Analysis Of 10 Life And Death Proposition In Garment Industry

According to the world clothing shoes and hats net, general view.

Industry trend, in recent four or five years, although the market capacity of cities and towns is expanding continuously, the performance is not bad compared with other industries, but practitioners clearly see that the clothing industry is going downhill.

Why? Before 2010,

The company's most urgent is to find two sources.

As long as shops and factories are found, cash is rolling in.

Now, it is good to be able to make spot rolling.

In inventory pressure,

In the plight of all kinds of development strategy difficulties such as impact, brand positioning and design contradictions, enterprises suddenly discovered that experience accumulated over the past decade or even decades has not worked.

Everyone is being bundled up, entangled in how to make an electric business, hesitating whether to continue to develop franchisees, the brand positioning and investment, commodity planning and design are weightier than others.

However, the industry does not have no bright colors, and more than 20% of the performance is maintained. In the quarter, those who sell out at a rate of more than 90% have been there. The high-end brand low-end brands are also good at both hands. Is there really luck in the birth of myth? In fact, these brands just want to make clear ten questions.

Look at these questions. Do you think it's easy?

Difficult problem: Channel Development: deep tillage or open up wasteland?

This is actually the two question: how deep can the channel sink? Is it still not the driving force for future growth?

MUJI has entered nearly 200 stores in China in the past twelve years, and has always adhered to a second tier city. It has never sinked to the three tier city, but the annual store efficiency and annual efficiency have left most domestic brands far behind.

Insisting on sinking temporarily seems to be the route of luxury goods, but in fact, there are not many SKU of Muji unit price.

This persistence stems from concerns about the different tastes of consumers in low level markets, and concerns about management problems caused by expansion.

When almost everyone is emphasizing low market opportunities, this approach is thought-provoking.

Of course, there are also successful examples of doing business in a wide range of markets across the country.

A foreign clothing brand has entered the three or four tier city for more than ten years, and announced that the opening of the store is still the focus of the development strategy.

The brand's store performance and efficiency performance is not the brand in the previous case.

This broad shop strategy comes from confidence in the Chinese economy, confidence in the clothing industry, and confidence in its own brand, and whether it applies to all brands is open to question.

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Problem two: brand extension: specialization or broader?

Many of them can seize resources, but the new brand positioning is hard to really implement. The development of scale seems to have bottlenecks. The essence is to concentrate on farming. But when the main brand growth is weak, opening new brand seems to be the most convenient way to quickly turn the corner.

"If we want to do it, we must do the first brand well, do well, and open second brands."

There is no doubt that a domestic fashion dress that insists on the development of a single brand.

They believe that as long as the brand is good, channels and suppliers will naturally take the initiative to keep up.

At present, the brand sales have nearly 2 billion, still maintain the two digit growth, also can be regarded as a big and small myth.

Those who choose to take multi brand development are relatively more successful.

There are only four or five brands in Semir group, covering men's wear, women's wear and children's clothing. It's rare that every development has its own scale and growth rate.

The La Natsu Bell group, which has more sub brands, is a representative of many brand models. The group has more than ten brands and is still expanding.

Although many people sweat their unscrupulous brand expansion, the performance of the brand has increased 10 times in five or six years.

Problem three: Advertising: high-profile or introverted?

The clothing industry is different from other consumer goods. Stores are not only an advertisement, but also a mandatory advertising.

In other words, if we do not fight, we must fight, fight and fight, and we must fight well, otherwise it is a negative publicity.

Then the question is coming. Since the store itself is an advertisement, do we need to spend money in traditional advertisements?

The general recognition of women's clothing industry is that they do not advertise. As for the money saved, they are used for opening new stores, doing window decorations, decorating, or simply promoting sales.

Of course, there are also cases in which the opposite is true.

A domestic popular women's clothing brand tried to advertise in the setback of performance growth. From online to offline, the marketing cost increased exponentially, and the effect was better than expected.

Sales have been growing rapidly since the autumn of 2013, which is rather rare in the industry.

Men's clothing is another consideration.

China's high-end men's clothing brands often appear in CCTV.

Male consumers need advertising, because men's brand loyalty is higher than that of women, and the degree of picking on clothing is low. In some areas, the pursuit of face is still the main driving factor for buying high value clothing, so the effect of advertising can be better than that of women.

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Problem four: product mode: which is more or less?

In simple terms, the product mode is nothing more than the relationship between the balance number (width) and order quantity (depth).

