Analysis Of The Ten Major Trends Of China'S Garment Industry In 2016

In the past 2015, many people felt " Clothing industry No way ", the company went bankrupt, the boss ran away, the performance declined, and the public opinion declined. This is the worst and the best of times. After accumulating the experience of meeting challenges, more enterprises have the way to deal with them, and their skills become longer. They can also change passivity into initiative, initiative change, initiative and flexibility, and take the initiative to attack.

In 2016, the problems faced by China's clothing industry are still grim. From the perspective of overall development trend, the development trend of garment retail industry in the following aspects:

First, the traditional ordering system will gradually decline.

If you are following now Retailer Chatting, asking them what is the most perplexing problem, they will say: inventory! Inventory problem has never been like this to retailers. brand Business brings pressure. The crux of this unprecedented and even loss is the traditional order system.

About ten years ago, when China's clothing industry had just moved from bulk mode to exclusive store mode, some companies began to try ordering system. At that time, the retail level was not high, and the retailers were afraid to go to the store. So the head office began to think about the ordering system, and ordered the retailers to place orders. Because of the relatively good business at that time, the ordering system had more positive effects on the clothing retailing at that time.

Subsequently, Brand Company began to follow suit, and put the focus of the year's marketing on the order meeting. Some marketing directors feel that from the bottom of their hearts, the sales will be good in a year. As a result, the hotel specifications for ordering will become more and more high. The specifications for eating and drinking are getting higher and higher. It is not for teachers to teach retailers how to sell goods, but to think about how to make retailers order more goods. Such an order creates a great departure from the concept of how to sell goods to agents and retailers.

This kind of thinking continues, let Brand Company begin to study affiliate policy, for example, the 100% return rate and incentive policy that had happened before. Including the accounting return rate, basically is "even if the customer returns the rate of all use, the company can also make money" mode of thinking.

The second uncontrollable factor of ordering system is the weather forecast. Many years ago, many companies were making a very typical example of the crazy down jacket. Shocking is massive. Women's wear The company used heavy money to develop one independently. Down Jackets Brand, why? It's still the mentality of gamblers and quick money making. The order will normally take 6-9 months in advance. How do you know whether the next winter is cold winter or warm winter? How long is it? How often is it cold? Those seemingly scientific ways of ordering goods in the light of past data are all self deception. How can yesterday's data decide tomorrow?

In fact, the order itself is not the reason for the increase in inventory. The psychology of quick money collection and the psychology of risk shifting are the root of the problem. The same order quantity, when the performance falls by 10% (if the stock in the past is 10%), the total inventory will reach 20%, and the decline in performance will reduce gross profit in itself, which will make the retail store turn from the original surplus to a barely guaranteed or even a loss. Today, the market will make the single store's performance decline by 10%. Therefore, if the Brand Company still operates on the traditional order form and ideology, it will not quickly innovate and do not think about the solution from the retailer's point of view, so that the brand will soon decline.

Two, the parity group store mode will shine brilliantly.

If there is still a large category of single store performance in 2014-2015 years, the non parity group store brand is no longer acceptable. Please note that it is not a parity brand, but a parity group store brand.

The first advantage of the parity group store brand is parity. Traditional brands, because of agents and franchisees, are the industrial chain of "factory Brand Company agent retailers customer". With the rising cost of raw materials and labor, plus Brand Company's greed, many ordinary domestic brand retail prices have reached the price of the world's top luxury brands. With the increasing pressure on Chinese people's lives, people are becoming more rational about clothing consumption, and are more willing to choose products that are cheap and quality.

The second advantage of the parity group store brand is its popularity and fashion. The traditional Brand Company usually has 100-200 sections in one quarter, and for the group stores, the wholesale market and factories in the whole country are large warehouses, which can have thousands of payments in one quarter. Group stores are very flexible in products and can make explosive payments. If they can not be made up, they can make new models. They will not be out of stock at all. If they are relatively professional, there is basically no pressure on them. And because many styles, no matter what location, will be more fashionable than traditional brands.

