The 10 Major Problems Facing The Garment Industry In 2015!

Look at the 10 problems that the clothing industry is facing at the moment. Do you think it's easy?

Difficult problem: Channel Development: deep tillage or open up wasteland?

This is actually the two question: how deep can the channel sink? Is it still not the driving force for future growth?

A foreign fashion clothing brand has entered China for less than ten years, and has always adhered to a second tier city, never sinking to the three tier city. Until now, it has nearly 200 stores, and the annual store efficiency and annual efficiency have left most domestic brands far behind. Insisting that it does not sink temporarily seems to be a luxury line, but in fact, the brand price is only a few thousand SKU. This persistence stems from concerns about the different tastes of consumers in low level markets, and concerns about management problems caused by expansion. When almost everyone is emphasizing low market opportunities, this approach is thought-provoking.

Of course, there are also successful examples of doing business in a wide range of markets across the country. A foreign clothing brand has entered the three or four tier city for more than ten years, and announced that the opening of the store is still the focus of the development strategy. The brand's store performance and efficiency performance is not the brand in the previous case. This broad shop strategy comes from confidence in the Chinese economy, confidence in the clothing industry, and confidence in its own brand, and whether it applies to all brands is open to question.

Problem two: brand extension: specialization or broader?

Many of them can seize resources, but the new brand positioning is hard to really implement. The development of scale seems to have bottlenecks. The essence is to concentrate on farming. But when the main brand growth is weak, opening new brand seems to be the most convenient way to quickly turn the corner.

"If we want to do it, we must do the first brand well, do well, and open second brands." There is no doubt that a domestic fashion dress that insists on the development of a single brand. They believe that as long as the brand is good, channels and suppliers will naturally take the initiative to keep up. At present, the brand sales have nearly 2 billion, still maintain the two digit growth, also can be regarded as a big and small myth.

Those who choose to take multi brand development are relatively more successful. A total of four or five brands of domestic popular clothing brand group, covering men's wear, women's wear and children's clothing, is rare. Every development has scale and speed, and consumers have the highest recognition and reputation for all their brands.

There are more than ten brands of another brand of domestic popular clothing brand, which are still expanding. Although many people sweat their unscrupulous brand expansion, the performance of the brand has increased 10 times in five or six years.

Problem three: Advertising: high-profile or introverted?

The clothing industry is different from other consumer goods. Stores are not only an advertisement, but also a mandatory advertising. In other words, if we do not fight, we must fight, fight and fight, and we must fight well, otherwise it is a negative publicity. Then the question is coming. Since the store itself is an advertisement, do we need to spend money in traditional advertisements?

The general recognition of women's clothing industry is that they do not advertise. As for the money saved, they are used for opening new stores, doing window decorations, decorating, or simply promoting sales. Of course, there are also cases in which the opposite is true. A domestic popular women's clothing brand tried to advertise in the setback of performance growth. From online to offline, the marketing cost increased exponentially, and the effect was better than expected. Sales have been growing rapidly since the autumn of 2013, which is rather rare in the industry.

Men's clothing is another consideration. Some high-end Chinese men's wear brands, which insist on advertising for more than ten years, believe that male consumers need advertisements, because men's brand loyalty is higher than that of women, and the degree of picking on clothing is lower. In some areas, the pursuit of face is still the main driving factor for buying high value clothing, so the effect of advertising will be better than that of women's clothing.

Problem four: product mode: which is more or less?

In simple terms, the product mode is nothing more than the relationship between the balance number (width) and order quantity (depth). During the rise and fall of brand development, enterprises will pay more attention to the development of new style and new category, while in a stable development period, this problem is easy to be ignored. Enterprises should establish relevant mechanisms to immediately adjust the dynamic balance between the two in brand development.

In comparison, a small amount of money may be more suitable for attracting fashionable consumers. The fashion brand of a foreign country keeps up with the trend of fashion week and street pads, with many styles. Consumers sometimes complain that often the brand breaks off the code, but this is the strategy of hunger marketing. But the key to this model lies in the support of the design team, scale effect and logistics maturity. Without these support, we will eventually learn a bunch of high cost stocks.

