How Did The Traditional Garment Industry Successfully Pform And Break Away From Tight Encirclement?

"A little black dress that bought baozi 10 years ago was priced at 3000 yuan at that time."

Counters, a more than 40 year old female customer, said it was the first time she had consumed such expensive clothes, and so far this dress has been kept in her wardrobe.

As the first world to enter the local market

One of them, Baozi carries many beautiful memories of Suzhou women.

The news of baozi's clothing sales business has triggered many nostalgia for middle-aged white-collar workers.

In June 1st, Ports Design Ltd announced that it would sell 20% of the fashion and clothing business for RMB 600 million yuan as a first step to quit traditional fashion dress business and conduct business pformation. After that, the company could sell 80% of the 80% of the fashion and clothing business at a price of $2 billion 400 million.

Traditional clothing business is becoming more and more difficult to do. Baozhuang's sale of fashion and apparel business has attracted the attention of the urban industry.

With the arrival of a new round of shuffling in the clothing market, the market is calling for new development ideas.

Brand women's clothing

From leading style to going downhill

Baozi has entered the Suzhou market for nearly 20 years.

According to introduction, Baozi was founded in Canada in 1961 and has more than 60 stores in the world in 1989.

Since then, the Kenneth Chan family in Hongkong has bought the 70% stake in baozi as the largest shareholder.

According to the boss of a high-end department store in the city, as the first "world famous brand" to enter the mainland in the early 90s, Baozi, relying on the star strategy, became a high-end women's clothing brand in the early 90s of last century.

"In order to introduce baozi to Xiamen for many times," according to the general manager of the shopping mall, the introduction of baozi at that time was the most demanding condition in all women's wear.

Baozi's experience in the local market is twists and turns.

According to the introduction, because at that time in the well-known brand concept, Suzhou belongs to the two or three line market, is not "to see", the goods, marketing strategy and so on less investment, initial market insipid.

Since the beginning of this century, with the tide of fashion in the public, brand operators have changed strategies and increased investment, Baozi has become the "fashion classics" of female white-collar workers in Suzhou.

Because baozi was mainly made up of professional suits and dresses, the price reached two thousand or three thousand yuan at that time. The most popular women in Baozhuang were women with strong spending power. They once led the fashion women in Suzhou city.

In recent years, Baozi began to go downhill.

According to urban businessmen, although baozi sales are still stable, they are already in their prime.

Statistics show that from 2007 to early 2008, Baozi's share price once shook at about HK $30.

But in recent years, the stock price has been sliding all the way, and the stock price has dropped to HK $2.34 at the lowest price.

According to its 2014 annual report, the company's turnover in 2013 reached HK $2 billion 137 million high, then dropped to HK $1 billion 879 million in 2014, or 12.1%, which is the first decline in its turnover in 5 years.

Affected by the decline in performance, Baozi company has been carrying out frequent pformation this year, with a focus on the pformation of "going to costumes".

"From now on, Baozi has no impact on sales." yesterday, according to a distributor in downtown, Baodian merchants reported that the shops were operating normally.

Traditional clothing industry

Serious downturn in profits and industry reshuffle

Baozi's pformation is influenced by many factors.

"The rise of baozi takes the place of heaven and earth". At present, from baozi's clothing base, it is basically in China, and designers adopt foreign teams. This mode is more common in the domestic clothing market.

"At the very beginning, these brands are called" international brands ", an industry insider said.

When Baoji entered the local market, Baoding was favored by its leading position because the international line brand was still blank.

With the rapid rise of electricity providers, sales of traditional clothing sales have declined.

Coupled with the entry of international first-line brand clusters, the high-end space of Baozhuang is squeezed.

"Baozi is mainly based on professional wear". According to a dealer, there was group buying in the past, and now this part of consumption is basically extinct.

"I buy clothing in general to choose fast fashion brand," a Post-80 female customer said, such as baozi clothing positioning, not her "food".

According to the insiders, with the younger generation becoming the mainstream consumer group, all kinds of fast fashion, light luxury and other brands have entered a lot, attracting customers by price, fashion, fashion and so on, while the mainstream customers of Baozhuang are concentrated in the middle age. With the gradual growth of the mainstream customers such as "after 60" and so on, the good scenery is no longer.

Baozi is not alone. In recent years, traditional clothing days are hard.

According to the data, Esprit, another fashion brand that once led fashion, plunged 50.5% in the first half of fiscal year 2015.

The international luxury goods consumption in the domestic market last year dropped by 11% compared to the same period last year.

"Shuffling the clothing market is the trend of the times," an industry insider said.

Adjustment and management

Lower the price and locate the target accurately.

According to an insider in Sucheng, recently, whether brand dealers or dealers are readjusting their business strategy and positioning.

First of all, lower prices. Luxury goods have adjusted global prices this year to reduce prices in the domestic market; in addition, they have adjusted their business models, and Chanel has tried to enter the field of electricity supplier.

"As long as the location is correct, clothing business has a way out", according to Taihua mall stakeholders, mall adjustment marketing strategy, in April this year, women's wear sales increased over the same period last year.

According to the people's market, the clothing sales have increased by more than 10% over the past years after the adjustment of the shopping mall layout. The increase is the top in department stores, household appliances and other major categories.

The traditional pattern of clothing distribution is being reorganized.

The industry believes that the survival of the fittest, only to adjust the way of thinking, research new markets, explore cost-effective, distinctive.

If we really meet the needs of the market, we can kill the tight encirclement.