The Clothing Market Plays A Big Role In Price War, Forcing The Pformation Of Garment Industry.

According to the world clothing and shoe net reporter, during the Spring Festival, most brands gave a variety of preferential activities, of which 50 percent off is the most common.

However, reporters found that consumers want to get 50 percent off or lower discount, often need to buy more than two items to obtain.

High discount frequency

Take Beijing Han Guang Department store as an example, the mall signs the anniversary of its 17 year anniversary, calling out the slogan of "3 New Year celebrations in the big buy".

But the reporters found that 70 percent off of the real products were not many, most brands gave most of the discount in 50 percent off up and down.

Slogans such as ONLY, TEENIEWEENIESLY and other brands are also part 50 percent off. If consumers buy more than two garments, they will enjoy 20 percent off discount and four discount 30 percent off.

In addition, YOUNGOR, nine Mu Wang and other domestic well-known.

A discount of 50 percent off to 30 percent off is also given.

A salesperson told reporters: "after the Spring Festival, spring festival clothes will be exchanged for seasonal changes. By selling holidays and holidays, we can also sell more spare parts."

Faced with various brand clothing during the Spring Festival launched various discount promotions.

According to the analysis of the industry, price is one of the main determinants of consumer purchase, especially for those products with high brand awareness.

Therefore, discount is the most effective and effective way of promoting sales to consumers.

Because of the obvious promotional effect of discount, manufacturers often use this as a means to deal with unexpected situations in the market, so as to fight against the sales promotion activities of their competitors, deal with the expiration products or over season products, and accelerate the withdrawal of funds.

"Holiday sales promotion has a significant impact on the sales of clothing in the mall during the Spring Festival."

Changjiang Securities Lei Yu said in the research report.

The impact of the Internet economy is great.

At present, the use of discount method to stimulate consumers to buy their own products has become one of the common means of brand competition.

Discount promotions can attract the flow of people at the retail terminal, and promoters can also complete the business as soon as possible.

However, some people in the industry say: "high price and high frequency discount promotions will lead to vicious price competition among brands, which is not conducive to maintaining product price image and reasonable profit margins."

In the industry view, although the discount can stimulate consumption, but this discount is not suitable for long-term use.

"The biggest discount on clothing is online shopping, and the low price of Internet sales has greatly reduced the sales price of clothing stores."

A well-known clothing Brand Company responsible person told reporters: "the low clothing prices of online shopping greatly affect the clothing prices of the physical stores, while the major

The price has also been affected, or even led to a decline in performance.

Reporters collate the media statistics found that in the 58 textile and apparel listed companies released 2016 earnings forecasts, 24 companies net profit is expected to decline over the same period.

Among them, the modern Avenue expects net profit in 2016 to drop 2155.38% to 2938.38% compared with the previous year, and the net bird profit in 2016 is down 399.95% to 489.93% compared with the previous year. The Vico essence is expected to decline 222.08% in 2016.

According to the bulletin, the net profit of 2016 is expected to be -3.9 billion yuan to -3 billion yuan, the net profit of 100 million 17 thousand and 100 yuan in the same period last year.

The reason for the company's performance loss is: "the terminal retail market continues to deteriorate, the largest proportion of the main brands, the decline of the order of the franchisee of the main brand, and the loss of the brand at the investment stage; the San Jie Luo and flangdon speed up the contraction and make a big loss; because of the drop in sales and brand shrinkage, the inventory backlog is forced to increase the inventory digestion effort, and the one-time loss is larger; because of the rigidity of the labor expenditure, the increase of marketing support, and the promotion of brand marketing in some brands during the investment period, the overall cost increases; and the provision of various assets is reduced."

In fact,

As early as in the 2016 China Daily, it explained the reasons for the loss as "the macroeconomic downturn, the broader consumer perception, the change of consumption concept and the impact of the Internet economy" and other adverse effects, resulting in a huge pressure on the retail terminal of the company and a decline in revenue.

There were publicly available data showing that the number of headquarters stores in the first half of 2016 was 1232, compared with 88 at the beginning of the year.

Transformation of garment industry

According to a press survey, a number of clothing brand listed companies found that after the Internet shopping became the main choice of consumers, most clothing brands had to accept the fact of finding a way out on the Internet.

Brand Company, a clothing related person in charge, told reporters that most consumers are accustomed to online shopping. In the case of heavy discounts for online shopping, the company has to take different ways to clear inventory on different lines or prices.

According to media statistics, the inventory of textile and apparel has been increasing gradually in recent years. From the first half of 2012, the inventory of textile and clothing industry rose from about 60000000000 yuan to about 80000000000 yuan in the first half of 2016.

Reporters found that in the case of online shopping clothing discount, there are a number of Brand Company to increase the intensity of discount online way to inventory, and these commodities are often dominated by old money.

A salesperson with brand clothing stores told reporters: "the discount products commonly sold on the Internet are 2 to 3 years old, while the stores are selling new ones, so the discount is less than the network channel".

Reporters found that online discounts to stock brands are often traditional brands, but there are also some emerging online brands with low price and high quality, which have won consumers' love.

"I have to admit that online shopping is still having a great impact on traditional clothing brands. In order to find a way out, the current clothing enterprises will not develop internationally famous brands or high-end brands or luxury brands, or else they will take the road of developing low-end and fast fashion."

A clothing brand listed company responsible person told reporters that the general enterprise to high-end brand development is not easy, and most enterprises can only take the fast fashion development path.

However, under the impact of ZARA and other fast fashion brands, the market competition pressure is still relatively large.

Through investigation, the reporter found that in the long term downturn in the industry, the textile and garment industry mergers and acquisitions and pformation of this trend.

Shandong Ruyi group, for example, spent 1 billion 300 million euros on the Sandro, Maje and ClaudiePietro of light luxury clothing brands of French SMCP group.

For example, Langer shares in the medical American market, announcing the implementation of the "Pan fashion industry interconnected ecological circle" strategy of the four industrial sectors: "women's clothing + baby + cosmetics + medical beauty".

In addition, Saturday began to pform to fashion IP, and the company said it would gradually build a fashionable IP ecosystem through acquisitions.

Insiders told reporters that

Although the industry is no longer the past scenery, but in the continuous pformation of enterprises, some enterprises' performance has begun to pick up.

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