Children'S Market Is The Most Profitable? The Truth Is That 35% Still Has No Profit To Earn.

The gross profit of garment industry is more than 35%, which is higher than that of real estate. However, enterprises still do not have much profit.

Nowadays, as the cost is higher and higher, management becomes more and more complicated, cost pressure is increased, and the profit margins of brands are further squeezed. Children's clothing market is also a dispute among powers.

High interest rate but no money.

The "2012 - 2015 children's wear industry report" released by the National Bureau of statistics shows that the total output value of children's clothing industry can reach 25% to 30% per year. It is estimated that by 2015, the market capacity of cotton and daily necessities of infants and young children in China will reach 227 billion 980 million yuan.

The world's leading baby show: CBME China

The children's Wear Exhibition (CBME China) recently released the 2015 CBME survey report on China's pregnancy and baby industry. It also showed that although the overall retail environment in 2015 was not optimistic, the baby and baby industry continued to achieve rapid growth.

The sales volume of 51% of the enterprises surveyed actually increased by more than 20%, and 77% of the enterprises' sales increased to varying degrees.

The big cake of China's children's clothing market has also attracted the rush of foreign brands. For example, H&M, Zara, Muji, UNIQLO and other fast fashion brands have enriched the variety of children's clothing, and Gucci, Dior and other brands have begun to set up children's wear retail network in China and set up flagship stores for children's wear.

In addition to aggressive foreign brands, domestic adult garment enterprises are also eyeing.

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Anta is actively expanding the scale of the brand's children's sporting goods business; the seven wolves join hands with Mamie Marka's children's clothing to build production bases in Suzhou, Anhui; Semir clothing has increased the investment and strategic position of children's clothing business, and the product line has expanded to the 0 to 3 year old baby market, increasing the retail area of 0 to 3 years old baby clothing.

Lining entered the children's clothing market with a brand-new management team and brand logo, and released the development plan of Lining's children's clothing in the next 5 to 10 years.

Although the children's wear industry is growing more gratifying, enterprises generally reflect "the cold winter is coming".

Liu Zhao, chairman of tinkling cat products limited, said that although the garment industry had more than 35% gross profit, the company still had little profit and the money became more and more difficult to make.

Causes of internal and external troubles

Market economy downturn, consumption trend change, e-commerce impact and foreign brand extrusion are the reasons why many children's clothing enterprises generally believe that business is difficult.

Xu Bo, general manager of the Barbara Business Unit, said the real economy was in the doldrums, and GDP grew by 6.9% in the first three quarters of 2015.

Enterprise management is facing the pressure of economic growth and labor cost rising.

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Zhao Jianhe, chairman of Green group, said that the current market is very difficult, and the cost and pressure of acquiring customers are growing.

"Statistics show that there are more than 30 thousand guests in Europe and the United States, more than 10 thousand in Africa, and 60 thousand to 70 thousand in other areas. There are 40 thousand customers or 40 thousand stalls at a discount, which is equal to one guest per 4.5 stalls.

Due to internal and external attacks, the purchase rate has been decreasing, and many enterprises will make adequate preparations for ordering, but the effect is not good.

Liu Zhao believes that there are three reasons for the difficulty in making money. First, the capital pfer cycle is long and needs to be circulated from customers, agents, companies and suppliers.

Two, the turnover period of goods is long. Factories, brands, warehouses, stores and stores are too many.

Three, the product development cycle is too long.

It may take a year from design market research, product design planning, design and modification, design selection, sample making, customer order meeting, and final order to the factory.

Pu Xinquan, chairman of today's Tong Wang clothing Limited company, said that after September this year, market pressure was obviously felt.

"The wholesale market has shrunk a lot this year.

I visited a Minnan customer, from the autumn listing to now, the turnover has dropped by about 4000000.

On the one hand, the temperature is relatively warm this year, on the other hand, labor costs, mall costs and so on are rising, operating costs are very high.

In addition, foreign brands have entered China.

The involvement of children's clothing is also making competition in children's wear market more intense.

Breakthrough many initiatives to break through

Mamie Marka, chairman of the board of directors Lin Xiangyang, said that in 2012, Mamie Marka began to think about adjustment and lay stress on the input of product construction and the reorganization of supply chain.

In 2012, Mary Macal joined hands with seven wolves to build a production base in Suzhou, Anhui. In the process of promotion and construction, Gou Jianquan's industrial chain mode.

After the completion of the children's clothing, the corresponding matching is introduced to complete the auxiliary work of the supply chain.

"No matter men's wear or sports brand, Fujian has gone through the mode of ordering + wholesale, using order shop channels to provide necessary subsidies to fight the market.

We are also faced with problems in the process of enterprise expansion, such as brand awareness, investment in channel construction, and input in product construction. These inputs will bring great changes to a brand's accumulated market price.

For Mamie Marka, we are more invested in product construction.

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Green group reorganized the brand this year, reusing the "4 W" to describe the brand positioning of the tick.

First, repositioning the brand.

Continuation of the original brand DNA, continue to click the tick campus, neighborhood style.

From the cultural definition, the product will be positioned as a story telling children's clothing and adhere to the quality of stoma monument.

Second, identify market positioning.

First tier cities are branded and hard to win.

The tick tick takes the 3 line city as the axis, positioning for the three line city's high-end brand, and then extends to the second line, the four line city.

Third, what kind of partners are we looking for? Who will operate? Who will join us before?

Partners, the best I can participate in, have the right age, have a certain degree of economic strength.

Fourth, make sure who is wearing the tick? Who is the product? Who is the core customer and the channel information is there.

The children of middle-class families are our consumers.

Frog prince in the channel, experience, electricity providers and other aspects of enterprise breakout.

Deng Qingyun, chief design director of frog prince, said that in recent years, frog prince has been gradually flat on the channel to reduce intermediate links.

Before making a comprehensive agency system, it now adjusts to the proportion of agents and self run businesses, and now there are more than half the momentum of self run.

The role of agents is losing, becoming the moth of intermediate links.

Most agents change from their original role to resistance, and the phenomenon of interception is common.

Shopping malls are more difficult than before, and their costs are rising and profitability decreasing.

Secondly, gradually test the water store mode to enhance the sense of experience.

In the past two years, in the market with relatively good market, gradually opened 200 - 500 - big shop. Through operation, we found that the store has a very good effect on increasing consumer experience and brand appeal.

The three is to open the platform and make our own network platform.

The choice of suppliers depends on whether the two sides have long-term cooperative values, otherwise the suppliers will bear their burden and bear hardships.

The adjustment of piglets is more concerned about cash flow and growth momentum.

First, pay attention to the cash flow of enterprises, and ensure that enterprises maintain a healthy state.

The two is to carry out regional contract, cultivate small boss, and stimulate the power of performance growth.

Now, the proportion of self employment of piglets has increased, the proportion of franchise has declined, the business of electronic commerce is rising, and the flow of funds has improved a lot.

Originally, there were more than 400 employees, but now there is a slight increase in performance.