Experts Doubt: The Breakthrough Of Traditional Clothing Industry Under The Impact Of Electricity Supplier

Clothing is Internet One of the most involved traditional industries now accounts for more than 20% of online shopping share. In recent two years, the profits of traditional garment enterprises have declined and stores have been unable to continue. We can not help but ask whether the moat of traditional garment industry has been filled up by the Internet.

　　 Q:

Mr. Wu, I am a clothing company. I have been advertising for more than ten years, and I have been expanding my business through agency, dealer system and open shop, plus quality assurance. But in recent years, the electricity supplier has made a great impact on the original stores. Many people buy clothes to go to the store to try, turn around and buy them online, or simply go online to buy high imitation. We also try to sell clothes on the Internet, but online and offline always feel that the left hand is playing the right hand. What do you think we should do?

　　 Answer:

Our own store has become an experiential shop for others. From this phenomenon, we can understand the embarrassing situation of Chinese traditional clothing enterprises.

On the one hand is Clothing online shopping Hot. According to statistics released by AI consulting, the size of China's online shopping market in 2014 reached 2 trillion and 800 billion, of which clothing exceeded 610 billion, the largest category, an increase of 41.5% over the same period last year. In 2014, double eleven, Tmall's single store sales ranked the top ten brands, ten of clothing, but none of them were traditional Chinese clothing brands.

Correspondingly, there is still a lot of sadness around the channels. The first hit was the sports brand. At the beginning of 2013, Lining, China trends, 360 degrees, Anta, PEAK, XTEP and other companies closed more than 6000 stores. Then there was men's clothing. In the first half of 2014, there were 347 stores of seven wolves, 88 of IgG's shop and 73 of nine Mu Wang Guan shop. Recently it seems that it is the turn of women's clothing enterprises.

The largest moat in the traditional clothing industry is the Pyramid style distributor system. The larger Pyramid means that the clothing brand of the company can reach more consumers. But this "Pyramid" is based on information asymmetry between suppliers and buyers. Consumers do not know the cost of the clothes they buy. To eliminate the profits from Pyramid, a $1000 garment may cost only $100.

As Liu Yun said in "traditional enterprises and the Internet is kicking", under the impact of the Internet and mobile Internet, "all business models based on information asymmetry will not exist, and will be faster than imagined." Now the Internet is filling up this moat. If your industry depends on Pyramid, then you should consider starting a new moat, no matter whether the moat is efficiency, brand value or something else.

Responding to the impact of the electricity supplier is the first step in the transformation of garment enterprises. The following simple case is for reference.

　　 Case: the road of e-commerce for a man's clothing listed company

There are thousands of physical stores in Fujian, which are listed as the main men's wear.

But on the electronic business platform, the tail cargo and counterfeit goods are rampant, the price and price are also different, and the damage to the brand is serious. Company bosses see this situation, know that the business network is the trend of the times, a big hand, let the market department on Tmall mall opened its flagship store. The other side also worked with Tmall to shut down shops that had not been authorized by law. What was unexpected was that a batch was turned off, and after a while, the other group got up again.

The boss thought, since hard work can not be blocked, let's put in the "illegal" online shop into its own system. After a period of negotiations, we successfully reached a partnership with the larger scale shopkeepers. The company gives the official authorized legal identity. The online store is subordinate to the overall requirements of the company under the online condition in terms of image, promotion, goods structure and service standard, and also needs to maintain the unified price on line and offline. These stores have become brand peripheral units, and guns have been unanimously external, and they have jointly cracked down on fake products, and sales have also soared.

But after a while, a new problem emerged, that is, the internal friction of the network distributors. So the two time the company invited the distributors to hold a meeting at headquarters, and integrated and coordinated. According to the characteristics of online shopping gathering, they divided the category emphasis, and each made the key categories, giving support to the selection of goods, delivery and year-end returns.

After a series of twists and turns, this traditional clothing enterprise finally made the business of the electricity supplier sound and colorful. In the last two years, the double eleven sales volume has already ranked the first few of the same products. During this process, the company has greatly reduced its inventory and improved profits through the marketing of e-commerce channels.

Balancing the online and offline channels is only an important step in the transformation of the traditional garment industry, but if you think that's enough, it's a big mistake, because on the Internet, you will find that there are more or less competitive competitors, or more products, or faster product design, or more sexual design.

　　 First, we need to meet the needs of the Internet and do the right thing.

For example, add more value to the existing product design, whether it is function, experience, or the specificity of the personality of the crowd.

　　 Second, to the Internet to be efficient and do things right.

For example Clothing version The process of cutting, sewing, and finishing is divided into modules, which are completed by different factories, and a flexible supply chain is built with advanced information system to achieve the efficiency of terrorist organization.