It is easy to cause inventory risk and there are many more product models. The domestic popular women's wear brands benefit from the deep penetration of the three or four line market, adopt a large number of models, speed up the market reaction speed, close to the international fast fashion brand refurbishment speed, pricing the people, the rate is not high, but the result is also good. However, once the demand for business is reduced, the risk of inventory will follow.

Contrary to the popular fashion of "fast fashion", a foreign popular clothing brand takes a slow basic way and adopts a small amount of money. The total number of SKU in a year is only 800, of which a large proportion is the basic one, that is, those with a large number of consumers and a large number of consumers buying back. The brand has already made product planning in the past two years, and the previous market research, consumer research and commodity planning are meticulous and leading in the industry.

Problem five: product led: planning or design?

Commodity planning and design seem to be natural enemies, especially in domestic enterprises. In fact, to a certain extent, the weight of design development and commodity planning will vary according to the design character and commodity character of clothing brand.

A domestic high-end women's clothing brand group is created and owned by the brand principal designer, with sales exceeding one billion levels. External investors bring capital and new business ideas, which makes the importance of commodity planning increasingly prominent. Now, the key nodes such as the rhythm of the output, the number of styles, the final decision and the order of the style selection are still dominated by the designer. But the newly established commodity planning team still brings the gospel to the direct and dealer teams. The commodity planning framework based on the rational analysis gives the two teams an unprecedented high efficiency and clear direction.

Another domestic high-end women's clothing brand group basically has no product planning team, which is a typical design dominant type. From the display to the structure to the pricing, the designer is determined by the designer's mastering of his own brand and product. Today, the whole industry is paying more and more attention to commodity planning.

In the process of collaboration, commodity planning is the input of rational market demand, and design development is the output of perceptual product development. The two complement each other. The company is dominated by commodities at the front end, combined with the design team, interpreting the popularity and the brand effectively and accurately, and finally becoming the leading benchmark in the industry in a few years.

Problem six: differences in sales mode: ordering or distributing goods?

The essence of sales mode is who should ultimately be responsible for understanding products and markets. Various ways have different effects at different stages and cause different problems. The distribution system is low and easy to manage, but it is widely criticized because of the long reaction period of the market and the accumulation or shortage of goods. The ordering system is more flexible, dealers can adjust according to the situation, but dealers who lack funds and experience will take more risks. The choice of order pattern is a big problem in the clothing industry.

The ordering mode does not require the enterprise to undertake the inventory of the channel, and is the easiest way to make money in the case of sufficient cash flow. But the timeliness of clothing is very strong. The fashion trends of different years are different and even fleeting. And the order time is often longer than the listing period. Once the market trend changes, dealers will not be able to meet the needs of consumers in the selling season. A large amount of inventory will restrict the order in the coming year, and further hamper the development of the brand.

As the most common sales mode in China, ordering will be a double-edged sword. It is not only the fundamental reason for the high profit and sufficient cash in the garment industry, but also a hindrance to the prosperity of the industry.

Although a domestic menswear brand is dominated by the franchise mode, it adopts the mode of "unified distribution at headquarters." At the beginning of the product season, the brand is analyzed and predicted according to the sales data of the store, and the product is uniformly allocated. Therefore, the brand can realize the overall management and distribution of the whole stock. The display of single store can display the unified image of the brand, and is conducive to the rapid response to the market trend.

However, the relevant inventory risk is borne by the headquarters of the brand, so the brand puts forward higher requirements in terms of commodity analysis and market trend control. Because of the lack of capability in commodity planning, seasonal transfer, terminal retailing and so on, the brand has led to asymmetric information between headquarters and stores. In order to develop the brand in this way, the brand has to spend several years in high storage.

A foreign mass clothing brand carries out a single store order. Its essence is to put the main responsibility of understanding the product to the store manager, that is, the store manager directly orders to the headquarters according to the consumer demand and market changes. It is mainly based on the fact that "the store manager can better identify and match the change of customer demand, which is conducive to promoting the supply chain moving towards the market and upgrading quickly." This mode puts forward a high demand for the comprehensive ability of the store manager. In this industry, the average annual wastage rate is over 50%. recruit Training and retaining front-line personnel is also a learning.

Puzzle seven: Supply Chain: cost, speed or quality?

There will be 350 sewing machines.-->