Revealing The Truth Behind Lining And Other Clothing Stores

On the one hand, Zara, UNIQLO, Muji and other brands accelerate the expansion of the layout, YOUNGOR, the wedding bird, the United States and other garment enterprises bustle about busy investment busy mergers and acquisitions busy pformation, Anta in the first half of the crazy harvest 5 billion 100 million hit the highest level of the company, Internet and other Internet brands to seize the market share under the line, while the other side is countless.

Crying, no tears, deep in the shop craze.

The flagship store has become a continuous discount shop, or completely disappeared in people's sight.

To Be Or Not To Be has become the dilemma that many garment enterprises owners have to face everyday.

Although a few years after the closure of the shop, it is not a new phenomenon this year. However, from the first half of the year, the number of thousands of closed stores is still staggering.

Hua Shang Hui has selected a number of recent data on clothing stores, and listed a complete list of clothing brands.

Well, 2015 of the clothing industry, using half flame and half seawater to describe it, is quite appropriate.

Lining: 1200 stores in the first half of the year

Half a year, 1200 shops closed.

The Li Ning Co's performance briefing just after the personnel adjustment has shown that the company's revenue in the first half of this year was 3 billion 880 million yuan, a decrease of 9.5% compared with the same period last year, while the net profit attributable to shareholders of the listed company was 44 million yuan, a sharp decrease of 84.9% compared to the same period last year.

Li Ning Co has issued an early warning of annual loss, which is called cost saving, and has closed 1200 stores in the first half of the year.

Although the closure of 1200 inefficient stores, but a little calculation, we know that almost every day to close 7 homes in order to have such a crazy number.

Statistics show that in June 2012, Lining had 6657 franchises, 646 Direct stores, and 20.8% direct sales. In June 2014, Lining had 4552 franchisees and 1119 direct outlets, accounting for 38.3% of its direct sales.

In addition to being in deep trouble, Li Ning Co has also fallen into a problem of high inventory and performance losses.

In 2012~2014, Li Ning Co's performance has been in a state of deficit. The losses in three years were 1 billion 980 million yuan, 390 million yuan and 780 million yuan respectively, totaling over 3 billion 100 million yuan.

Bosideng: stores cut 5053

{page_break}

Although ITOI and CITIC Securities are introduced as strategic investors this year, Bosideng, the biggest local down garment producer in China, is still having a hard time.

As of March 31, 2015, the annual report shows that Bosideng revenue in the last fiscal year was 6 billion 293 million yuan, down 23.61% compared with the same period last year, while net profit dropped 81.01% to 132 million yuan.

This is the lowest net profit since Bosideng was launched in 2007.

According to the annual report, the down jacket business is still the source of Bosideng's biggest income, but it has dropped by 32.6% over the same period.

In the process, Bosideng shut down stores.

As of March 31st this year, Bosideng retail outlets were 6599, down by up to 5053 year-on-year, including 1296 retail outlets and third parties.

The number of retail outlets decreased by 3757.

For such a large-scale shop, Bosideng said that the store is a strategic choice of "self broken arm", closing the inefficient sales network to avoid overlapping channels and making the layout of the retail network more reasonable.

BELLE: 167 stores closed in the first quarter

BELLE International announced the first quarter of this fiscal year (March to May) retail operations data show that the largest shoe production and retail companies in China, the number of retail outlets in the mainland has decreased by 167, while its footwear sales have dropped by 7.8% over the same period last year.

Previously, the scale of stores has always been the advantage of BELLE international.

Data show that in the craziest days of opening stores in 2011, BELLE international has opened 2~3 stores every day on average.

BELLE said that the slowdown in group business growth will become normal and there will be no explosive growth in the short term, so the pace of opening stores will slow down in the future.

Daphne: 181 stores closed in the first half year

In May this year, Daphne endorsed an advertisement in Daphne's store.

Before that, Daphne also heavily hired celebrities such as Liu Shishi and Nicholas Tse to stimulate consumption.

Even if the eggs are combined, all this seems to have little effect on improving the company's performance.

In the first half of 2015, the growth rate of Daphne group's core brand and same store sales decreased by 16.9%, and in the first half of the year, there were 181 outlets, including 117 direct battalions and 64 franchisees.

In the first quarter, 14 stores were closed, 167 stores were closed up in the two quarter, and the total number of core brand sales outlets has so far been 6221.

It is worth mentioning that, compared with the decline in profits of physical stores, Daphne's electricity business has made some growth and maintained its profitability.

{page_break}

This is a world that makes people lose their way.

Although we have been saying that there are countless new opportunities in the store.

But, to see this one another shocking store data, or how many people are somewhat sentimental.

The heavily branded clothing companies slashed the number of stores, claiming to be the backbone of the warriors, while some of the smaller clothing brands were almost in the wake of the curtain call.

The reason for closing the shop is that we can sum up ten articles and eight items, such as weak economy, slow demand, rent increase, electricity supplier impact and structural adjustment.

However, if we do not manage it any more, the brutal market of the jungle will only look at the result.

An obvious fact is that the idea of simply increasing the number of stores to improve performance is not feasible. The strategy of simply using price war to rob market share is not feasible. The extensive development mode of simply scaling, assembling capacity and reducing costs will not work.

While we are thinking hard, we may as well calm down and think about some problems.

Want to understand, think thoroughly, find the right direction and act again.

Under the Internet economy, will this entity shop end? If the answer is no, what is the reason?

Is it a direct cause or an external condition for many factors leading to the surge of shops?

Why can Zara, IKEA and Decathlon's stores be proud of their prosperity?

Is it applicable to other people's customs? If not, what is the most fundamental reason?

How to combine the advantages of the electricity supplier and the entity store to maximize the effect?

How should clothing companies adjust their strategies after they have to close their stores? How can other shops be more effective?

Problems can be enumerated indefinitely.

In any case, combining with their own realities, studying the reasons for closing shops is not a matter of going through the motions for clothing enterprises, but rather, it is necessary to truly clarify their comparative advantages and disadvantages, analyze deep-seated fundamental problems, find the key and solve the mystery.

Otherwise, running blindly will lose energy and fight when lost.

Another point to note is that the shrinking of physical shops and closing shops is not a bad thing.

On the other hand, this is

It is a sign of adjusting strategic decisions to adjust operation business rather than the performance of comprehensive withdrawal.

From this perspective, closing shop may also be a sign of health, which means a more enlightened stage is coming.