Challenges And Opportunities Of China'S Fashion And Retail Industries

In October 2016,

The third quarter 2016 report released: the report shows that the company's revenue as of the reporting period reached 4 billion 700 million, an increase of 8.83% over the same period last year, although it still has a small amount of losses, but it has been reduced by 12.73% over the same period last year, and net profit is expected to turn quickly into profitability.

This is a much watched China.

The leading companies, in the face of the declining performance in the past three years and the fact that the whole Chinese retail industry is still in the doldrums, have released a clear positive signal through the three quarterly report.

Does this mean that the company under the spotlight has entered a new track of healthy development? It reflects the current operation and pformation and upgrading of China's fashion retailers.

Is the pformation and upgrading of entity enterprises driven by external factors or the only way for China's industrial development?

A popular view in the industry is foreign capital.

The entry and competition of retailers makes the national brand and retailers weaker and weaker.

But if we look back at foreign brands such as cars, daily consumer goods and volume shopping and enter the earlier retail industry, it is easy to see that many local brands have been coming back to the market and playing a leading role in some market segments.

In fact, competition always stimulates potential participants to become more powerful and become the external driving force for the growth of an industry.

Mei bang and other national brands experienced a brief warm boiled frog lifestyle in the early market dividend era. After Zara, H&M and other foreign leading enterprises entered the Chinese market, what they brought to the local enterprises was not the short-term short-term performance setbacks, but also the awakening and maturity of market awareness, the accelerated construction and improvement of the internal core competitiveness, and the rapid follow up and innovation pcendence of the products.

Electricity providers are also widely regarded as an important factor affecting the real economy.

The apparel industry in which the United States is located is regarded as the most serious industry.

In my view, the so-called "Internet impact" is nothing but the Internet economy as a "new business model, retail mode" at the beginning of the birth of the loud cry.

The electricity supplier has awakened traditional retail, but has never and will not really replace the real industry.

E-commerce is an online retailer, which can not replace brands, producers and offline retailers.

As a new "retail and customer service" contact, the mature Internet is being deeply integrated with brands, offline retailers and manufacturers to form a new business form, create a new shopping experience for consumers, and drive consumption upgrading and industrial upgrading together with entities.

Take the United States for example, the Internet is becoming an internal necessary tool or external partner for its pformation and upgrading, helping us to accelerate the formation of new business form, product experience and sales mode.

Mei Bang has repeatedly voicing internal and external voices that the difficulties of the company and the whole industry today are mainly due to the fact that they have not matured in the past, and have not built up a competitive product system, operation mode, and standard and efficient management system.

This example shows that after the end of the extensive horse racing enclosure, local enterprises are driven by external factors such as foreign investment and electricity providers, and strive to lead enterprises into a new stage of development through the restructuring of core competitiveness and market leadership.

What is the pformation and upgrading direction of the real industry?

Looking at the pformation of traditional industries in recent years, there are many "switch careers", but there are not many successful ones.

Physical enterprises, including the clothing industry, seek to develop new growth points of enterprises through diversified investment paths, and avoid the risk of sustainable development brought about by their own lack of competitiveness in the original industry.

In the clothing industry, there are many enterprises that are fully electronic commerce or invest in real estate.

But "pformation" is not a "change". Although diversified investment may help individual enterprises to enhance their stability of revenue, only "pformation and upgrading" can promote industrial progress and market development in essence.

Smith Barney is one of the pioneers of China's apparel industry who first started virtual operation and franchising.

In today's industry predicament, the pformation of American state has highlighted its sense of nationalism and sense of responsibility, trying to rebuild core competitiveness and external market competitiveness with artisan spirit and innovation spirit, and drive and lead China's consumption upgrading and economic restructuring.

This seems to be a relatively difficult road to upgrade and pform, but it is the way out and the right way for China's real industry.

When it was launched in 2008, the United States had proposed to catch up with the global fast fashion leader Zara.

But today, the United States did not attempt to copy and copy Zara simply.

On the surface, it did not realize Zara's product development cycle, new frequency, and all direct retail mode today, but this company is moving towards a new development mode of the single style brand experience through the multi style fission of Smith Barney brand.

In the stylish brand portfolio of NEWear, HYSTYL, Novachic and so on, each style corresponds to different consumer attitudes and life scenes, different fashion connotation and update speed, different city level and business format. Therefore, different brand models are developing their differentiated operation modes in product development mode, development cycle, new frequency and channel choice.

