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    Breakthrough Of The Traditional Mode Of Starting The Channel Reform Of American Apparel

    2013/8/31 18:37:00 8

    Mei BangBrand ClothingChannel Reform

    Affected by the downturn of the macroeconomic environment and the weakening of terminal consumption, the domestic garment industry has entered the downlink cycle. Smith Barney Clothing is also hard to get alone. The 2013 half year report published by the company on the evening of 29 shows that the company achieved operating income of 3 billion 700 million yuan in the first half, and its net profit was 220 million yuan, down 18.7% and 48.5% respectively from the previous year. As at the end of the reporting period, the total assets of the company were 6 billion 600 million yuan, the total liabilities were 3 billion yuan, the owner's equity was 3 billion 600 million yuan, and the asset liability ratio was 46%.


    Although the data from the semi annual report are not optimistic, we have found many bright spots for us to look at the changes in the company over the past six months. First of all, in the stock market which has always been concerned, the overall inventory situation has improved continuously due to the increased digestion of old products in the first half of the year and the dynamic sales rate of new products. Smith Barney Clothes & Accessories Inventories continued to drop to 1 billion 500 million yuan in the first half of this year, down by about 500 million yuan compared with the beginning of the year. Compared with its annual sales of about 9 billion yuan, the inventory ratio has entered a reasonable interval. Secondly, the competitiveness of new products has been improved and the scale of production has been effectively controlled. As of June 30th, the spring sales rate of the company has reached over 80% in the spring of 2013, and the sales rate of products has reached over 70% in 2013. Third, due to the channel reform, the company has increased its support for the franchisees, and has carried out the benefit evaluation for the direct stores, and has voluntarily closed the shops with poor profitability. Sales staff enthusiasm has increased significantly, and the gross profit margin of the direct channel has increased by 4 percentage points. In addition, due to the adjustment and optimization of some direct stores and internal organizational structure during the reporting period, the company expenses decreased compared with the same period last year. Sales expenses fell by 5.6% compared with the same period last year, and management expenses decreased by 17.85% compared with the same period last year. The financial expenses decreased by 46.62% compared with the same period last year. The main reason is that in recent years, the company's operating cash flow is relatively abundant, and the company promptly returns the bank's short-term loans and compresses the scale of the interest bearing liabilities, resulting in a sharp decline in interest expenses.


    The company said that in order to reverse the adverse effects of the external environment on the industry, the company's management has constantly subverted the inherent business ideas and behavior patterns, and started the channel reform in a timely manner. At present, the innovation and transformation of products and shops have achieved initial success in the direct operation system. Following the successful establishment of a new image store in Shanghai, Ningbo and other places, the company plans to extend the model to the whole country in the second half of the year. The initial open shop cities include Chengdu, Hangzhou and Guangzhou. At the same time, the company also stores a number of new products, and will be the main functional fabrics in the second half. At present, in the northern part of the country, new materials, "science and technology" products, have been launched, and the main products are light and thin down market in autumn and winter. According to the introduction, compared with the traditional down products, the new products have obvious advantages in terms of warmth retention, moisture resistance, fluffiness and so on. At present, the sales are good, and it is expected to become a star product in the future.


       Garment industry Analysts believe that the development of new functional fabrics has become the fashion trend of the current garment industry. If American state garments can form their own advantages in new functional fabrics and create Star products, it will likely become a new profit growth point.

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