Embrace The Internet And Revive Brand Men'S Clothing

In fact, the days of brand men's wear are not easy.

According to "China made press" reporter, in the first half of 2014, the overall scale of China's clothing domestic market continued to expand, but demand remained weak and the growth rate slowed down.

Clothing retail sales totaled 418 billion 200 million yuan, an increase of 10% over the same period last year, down 1.7 percentage points from the same period last year.

In addition, a large number of retail enterprises in the second tier market, according to the statistics of the China National Business Information Center, in 2014 1-6, a large number of major retail enterprises nationwide.

Retail sales amounted to 108 billion 245 million yuan, an increase of 2.07% over the same period last year. The growth rate was 4.51 percentage points lower than that of the same period last year. Sales of all kinds of clothing were 219 million, down 2.41% from the same period last year, and the growth rate was 5.25 percentage points lower than that of the same period last year.

It can be said that in the first three quarters of last year, the performance of nearly 60% clothing listed companies declined.

Men's wear brands, for example, announced the first three quarters of operating income of 1 billion 731 million yuan, down 25.06% compared with the same period last year, attributable to the parent company's net profit of 228 million yuan, down 38.74% compared with the same period last year. The company expects the annual performance in 2014 to decline 20% to 40%, and the three quarter revenue of 1 billion 495 million mu was 1 billion 495 million yuan, a year-on-year decrease of 15.07%. The net profit attributable to shareholders of listed companies was 306 million yuan, down from the same period last year. The company's revenue in the former quarter was lower than that of the previous year. The net profit loss attributable to shareholders of listed companies was lower than that of the previous year. What we are familiar with

Rising costs and inadequate innovation

In the face of the collective dismal performance of the brand menswear, what is the cause of the predicament? Zhu Xiang, an analyst at bLung consulting, said in an interview with "China made news" that the brand clothing is a high profit. This is true. Some clothing brands can get a maximum gross profit of 70%, but the net profit is only 30%, which is also very high. But it is hard to sell. The sales of 400 million to 500 million yuan is a good brand, and 1 billion sales clothing enterprises are few.

"In addition, a lot of advertising is useless, the industry characteristics determine that the advertising efforts of Li Lang and" nine herd Wang "are not very small, but at most it is about 2000000000 yuan sales, 500 million yuan profit, and many advertisements have not risen. They are regarded as successful enterprises in this industry, but that's the same.

In order to seize the terminal channel, brand dealers often give channel merchants various preferential conditions, which are eroding the profits of brand dealers.

From the perspective of industry chain, the market capacity in the upper and middle reaches is relatively surplus, which is mainly due to the rapid expansion of capacity in previous years. "

Zhu Xiang said.

According to the "China made news" reporter, compared with the two years ago, outdoors sports, children's clothing and home textiles, the overall adjustment of men's clothing enterprises was later than the whole industry. Although the inventory pressure had been reduced after the inventory and channel adjustment measures in 2013, the effect of active adjustment and business pformation was not obvious. Therefore, the overall decline of men's clothing brand performance this year is only a delayed response to its operating conditions.

Li Peng, a senior researcher at the China Industrial and Commercial Research Institute, put forward his own views in an interview with the China made press.

In his view, first of all, affected by the macroeconomic, the whole garment industry is depressed. The decline in ordering quantity and rising cost are the primary reasons for the decline of men's clothing brand performance.

Secondly, due to the fierce competition in the market, the terminal demand of the textile and garment industry is weak, the terminal sales pressure is large, and the profit margins are reduced, resulting in a decline in the brand profit of the men's clothing industry.

Third production enterprises do not really care about the whole internal management system, and the internal friction is very serious, especially in the layout of internal communication and organizational system.

In addition, the focus of enterprises is not practical and focused, and the market layout and positioning are not refined.

Wu Yue, a researcher at the China Research Institute of Pu Hua, stressed that the men's clothing brand was confronted with systemic problems in the interview with "China made news" reporter. Therefore, it is necessary to change from the source, for example, in product design, we must truly innovate, pay attention to user participation, dig out the most headache and most concerned problems of users, rather than imitate plagiarism; and position clearly, whether to be a brand dealer or a retailer, if we want to be a brand dealer, we must really do the best of the brand and products.

If it is a retailer, it is necessary to manage the terminal well and manage the channel well, and consumer reputation is very important.

In addition, nowadays the Internet era is more pparent and products are very important. If they do not catch the pain of consumers, they will not like it. Why do they often buy your clothes? Really grasping the pain point of users will make people feel cool, so that they can have a sense of brand belonging and trust, and even reach the loyalty of non XX brand clothes. Once the circle of friends is spread, word of mouth will rise quickly.

Wu Yue further said.

The pformation of concept and mode is fundamental.

The reason is that in order to change the status quo and how to take measures, Zhu Xiang suggests that the first thing is to protect stores, and then actively explore the pformation of e-commerce.

Zhu Xiang analysis, one of the characteristics of men's clothing sales channels is that the operators and owners of brand shops are mostly franchisees and agents all over the world. Many of the franchisees are "husband and wife shops", but the strength is weak, but the number is huge.

In today's environment, we need direct outlets, large agents and some powerful franchisees in headquarters to pform to professional retailers. Then we need a professional retail management team and a certain scale to adjust.

