The Garment Industry Is Besieged By The Besieged City, And The Outlook For Retail Trade In 2016 Is Still Not Optimistic.

At the beginning of the emergence of electricity providers, people believe that there will be offline experience, online shopping trend.

But in the latest statistics of Chinese consumers' online shopping habits, 20% of consumers are browsing online and buying offline.

Because it involves customer related parts of product experience and so on.

The rise of Ali makes Amoy.

To achieve extraordinary success, this greatly stimulated the traditional clothing companies to smash heavy money to the electricity supplier, and Metersbonwe raised 1 billion 200 million yuan to invest in O2O.

However, when the traditional clothing brands were on the line, Amoy brand, however, worked hard online, claiming to open 10 thousand direct store entities.

On the other hand, it is to break through the line, and to attack on the line.

What is going on in the clothing industry? Where will the garment industry follow in the siege race?

O2O market merger tide will come like a sea.

In China, O2O is the most popular field of entrepreneurship. Its core idea is to attract users to physical stores by mobile phone applications.

But after a period of virtual fire, the situation dropped sharply.

With the popularity of smart phones, the rapid growth of mobile payments and

Low labor force, O2O has a strong development period in China, and entrepreneurs have developed various O2O applications.

According to CBInsights, a market research firm, under the big Internet situation, many Unicorn companies (valued at more than $1 billion Private Held Company) appeared in China. However, these companies basically did not make profits, and this terrible bubble appeared in O2O.

In order to open up the market, many companies keep burning money, and then turn the unicorn into a unicorn corpse.

Gary Rachel, founder and managing director of Qiming venture, said: "the number of" unicorpses "will soon exceed that of GaryRieschel unicorn.

In the fiercely competitive Chinese market, the fast, Uber, new big, glutinous rice and hungry have been fighting in various fields. Lin Xinhe, co-founder and general partner of DCMVentures, said: "this is an arms race."

O2O market is irrational, the market subsidies are too big, the cost of getting new users will be bigger and bigger, and the possibility of profit will be smaller and smaller. Without profit, financing will become an empty talk.

Qiming venture Rachel: "when financing becomes more and more difficult, you will find who is swimming naked, who lacks the real business mode."

Amoy brand profit margins decline year by year

In fact, not only is O2O's life hard, but the shortcomings of the Amoy brand are exposed.

In the overall downturn of the apparel retailing industry, the price performance ratio has become an important criterion for consumers to choose clothing products.

Revenue is increasing, but profit margins are decreasing year by year.

Founded in 2008

The brand of Korea's clothes house grew very fast. The annual sales volume was 3 million yuan, and the team was 40. By 2014, the two figures had increased to 1 billion 500 million yuan and 2600 people respectively.

According to the figures revealed by Jia Peng, deputy general manager of Korea's clothing house at the 2015 Business Review Conference, the average daily visits of the shops are 5 million, and the "double eleven" has reached 130 million visitors per day, with sales reaching 284 million yuan.

Yin man, who belongs to the first camp of Amoy brand, has many brands and categories.

Also started in 2008, Yin man started a multi brand operation in 2013. Its parent company, sinomi group, currently operates 9 sub brands, such as Yin man and Chu language.

This year's "double eleven", Yin man's total sales volume reached 166 million yuan, the first on-line home brand "Yin man Home" the biggest pen order amount exceeds 310 thousand yuan.

However, there will be a substantial increase in the cost of marketing promotion as a result of multi brand operation.

According to the financial data, Hui Mei Group achieved operating income of 216 million yuan, 590 million yuan and 956 million yuan respectively from 2012 to 2014, and the net profit was 20 million 17 thousand yuan, 34 million 125 thousand and 300 yuan and 38 million 907 thousand and 700 yuan respectively, while net profit increased while net profit rate was declining.

In this regard, Chen Yu told reporters that since 2013, the United States has carried out multi brand operation, the loss of the new brand in the early operation and the marketing promotion for the mature brand has had an impact on net profit.

In February 2015, La Natsu Bell held a total stake of 200 million yuan, and Hangzhou shares a 54.05% stake in Agel Ecommerce Ltd (mainly online brand "seven grid"), strengthening the channel operation ability of e-commerce.

At present, La Natsu Bell is also a multi brand operation strategy.

However, whether its fast fashion brands can stand out in the shadow of foreign brands such as Zara, Hamp, M and so on become a new profit growth point of the company.

How to get rid of the chaos of retail trade and O2O?

Amoy brands expand to the bottom line, while the traditional apparel brands are also throwing money on the development line.

In 2013, Metersbonwe launched the O2O experience store, and integrated the electronic business platform "state purchase network" to get through online and offline.

In the first half of this year, Metersbonwe's main business revenue reached 2 billion 777 million yuan, and net profit for the first time turned to -0.95 billion yuan, down 152.98% from the same period last year.

There is an analysis that Metersbonwe's e-commerce, franchisee, direct store three channels of style, price and even discount activities are difficult to coordinate, making the Metersbonwe stock burden more heavy.

In an interview with reporters, Zhu Qinghua, a researcher at CIC light industry in an interview with reporters, said that many brand strategy errors and advertising marketing investment were too large, but did not bring high output. Instead, it increased the burden on enterprises. The entity and the electricity supplier shared the same development, direct business and franchises, and eventually formed a channel confusion.

Ma Gang, an independent critic of shoe and garment industry, told reporters that Yin man joined the system to make use of other people's resources. The risk is relatively small, but he still needs to invest a lot of resources in the relevant operation guidance and meticulous management of the store.

Unlike the Yin man, Han Du Yi house does not want to expand the volume below the line. "We have also studied many cases of O2O, but have not found any particularly successful results.

We think the online market is big enough. "

Jia Peng told reporters.

Zhang Dong, founder of the world, believes that the strong Internet, the arrival of the new media era, the rise of the electricity supplier, and the integration of the three, form a new mode to integrate the advantageous resources and change the current price war of burning money, using low-cost advantages resources, quality and quality products and thoughtful services. In the future, the retail industry and O2O mode will not die without burial place.

It seems chaotic, but it can be scrambled to survive, scramble for profits, think that burning money, and price war will only lead to more rampant substandard products, fake goods and vulgar services, and the unemployment rate will continue to rise. Eventually, it will lead to the inability of consumption, the greater the risk of investment and the confusion of the market, resulting in more series of unwanted consequences. This may be a rainbow, and finally turn into a bloody miserable face and the economic crisis.