Traditional Retail Industry Is Facing Crisis, Guangdong Clothing Wholesalers Are Pforming Brands.

Reporters during the Spring Festival, in-depth visits to enterprises everywhere, some of them are Guangdong's clothing manufacturing industry, some are mobile phone industry chain small boss, and some are Shaanxi coal bosses......

Some of them have chosen to support it, but most of them have chosen pformation, and what will happen after pformation, they do not know in their hearts that all efforts can only wait for the test of time.

"No tradition."

The last emperor. "

This is a "Convening order" that Yang Xiangping sent to his partners. It has been submerged in Guangdong clothing industry for nearly 20 years. Yang Xiangping has clearly felt that the fashion trend of the domestic clothing industry has changed in the past two years, and the business is getting worse and worse.

"Before, we designed our own clothes, looked for distributors, looked at goods, placed orders, and then gave them to factory production.

In the final analysis, it is an extensive wholesale mode. This road has worked well in the past seller's market, so long as the design is good and the quality is good, there is no need for distributors to order. "

Yang Xiangping said.

But the wholesale mode of Yang Xiangping's familiar clothes seems to be a dead end.

After the profits of the distributors have been deduct, the clothing has lost the price advantage to the end consumers.

In the past two years, the rising trend of electricity supplier and fast fashion brand price competition, the traditional fashion wholesale mode day is more difficult.

Yang Xiangping was puzzled by internal worries and difficulties.

Since last year, he has decided to pform from wholesalers to brand dealers, remove intermediate links and develop direct franchise stores.

The risk of pformation is not small, he hesitated with his wife who co - founded.

He said to his wife, "anyway, we all started from scratch, and now life is not worried.

It is the two time to start a business, to reinvest the previous accumulation and hope to change again.

This year's goal is to live. "

The anxiety of "wolf coming"

Yang Xiangping returned to his hometown during the Spring Festival. As usual, he brought the whole package to his relatives.

Men's wear, but this is probably the last man's dress he sent to his relatives.

Yang Xiangping, who founded and ran the clothing business for 7 years, made a decision last year to stop the men's wear line and make every effort to make the children's clothing brand.

More important than the decision to spin off men's clothing products is that Yang Xiangping wants to open more solid children's clothing stores, and then rely on the influence of the physical store to sow the seeds of the brand in the consumer's mind by the children's clothing company he founded with his wife.

And the way to go to a physical store makes his wife puzzled.

The wife once came out of the sales director position of a large entity clothing store. She knew well that it was not easy to make a store.

Housing, water and electricity and manpower cost a lot of money.

The cost is high. The stock is more pressure. Is there a few examples of physical stores being crushed by inventory? And clothing stores are much slower to build brands.

"Indeed, how much faster it is to be wholesalers than to be an entity."

Yang Xiangping talked about the familiar wholesaler mode, and he took a group of designers in charge of product development, and his wife was responsible for market development.

After designing the clothes for a season, make sample clothes first, organize the dealers from all over the place to come to a dealer conference, and the dealers choose the products. After Yang Xiangping's company receives the deposit from the dealer, they pay the factory for mass production, and finally give the product to the dealer and collect the final payment.

"How fast is this mode? Light assets, do not buy shops, men's clothing department can only handle more than 10 people, and do not have to worry about inventory."

Such comfortable days were not yet several years before Yang Xiangping realized that the wolf was coming.

First came the impact from online stores, and the clothing store with price advantage completely changed the consumption habits of Chinese people and shook the foundation of solid clothing stores.

As the upstream supplier of the solid clothing store, Yang Xiangping's company also felt the chill coming from the same ecological chain.

The second tier impact is a large number of domestic wholesalers in the past who mainly attacked exports. When the demand for foreign goods slowed down, more and more ships were pferred to the market, aiming at the domestic market and becoming a strong contender for cake sharing.

In Yang Xiangping's view, the most ferocious "wolf" is neither an electricity supplier nor an export to domestic sales company. It is an international fast fashion brand springing up all over the country, such as Zara, H&M and UNIQLO.

These brands are located in the best quality area, open spacious stores, styles keep up with the trend, the price is not expensive, the quality is not bad, and the price performance is won by the urban population.

Compared with them, the traditional wholesaler mode of Yang Xiangping company seems to be stretched.

"At the crossroads, where to go, anxiety is very great."

The last emperor should not be allowed.

From behind the scenes "tailor" to the stage, becoming a brand familiar to consumers seems to be the only way for traditional wholesalers to add additional value.

But how to make a brand? From the perspective of existing peer practice, there are several ways before Yang Xiang's plane.

Or go to pure lines, open online stores, and build brands in the Internet world.

However, this method seems to be the most cost effective, but in fact it is not.

If you open a shop online, you must first charge more than one hundred thousand yuan admission fee.

Moreover, if a new brand wants to be concerned by customers, it will only be effective to participate in the competitive bidding of the e-commerce platform, so that it will pay the advertising fee and spend tens of thousands of dollars per day before it can appear in the first few buyers.

If the business wants to maintain the competitive advantage of the price, it should cut the profit thinner, or cut corners and reduce the quality to keep the price low.

Yang Xiangping thinks that the electricity supplier seems to be intermediate, but in fact it is the biggest middleman.

For a while, the phrase "entity shops will disappear" is rampant.

Yang Xiangping didn't think so. He thought that the biggest advantage of buying clothes on the Internet is low price.

But if the price of a physical store and a shop is pulled up, a physical shop has a fitting room and can go shopping and entertainment. Do you still want to buy it online? But you can invest in all the offline outlets. You can honestly say that the cost is too high to afford.

The two way is no good. What should we do? Yang Xiangping said, if we stick to the wholesaler mode again, it will be doomed to be "the last emperor".

Last spring, the idea of a "straight battalion" was born in Yang Xiangping's mind: the development of a company's store agent into a brand franchisee. Simply speaking, it is the company's shipment, the decoration fee, the franchisee's place and manpower, and the profit is 64 points.

Franchisees do not stock up, and inventory pressure is at headquarters.

"We can finally feel the needs of terminal customers directly."

Yang Xiangping thinks this is the biggest advantage of the new model.

In the final analysis, the wholesale mode was a game of inventory pfer. The multilevel distributors were pferring from top to bottom. The upstream suppliers actually did not know the consumption of the specific products, and they could not master the terminal pricing.

Yang Xiangping thinks class

To the maximum degree of intermediation, the price has the advantage of competition with the electricity supplier and fast fashion, plus excellent quality and design, sales volume is guaranteed, thus returning to the business logic of small profits but quick turnover and cost-effective.

However, the new mode is extremely challenging the headquarters's ability to grasp the market and products, and the increase in fixed expenses and the sharp increase in sales pressure.