From the brand headquarters, it may be necessary to integrate and optimize some franchisees with weak operations.

Close down the loss stores, further streamline the quantity, and at the same time force e-commerce, with this new channel to meet the needs of a wider range of consumers at a lower price.

"In addition, the positioning of the product itself changes, the demand for men's fashion, the speed of change is not too fast, the type is relatively fixed, the pursuit of quality is relatively high, bought a suit of ten thousand suits can wear for a long time, so men's demand cycle is relatively long, so its performance can not always grow rapidly.

Therefore, men's clothing should also cater to modern young people, instead of sticking to the market of old and middle-aged people, and making more efforts in fast fashion. For example, ZARA is the best example.

Zhu Xiang said.

Wu Yue pointed out that the pformation of ideas and patterns is fundamental.

He took the pformation of Hai Lan's home as an example, while in the men's clothing industry, the family of Hai Lan had grown up against the trend and made outstanding achievements.

The reporter looked at the report of Hai Lan's home. It showed that the business income of Hai Lan's family from 1 to September was 8 billion 145 million yuan, an increase of 70.5% over the same period last year, and net profit of 1 billion 613 million yuan to the parent company, an increase of 83.57% over the same period last year.

It is reported that Hai Lanjia company this year for the layout of shops, on the one hand, the location of bad shops, and on the other hand, the new shop focus on the area to upgrade, not to pursue the number of shop opening; at the same time, the electricity supplier mode adopts the online and offline O2O mode, the company's electricity sales revenue grew rapidly, is expected to grow 300% to 400% this year.

The O2O mode of Hai Lan's home operation has inherent advantages: the company adopts the direct management mode, and the franchisee is only a financial investor. Therefore, the operation of O2O will not be faced with the problem of profit distribution among franchisees.

From another point of view, men's clothing enterprises should change their mindset in customer experience.

The contact path between brand and customer must be shortened. The problem of user feedback should be answered immediately and solved. Most companies are not shirking their responsibilities. They are doing the same thing without any improvement actions. Once users are given up, there will be shadows and it will be hard to rejoice.

The traditional way of communication is Brand Company to agents, agents to dealers, dealers to stores, and finally to the terminal customers, so that Brand Company has been unable to pay attention to customer experience of the brand, which also led to customer loyalty to the brand is getting lower and lower.

Next, the mode of communication between brands and customers must be changed.

Wu Yue further said.

At the same time, insiders also said that the adjustment of men's clothing enterprises needs to take full account of the characteristics of men's consumption.

Men's consumption groups are generally mature men aged 27 or over. Their aesthetic standards, their demand for products and styles, and their choice of brands are relatively stable. They have better purchasing power and consumption level than the other 35.

Relatively speaking, men's clothing market is more concerned about quality consumption, product quality is life.

Li Peng believes that men's brands encounter systemic problems, so they need to change from the source.

He introduced that the general profit distribution structure of the clothing industry value chain is 40% of design, 50% of marketing and 10% of production. That is, design and marketing are at the high end of the value chain, with high economic value added, and production and processing are at the low end of the value chain, with the lowest added value.

According to the analysis of the whole value chain of the garment industry, all kinds of enterprises participate in the value chain division of labor according to their own competitive advantages, so that they can get the biggest benefits. However, most of the garment enterprises in China are at the low end of the value chain, which is the root cause of the decline in performance.

The large brand clothing enterprises in China are paying more attention to marketing links. The design business is scattered in ODM enterprises, brand clothing enterprises, professional fashion design enterprises and fashion design studios.

In addition, Li Peng stressed that now is the age of the Internet, enterprises should use the means of the Internet to carry out sales, marketing, marketing, channel management, and so on, specific to the men's clothing industry, that is, the online and offline joint interaction, that is, O2O.

Although it is difficult, it has to be done.

Embracing the Internet is a trend.

Zhu Xiang believes that the trend is changing and people's consumption habits are also changing dramatically, which makes domestic men's clothing brands equally unprepared.

"80 after" and "85 after" pay attention to quick, convenient and practical experience. In order to adapt to the change of habit, enterprises must find the balance between e-commerce and retailing.

Wu Yue talked about the future trend of brand men's clothing, and also did not leave today's Internet era.

He stressed that the traditional way is to take the company and channel requirements as the starting point, ask celebrities to endorse, and spend money to smash advertisements. But this batch of consumer groups growing up in the Internet age is becoming mainstream. The so-called stars and advertisements have become the older generation's concept. They believe in products and trust in their friends circle. They prefer to spend their time in giving evaluation, expressing their joy or dissatisfaction, or branding their own communication platform with consumers, such as WeChat public numbers, micro-blog, etc., or they will not be heard or ignored, and they will gradually be abandoned by consumers.

"All enterprises in the future will be Internet oriented. All companies will use the Internet means to carry out sales, marketing promotion, channel management and so on.

Industry, that is, online and offline joint interaction, that is, O2O, but the difficulty will be great. It needs to go a long way. We should be good at learning and learn from the successful experience of others.

Because most of the men's wear brands are deep ploughed under the line, a complete warehouse cargo system, supply system, shop opening system, distribution and incentive system have been formed under the Internet, but to a large extent, the internet background needs to be broken.