The third advantage of the parity group store brand is that the inventory pressure is small. As compared with the traditional brand's order forecasting mode, the group store is based on sales quota. Sell more, enter more, sell less and enter less. Due to the high frequency of stock purchase, there is no cargo in the warehouse, and there is no pressure on them. The return rate of traditional brands is only a game between Brand Company and retailers who take more inventory, rather than solving inventory problems from operation.

In the past, the store did not pay attention to image, service and management. Today, these stores even exceed the traditional brand retailers in terms of image, service and management, plus the advantages of product, positioning, price and inventory control. The brand of national and regional parity group stores will shine in 2016. The traditional Brand Company should also consider whether there are factors that can be grafted into the traditional brand mode, and give full play to their strengths and get out of their own way.

Three, mobile Internet + is the way of success.

Never blame and abuse your competitors, including the electricity supplier and the shops next to you. If the electricity supplier affects you, you should embrace the electricity supplier; if the next door affects you, you should learn from the next door.

PC terminal (computer terminal) will also face greater challenges in 2016, because where people are, business is everywhere. People's lives have shifted from computers and televisions to mobile phones, which seems to be more beneficial to retailers who have Internet thinking.

Internet thinking is not to let you do electric business, but to use the Internet to serve the physical store, to be precise, it is to use mobile Internet to serve the physical store, that is, mobile Internet +!

There is no doubt that WeChat is the first internet tool for entity store marketing. Most people have to turn on WeChat before they dress in the morning and brush their friends first before they go to bed.

A Brand Company with a team can consider being a public platform for a brand. If you think you are not professional enough, you should study the application of WeChat's personal signal (micro signal) in the store. In short, register a micro signal, the name is your brand + shop name, then add customers to friends, then classify and remark, through the circle of friends, group hair and other ways to manage customer relations and invite.

Don't scold Ma Yun for taking away the business of physical store. In the era of mobile Internet, we must have the thought of mobile Internet. We should not only do, but also do a good store micro signal, so that this micro signal circle of friends will become your "customer circle".

Four, the shopping mall will be even more dismal.

About 2004, the Hangzhou Tower (a famous department store in Hangzhou) began, and the department stores in China entered the business process of "every festival will be full." Today, as long as it is weekend, there are almost full or other reduction activities. This kind of sales promotion has attracted popularity and sales at the beginning, but today, it has become a great pain for suppliers.

Ten years ago, Brand Company and provincial agents believed that stationing in a good shopping mall would give the brand "long face", which is called "image shop", meaning that even if the loss can be accepted, it will be regarded as an advertisement. This mentality makes department stores more aggressive and strong, requiring more than 95% of suppliers to participate in shopping activities unconditionally.

Why do shopping malls do frequent activities? On the surface, they are aimed at improving performance and competition. In fact, the core reason is that there is no interest community between shopping malls and suppliers. Only by increasing the average sales discount can we ensure gross margin. When sales discount is too low, the higher the performance, the higher the profit. One pursuit of performance, one to catch sales discount, two totally different directions. When the market is strong, it will be a loss for the supplier. Some suppliers have come to the senses early, and have gradually withdrawn from the shopping malls (or must have the right to participate in the activities). Other suppliers have taken the way of raising prices and using seasonal inventory, which has greatly affected the overall image and popularity of the shopping malls. Some people are still "obstinate" and continue to warm their frogs in warm water.

Another point is that the old shopping malls are very aging in parking facilities, supporting services and other facilities, shopping environment is far less than the newly opened shopping mall, but also cause the decline of popularity and performance.

If the market itself does not reform, there will be a large number of shopping malls closed in the next two or three years; if suppliers do not take the initiative to respond, business pressure will be bigger and bigger.

Five, the transfer fee no longer, landlord no longer hard spoken.

If 15 years ago, you paid the money you put into the shop to pay the down payment on the pedestrian street, you can get a good deal of rent today. If you ask where the biggest housing bubble in China is today, it will be the rent of the clothing store.

At the very beginning, the tenants in front were just trying to get some decoration subsidies (such as air conditioners), and later found that the original good location could be very high, resulting in the "transfer fee". Some people even started the business -- first try to rent the facade from the landlord, then transfer the transfer fee to the real operator. From then on, if you want to take the street shop, you basically need to pay the transfer fee, and the transfer fee becomes an illegal folk agreement.

