How Big Is The Impact Of E-Commerce On Clothing Retailing?

In the early December 2014, Ali As announced by the year November 30th, after the turnover of Taobao has exceeded 1 trillion this year, the dispute over the spanformation, replacement and integration between the electricity supplier and the traditional retailer is rampant. No matter what the outcome of the debate is, basically a consensus has been reached. The electricity supplier has indeed had a huge impact on traditional retail, and traditional retailers can no longer ignore the power of the electricity supplier. Clothing consumption is the most common consumption, so the impact of e-commerce on traditional clothing retail market is also the most direct.

Electricity supplier's impact on clothing retailing?

Data see change: e-commerce has a serious impact on traditional retailing

According to AI data, the total size of the online shopping market is 1 trillion and 184 billion 50 million this year. The scale of the online shopping market is 318 billion 880 million, accounting for 26.9%, and clothing is the largest category of online shopping market.

Look at the situation of major electricity suppliers.

As of November, the spanaction volume of big Taobao (including Tmall) has exceeded 10000 billion, and December is the peak season for year-end sales. The annual turnover of big Taobao 2012 is 1 trillion and 100 billion.

In 2014, Jingdong sales ranged from 45 billion to 60 billion. According to the data of AI, the Jingdong with a total sales volume of 54 billion in the first three quarters could exceed 70 billion throughout the year. However, according to the past, the real value of Jingdong can be predicted to be closer to 50 billion.

After entering the fourth quarter of the year, suning.com launched 3 super long "super 0 yuan purchase" promotion activities, with the expected annual turnover of 15 billion to 20 billion. After entering the fourth quarter, suning.com's category expansion accelerated, promotional efforts increased, promotional frequency increased, popularity increased, website technology upgrading, warehousing and distribution speed up, comprehensive analysis of various factors, suning.com's fourth quarter spanaction volume of 60~80 billion.

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The volume of spanactions in the first three quarters of Tencent is 1 billion 989 million, 3 billion 574 million and 4 billion 550 million respectively, and the spanaction volume in the fourth quarter is expected to be around 6 billion, and the annual turnover is around 16 billion. The biggest point in the fourth quarter of e-commerce is likely to be in the dispute between Tencent's electricity supplier and suning.com's third place.

The above four big business spanactions, plus Amazon, fan, Gome, Dangdang, shop No. 1, vip.com and many other vertical businesses, small and medium-sized electricity providers, etc., this year the online shopping market spanaction scale up to at least 1 trillion and 250 billion.

National Bureau of statistics data show that last year the total retail sales of social consumer goods amounted to 18 trillion and 400 billion, the total retail sales of social consumer goods in the first 11 months of this year has reached 18 trillion and 700 billion, and the breakthrough of 20 trillion in the whole year is not a problem. According to the growth rate of 17% last year, the total retail sales of social consumer goods reached 21 trillion and 500 billion this year. The proportion of online shopping spanactions in the total retail sales of consumer goods this year is between 5.8%~6.2%. The past four years accounted for 1.1%, 2%, 2.9% and 4.2% respectively.

According to the International Bureau of statistics, the total population of the mainland in China was 1 billion 347 million 350 thousand at the end of 2011, of which 690 million 790 thousand were urban residents. In 2011, the average annual household consumption expenditure of Urban Households (15160.9 per capita) was 15160.9 yuan and the rural area was 5221.1 yuan. According to CNNIC data, the number of online shopping users in 2011 was 193 million 952 thousand. According to the data of AI, the online shopping volume in 2011 was 773 billion 560 million. With the rough calculation of the first two data, the per capita online shopping expenditure in 2011 was 3988.4 yuan, and the per capita online shopping expenditure accounted for 26.3% of the total expenditure per capita in cities and towns (although the base number was different, the urban population base was nearly 700 million, the online shopping user base was nearly 200 million, but the coincidence degree between online shopping users and urban population was relatively high, and the average value could still explain some problems).

Looking at the situation in 2014, CNNIC data show that in June this year, the number of online shopping users was 209 million 892 thousand, and the annual growth rate was 8.2%. According to this growth rate, the annual online shopping users can reach 227 million 103 thousand users. According to Ai Rui's annual online shopping volume of 1 trillion and 184 billion 50 million, the average online shopping consumption this year is about 5213.7 yuan, up 30.7% over the same period last year. When the data of household consumption expenditure per capita of the National Bureau of statistics this year came out, compared with the per capita online shopping expenditure data in 2012, we can see that the proportion of per capita online shopping expenditure in the total expenditure per capita in 2012 is more than that of the 2011 per capita online shopping expenditure, which means that the impact of the online shopping market on the traditional retail industry will be serious.

　　 Traditional clothing Retail crisis: in 2011, per capita net clothing accounted for 63.6% of total clothing expenditure.

