Inventory Affects The Ecology Of The Entire Garment Industry.

The central economic work conference was held in Beijing in from December 18th to 21st. The reporter noted that the central economic work conference pointed out that in 2016, China's economic and social development, especially the task of structural reform, is very arduous. Strategically, we must adhere to the strategy of steady progress and grasp the rhythm and strength. We must grasp the key points in tactics, and mainly focus on five major tasks: capacity production, inventory elimination, deleveraging, cost reduction and compensation.

Reporter observation found that combined

In terms of industry, it is particularly important to go to capacity, inventory and cost reduction.

Industry marketing expert Min Guangya said in an interview with reporters today that for the clothing industry, the most important thing is to go inventory, reduce costs and make up short boards.

Min Guangya pointed out to reporters that the impact of inventory is not only on the enterprise itself, but also on the ecology of the entire garment industry. The analysis is mainly reflected in four points:

First, if we want to deal with inventory on a large scale, we will certainly be right.

Causing impact and changing market rules;

Two, the clothing enterprises with serious inventory will also change in their resource allocation, manpower and material resources allocation, which will result in the failure of enterprises to achieve optimal allocation of resources in normal development, and the utilization rate of resources will not be further improved.

Three, it will inevitably lead to a large number of resources invested by the whole industry in dealing with inventory, and thus a third party professional clearance inventory is derived. That is to say, if the apparel industry does not have so much inventory, a lot of resources will be used more appropriately, and will also play a positive role in promoting the development of the industry.

Four, with the increase of inventory, it will inevitably bring about the rise of costs, because a lot of manpower and material resources have been invested in inventory cleaning, which has increased the normal operating cost of enterprises.

To sum up, Min Guangya believes that the "high cost" problem derived from "high inventory" is even more pressing for the clothing industry.

When it comes to how to reduce the cost of clothing enterprises, Min Guangya also stressed to reporters that this is mainly embodied in human resources, channels and promotion costs.

However, Min Guangya pointed out to reporters that at present, the biggest cost of the clothing industry is first reflected in the cost of the channel, especially the excessively high store rents.

Based on this, clothing enterprises should strictly and accurately assess the input output ratio of each store, assess their past profit contribution and future expectations, and close shops that do not earn money or generate potential profits, and also save a lot of costs.

Min Guangya also said that the industry must note that reducing the promotion cost will also become a realistic problem that the whole industry needs to face and solve reasonably in 2016 and even in the future. Such as the recruitment and service of VIP customers, the promotion of brand channels and so on.

Therefore, it is particularly important for the garment industry to adjust the promotion strategy, put more precision into operation and maximize the benefit.

Min Guangya also pointed out that it is more open to cut expenditure. With the increasingly severe economic situation in China, the garment industry is still in a dismal business situation caused by unfavorable demand.

Under such circumstances, domestic garment enterprises should keep a clear head, speed up their management and operation capabilities, and make up for their deficiencies in marketing and operation. Only in this way can they be eliminated from the market too early in the economic downturn.