The Clothing Brand Stores Collapse And The Waves Are Magnificent. 170 Million People Go Home Early.

The top priority of the clothing industry is to think about where our customers are. What is their real demand? Whether it is luxury brands, or parity fashion or just emerging small brands, the biggest challenge now is not to increase the number of stores, nor to create good sales figures, but how to get through online and offline connection channels, from products to channels to experience, reconstruct the communication mode between brands and consumers, and establish a real connection with consumers.

In 2015, the large textile and garment enterprises frequently closed down, making the upstream and downstream industrial chain employment population as high as 170 million. The pillar industries that once occupied half of China's exports again touched the nerves of the Chinese people.

Closed shop does not mean decline, maybe just strategic adjustment with the times.

A fact that can not be avoided by all fashion brands is the general trend of the development of e-commerce.

Affected by the collapse of Chinese textile and garment production enterprises, a large number of clothing brand shops are closing down all over the country, including Bosideng, Li Lang, BELLE, Giordano, Anta, nine herdmen, seven wolves and so on.

2015 bankruptcy list of famous textile and garment enterprises

In September 6th, Wenzhou Chuang Ji group, which owns 6 branches, officially declared bankruptcy.

According to a senior Zhuang Ji, the incident or the bank generated about 30000000000 bad debts.

At present, 5000 employees of the group are quietly waiting for the result of bankruptcy.

In August 22nd, Zhejiang Hongjian Group Co., Ltd., the 500 largest private enterprise in China with a total assets exceeding 2 billion, was officially shut down.

More than 1000 employees went to the streets to pay wages for three months.

In August 19th, the boss of Fuji (Huizhou) textile complex, Huizhou, Guangdong, has 400 employees, and employees gathered at the factory gate hoping to get their own hard-earned money.

In July 31st, the boss of the East China textile giant Bao Li Jia ran, and 5000 employees suddenly lost their jobs.

At the end of May, the Shandong Lanyan group, the largest denim factory in Asia, with a staff of up to 10000, was bankrupt due to liabilities of 2 billion 500 million yuan.

In May 22nd, Fan Bingbing Viske's clothing, which had been cited by Lenovo and was endorsed by the company, was closed down, and the boss ran away with 5000 employees.

In May 18th, the 500 largest private enterprise in 2002, Shaoxing's printing and dyeing company, whose total assets were 1 billion yuan, was five printing and dyeing enterprises.

It is reported that the company has 7 subsidiaries and employs more than 2000 people.

In May 1st, the boss of Dongguan Hou Hong garment factory, who had more than 10000 employees, ran away.

The staff went to the streets to ask for two months' wages and financial compensation. The local government dispatched 1500 policemen to maintain order.

In April 20th, with more than 2000 employees, Lining and XTEP's core supplier, Jaron clothing, were broken by gold chains because of the expansion of the market.

In the textile gathered Shaoxing, Shantou, Changle, Dongguan and other places, the small and medium-sized textile and garment enterprises that are bankrupt and bankrupt are numerous.

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.

This platform selects some recent data of clothing enterprises, and lists out a list of clothing brands that are not complete.

In 2015, the clothing industry was described as half fire and half seawater.

1. Bosideng: a massive shutdown of the 5053 stores and a net profit since its listing.

Net profit: according to the annual report released in July 28th as of March 31, 2015, Bosideng's 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.

The number of outlets: as of March 31st this year, Bosideng retail outlets were 6599, down by 5053 compared with the same period last year, including 1296 retail outlets and 3757 retail outlets operated by third party distributors.

Case comment: first, the traditional "brand + wholesale" business mode not only leads to low product market adaptability, but also increases the management cost of enterprises, resulting in a decline in gross profit margin; two, the development of e-commerce and the change of consumer habits, making some competitive entities lack of competitive performance and have to close.

2. Li: 15 stores in the first half of the year are still going to be stocking.

Net profit: as of the first half of 2015, the net profit increased 11.6% to 277 million yuan.

Earnings growth comes from turnover growth and gross margin expansion.

The turnover increased by 9.0% to RMB 1 billion 188 million during the period.

Number of outlets: as of the first half of 2015, there were 3080 shops in the shop.

During the period, the number of brand "LILANZ" stores decreased by 15 to 2768.

Case review: by the impact of the Internet on retailing, last year, Li Lang closed down some inefficient stores, which is part of the strategy.

Store is for pformation and upgrading, dealers also need pformation and upgrading.

3. BELLE: the scale of stores declined, and retail outlets decreased by 167 in the first quarter.

Net profit and closing number: BELLE international recently announced the first quarter of this fiscal year (March to May) retail business data showed that the largest number of shoe production and retail companies retail sales in China decreased by 167, while its footwear sales decreased by 7.8% compared with the same period last year.