During the rise and fall of brand development, enterprises will pay more attention to the development of new style and new category, while in a stable development period, this problem is easy to be ignored.

Enterprises should establish relevant mechanisms to immediately adjust the dynamic balance between the two in brand development.

A high-end brand of women's clothing can be described as a successful representative of "a small amount of money".

The brand stores are large and the styles of products are sparse, and efforts are made to create a sense of hierarchy for each one.

In fact, the brand is high and premium is high, and it focuses on improving the shopping experience of consumers.

A small amount of money, in fact, is the story of unlimited service.

In comparison, a small amount of money may be more suitable for attracting fashionable consumers.

The fashion brand of a foreign country keeps up with the trend of fashion week and street pads, with many styles.

Consumers sometimes complain that often the brand breaks off the code, but this is the strategy of hunger marketing.

But the key to this model lies in the support of the design team, scale effect and logistics maturity. Without these support, we will eventually learn a bunch of high cost stocks.

It is easy to cause inventory risk and there are many more product models.

The domestic popular women's wear brands benefit from the deep penetration of the three or four line market, adopt a large number of models, speed up the market reaction speed, close to the international fast fashion brand refurbishment speed, pricing the people, the rate is not high, but the result is also good.

However, once the demand for business is reduced, the risk of inventory will follow.

Contrary to the popular fashion of "fast fashion", UNIQLO is taking the "slow basic" approach and adopting a small number of models.

The total number of SKU in a year is only 800, of which a large proportion is the basic one, that is, those with a large number of consumers and a large number of consumers buying back.

The brand has already made product planning in the past two years, and the previous market research, consumer research and commodity planning are meticulous and leading in the industry.

Every 3-4 years, the R & D team will develop a series of new products with main concepts, or make breakthroughs in functionality or fabric.

This kind of star products can sell for more than 5 years. There is no need for brands to follow the fashion trend.

Besides the product mode, the brand's internal management ability is very strong, and its corporate culture is very unique.

Problem five: product led: planning or design?

Commodity planning and design seem to be natural enemies, especially in domestic enterprises.

In fact, to a certain extent, the weight of design development and commodity planning will vary according to the design character and commodity character of clothing brand.

A domestic high-end women's clothing brand group is created and owned by the brand principal designer, with sales exceeding one billion levels.

External investors bring capital and new business ideas, which makes the importance of commodity planning increasingly prominent.

Now, the key nodes such as the rhythm of the output, the number of styles, the final decision and the order of the style selection are still dominated by the designer. But the newly established commodity planning team still brings the gospel to the direct and dealer teams. The commodity planning framework based on the rational analysis gives the two teams an unprecedented high efficiency and clear direction.

Another domestic high-end women's clothing brand group basically has no product planning team, which is a typical design dominant type.

From the display to the structure to the pricing, the designer is determined by the designer's mastering of his own brand and product.

In the whole industry, more and more emphasis on commodity planning today, is also an alternative.

The commodity planning team of a domestic clothing brand women's clothing department belongs to the leading representative of similar enterprises in China.

The company believes that commodity planning and design and development teams should jointly ensure that clothing design conforms to fashion trends and brand positioning.

In the process of collaboration, commodity planning is the input of rational market demand, and design development is the output of perceptual product development.

The two complement each other.

The company is dominated by commodities at the front end, combined with the design team, interpreting the popularity and the brand effectively and accurately, and finally becoming the leading benchmark in the industry in a few years.

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Problem six: differences in sales mode: ordering or distributing goods?

The essence of sales mode is who should ultimately be responsible for understanding products and markets.

Various ways have different effects at different stages and cause different problems.

The distribution system is low and easy to manage, but it is widely criticized because of the long reaction period of the market and the accumulation or shortage of goods. The ordering system is more flexible, dealers can adjust according to the situation, but dealers who lack funds and experience will take more risks.

The choice of order pattern is a big problem in the clothing industry.

The ordering mode does not require the enterprise to undertake the inventory of the channel, and is the easiest way to make money in the case of sufficient cash flow.

But the timeliness of clothing is very strong. The fashion trends of different years are different and even fleeting.

And the order time is often longer than the listing period. Once the market trend changes, dealers will not be able to meet the needs of consumers in the selling season. A large amount of inventory will restrict the order in the coming year, and further hamper the development of the brand.

