to fast fashion, and also provide the foundation for their rapid expansion of the Chinese market. MC, director of marketing in Greater China, said He Bin.

　　 Transformation

With electricity providers "housekeeper" to enhance sales

In the context of the continuous decline of orders and the difficulty of cleaning up inventory, it is imminent to find a breakthrough for local brands. Reporters recently visited a number of clothing brands in Guangdong understand that whether it is still in the wholesale clothing market seeking transformation brand, or has been in the major department stores have a place in the mature brand, this year, Taobao, vip.com, and other electronic business "housekeeper" as a handle "stock sewer" or enhance sales performance into a consensus. According to the statistics of Analysys International, B2C clothing sales increased by 167% over the same period last year, significantly higher than the growth rate of physical stores.

Last month, Lining twice launched a "48 hour time limit" campaign with the help of customers. No one product sold for more than a hundred dollars, and the leading sportswear maker on vip.com also sold less than 50 percent off. Reporters log on casual wear Jack&Jones Tmall official flagship store to see that its daily discount is also quite large. The new product is 10 percent off packages, the rest is divided into 30 percent off districts and 50 percent off districts, and the "Juhuasuan" spring and summer festival is 3 fold.

　　 Viewpoint PK

Is it good to use the electricity supplier to dispose of inventory?

Support: quick return of funds.

"Compared with the traditional professional stock elimination companies, the discount sale through the electricity supplier is faster and more transparent, and the speed of capital withdrawal is faster." Zheng Yuelong, general manager of Guangzhou Ming men Clothing Co., Ltd., who runs the brand men's clothing at the wholesale Plaza of one horse clothing, said that not cleaning up the stock means huge storage costs and frozen funds. This has led more and more manufacturers to choose discounted electricity suppliers to clean up inventory, though paying about 20% of the profits as a channel fee.

　　 Objection: long term damage to brand image

However, there are also people in the industry who believe that the brand clothing can clean up inventory through the low price of the electricity supplier, which will damage the brand image. Yang Da Yun said that Lining cleared the inventory through all customers, which was a short time. But in the long run, who would hurt the brand, who would buy the Lining season goods at high price? And the brand clothing acceptance network ultra low price is the symbol of breaking the psychological bottom line, and the other side also reflects its thirst for cash flow.