Garment Industry Enters Cold Spell, Channel Reform Urges New Students

In December 2014, when the domestic stock market was in the hot market of bull market, Clothing stocks It has become one of the most reluctant stock investors, and this is also a microcosm of struggling domestic clothing enterprises.

　　 Line down shop online transformation

In December, in Beijing, Giordano and Lining on the streets of Wangfujing were no longer prosperous, and the promotional information broadcast was also missing. Only the tired looking salesmen were waiting at the entrance of the mall, waiting for customers to come.

This is Beijing, but it is also a portrayal of Giordano and Lining's national sales outlets.

According to the report released by Giordano, in the third quarter of this year, Giordano closed a total of 74 retail outlets, 63 of which were located in the mainland of China. Lining's retreat and replacement had already changed their core team several times. Similarly, as of the end of last year, the number of leisure brand JEANSWEST shops in mainland China has decreased by 253, and IgG has closed 88 stores in the mainland in half a year. In the men's clothing brand, seven wolves have closed 347 stores, nine Mu Wang has closed 73, the card slave Road has closed 53, and hnore has closed 46.

On the other hand, in the past "double eleven", Tmall has set up a 57 billion 100 million yuan price volume (unaudited data), an increase of 63% over the previous year, and sales of Jingdong amounted to 8 billion 200 million yuan, more than 2 times that of the same period last year. In Tmall's sales, clothing consumption is still a major force.

"Low speed growth will become a new situation for many garment enterprises in a long period of time." Yang Jinchun, Secretary General of the China clothing association, said, "this is mainly due to the current" new normal "economic situation.

Online and offline data comparison means that transformation is inevitable. In order to find the best way to transform, the Chinese garment industry is still exploring. In the first three quarters of this year, the performance of nearly 60% clothing listed companies declined, and the net profit growth rate of more than 10% enterprises was less than 20%. Most of the enterprises that are sticking to the garment production position have chosen to turn to the online industry and open up a new pattern in the field of O2O. Others are ready to abandon the main garment industry and carry out cross-border restructuring.

According to the recently released research report by CITIC Securities, in the "double eleven" war, the brand competitive advantage of the traditional line is further highlighted. The top ten brands in the clothing industry are Korean brands, while the other are all strong brands under the line. The top five of the clothing sub categories are mostly traditional offline brands. Among them, Semir clothing has performed well this year, with a total sales of nearly 200 million yuan, and its casual wear and children's wear have doubled, ranking first in their respective categories. The sales of explorers reached 1.2 yuan billion yuan, an increase of 58% over the same period last year, ranking first in outdoor category but slower than that in the whole year.

"The growth of future brand enterprises will become an important trend from more online to multi-channel integration." CITIC Securities believes.

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　　 Subverting traditional channels to promote new students

In the Hurun rich list of 2014, Hai Lan's home The Zhou Jianping family has become the richest person in the domestic apparel industry, ranking thirty-second in terms of wealth of 28 billion yuan. In the period of mourning in the domestic apparel industry, what kind of profit model did Hai Lan House achieve a high growth trend?

In April 2014, Hai Lan's home was listed through the shell technology. Before the listing, the seven parties of Hai Lan group promised the home of Hai Lan. In 2013, the net profit after tax audit in ~2015 was no less than 1 billion 210 million yuan, 1 billion 470 million yuan, and 1 billion 710 million yuan respectively. In the first three quarters of this year, the company achieved a net profit of 1 billion 600 million yuan, an increase of 84% over the same period last year, and has fulfilled its annual performance pledge ahead of schedule. According to the data of the billion power network, Tmall's fifth place in the "double eleven" men's clothing brand list is ranked. The electricity supplier achieved sales of more than 90 million yuan, an increase of 24 times compared with the same period last year. According to the great wisdom news agency, Hai Lan's family expects the annual electricity supplier income to reach 400 million yuan, an increase of over 3 times over the same period.