At the end of the day, the next step is to look at the traditional retail business affected by the development of E-commerce -- the clothing retail market. According to the National Bureau of statistics, in 2011, the average household clothing (including shoes and hats and clothing below) was 1674.7 yuan, and the rural area was 341.3 yuan. According to AI data, in 2011, the market size of online shopping clothing (including shoes and hats) accounted for 26.7% of the total market volume, accounting for 206 billion 540 million. According to the data of online shopping users in CNNIC 2011, it can be estimated that the expenditure per capita online shopping in 2011 was 1064.9 yuan, and the proportion of clothing consumption per capita per capita in 2011 accounted for 63.6% of the total expenditure of clothing per capita in cities and towns. Similarly, Erie speculated that the scale of online shopping service spanactions in 2012 was 318 billion 880 million, which could figure out 1404.1 yuan per capita net purchases and 31.8% increase in clothing consumption per capita compared to the same period.

If we only look at the scale of the overall spanaction, online shopping accounts for only 4.2% of the total retail sales of social consumer goods. However, the proportion of online shopping clothing spanactions will be 14.3% in 2011. The proportion of clothing sales in 2011 has been 14.3%. Further, in 2011, per capita net clothing expenditure has accounted for 63.6% of the total clothing expenditure per person, and this proportion will be further increased in 2012.

Because of the international economic downturn, clothing exports have been seriously affected. According to customs statistics, the number of garment exports in China has been negative growth for 13 consecutive months. In 1-9 months this year, the monthly decline was 6.44%, 11.4%, 3.65%, 5.28%, 3.79%, 3.6%, 4.53%, 4.26% and 2.9%, respectively, showing a downward trend. The growth of export volume also continued to decline. By September this year, the cumulative growth rate had dropped to 1.35%. The cost push up the price, and the export volume is squeezed out, resulting in the increase of export amount is much lower than the price increase. However, the price increase has narrowed month by month, which has dropped from 11.14% in January to 3.04% in September. Under the influence of macro economy, many domestic garment enterprises are gradually trying to sell domestically, and e-commerce has become the best retail channel for export oriented garment enterprises, which has made the domestic clothing market fiercely fiercely competitive.

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According to the National Bureau of statistics, over 256 billion 966 million of the finished products in the first three quarters of the Chinese garment industry were above 256 billion 966 million. In addition, there were media reports that in the first half of 2012, the total inventory of 42 domestic clothing companies reached 43 billion 800 million yuan, and the accumulated inventory could be sold for 3 years. One after another bad news, the clothing market is no longer calm. Under the influence of the whole environment, e-commerce has become the first choice for clothing brands and producers to protect themselves, while the traditional clothing retail terminals are gradually becoming the cannon fodder of the changing garment retail industry.

Clothing brand injury, electricity supplier sewer to promote online shopping clothing market growth

The high inventory of clothing brands has brought about the rapid development of the online shopping apparel market over the past two years. Under the pressure of inventory and the ongoing industry changes, traditional clothing brands have been selling discounted items to clear inventory, which has attracted a large number of online shopping users.

The development process of online shopping clothing market can be summarized briefly. Firstly, the development of e-commerce encourages many consumers to go online shopping, and clothing is the most common consumer goods that are most close to life. They adapt to the e-commerce market in production, sale, unit price and so on, so that the first batch of different brand clothing starts to touch the net, and then gradually formed a large number of Internet clothing brands. At the same time, the clothing brokers, distributors and distributors who saw the market prospect of the electricity supplier began to touch the net through various ways. This leads to millions of SKU choices for online shopping clothes, and the price is lower than offline, which makes more and more consumers start to abandon traditional shopping methods and turn to online shopping clothes. As a result, the apparel retail market under the line has been seriously affected, and the stock of many traditional clothing brands has increased. In this way, the snowball in the online clothing market is getting bigger and bigger, and the traditional clothing retail market not only has a decline in efficiency, but also becomes a offline experience shop in the online shopping service market.

Nowadays, traditional brands are confused in the management of channels under the online and offline channels, so the traditional brands only focus on the understanding of the electricity supplier channel as a clear inventory of sewers. Clear inventory through e-commerce has advantages and disadvantages for brands, and profits can be refunded. The disadvantage is that when consumers are accustomed to the low price of electricity providers, it is difficult to adapt to the pricing strategy before the brand business, and finally choose to wait for the discount of the brand. For brands, we should not just regard the electricity supplier as a clean drain, and rearrange the retail channels under the integration of online and offline businesses. Compared with brand dealers, the traditional terminal retail terminal is actually on the downhill road caused by industry change.

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The reflection of traditional retail terminal is on the downhill road of operation.

Recently, there are more and more news about the traditional retail terminal. In the past, the increase rate of clothing of a common brand from the factory to the retail terminal was 3~4 times higher than that of the high-end brand, and the high-end brand could be more than 10 times. The main reason for this phenomenon was the increase of the intermediate links. A garment was from the manufacturer to the consumer, and the "social value" increased four times, including the ex factory price, the agent price, the store price and the retail price. In fact, many brands also have two, three or four agents.