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Garment Industry Bid Farewell To Order Mode To Actively Inventory.

2014/1/1 12:43:00 48

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Apparel Industry Ordering Mode Inventory

data from the China National Business Information Center show that the two important indicators known as the "weathervane" of the clothing industry this year are completely "falling into the trap".

The growth of retail sales of all major retail enterprises nationwide slowed down last year, but maintained a two digit growth rate. This year's growth rate has almost stayed in single figures. In October, it even experienced an embarrassing decline of 0.3%. The latest growth rate in November was only 0.2%.

In addition, the retail sales of 50 major retail enterprises in the country are not very optimistic, among which clothing products even have a downward trend of growth. Even in the traditional "golden nine silver ten" season, it is hard to conceal the declining trend.

the direct consequence of the weak consumption is the large backlog of the inventory of garment enterprises. This feeling should be deeply rooted in the sports brand of "the east wind" and the large-scale expansion of the 2008 Beijing Olympic Games.

In the first half of 2012, the stock of the six major sports brands in China amounted to 3 billion 721 million yuan.

After a year of vigorous inventory clearance, the figure in 2013 has dropped to 3 billion 29 million yuan.

Men's wear and casual wear have also entered the inventory stage this year, and have achieved initial results.

in the process of going to stock, clothing brands gradually found that the "large futures order meeting" mode was no longer applicable. Many enterprises including Li Ning Co Ltd (02331.HK, hereinafter referred to as "Lining") explicitly put forward the practice of "wholesale to retail" and began to make a big fuss about the supply chain.

besides, frequent acquisition and establishment of joint ventures have become a highlight of the clothing industry in 2013. The low tide of clothing sales in Europe and Korea has even made the "a href=" http://www.91se91.com/news/index_c.asp "clothing brand < /a >. The choice of M & A targets is not confined to the domestic market, but many brands and internationalization are becoming the next focus of clothing enterprises.

rejection of "burden" /p >

in April this year, Lining and van guest two garment enterprises unintentionally become the focus. The reason is that Lining cleaned up the stock with the lowest 19 yuan "cabbage price".

The original planned 48 hour promotion campaign was sold out only 18 hours later.

in fact, this is just a microcosm of the clothing brand's "burden" and the inventory action.

by the end of 2012, the stock of the six major sports brands in China still had 3 billion 323 million yuan, while the stock of the leisure brand 002269.SZ, the United States, was as high as 2 billion 10 million yuan, with the annual sales volume of only 1 billion 117 million yuan, which was 548 million yuan (002612.SZ), which accounted for 20.8% of the total assets.

for this reason, branding companies have launched fierce price wars, and 60 percent off or even lower discounts have frequently appeared in major stores and brand stores.

The electricity supplier channel has also become the "sewer" of goods rejection, including Fujian seven wolves industrial Limited by Share Ltd (002029.SZ, hereinafter referred to as "seven wolves"), Beijing Toread Outdoor Products Co (300005.SZ, hereinafter referred to as "Pathfinder"), and the United States, including the clothing brand not only on-line their own official mall, but also have been stationed in Tmall, Jingdong, Amazon and other three party platforms to digest inventory.

"P >" and "a href=" http://www.91se91.com/news/index_c.asp "> inventory < /a" were also synchronized with the spread of shop tides.

The six major sports brands in China continued to close 1904 stores in the first half of this year, after closing more than 4000 stores in 2012.

In the recently released 2013/2014 interim report, Bosideng International Holdings Limited (03998.HK, hereinafter referred to as "Bosideng") has been opening shop for the first time to announce the first closure of 1042 franchised stores and increase the proportion of direct sales.

"inventory clearance and closet" is a double-edged sword for the brand. On the one hand, it must be "downsizing". On the other hand, it has great destructive power to the profits and brands of the enterprise. It is simply killing and not doing.

A sports brand executive, who declined to be named, confessed to reporters.

take Lining and Smith Barney as an example. After the large-scale inventory, the gross profit margin of the two brands fell down from 43.2% in the middle of 2012 to 37.8% at the end of the year. The latter also dropped from 46.2% to 44.47%.

besides, the brand image damage caused by low price can not be underestimated.

Take Lining's big sale as an example, Yan Yue long, director of the public relations department of Jingdong mall, has pointed out that Lining has cleared the inventory in a short time, but in the long run it has hurt the brand, and it is hard for consumers to buy their seasonal products at a high price.

During this year's "double 11" period, Tmall's clothing brand performance was weak, and many enterprises did not achieve sales targets. It was also related to the brand injury caused by the promotion of offline sales and the fatigue caused by consumers' aesthetic fatigue.

for this reason, Ouyang Xinzhou, an analyst at foresight Industry Research Institute, stressed to reporters that despite the need to experience pain, optimizing the stock structure and improving the efficiency of single store is an inevitable choice for clothing brands. "From the perspective of the life cycle of the industry, the apparel industry has entered a more mature stage of development. Only when we get rid of the burden and make bold breakthroughs can we usher in new vitality."

Ouyang Xinzhou said.

according to the statistics of the foresight Industry Research Institute, the garment industry's "de stock" has been preliminarily completed by the end of 2013, and the turnover rate of men's clothing, women's wear and casual wear has improved. The inventory structure will reach a better level near 2009 in 2014.

strong > obsolete order meeting mode /p >

starting from 2007, < a href= "http://www.91se91.com/news/index_c.asp" > garment enterprises < /a > began to implement the large futures order meeting form of two to four times a year. In 2012, the proportion of clothing orders reached 80%~90%.