As the most common sales mode in China, ordering will be a double-edged sword. It is not only the fundamental reason for the high profit and sufficient cash in the garment industry, but also a hindrance to the prosperity of the industry.

Although a domestic menswear brand is dominated by the franchise mode, it adopts the mode of "unified distribution at headquarters."

At the beginning of the product season, the brand is analyzed and predicted according to the sales data of the store, and the product is uniformly allocated.

Therefore, the brand can realize the overall management and distribution of the whole stock. The display of single store can display the unified image of the brand, and is conducive to the rapid response to the market trend.

However, the relevant inventory risk is borne by the headquarters of the brand, so the brand puts forward higher requirements in terms of commodity analysis and market trend control.

Because of the lack of capability in commodity planning, seasonal pfer, terminal retailing and so on, the brand has led to asymmetric information between headquarters and stores. In order to develop the brand in this way, the brand has to spend several years in high storage.

A foreign mass clothing brand carries out a single store order. Its essence is to put the main responsibility of understanding the product to the store manager, that is, the store manager directly orders to the headquarters according to the consumer demand and market changes.

It is mainly based on the fact that "the store manager can better identify and match the change of customer demand, which is conducive to promoting the supply chain moving towards the market and upgrading quickly."

This mode puts forward a high demand for the comprehensive ability of the store manager. In this industry where the average annual wastage rate is above 50%, how to recruit, cultivate and retain front-line personnel is also a learning.

Puzzle seven: Supply Chain: cost, speed or quality?

There are three or fifty sewing machines that can be made into factories. They can also make a picture of their breasts, and promise to say, "I am familiar with the products of your family, I will certainly help you rush out for 10 days!" in the face of such a small supplier, should it develop properly, or is it suitable for training?

If you want to know how to balance cost, speed and quality, it will be easy for suppliers to choose.

Zara highlights "fast".

It usually takes about half a year from design development to product listing in the industry, and the brand can even complete the whole process from design to up to two to three weeks.

In order to achieve such a "fast", the brand attaches importance to speed in all aspects of the supply chain, and has made great sacrifices in terms of quality and cost.

Cost sacrifice is mainly reflected in air pportation, and quality sacrifice is mainly reflected in quality inspection.

But the brand is still famous all over the world, and consumers can understand that such parity can not buy quality and style of double high.

Although the quality is often criticized, the pursuit of quality instead of quality is the brand's positioning.

UNIQLO pays attention to cost and quality, and chooses sacrifice speed.

In terms of cost, through the "small quantity" strategy and simple design requirements, we gain advantage through bargaining in the process of bargaining with suppliers through scale effect. On the other hand, we emphasize the improvement of suppliers' processes, processes and equipment, and reduce the waste of suppliers in the production process.

In terms of quality, first of all, cooperate with external fabric suppliers, constantly upgrade the quality and function of fabrics, control the quality of products from the source, and gradually create the core fabric with core competitiveness and brand identification; secondly, provide detailed and specific parametric data to the suppliers during the design and development phase; then, in the production process, hire professionals from all fields to conduct on-site guidance and management of the supplier's technology and quality; finally, in the quality inspection section, the company has strict quality inspection on its products, and the rate of quality failure control is 0.3%.

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Under this operation, the brand is not very fast for the new product development in the new season, and it will take 90 days before delivery.

Puzzle eight: asset model: self built or outsourcing?

It is a typical choice proposition, but its derivative topic is not so simple.

If you choose a heavy asset model, does it necessarily mean self built factories? Investment may be a more popular way.

If we choose the light asset model, how can the concentration of suppliers be grasped?

A high-end women's brand own factory in China is responsible for about 70% of the production tasks, mainly producing products with high quality requirements and brand characteristics.

With its own factory, on the one hand, it can facilitate the synergy of the production plan execution process, and make quick adjustments to the order of sudden change. On the other hand, the brand manufacturer builds a special flexible production line based on some of its own factories, and is responsible for quick response to the demand for chasing in the quarter.

However, at the same time, the operation of its own factories will bring a lot of initial investment and mid term operation and maintenance costs, which will bring pressure on the company's liquidity.

Zara has highly centralized and integrated supplier echelons.

Orders for global revenue of 70% are contributed by 100 suppliers.

The brand has also formed a set of supplier management systems that meet their own needs, and suppliers have grown stronger by working with the brand.

The seemingly beautiful strategy brings some hidden risks: how can we ensure that suppliers will not be bully? How can we ensure that core suppliers do not outflow? To maintain the long-term stability of this model, business relations have already broken through the simple supply and demand relationship and developed into true partnership, mutual honor and disgrace.