Some experts interpret, in fact, Hai Lan's home sells not a garment, but a new management mode of the clothing industry, to be more exact, it sells goods management and store management. First, Hai Lan's home does not design and produce clothes. Instead, the supplier provides the money to be selected. After signing the contract, it is generally sold by Hai Lan's home for two seasons. According to a certain percentage of sales, the profit is earned. Then the remaining stock is returned to the factory or buyout. These two ways can basically transfer most of the inventory risk to the supplier. Second, stores, with franchisees signed a contract, franchisees are responsible for store rentals and store staff salaries, and at the same time to pay a certain margin, Hai Lan home is mainly responsible for the training and management of stores, and so on, to minimize the risk of stores.

Hai Lan's home implements the O2O strategy of the same line and the same price. The average daily turnover of Tmall flagship store is about one million. Even in physical stores, businesses are not allowed to discount at all. The company's "upstream credit sale system + downstream financial affiliate system" has created a cost-effective product with a low markup rate and a high sales rate. Some analysts pointed out that the "Hai Lan" family said this kind of affiliate is better than the "direct battalion" mode, so that the company firmly controls the operation terminal, and all the goods are listed companies. It is convenient for the online and offline downgrading, and the implementation of the O2O strategy is relatively smooth.

However, some people doubt that the trend of Hai Lan's home market can last long. How far can this franchise policy go to the franchisee? Anyway, it is this breakthrough mode of traditional fashion alliance that makes the sea Lan's home become the brightest star in the transformation and upgrading of China's garment industry.

　　 In the age of great change

In 2014, the majority Clothing enterprise It's very difficult. Many enterprises have said that although the past few years are also very difficult, this year is particularly difficult, and some people even use "severe winter" to describe it.

In this regard, Chen Dapeng, executive vice president of the China clothing association, has the same feeling. Chen Dapeng said, "we are now in the cycle of economic adjustment. Many contradictions and problems are intertwined, superimposed, economic growth shifting, structural adjustment, and the accumulation of contradictions in the rapid development." Chen Dapeng believes that the current operation of the industry can be summed up in eight words: "overall stability, adjustment and transformation". "Overall stability" is the basic situation at present. "Adjustment and transformation" is the development trend of the industry.

How can we tide over difficulties? Chen Dapeng gave three suggestions: first, products. In the face of consumption changes, we need to increase market information collection and consumer lifestyle research, pay attention to product development, pay attention to market changes, and enhance the ability to transform unique brand style, culture and value into products. Products are always the most important source of clothing industry. The two is technology. Accelerate the pace of scientific and technological progress, production technology, logistics technology, network technology, organization and production mode of enterprises, especially the innovation and application of supply chain management and marketing methods. Refactoring supply chain is actually reconstructing the value chain. At the same time, we need to accelerate the transformation of Internet. The purpose of technological progress is to provide consumers with cost-effective products and services. The three is the persistence, pragmatism and initiative of entrepreneurs. A few years ago, during the rapid development, many enterprises remained firm, pragmatic and original. But many enterprises are developing too fast, as if omnipotent. Changing the concept of development and cultivating the ability to survive and profit in a slower growth environment is a new normal. The international and domestic market environment will not change immediately. Therefore, we must improve quality and efficiency, and practice the unique business mode and value of enterprises through characteristic management.

Chen Dapeng said that in such a new era, we should return to the origin and essence of the industry and keep pace with the development of the times. China's garment industry has entered a period of great change. This is the transition period from quantity to efficiency, and is a period of transformation from industry to technological innovation, organizational innovation and business mode innovation. It is also a forging period from big country to powerful country. Without training, we can not say that transformation and upgrading can not achieve the goal of a powerful country. Now such a development environment is a good thing for the healthy development of the industry and the future. We can see the rainbow after the wind and rain. After such an adjustment and transformation, our industry will usher in a new development period, and the development of the industry will become more and more healthy.