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    09 Several Focal Points Of Clothing Brand Operation

    2009/1/14 0:00:00 10237

    Clothing

    After the new year's day in 2009, there were still some encouraging news in China's retail market: Shanghai's first eight hundred companion sold 258 million yuan in 18 hours; Hangzhou Hangzhou Tower, Jie Bai, Bai Da, Yintai Wulin four shops sold three yuan on New Year's day for 200 million days. Of course, endorsement for this huge sales figure is the promotion of "buy 500 to send 330". Marks & Spencer, the largest British retail companies, experienced a "seventy percent off" sales promotion, and the sales performance for Christmas and new year hit a new low of ten years, with the highest reduction of 9.6% in clothing products. So, on the 6 January, Martha department store announced 27 closed stores, laying off 1230 people. The two contrasts at home and abroad can be called sob. Perhaps the tragedy is buried here. Where is the Rubik's cube that supports and keeps the retail performance of clothing when people spend their desires and expectations on the bottom when they use the crazy sales promotion methods? At the same time, I also learned a piece of news, in the venture capital market conservative current, Red Sorghum fast food has won 30 million yuan of wind investment gold to enter. The subtext of this news is that the short term and fast track projects for mass market still have the ability to gain the favor of the capital market. Combining the above several cases, the author put forward the following views on the operation of the clothing brand market in 2009: to expand OR stability, this is a problem, Martha Marks (Spencer & amp; store) closed shop, put aside its own operation mode, not to mention, the cash flow and return of a single store has become a problem that must be considered and faced. This is also suitable for all clothing brands that China will open or close in the future. With the rapid growth of costs, especially the huge cost of rental cost and the increasingly conservative and fierce competition in the retail market, accounting for cash flow has become a matter of serious accounting. Here, we need to clarify two questions about cash flow: (1) how much cash flow will be required to open a new store in the coming year, including the rent (or the warranty plus the discount point), the cost of goods distribution, the cost of decoration, the cost of store operation and promotion, and so on, and how much time can we share in the future that the market may continue to deteriorate? (two) how much time can the cash flow of new stores be withdrawn? It depends on the expectations of sales performance. Can ROI (return on assets) behind the cycle of return be larger than the financial value of the invested cash itself? All these problems need to be determined by anticipation and strategy. Of course, the same is true for closing stores. Can the expected cash flow of sales revenue exceed or offset the cost? To understand the impact of supply chain changes, the direct impact of the closure of Marks & Spencer stores is the reduction of orders in China, perhaps in a factory in Nantong, Jiangsu, or in an industrial cluster in Guangdong. For those Chinese suppliers, the most likely change is to try to balance the production capacity. This explains why some of the original processing plants in Jiangsu in the second half of 2008 will have to do the domestic market. This is a good news for China's original clothing brands or channel traders. After all, the creation of a brand requires the introduction of time and input, and the experience of international brand foundry provides high-quality supply chain upstream resources for the original clothing brand. Of course, the author is not optimistic about the mode of domestic market for export factories. On the one hand, it is the resources needed to support the domestic market mode. On the other hand, bosses understand and expect different profit models behind the two markets. In general, it is difficult to establish a correct attitude towards domestic retail brands in a short time. Besides, in the context of the closure of a large number of garment factories in the Pearl River Delta and Yangtze River Delta, domestic clothing brands or retail enterprises need to pay close attention to the changes in the stock and quality of the suppliers. Perhaps, in the regular budget of clothing brand, the cost resulting from the change of production suppliers or fabric suppliers is far underestimated, or there is no budget at all. At that time, loss is not just a quarterly or annual sales performance. It is likely that the market share of losses has already been built up at a high cost (opening stores, promotion and management costs). Of course, the clothing brand in 2009 has a more solid foundation to expand rapidly, so it is necessary to evaluate the ability and quality of the supply market. Otherwise, how can we support product supply and quick adjustment after quick opening? Attention and quick feedback to the consumer side, when people take an extra protective measure to their wallets, the only thing businesses can do is to make people willing to pay more. At this time, the strategy of "push and pull" in marketing needs to be further developed. First of all, shops need to continue to carry out "marketability analysis" for single product management, understand each customer's attitude towards each item of clothing, why not enter the store, and why the transaction rate is low after the fitting. Secondly, for every customer who has already done business, we must thoroughly maintain and attack our hearts. The strategy of CRM and VIP operated by stores is not simply a discount and discount, but a deep going to "hard to get customers, who can keep in touch with or interact with the brand". What can be maintained for a long time? Only people or things that have some deep connection with the customers themselves. The CRM and VIP strategy of the fashion brand, the Chinese brand may wish to learn LVMH's flag lotus. Third, brand strategy requires the focus of attention and the fast feedback consumer side as the key business indicator (KPI). This means that the two steps of "marketability analysis" and "deep CRM" need to be clearly invested, and the strategies that may produce small ones should be implemented as a strategic height and demanded fast. This is also a necessary strategy to deal with the trend of consumption weakness. The logic behind this is that when consumers are able to take care of their disposable income, it is far more effective to pull and pull every single customer's bill than constantly pulling new customers. Yang Jing: editor in charge
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