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    Traditional Clothing Industry Enters The Era Of Change, Bosideng Plans Ecological Strategy.

    2015/10/15 10:09:00 71

    CostumesBosidengTextilesBELLENine HerdmenDown ClothingElectricity SuppliersWomen'S WearChildren'S Wear

    In recent years,

    Spin

    The clothing industry encountered "cold winter", the industry continued to slump, high inventories, artificial rents rose steadily, and at the same time, due to the rapid expansion of the early stage, the cost pressure of some enterprises increased sharply.

    clothing

    The tide of industry closing is still going on.

    Data show that

    BELLE

    Retail outlets decreased by 167 in the first quarter.

    Joeone

    At the beginning of this year, there were plans to close 50 stores to 100 stores throughout the year, while 134 had been shut down in the first half of the year, and the seven wolves had also severely reduced 519 stores. These examples are just the tip of the iceberg.

    Traditional garment industry enters the era of change

    Closing stores sometimes means regrettable exit, sometimes indicating strategic shift.

    Garment industry has gradually lost its advantages of low cost and scale, and is entering a new period of change.

    Some analysts believe that the traditional "brand + wholesale" business mode not only leads to low product market adaptability, but also increases the management cost of enterprises, and suppresses the growth of gross profit margin of enterprises.

    At the same time, with the development of e-commerce and the change of consumer habits, some of the less competitive entities do not perform well, so they have to stop operating.

    In fact, Guan chao chao continued to exist several years ago, which is not a new phenomenon this year.

    In 2013, Bosideng down clothing had already had inventory pressure, and the stores had reduced nearly 1000.

    However, it is understood that Bosideng is gradually from the extensive management mode to meticulous pformation efforts, from the wholesale business mainly to retail, and change the previous way to expand sales.

    Closing stores do not necessarily represent a decline. There are nearly 13000 shops in the peak period, but most of them are "small shops".

    Most of the shops are poor image shops, which are inefficient, while the newly opened shops are dominated by refined shops and perfect service stores.

    The proportion of Bosideng self operated stores has accounted for nearly 40% of the total.

    According to the latest data, Bosideng has won the sales champion of China's winter clothing market for 20 consecutive years, the only representative of China's cold clothing for 19 years.

    At present, Bosideng is striving to build a customer oriented, highly effective collaborative supply chain management mode to create a better shopping experience for consumers.

    This year, the company has been promoting the new season down garments in different cities in the way of Pop-up Store. The first station in Changchun has achieved satisfactory results.

    Pop-up Store, a new retail format that originated overseas, has successfully boosted popularity, attracting consumers' attention with live activities and games, not only successfully creating topics, but also stimulating local sales.

    At the same time, Bosideng is changing with consumers' shopping habits. Some brands such as KangBo and ice cream turn into regional brands, which mainly focus on e-commerce sales, which not only saves sales expenses, but also meets consumers' needs.

    Explore higher level extension and breakthrough

    In recent years, the industry environment has changed greatly, and the new environment has led to growth bottlenecks.

    The optimization of enterprise value chain has been unable to satisfy consumers' more diversified and subdivided needs, and the contribution to the enterprise's performance is relatively limited, so we have to explore new extension and breakthrough.

    The first extension of new extension is to extend to multi brand and multi category. In this regard, international brands have given clear growth path, among which LVMH group has become the global fashion leader through continuous mergers and acquisitions.

    In addition, international large clothing groups such as VFC (THE NORTH FACE parent group, Wei Fu Group), Itou Tada, UNIQLO and so on all have many brands, as well as the recent acquisition of Japanese clothing BELLE's BELLE shares, all through a multi brand strategy to circumvent the risk of single production.

    China Merchants Securities believes that some brands are also exploring a higher level of extension, and actively layout the development path of the platform (multi brand + multi category + service). Enterprises are moving from brand mode to eco circle mode, and the strategic focus, competitiveness factors and development mode all have new connotation.

    In 2012, faced with the continuing weakness of the industry and the upgrading of people's consumption concept, Bosideng realized that the consumption order was changing the trend of clothing brand, and the low level competition of single category was not enough to sustain the sustainable growth of garment enterprises.

    We must break down the pattern of down garments as a single main business, and establish the development strategy of "four seasons, multi brands and internationalization".

    In fact, the courage to go out of the comfort zone of their familiar down jacket to do many attempts is a reflection of the constant victory of Bosideng's down jacket.

    However, there are also people in the industry who doubt that the strategy mentioned above is promising, but it will be difficult in the short term.

    For this phenomenon, some analysts believe that most of the investment layout can not bring performance contribution in a short time, but the enhancement and development of the ecosystem will support the high valuation, and the huge space of the industry is expected to help it stand out in the long run.

    Bosideng also concedes that pformation can not be carried out step by step. The most important thing is self adjustment in the process and timely correction strategies according to the actual situation, such as ending the children's uniform and the brand of women's clothing.

    What's more, every experience helps to do better next time.

    Although the introduction of strategic investor Itou Chushi has been negated by the dilution of existing shareholders by issuing new shares, the company will continue to seek the most beneficial win-win cooperation mode.

    Family management is gradually changing.

    In addition, it is worth mentioning that many industries in China are full of family businesses, especially in the traditional manufacturing industry.

    But the business philosophy of family businesses can easily lead to lack of vitality.

    Some successful experiences abroad are worth learning, including the introduction of modern enterprise system into family system, and the combination of the two, which not only preserves family system, but also dilute and improve family system.

    In this regard, China's excellent textile and apparel enterprises are making efforts.

    It is worth noting that the independent director has become a new force of correction and balance for the decision-making mode of entrepreneurs.

    Take Bosideng as an example, with the opportunity of listing in the international capital market of Hongkong, we should introduce modern management concept and take the board of directors as the highest policy-making body, giving full play to the different business backgrounds or professional experiences of directors.

    The company's policy and strategic direction is formulated by ten member boards to ensure that the group set up an effective internal monitoring environment and supervise the management of the day-to-day operations.

    Among them, Bosideng, four independent non-executive directors from the clothing industry, auditing and finance, can provide objective and independent judgments for the board.

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