Rapid Development Of E-Commerce To Reduce Inventory In Garment Industry

Earnings report shows the main brand. clothing YOUNGOR's apparel inventories and real estate development's stock in the three quarter of this year amounted to 23 billion 257 million yuan, and the turnover days were 1019.64 days. The main business is clothing, wool yarn and printing and dyeing, cotton spinning and real estate Hong Kong shares are also facing the inventory and turnover days of double high index, the two figures are 4 billion 501 million yuan and 1456.31 days.

Including the United States Clothes & Accessories Semir clothing, seven wolves and nine Mu Wang, including a number of well-known clothing brands stock is more than 500 million yuan, stock turnover days are also more than 100 days.

Huatai Securities previously issued Spin The clothing industry report said: "from this year's industry sales level, terminal clothing sales growth rate is significantly reduced. Franchisee and brand enterprise terminal sales rate is also less than the level of previous years, terminal inventory is an objective existence. And with the decline of raw material prices, the impairment of commodities over the season should be unavoidable.

The rapid development of e-commerce brings hope to the garment industry, and many enterprises are involved in direct online stores. Whether it is the "state purchase" under the US state clothing or the online shop with the same name under the seven wolves, it is increasingly contributing to the enterprise.

For customers, online shopping is cost-effective, and in the case of collective promotion, other categories are far less advantageous than clothing. In the "double 11" activities, the most important reason for the sales of garment enterprises is that the relative premium of clothing is relatively high, especially for clothing enterprises. Brand clothing The premium ranges from 35 times to ten times twenty times. The higher the premium rate is, the higher the discount rate.

A fashion shop has a number of sub brands, of which JACK&JONES has become a clothing store that has broken sales for two consecutive years in the "double 11" Tmall online shopping activities this year.

In the short term, the online sale of enterprises is for inventory. In the long run, it is to build online and offline synchronous business models, but the success of this model seems to be still being explored by all enterprises.

On the whole, the sale of clothing listed companies in the "double 11" is far less than the explosive growth of JACK& JONES, but the financial data also show that e-commerce channels have played a certain role in the digestion of apparel enterprises inventory in recent years.

The main business of American Apparel, which is mainly used for casual wear, was 162 million yuan in 2011, which accounted for 1.63% yuan of the total sales volume of the "state purchase" e-commerce website. In 2012, the semi annual report showed that the "state purchase" business income in the reporting period was 317 million yuan, accounting for 6.7% of the total revenue of the same period in the same period. In 2013, the semi annual report of the State Fair showed that the "state purchase" business income was 123 million yuan, accounting for 3.29% of the total business income of 3 billion 738 million yuan during the same period, and the contribution rate decreased from the same period last year to 9 billion 945 million yuan.

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It is understood that online sales of apparel products gross margin is less than 10%. But many data show that the electricity supplier is still the best choice for many ways to digest inventory.

The high-end brand will take inventory to the new store or shop to do different kinds of collocation promotion, discount rate is low, or get the outlets factory processing, this channel digestion ratio is also higher and higher; there are other options to pick up the tag to sell the form in the form of the final form. However, in the current form, clothing enterprises are still looking for electricity suppliers.

Zhong Tao, director of the Ministry of Commerce of the seven wolves, said publicly after the "double 11" that during the "double 11" period, sales of several major brands of the seven wolves had exceeded 10 million yuan. He said: "the seven wolves are now a traditional enterprise or an electric business enterprise. Like leather goods, online scale is even larger than offline scale, the socks industry in the group is also in the forefront of Taobao and Tmall, and sales are faster than offline shopping malls and even traditional channels.

The blurring of online and offline sales is the hidden worry of e-commerce to the enterprises.

In this "double 11" business activities, many enterprises feel the pressure of online promotion on offline sales, especially from the pressure of agents. Red dragonfly, Josini and other enterprises will make differentiated marketing between online and offline products.

"But consumers always feel that online products are cheap. In order to protect the interests of agents, we may need to implement price synchronization on line and offline. Said a sales manager of the US group. However, at present, the brand enterprises do not have the strength to create a separate online shopping brand in the short term, nor can they produce and sell products with high performance price ratio to achieve the same price sale on line, so the digestion of inventory has become the main purpose of online shopping.

Due to the constraints of the development stage, most of the traditional brand clothing retail enterprises still regard online shopping as one of the new supplementary channels, but the rise of online shopping actually snatch the consumption demand of physical shops, which is not conducive to the management of physical stores.

"The key to digest inventory is to make products sell well and reduce terminal pressure. Online shopping spawned an increase in inventories in essence. Online shopping is beneficial to brand enterprises to digest inventory in the short term, but it is not conducive to long-term development of brand enterprises. Zhang Bin, an analyst with state securities, said, "if the brand of electric business is to be bigger, we must combine the consumer's preferences to develop the network dedicated contribution to distinguish it from the entity store."