New Trend Of Textile And Garment Industry Development: Multi Brand Operation

< p > > the 2013-2017 year China a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > industry production and marketing demand and investment forecast analysis report released by the foresight Industry Research Institute shows that in the first half of 2013, the number of clothing sales of 100 major large retail enterprises increased by 6.9% compared to the same period last year, the growth rate slowed down 2.9 percentage points, and the total retail sales increased 4.3% year-on-year, 2.3 percentage points higher than the 2% in 2012.

In June 2012, the growth rate of retail sales of all the major large retail enterprises in China reached the highest level in the first half of the year. At that time, the major shopping malls were offering holidays and holidays as an opportunity to launch large sales promotion activities, which made clothing sales rebounded significantly in the two quarter of 2012.

Analysis of 2013 data, hundreds of retail enterprises clothing sales promotion characteristics are still obvious, domestic demand weakness is difficult to improve.

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< p > under this background, the research group of the foresight Industry Research Institute < a href= "http://www.91se91.com/news/index_c.asp > > the garment industry < /a > thinks that based on the three advantages of multi brand operation, multi brand operation can still open up the market growth space for China's struggling garment enterprises.

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< p > < strong > three advantages of multi brand operation < /strong > < /p >

< p > the market space of a single brand is limited, and many brands tap more market segments.

From the continuous upgrading of consumption level and demand refinement, multi brand operation can better grasp consumer demand, cover more consumer groups and enhance market share.

At the same time, the research group of a href= "http://www.91se91.com/news/" > garment industry < /a > thinks that there is a ceiling in the operation of single brand. If clothing companies want to expand their territory and multi brand operation, it is the mainstream way.

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< p > multi brand operation can occupy more shops in department stores.

Especially for high-end brands, a target= "_blank" href= "http://www.91se91.com/" > dress less than /a, department stores are important consumption channels for clothing.

Through calculation, the number of stores in China's municipalities directly under the central government, sub provincial level cities, prefecture level cities and county-level cities is 30, 20, 10 and 5, respectively, so that the channel space of brand clothing in China is around 5000.

Multi brand operation can occupy more areas and increase the probability of sales.

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< p > multi brand operation can diversify business risks.

Multi brand operation can reduce the business risk brought by single brand change.

Taking BELLE international as an example, it is clear that the operation of a single brand has fluctuated, and the successful operation of multi brands has led to continuous high-speed growth in recent years.

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< p > < strong > the main reason for the trend of multi brand operation is < /strong > /p >

< p > > the 2013-2017 year China garment industry's production and marketing demand and investment forecast analysis report issued by the foresight industry research institute thinks that the main reasons for the trend of multi brand operation are: demand, consumer's consumption ability and clothing demand diversification -- different occasions, different clothing and clothing demand for different positioning; from the perspective of capital capability, the scale of garment enterprises is constantly expanding, the market share of brands is improved, and the capital investment strength of multi brand operation is gradually increasing; from the operation experience, most of the listed companies have been operating for nearly 20 years, and the level of operation management has gradually improved.

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< p > < strong > the key factor for the success of multi brand operation: < /strong > /p >

< p > the foresight Industry Research Institute < a href= "http://www.91se91.com > > garment industry < /a > Research Group believes that multi brand operation needs three core competencies: terminal retail, supply chain management and brand operation.

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< p > terminal retail sales ability is the foundation of enterprise.

Terminal retail capacity is a fundamental factor in the operation of garment enterprises. Terminal retail capability directly affects sales scale. Only those with higher level of terminal retail capabilities make multi brand operation more meaningful.

Take the Inditex&Gap two large brand clothing retail enterprise as an example, the two have higher than the colleague's single shop income and the unit area income.

Inditex has a single store income of 2 million 650 thousand euros in fiscal year 2013, and Gap's single store revenue in fiscal 2013 is as high as 4 million 590 thousand dollars.

At the same time, Inditex&Gap's retail revenue in the fiscal year 2013 was 5315 euro and 4241 US dollars per square foot respectively.

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< p > supply chain management affects terminal sales and cost reduction.

The importance of supply chain management to retail enterprises is self-evident. On the one hand, a high level supply chain management enterprise can quickly understand the terminal situation and respond to promote sales; on the other hand, improving supply chain management level and shortening the supply cycle will effectively reduce inventory costs.

Take Inditex as an example, most enterprises have a supply chain cycle of up to 3 months, while the supply chain cycle of Inditex group is only 15 days.

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< p > brand operation -- brand positioning, publicity and strategy to enhance competitiveness in all directions.

From the perspective of the development of multi brand operation of Inditex, GAP and VFC, the timing of multi brand operation usually lasted for more than 20 years, and the operation of the second brands was quite mature after the main a href= "http://www.91se91.com" > brand < /a > and the layout of the domestic market tended to be perfect, and after the income had reached a certain scale and increased rapidly.

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< p > from the strategic planning level, Inditex is based on the concept of parity fashion. The brand positioning is in the "first-class fashion, the second quality, the three price", and the 8 brands, such as ZARA, all focus on fast fashion and leisure, and are located in different subdivision consumers respectively.

H&M's business philosophy offers fashion and quality at the best price. As the largest retail enterprise in Europe, the company's brand is constantly improving. It always insists on the fast fashion image with low price as the main line, constantly improving and constructing brand series suitable for different ages and occasions to meet the fashion needs of the masses.

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< p > from the point of view of the trade-off of resource allocation, multi brand operation will disperse the resources of the company to a certain extent, and at the same time, put forward higher requirements for management and operation. Besides the time when the original brand operation has reached a certain scale and stable development, the balance between the strength of the new brand support in the multi brand operation is also more important. Too much investment, once failure may cause great harm to the development of the company.

From the point of view of the Inditex group's efforts to develop new brands, capital expenditure has always maintained less than 5% of the company's revenue. In the long term development strategy, ZARA is still the focus of the company, and its revenue share has been maintained at 65%, and its capital expenditure accounts for about 10% of its revenue.

Gap has developed a better online sales business. Capital expenditure also accounts for about 5% of the revenue. The company has strong capital expenditure support for the development of the business, nor does it constitute a huge burden on the company. In recent years, the offline business (store) revenue has stagnated, and the rapid development of online business has made up for the performance of the line to a certain extent.

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