The Price War Will Continue. Bosideng Will Close 19 Stores Every Day.

The clothing industry's tide of shop closes in 2012.

The semi annual report released recently showed that the number of Bosideng stores decreased from 8216 to 3436 in the first half of this year, which means daily.

To turn off 19 stores, the magnitude of the industry shocked.

Cut off franchised stores

In a short period of six months, the number of stores in Bosideng dropped from 8216 to 3436, which means that it closed about 19 stores a day in half a year.

As China's first brand of down garments, Bosideng is experiencing a downturn in down service business.

Its interim results released as of September 30th showed that although the company's revenue rose 1.4% to 2 billion 849 million yuan, its net profit dropped by 22.5% to 253 million yuan.

The income of down garment business was 1 billion 418 million yuan, down 19.2% from the same period in 2013.

"The problem facing Boston is overcapacity, inventory backlog and excessive expansion of retail outlets in the past."

Garment industry analyst Ma Gang said that under the premise of weak growth, Bosideng adopted a similar practice with most of its peers, that is, slash off poorly run franchised stores, and enhance the company's control over store sales by increasing the proportion of self owned stores.

Customs shop has spread to the whole industry.

Bosideng's large-scale closure is just the clothing industry.

In the microcosm of this movement, this movement, which started with sports brand, has spread to leisure brands, men's wear, women's wear, down garment brand and even the whole industry.

In 2013, the top six sports brands in China were over 3000 stores. This year, the major sports brands are still shrinking their stores.

Among them, Lining closed 244 stores in half a year, the number of Anta stores decreased by 56, while PEAK reduced 333.

In the first half of the year, there were 88, 347, 73 and 53 stores in the clothing of AI Ge, seven wolves, nine Muwang and card slave road respectively.

"Domestic clothing brands are being replaced by fast fashion brands," a garment industry insider sighed.

The evolution of the brand of the core business circle of the first tier cities has also become a brand weathervane. This year, the Nike flagship store in the new Dongan market of Wangfujing has become a H&M store.

In Ma Gang's view, the path of the clothing industry's closing shop is related to the evolution of the retail industry.

"First brand, then agent, then scale expansion."

Ma Gang pointed out that the number of domestic clothing brands is very similar. Because of the relative shortage of clothing resources in the whole country before, in order to expand the market rapidly, most garment enterprises adopt the mode of increasing the number of stores to pursue profits. As the number of stores increases, the clothing market is almost saturated, and it is difficult to accommodate too many shops.

"The closing of physical stores means that the backward mode of circulation has been abandoned."

Insiders say.

Price war will continue

With the reduction of the circulation link, the price war in the garment industry rises and falls.

In Beijing Tongzhou Liyuan commercial street, 361, XTEP, Anta, Bosideng and other brands lined up, promoters from time to time in the streets to solicit business, "winter new products launched 15% off, two, 25% off," the words appear, but these discounts can not stimulate consumers' desire to buy.

"The Internet is much cheaper."

Consumer Liu said.

The price war of the electricity supplier channel is more ferocious, and some of the clothing brands such as Adidas, Nike, LILY and so on are appearing on the website of vip.com on the whole year with a posture of less than 70 percent off.

The store has been completely reduced to the next fitting room. In order to fight for business with online channels, some entities have also offered more substantial concessions to snatch consumers.

Ma Gang said that the price war can benefit consumers, but the pricing rules of the domestic apparel industry have not changed. The substantial increase in the factory price is still the general rule. "This also makes the first batch of consumers buy a higher price."

Ma Gang said that the current domestic garment industry competition is not enough, the price war will continue.

"The circulation of garment industry is being simplified."

Ma Gang pointed out that in the past, the circulation of a garment was from factory to brand dealer, then to provincial agent, then to retail store and then to customer, at least four times in circulation, and participants in five sessions.

With the rise of e-commerce and the reduction of circulation, the competition of commodities becomes more intense. "The less circulation of products, the more competitive products are."