Because of the good business done in the past few years, some Brand Company have been bullish and dug up their faces at a high price. The landlord next door found that the original business was so successful that it naturally followed the rent increase. There was also a strange role called "two landlord" or even three East Fourth landlord. All these behaviors make the rent high. Of course, the commercial real estate developed from the whole industry chain was priced according to the rent at that time, and the rents of clothing shops were so frothy. You know, when the rent rises by 100 thousand, it takes about 400 thousand more sales to make up. How can business be done so well?

People will pay for bubbles. The retailer takes up the rent in the next year. The last batch of retailers who pay the transfer fee will pay for the high transfer fee, and the landlord will also pay for the rising rent. Today, in most areas, even the best location will no longer require transfer fees or only a very low transfer fee. At the same time, it is also necessary to remind you that the shops that transfer fees now must be cautious and cautious. And those landlords, stop being so fat, lay down their bodies and give their shops a reasonable offer! {page_break}

Six, shopping mall will usher in a new round of business peak.

In 2015, China opened more than 500 large shopping mall. And in 2016, shopping mall will still usher in a new round of peak business. Is this good or bad for the existing physical stores and retailers? I believe we all have a judgement.

Shopping mall can enlarge the value of real estate. The original location is only a first floor, and the rare location within 10 meters of the extension street is valuable, but shopping mall has changed this phenomenon. In a non central location, building a commercial real estate can rent or sell high prices in the five floor. The value of commercial real estate is several times higher than that of residential, factory buildings and office buildings. Besides the value of leasing, shopping mall has the value of real estate appreciation. Therefore, some planning enterprises will naturally aim at this format. As for whether the commercial real estate overcapacity caused the diversion and performance of the original entity shops? Anyway, they are not open clothing stores.

In the past, some large agents and retailers have accumulated a certain amount of money and connections through the operation of more than ten decades. At the same time, they find that the rental of shops is rising. So they are thinking about setting up shopping mall or shopping mall in the form of chamber of Commerce.

Over the past few years, the biggest culprit of physical store performance is not the electricity supplier, but the dispersion of people caused by the substantial increase in physical channels. Nowadays, many kinds of formats such as button shopping malls, large supermarkets, community stores and shopping mall are all expanding blindly. In the short term, these commercial real estate developers should be biased if they make the right decisions, and the risks of buying these real estate are enormous. For the existing entity store operators, the flow of people is increased. In 2016, the return on investment of the physical stores may be stable.

After several years of market baptism, the upper reaches of retailers such as clothing Brand Company, landlords, shopping mall developers and department stores can only survive better if they know how to "altruism". And in the future, retailers may continue to suffer a lot of pressure for a long time. After that period, the remaining retailers will have their own spring.

Seven, the regional market is small and beautiful, which is the outlet for retailers.

Before talking about a lot of trends in the retail market, then, where is the retailer? I think we need to deal with business pressure through structural thinking.

Compared with the past few years, the rate of return on investment in a single shop has been unable to change. As a retailer, there is no need to invest more in return than in the past few years, but rather to scale up the overall profit. Seek profits instead of profit margins, and pursue single store net profit instead of single shop return on investment.

What is small and beautiful? First of all, whether you are a franchise or a group store, you need to reduce the number of brands, so as to reduce the upstream operation cost, the overall inventory cost and the management cost; second, the region concentrates as much as possible. Can a street open many stores with brands? These seem to be the only way that sports and leisure brands have tried, and few seem to have tried in other categories. For a second tier city, because of the large number of people living, there is enough traffic to satisfy one street and many shops. For the three or four tier cities, there will be a number of shops with "strength" and "brand". And the most important thinking is: if you don't rob your business, competitive brands will steal your business. And the fact proves that those brands that have many shops in small cities are among the most competitive brands.

Of course, the "concentration" is relative. It spreads from one city to the periphery. The "small" is also relative. Different people have different understanding of "small". 3 stores are small, and 300 stores can be small. Shrinking brand and shrinking area are effective business strategies.

Eight, the initiative will shift to retailers.

