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The Clothing Industry Is Facing The Crisis, UNIQLO'S Model Industry Savior.

2013/9/2 21:59:00 34

fan, Lining, Metersbonwe... China's < a target= "_blank" href= "http://www.91se91.com/" > dress < /a > enterprises in recent years have been unable to sell a target= "_blank" href= "http://www.91se91.com/". Publicly available data show that their stocks are less than hundreds of millions, or more than one billion yuan, and even insiders say that the real stock of a company has reached 5 billion yuan. Faced with such a failure, there are many people who analyze cases. Some people think that individual professional managers have not done their duty and their brand positioning is wrong. Some say it is caused by excessive marketing. There are also doubts about whether the founder's personal qualities are flawed. 
In the early November, Chen Yihong, founder of China, shared his thoughts on the industry crisis in P. He believes that regardless of whether the founder is in office, the core of the clothing industry or even the fast food industry's failure is the same. China lacks qualified professional managers, and the inventory problem is that the channel owners have defeated the paid professional managers. Chen sounds regretful. (Chen Yihong, who reclaimed CEO in October 2011 after enjoying two years' life), did not blame professional managers. He said China lacked the institutional environment to train qualified managers. Chen Yihong's resume can add some persuasiveness to his viewpoint. He is the former CEO of Li Ning Co. He founded the trend that he was the most profitable company in the industry. He had all the rights and interests of Kappa in China and Japan, and acquired the brand of Japanese skiing and outdoor sporting goods, Phenix. This may be the reason why the other clothing industry chiefs avoid the media in fear of being untimely. Chen is not only thinking, he has begun to act. He is trying to find the right person, the education team, to "brand plus retail" spanformation. Chen Yihong, a weary face, did not have enough confidence in whether he could survive until the end. "I don't know how long it will take. And the problem is not necessarily able to get out of the crisis, and not be able to succeed than others. " The following is an excerpt from Chen Yihong's oral excerpt: 
 "wholesale" leads to inventory 
 Chinese brands do not control retail channels, they rely on agents to complete their sales. The common situation in this industry is that the best seller is out of stock and the mediocre product is backlog. Chen Yihong believes that a major drawback of the "brand + wholesale" mode is the poor communication of information. "As long as you sell wholesale, you have already formed sales volume for brands, and it will not care about changes in the retail market." 
After the listing of China's P, an international consulting company felt that my aura was too big: you helped Lining and made a move, and management may not be able to resist your opinion. In this regard, I am more or less conscious. Our management compares with Li Ning Co, Lining is not very involved in (company affairs), so his CEO has the power to really manage the company. 
 that's the best time for China to move. Our net profit in 2009 and 2010 is over 1 billion 400 million yuan, and the average profit per employee is 1 million 500 thousand yuan. This is a miracle in the industry. Considering that the separation of owners and management is universal in the world, I basically agree with the advice of consulting companies. I am determined to leave the front line. Apart from attending some board meetings or important decision making meetings, I do not participate in daily work. I enjoy life. I hired the most professional manager in the industry. He was French, started from Adidas's first office in China, founded Adidas's China team, and finally made him the second place in the Chinese market. But eventually he left the trend. We can see that Lining's executive ranks are unstable. In fact, China's trend is much more volatile than that of Lining, but we are not at the cusp of the storm. This round of adjustment is radically changed from one to another. It is a professional team. To some extent, it is not that they are not good. There is a problem of timing. 
 China's economy has been adjusted since 2009, and the pace of development has gradually slowed down. Why are sports brands more prominent in the industry? Mainly because of the impact of the Olympic Games. Whether Sydney, Athens or Seoul can pull up a fraction of the population of the Olympic host country for sports consumption, Adidas calculates that the growth rate of the Beijing Olympic Games in mainland China will reach about 40% according to the usual practice. But the Beijing Olympic Games are strictly controlled. The proportion of Beijing's population accounts for about 1.8% of the country. So 40% is a high expectation. When Adidas and Nike rushed to the first, second industry, the inventory problem began to appear. Once they are discounted, the stock of second tier international brands and domestic brands will increase. 
 these brands should learn from the example of "branding + retailers", or "retailers + branding", such as Japan's UNIQLO and China's odd mode. In the 10 years of Japan's economic downturn, how did UNIQLO come to the fore? It broke the development model of Japanese integrated business control a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > all sectors of the industry, and vertically integrated all aspects of the product chain, for example, the terminal was UNIQLO, and the sales performance was calculated only after the retail sales were completed. It is an inverted triangle. The chairman is below, the shop is on top, and everyone is in line with the store and consumers. The retail market of UNIQLO is a unique model, and no matter who it is, there is no way to take it. In addition, as a pioneer of China's SPA mode, it has been able to expand rapidly just a few years ago under the continuous market downturn of China's garment industry. The product sales have expanded rapidly to the whole country. This is also due to the effective use of this mode! 
 I came back to do CEO in October 2011, and found that the whole industry in China had the same problem. Most Chinese companies are large wholesale models, and brands do not control retail channels. The whole industry is facing the difficulties of "brand + wholesale" mode. As long as you sell wholesale and the tickets are finished, sales volume has already been formed for the brand operators. It will not pay attention to the change of the retail terminal. Companies such as Lining and China are slow to respond to market changes.