This once styled multi fashions casual wear retail enterprise is pursuing its dream of returning to China's fashion leading brand in the way of "consumer focus" and "business mode innovation".

What are the key elements and the only way for the pformation and upgrading of the fashion retail industry?

Many fashionable retailing enterprises are faced with internal and external troubles and their performance is sluggish. They often rush into the hospital and blindly seek change and innovation.

In the past few years, Metersbonwe has also struggled to find the root cause of the problem and the cure for it.

After actively trying Internet innovation and market innovation, the company gradually realized that in fact, "forget your mind and return to your major" is the most fundamental success factor for enterprises to get out of the predicament.

Fear of the market, awe of consumers, and the spirit of "artisan spirit" focus on grinding brand power and product strength are the key to the revitalized enterprises.

The spirit of craftsmen is to concentrate on cultivating new core competitiveness.

Apple, IBM, UNIQLO, Muji have entered the dormant and pformation period after the glory, thus ushered in the enterprise's brilliant again.

These cases show that enterprises should be modest when they enter the pition period, so that they can accumulate well after the completion of pformation.

When practicing meditation, there is no rush to storm the market.

No "Qianlong do not use", "where is the dragon flying?"

Generally speaking, local enterprises tend to be more popular, especially for the market environment outside the first tier cities.

This could be the advantage of developing the market.

But in the United States, the core management of enterprises has realized that compared with foreign enterprises, there are several key short boards: lack of consumers' thinking, lack of market positioning, lack of attention and ability in product development, lack of experience in brand building and management, lack of systematization in modern enterprises - standardization, lean management, etc.

Therefore, the United States is trying to win the market through "more focused" and "more professional".

Taking the precise focus of consumers as an example, the stock business, the United States through big data analysis of the marketability of the listed products, to guide the next quarter's product structure optimization; through the Internet pre-sale to optimize the efficiency of product development, improve the marketability of new products; through continuous and in-depth consumer portrait research, to understand the consumer's attitude towards life, lifestyle, style preferences, life scenes, combined with fashion trends and social trends, to provide accurate input for product development.

Compared with the "good luck" of the craftsman spirit, the pformation of enterprises should also strive to "seek new".

On the one hand, enterprises need to "seek new" to speed up metabolism and form the right layout.

For example, under the new channel pformation strategy, Metersbonwe has developed more than 800 new stores in the first three quarters of 2016. It is estimated that 1000 new stores will be opened throughout the year, thus effectively replacing the large number of low profit shops that have been formed in the past due to extensive site selection or pfer of business circles.

On the other hand, the important way for enterprises to "innovate" is fast and low cost trial and error.

The enterprises that can create the future must have the courage, attitude, practice and perseverance of "trial and error", and quickly optimize and grow through the experience learned from trial and error, so as to find out more effective models and products.

Metersbonwe has made bold attempt to innovate the Internet through Bong and fan. It not only effectively clarifies the correct pformation mode and direction of the "Internet +" entity, but also finds a profitable product operation and innovation orientation through rapid iteration and experience optimization.

There is no golden key and quick rule in pformation and innovation. The rapid adjustment and Optimization in trial and error will be the only way for traditional enterprises to borrow "Internet thinking" effectively.

Globalization, Internet innovation, economic pformation and consumption upgrading will continue to bring challenges and opportunities to the real industries such as fashion and retail.

The deep pformation, integration and innovation of intra industry and cross industry are in the ascendant. The pformation and upgrading of the fashion retailing industry is just beginning and has a long way to go.

After experiencing hardships and dormancy in the past three years, Metersbonwe has begun to reverse its declining trend in 2016 because of its focus on the core industry: increasing revenue and narrowing its losses; the first decline in its performance; the rapid increase in the number of new style shops under the channel metabolism; the brand image of stylistic brand is bright and ready to go; the brand ME&CITY has been effectively upgraded; the ME&CITY and MooMoo, Me&City Kids children's clothing business has increased by more than 20% over the same period last year; the Internet business such as the whole network has developed rapidly, and the whole channel member service system has been improving.

As a typical representative of the national fashion brand, although Metersbonwe's pformation is still on the road, its beneficial exploration and practice are bringing inspiration and reference to the fashion retailing industry.

Chinese brands and local businesses in the fashion industry are worth looking forward to.