In recent years, the pressure of China's clothing retailing comes mainly from two reasons: oversupply of channels and overcapacity. In fact, China does not need so many street shops, mall and Shang Chao, nor does it need so many brands and products. The initial victims of overcapacity and overcapacity are retailers, and the last beneficiaries are retailers.

The reason for the oversupply of retailers in the first place is the diversion of consumption and the increasing number of consumers. In the past, brand headquarters had always been strong, and once retailers joined a brand, they became weak, because most Brand Company made products aimed at selling goods to retailers.

Due to pressure in recent years, some of the retailers have been eliminated, and the remaining level is generally higher than in the past. With the rise of these two years' store models, let retailers know that in fact, they do not necessarily have to go to Brand Company to pick goods, and the whole country is their big warehouse. If Brand Company does not study consumer and research terminal market, it will be eliminated after blindly studying the franchise policy.

The market is fair, the demand exceeds supply, the supplier takes the initiative, the supply exceeds the demand, and the party takes the initiative. In the long run, retailers will take the initiative from the perspective of channel and commodity purchase. On the one hand, channel providers and Brand Company have to rethink their cooperation schemes with retailers, and study the terminals in depth. On the other hand, the spring of excellent retailers is coming.

Nine, factory shop is worth exploring.

Where is the most suitable for the par store? You may answer: the busy commercial pedestrian street, the supermarket, the University City... Because the customer groups you are locating are concentrated in these places. Today, you need to think about a new channel -- factory store.

Every big city has some very concentrated industrial parks, which contain a large number of workers, such as the clothing industrial park, each floor of 1000 square meters of floors, there may be hundreds of production workers. These production oriented industrial parks tend to be very concentrated. In the past, people in these industrial parks, besides the necessities of daily life, were very frugal in clothing, dining and leisure. Today, with the 90s becoming the main force of this kind of workers, their consumption in clothing has been greatly improved.

These industrial parks may not have a centralized clothing street. Maybe there will be more snacks, and even some dirty and messy, and the rent is also very cheap, often from the original site selection standards, you simply can not see. However, some parity group goods brands have actually found this "gold mine". The generation after 90 is already willing to spend money, and because of their work characteristics, they are relatively low in the commercial street.

What should we pay attention to when making factory shops? First, it is super value and price performance. Your price will be astonished outside the door, and it will still be like this. Two, the style is relatively basic, not suitable for the past fashion, sexy and other styles; three, we can consider the sale shop. You will generate inventory. What is the best way to digest? If the style matches, maybe the factory store is very suitable, because the flow of people is concentrated, and the rent is cheap and the competition is small.

Find out the most concentrated industrial park in your area. Take a look. Maybe in a few months, you will be grateful to me.

Ten, labor costs may become the first cost of shops.

What is the most difficult thing to do in the future? The answer is "people!" soon, there will be two characteristics of the retail shop: 1) the cost of labor will exceed the rent as the first cost; 2) the total salary of the shop staff will exceed the boss's total profit.

We have been studying the incentive mechanism of employees, and are also studying how to keep people. It seems that the seemingly scientific incentive mechanism in the past few years has turned today's employees into individuals who work for money and do not work without money. For example, the first time you found that you didn't move for half a month, you gave the employee a reward of 20 pieces, and the result was very good; the second time to do this incentive, the effect was general; the third time... The staff will tell you: "boss, this is a dead sum, not a problem of money." You have also found many ways to keep people, but employee turnover is an eternal problem that you have never solved.

In three years, 00 will enter your shop. Compared with the past 60, 70, 80 and today's post-90s, 00 will be even more difficult to manage. Why? Because their fathers are different. They generally have better family conditions. Even BMW will come to apply for a shopping guide, or your employees will be richer than you. What motivate you to make a single child who is richer than you?

In fact, all incentive mechanisms and retention mechanisms we have studied in the past are unscientific, because people will not continue to be positive for others, nor will they continue to be loyal to others. Therefore, we should accept the above two employment trends and consider the partnership in the heart of the platform so that everyone can work for themselves.

Employees have to think about what chips they want to partner with the company. The boss should think about building platform thinking, from hiring to cooperation, building, sharing and sharing. Such management thinking has the future.