Ouyang new week analysis, the long term futures system has made many enterprises lose the ability to make up the bill. "6~8 months' preparation period is fundamentally out of the current market demand, coupled with the slow response of the supply chain, if the expected misjudgement may lead directly to the backlog of inventory."

Ouyang Xinzhou thinks.

sports brand executives further point out that clothing enterprises have to overcome the difficulties in the past by breaking through the ceilings of channels, categories or management. "Past improvements have been confined to marketing or product level, with limited effect. The most fundamental thing is to start with the adjustment of business models, and take the strategy of designing marketable products with consumers' demands, flat channels to reduce profit distribution intermediate links, and integrate supply chain to shorten the front end design to terminal shelf time."

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The invasion of --EndFragment-- > fast fashion provides samples for the supply chain reform and business model innovation of domestic garment enterprises.

Lining, who took the lead in the sports brand, quickly built an information center and a backstage retail service center in Jingmen, which has been outsourcing to the third party for self employment.

In response, Deng Hongbing, vice president and chief supply chain officer of Lining, has publicly stated that Lining will pform from the traditional wholesale mode to the retail mode pformation featuring "guided orders, orders + quick replenishment + quick response".

besides, Anta Sports Products Limited (02020.HK, hereinafter referred to as Anta) also said in its reply to this newspaper that it is carrying out a "retail oriented" pformation in terms of corporate culture, organizational structure and product development level.

"Anta will streamline its organizational structure, streamline its structure, directly link its headquarters to distributors and retail branches, and increase the understanding of market demand at the product development level, and also adjust the entire supply chain."

even Bosteng, an old clothing company that used to be "cumbersome", began to introduce the business mode of combining futures orders with spot replenishment. The company's top executives told reporters that the proportion of Bosideng down clothing is now only 30% from the beginning, followed by the replenishment mode in the back, and the average monthly supplement is 2 times per month in 10~12.

"It takes 14 working days for a feather to obey production and completion, plus pportation time. A single bill takes 21 days."

The executive said.

the effect of pformation is also gradually highlighted.

In the first and second quarter of 2014, Anta changed its declining trend in 2013, and continued to harvest high single digit order growth.

In this regard, Anta said that the reason is that Anta has been spared no effort to manage the level of retail inventory, optimize retail channels, strengthen Anta brand and product differentiation.

clothing industry commentator Ma Gang said that unlike the extensive expansion of the previous expansion and expansion, enterprises have been growing healthily and enduring through internal breakthroughs in management innovation and mode adjustment.

But at the same time, he stressed that such a drastic change would take time, and enterprises should make up their minds to "practice hard skills".

Cheng Yuan, analyst at Huatai Securities, pointed out that the strategic adjustment of apparel industry's inventory adjustment, channel adjustment and internal promotion runs through the whole year of 2013. Under the pressure, those who can quickly adjust and adapt will take the lead in getting out of the predicament.

M & a tide > /strong > /p >

2013, the largest merger and acquisition of the domestic garment industry, which is the Zhejiang Semir apparel Limited by Share Ltd (002563.SZ, hereinafter referred to as Semir) cost about 2 billion yuan to acquire 71% of the brand name of the menswear brand GXG, Ningbo zhe Mu sang Holdings Limited.

Since then, the trend of Semir's outward expansion has begun to be "unable to accept".

2 months later, Semir announced that it would act as the two high-end luxury positioning brand for its children. In September, Semir invested 25 million 500 thousand yuan to set up a joint venture with South Korea's fashion fashion and wanted to import other Korean brand resources into the Chinese market. At the end of November, Semir became the general agent of the European high-end casual wear brand Marc O 'Polo in China.

Semir said in its announcement that it is developing new businesses through various modes of cooperation such as agency, investment and acquisition, hoping to build the company into a leading and world-class multi brand apparel group.

"P" is unique. The top executives of Bosideng have openly stated that the goal is "to become a comprehensive clothing operator that respects the world".

At present, Bosideng has several brands of down coats and women's clothing. In October this year, it spent 40 million yuan on the acquisition of the British men's wear brand Greenwoods, to further consolidate the men's wear business platform, and to introduce the down garment into the British market through its 88 stores in the UK.

in addition, Belle International Holdings Ltd (01880.HK) acquired Japanese clothing retailer Barok equity and Guangdong camel dress Co., Ltd. acquired Taobao's first women's clothing brand "millet bug", Amoy brand angel city 100 million yuan, "sell body", split women's clothing and other cases jointly opened this year's clothing industry consolidation curtain.

Ma Gang commented that at present, the tide of mergers and acquisitions of garment brands includes not only online integration, online and offline integration, but also domestic and foreign convection. "Merger and integration and multi brand strategy" have become the important means to expand the scale of garment enterprises and realize the development of collectivization.

but it is worth noting that for the cash flow abundant domestic garment enterprises, M & A is not a difficult problem in itself, and whether it can successfully complete the integration is the challenge.

take Semir as an example. The industry generally believes that its acquisition of GXG is intended for the latter's department stores and shopping center channels. However, Semir brand, which always shows the image of "Street store", can not enter the high end channel and enhance the brand image, so far it is still testing the water.

On the other hand, Bosideng, which has been implementing the multi brand strategy, has been lowered by the Goldman Sachs in the middle of this year.

"the concentration of clothing industry has increased rapidly this year, and this kind of M & A will continue in the future.

Most enterprises now understand that to occupy a niche market, they do not necessarily have to make their own brands. They can achieve this goal by acquiring the strong brands of the classification and borrowing their channels or brands.

The next step is that companies should make more efforts in the front-end brand positioning, the supply chain in the middle, and how to integrate and distribute resources in terminal sales channels.

Ouyang Xinzhou said.