My View On Garment Industry Going Through Difficulties

Clothing backlog serious, inventory up to 40%

Close shop tide, performance decline...

In the first quarter of this year, the clothing industry was not optimistic, and the downturn in retail stores did not increase because of the owners' efforts to pform or increase more experience formats.

"Last year, the stock rate of the national clothing industry was very high, and many brands were even as high as 40%."

An industry insider told reporters, "this is the highest inventory in ten years, and in the next 1-3 years, China's clothing industry will face a round of elimination of inventory."

All along, after the Spring Festival to the May 1, is the traditional off-season clothing industry.

Contrary to the weather in spring, the clothing industry seems to be still in the cold winter. Facing the double pressure of huge inventory and low sales season, spring seems to be in the air.

[reporter survey] upstream and downstream unsmooth clothing overstock pressure

In April 13th, the Sichuan Daily reporter saw in the Red Star Road Baisheng shopping plaza, DOX 29 yuan, La Natsu Bell Man 10 yuan 6 yuan, ROEM spring clothing and other old 10 yuan in the province 5 yuan, the whole shopping mall April 7th April 7th 16 days, planning "love and crazy to enjoy" activities, decorated with 300 yuan in the province 150 yuan.

Chunxi Road Mao Ye

In the first half of April, the spring festival costumes were 100 yuan and 50 yuan.

The head of a clothing brand District told the Sichuan Daily: "these promotional activities are aimed at selling off the stock of the season as soon as possible and returning the funds."

"Last year, we have several shopping malls counters performance has declined significantly, but the year before the goods can not be ordered back, ah, can only continue to sell hard, as long as it is not a loss, can take the volume of the line."

Last week, a dealer who asked not to be named to represent a number of well-known clothing brands told reporters that although the brand of their company did not have a stock backlog phenomenon, if a brand dragged its legs, it would have an impact on the sales of other brands.

According to the senior people in the industry, the two famous men's wear brands that had been popular for the past 20 years at the end of last year were suddenly disappearing from the major shopping malls in Chengdu.

"In fact, the recession of the garment industry is not only a terminal problem, but also its upstream industry chain, such as raw materials, cloth purchase, ordering, etc., has also been disconnected, which will also lead to the phenomenon of pressure."

She cited an example, "for example, the factory received orders for garment production a year ago, and the result is that the brand side has not been able to get money for the new products because of its ineffective sales. This vicious cycle will lead to a chain reaction and lead to an imbalance in the whole industry chain. This is what we see in the shopping mall that some brands are always selling quarterly discounts".

Leather market profit is high but business is difficult.

At 11 a.m. on April 10th, the Sichuan Daily reporter came to the Haining leather city beside Chengdu new North Road. The huge parking lot only stopped less than 100 cars. Besides the staff, there were only a few customers in the store, and many shops on the three or four floor even closed down. Some shops also posted notices of pfer.

"We are ready to close temporarily after April," said Yu Ting, a manager of a brand fur franchise store. "Opening the first winter, we can sell more than 1000 furs. Now the fur business is getting more and more autumn, and the off-season sales have arrived. Even if there is no business to open the door, it is better to shut down and save some water and electricity charges."

"It's not easy for us businessmen to rely on 6 months' business to support a year," said a businessman reluctantly.

Reporters learned that leather as a subdivision of clothing, there has been a clear season, the annual April to September is the off-season sales of leather clothing.

"Seasonal is leather."

Ding Haizhong, general manager of leather city in Haining, Chengdu, described it as "like a crippled legged man. Although he can walk, he still has difficulties in running."

[where is the road]

In April 12th, Chengdu promulgated the "opinions of the Chengdu Municipal People's Government on promoting steady economic progress", calling for active development of new business models such as "Internet +", speeding up the demonstration and construction of traditional business circles, and establishing cross border e-commerce clearance service platform, shortening the processing time of cross-border electricity supplier declaration, inspection, settlement and tax refund, and integrating cross-border e-commerce trade into import and export statistics.

Coincidentally, Haining leather city is building a cross-border e-commerce platform in order to change the situation of less passenger traffic in the off-season.

Last December, Haining Leather City in Zhejiang signed a cooperation agreement with South Korea's sensible company. The two sides plan to cooperate in building a Korean commodity cross-border e-commerce platform to build the Korean fashion center.

"The Korean fashion center is expected to be put into operation in July this year," Ding Haizhong told reporters. "Korea will be able to introduce competitive clothing, electronics, cosmetics, medical and cosmetic products."

Ding Haizhong said that if the Korean fashion center of Haining Leather City in Zhejiang was recognized by consumers, then the first choice for duplication of this mode in China would be Chengdu.

Once the South Korean fashion center lands in Chengdu, Chengdu citizens will be able to buy authentic Korean goods easily at home, and it will change the embarrassment of off-season businesses in Haining Leather City, realize the complementarity and sharing of off-season passenger flow, and let Sichuan local brands have a platform to enter the Korean market.

"Now there is always the rise of the outlets, which has nothing to do with brand and inventory."

For low-priced, famous brand outlets, in the past year more and more consumers love, or this is also in this round of inventory elimination war brand good pformation choice.

In addition, the reporter learned from the women's clothing brand VERO MODA relevant personages, the brand in 2012 and 2013 higher inventory, the company realized the crisis, from the beginning of last year carried out internal adjustment, 2014 national stores sales better, mostly in the state of shortage, realized a small gorgeous turn.

Sportswear, which sells mainly sportswear, plans to take a differentiated and professional route. It will open its first basketball professional store in May this year, and will also set up professional football shops and running shops in the future.

And product demand to improve sales in the off-season.