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    My Clothes Shop Is A Fast Fashion Brand, Learning And Innovating.

    2015/1/11 16:50:00 637

    My Clothing WorkshopFashion BrandInnovation

    In the market demand for brand is higher and higher, the price performance of products becomes more and more fastidious, and the demand for fine management of stores is getting higher and higher. The traditional clothing brands have encountered the bottleneck of development. In March 2014, the clothing brand, our clothing shop, was modeled on the model. Uniqlo And aimed at China's regional market innovation, a new road of upgrading domestic clothing brand has been developed. For example, the implementation of the flat management framework in our clothing fair, more in line with the price positioning of mass consumption, and the market activities aiming at these market characteristics, made it open 20 stores in a short span of 9 months, and successfully obtained hundreds of millions of yuan financing in CICC investment.

       Reflection on "going to join"

    from Ginia After leaving the position, Zhang Bingliang began to have more energy to reflect on China's clothing industry, and founded the Shanghai lion Consulting Co., Ltd.

    During this period, a number of new fast fashion brands abroad have speeded up the market in China. Whether ZARA, UNIQLO or H&M have accelerated the pace of opening stores in the Chinese market, has brought a huge impact on the performance of domestic clothing brands. On the other hand, as China's manufacturing costs have increased substantially over the past few years, foreign clothing giants have begun to move their production out of China.

    "As far as I know, more than 90% of global purchases before UNIQLO were in China, and this proportion has dropped to about 60% in 2014." Zhang Bingliang said that after many years of development, China's garment industry has already formed a very good industrial matching. In Zhejiang, Jiangsu, Guangdong and other places, it has already formed a well functioning industrial cluster. For Chinese clothing (16.27, -0.21, -1.27%) manufacturing, the biggest problem is that sales depend too much on foreign chain brands.

    And domestic clothing brands, whether XTEP, the United States or the seven wolves (9.30, -0.13, -1.38%), have encountered high inventory and declining performance in recent years. Zhang Bingliang said that for these domestic clothing brands, pricing is an important factor which gradually alienated from consumers.

    The domestic popular clothing brand, the retail price is mostly 5~6 times the purchase price, the clothing brand that takes the shopping mall route, the retail price is generally 6~8 times the purchasing price. Taking UNIQLO as an example, its pricing in Japan is about 2.5 times that of the purchase price, and the price in the Chinese market is multiplied by 2.8 times the retail price.

    In addition, after more than 10 years of rapid development, it has become a trouble for many brands to provide scale and profit guarantee for domestic brands. Nowadays, chain stores need to maintain high frequency interaction with brands, and timely feedback the needs of consumers to headquarters. But most franchisees, it is difficult to adapt to the current development of the store management mode. "To join in" is becoming a new trend in the domestic clothing chain brand.

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       Imitation and innovation

    With these thoughts, Zhang Bingliang founded the Shanghai lion Clothing Co., Ltd. (hereinafter referred to as "my clothes square") in March 2014, and began to build the clothing chain brand of our garment factory. In August, it opened about 20 stores in Henan, Fujian, Shandong and Zhejiang. The location of these stores is mostly concentrated in the three or four tier cities in China. Zhang Bingliang said that in the second tier cities, the competition of clothing brands has been saturated. Starting from the three or four line cities, the competition pressure is much smaller. In addition, compared with those in Beijing and Shanghai, consumers in the three or four tier cities will have a higher degree of acceptance of new brands.

    This is almost the last chance for the rise of domestic brands. In the first tier cities of Beijing, Shanghai and Hangzhou, UNIQLO and ZARA are also sinking their stores to the three or four tier cities. Zhang Bingliang said that only when the local brands first practiced their internal skills in the three or four tier cities, would they have the chance to compete with these fast fashion brands. The ultimate goal of our clothing store is to store the stores in the national market.

    Another principle of site selection is to maximize the cost savings. Zhang Bingliang said that some areas with similar cultural, regional and climatic origins should be selected. Similar clothing habits can maximize the purchase amount of a single brand so as to enhance the bargaining power of the brand. At the same time, reducing the radius between stores and factories can also reduce logistics expenses to the greatest extent.

    In addition, our clothing workshop also compresses management and distribution levels from factories to stores. The clothing brand formerly relied on the factory brand business - the distributor of the large area - the county and city dealer's mode was abandoned by our clothing store, instead of the more flat management structure, that is, the brand dealer directly butted with the county and city dealers. Only this change saved the profit space of at least 20%. The profit of these links is reduced to the final product pricing. "Others sell 300 yuan jeans, I sell 199 yuan or even 169 yuan, still can maintain 50% gross profit." Zhang Bingliang said, the model of my clothing workshop is fundamentally a return to the price of clothing products.

    In terms of mode, Zhang Bingliang did not deny that it imitated UNIQLO, including the style of products, display of goods, decoration of stores, etc. But this is not a simple COPY process, but has its own improvement in practice. When my clothes shop just opened a shop, they once copied UNIQLO's "limited time and excellent" market activities, and promised that consumers would be dissatisfied within a month. But in practice, stores just started preferential activities. Before buying clothes, consumers rushed back to buy a piece of clothes with the same discount.

    "In these cities, consumers live closer to their stores, and their time cost is lower." Zhang Bingliang said that these practices also decided that I need to have more initiatives in the mode exploration.

       Direct management of stores

    For the hundreds of millions of dollars in investment in China gold, Zhang Bingliang said it will be used in new stores and team building. At present, the company's vision is to achieve sales target of 10 billion yuan in 2018.

    For the traditional franchisee mode, we have some improvement measures. Zhang Bingliang said that most of the clothing companies in the past were mainly franchising. Under the extensive mode of franchising, brand dealers and distributors form only a simple wholesale relationship. Apart from some requirements for sales, the headquarters does not have much restriction on franchisees.

    But on the one hand, most companies have complex organizational structure, and headquarters orders cannot be communicated to stores in time. The information of stores is reported to headquarters at various levels. On the other hand, to understand the sales status of single stores, salesmen need to update the sales information to the computer for the first time. But now the situation is that most salespeople will gather and report data for several days or even weeks. At present, it can do a quick reaction to stores, but UNIQLO, ZARA and so on.

    My Clothing Fair is going to enter the fast lane in the future, and can not do without affiliate mode. After all, franchisees know much more about the regional market than the brand dealers. But Zhang Bingliang hopes that the franchisees in the future will also be able to achieve direct management. Apart from the training and deployment of their headquarters, they will also be directly engaged in the assessment mechanism.

       Expert comment

    In the commercial field, UNIQLO has become a phenomenon, which is superior to its reputation. Zara There are many reasons for the success of these brands, H&M and Mango. I also believe that UNIQLO has found a perfect balance between price and quality. Through the unique mode of operation of UNIQLO, the state of "quality and low price" has been realized in real sense. It can be seen that, by reforming the process of enterprises, reducing intermediate links and simplifying the process as much as possible, the efficiency and standard of enterprises can be improved to a large extent. Efficiency is the best way to defeat competitors. Another way of saying this is to reduce the radius between stores and factories.


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