In the current business environment, "survival of the fittest and mercenary" environment, it is not easy to create such a relationship.

The difference is that a popular clothing brand in China has many styles and demands for quick response, so suppliers are scattered and nearly half of the suppliers are small, giving the brand more selectivity and dominance in order allocation.

The advantages of small suppliers in planning flexibility can also support the implementation of quick tracking.

To sum up, centralized suppliers are for low cost and stable quality, while dispersed suppliers can bring more speed advantages and avoid the risk of eggs in a few baskets.

Problem nine electricity supplier O2O: to do or not to do? How to do it?

This is probably the most controversial topic.

Since 2010, almost all garment enterprises are constantly asking whether they should vigorously develop the electricity supplier and how to develop it. The difficulty of the previous problem is how to balance the online and offline businesses.

The latter issue is nothing more than the unification of online and offline sales channels.

Generally speaking, the choice of medium and high end brands for the electricity supplier mode is relatively easy, that is, the electricity supplier is mostly clear inventory channel, and the choice of the popular brand is not so obvious.

A popular menswear brand in China is an earlier electric shock in the industry. It has set up a complete electric business department, and has an independent team from the commodity group to the sales channel.

The company treats the electricity supplier as a customer, and implements the order system to ensure the strategic position of the electricity supplier.

At the same time, by liberalizing online distribution rights and developing online special contributions, part of the solution to the problem of channel conflict on line and online has been partially solved.

In this way, the nature of its electricity supplier has developed from the pure sewer 10 years ago to today's strategic focus. The mode of operation has shifted from the operation of the generation to the autonomous operation, and the performance has also been achieved from zero to over 500 million today.

However, a popular women's clothing brand in China is very cautious. It has recently entered Tmall and intends to control its size.

In order to locate the electricity supplier, the brand launched a consumer survey.

The results show that consumers still think that clothes need to be tried out, even the popular price women's clothing is so.

It can be seen that deliberately shifting the focus of business to online is not in line with consumer behavior.

Since they are not willing to discount new lines and are unwilling to conflict with the prices on line, it is a conservative way to ensure steady development by carefully developing the electricity supplier and waiting for further changes in the industry.

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Problem ten: how can garment enterprises pform in the era of big data?

This is a new proposition that there are no successful cases in the industry.

Big data is becoming a new excitement for people. The fashion industry's people are beginning to wonder what the big data era means for clothing companies. What unexpected changes will happen in the future?

An important point emphasized by big data is data analysis.

Like most consumer goods industries, there is a lot of data and information in the clothing industry, but the motivation behind these data and information is often emotional.

Even if those rational data are of great help to the fashion and sensual industry of clothing, most enterprises still have no answer.

We think that we need to understand the three questions before we can grasp the basic data. First, what data do we need? Do not blindly collect, resulting in redundant information and too much time.

Second, how to get data? This is not because it is easy for more and more clothing companies to use ERP platform to collect the required data.

Data analysts often find that the accuracy of many data is poor.

The obvious example is that many enterprises will have some problems such as product master data is not standardized, data access is inconsistent, or data upload system is delayed.

These problems are too small to affect the accuracy and timeliness of data analysis, which is likely to affect fact judgments or even major strategic decisions.

Therefore, the basic data of garment enterprises has become very urgent. The so-called "sharpening machine is not the wrong chopper".

However, regular data is not achieved overnight. The relevant departments of garment enterprises can constantly feedback and improve data caliber in the process of practice, and gradually accumulate reliable databases which are easy to analyze and judge in the process of continuous regulation, establishment, standardization and correction.

Third, how to process data? Many enterprises do not lack data, but do not know how to use them.

Many enterprises will get accurate data to the daily data of each day and ask how these data should be used. Many companies are too busy pursuing data analysis templates.

In fact, all data analysis is to serve the topic, and the topic should be flexible by different requirements of enterprises in different periods.

A rigid set of data analysis templates can only reflect the loss of thinking.

The trend of economic environment and garment industry is changing with each passing day. The above ten problems may be only the key proposition of the recent garment industry. With the coming of the new situation, new problems will inevitably arise.

As there are no universal data processing templates, there are no standard answers to these questions, but for businesses, they must have answers.

The so-called honey, the arsenic is only, do you know how to distinguish honey and arsenic?

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