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

Case review: under the joint constraints of market saturation, rising costs and persistent impact of electric business, the extensive development mode of women's shoes brand has simply taken the scale and the capacity to reduce costs.

4. Giordano: last year 190 stores closed down nearly 40% year-on-year

Net profit: 190 in 2014, net profit fell by 38%. Giordano, a casual clothing brand, released its 2014 performance report 3. The company's sales volume was HK $5 billion 545 million, down 9% from HK $5 billion 848 million in 2013, and net profit fell by 38% to HK $408 million.

Number of stores: as of the end of last year, the number of stores was 2452, a decrease of 190 compared with last year.

Case commentary: clothing companies will generate large quantities of inventory when closing stores, and digestion will inevitably affect the company's performance. This is also an important reason for poor sales and gross profit.

Net profit: as of June 30, 2015, Anta's revenue reached 5 billion 110 million yuan, an increase of 24% over the same period last year, and net profit increased by 20.2% compared to the same period last year, to 965 million yuan.

Number of stores: for the second half of the year, the number of Anta shops is expected to be 7200 to 7300 at the end of this year. That is to say, Anta may close 40 stores to 140 stores on the basis of 7340 stores in the first half of the year.

Case commentary: Anta has been adjusting its business mode. The intention of pformation is obvious. Traditional business growth is weak, and seeking new market growth point is one of Anta's strategic development directions.

Net profit: after listing in 2011, the performance turned straight.

Net profit in 2011 was 52 million 830 thousand yuan, 40 million 160 thousand yuan in 2012, while in 2013, it dropped to 6 million 60 thousand yuan. In 2014, it was a huge loss of 103 million, and the loss of assets impairment was as high as 40 million, which was nearly 4 times that of 2013.

Number of stores: nearly 100 stores were reduced in the first half of last year.

Case commentary: outside the main business downturn, Busen implemented the "epitaxial diversification" development strategy, such as setting up small loan companies, investing in securities companies, investing in real estate development in Zhuji, and investing in cement plants in Sichuan. These diversified investments do not seem to help Busen's development very well.

Seven

Net profit: China's revenue grew by 11.7% to 214 million 900 thousand euros due to the euro's weakness. After excluding the exchange rate, the same store sales fell 0.8%.

Number of outlets: the Chinese market has lost 2886 sales points after a net loss of 236 loss department stores in fiscal year 2014.

This year, the group will slow down the closing speed of Chinese department stores.

Case commentary: clothing enterprises are affected by the electricity supplier, coupled with the increase in rents, making the closure of poor performance shops a timely stop loss option.

8. nine herd Wang: high or low, not embarrassed, the first half of the shop closed 134

Net profit: income in the first half of the year was 971 million yuan, down 16.6% compared with the same period last year. Net profit was 204 million yuan, down more than 30% over the same period.

Number of stores: to cope with the continuing downturn in domestic clothing consumption, the company's target of closing stores in the beginning of this year was 50 to 100, and 134 had been closed in the first half of this year.

Case review: it is hard to sell without price cuts. Once the price cuts can not support the high advertising fees, it will weaken the brand influence and make no difference from ordinary brands. This is the current predicament of these brands.

9. seven wolves: net reduction of 519 stores, after the pformation of performance decline has not improved.

Net profit: the company's revenue was 1 billion 130 million yuan, an increase of 10.42%; net profit of 111 million yuan, down 26.28% compared to the same period.

Number of stores: there were 3155 terminal stores in the first half of last year, up to 2636 at present, with a net decrease of 519 stores.

Case comment: in fact, the seven wolf early has changed from "pure industry" to "industry + investment" mode of operation, but the decline in performance has not been reversed.

Under the new normal of the domestic economy, when the traditional clothing industry can not resist the impact of external environment, closing shop is the best choice to reduce costs.

According to McKinsey Co data, luxury sales account for 6% of total sales of luxury goods, about 15 billion 500 million dollars. By 2025, this figure is expected to rise to 28%, and sales will reach 77 billion 600 million dollars.

How tempting numbers and prospects are, how can people be unmoved?

Under the tide of the Internet, consumption upgrading and social pformation are pregnant with too many consumer blind spots and business opportunities. The fashion industry is constantly being infiltrated and pformed by various new technologies and new technologies, either actively or passively.

However, regardless of the ever-changing nature, the essence of business is insight into human nature.

Whether online or offline, technological progress, industrial upgrading, or business pformation and mode innovation, it is all about ultimate consumption and consumers.