Declassified Clothing Industry "Inventory": Domestic Children Can Not Wear Out In Ten Years.

Stand on Garment industry We can see the trend of the industry in terms of clothing in the depressions market.

But for the stock market, 2012 is the best year. Only 42 clothing companies listed in the first half of this year reached 48 billion 300 million yuan. It can be said that the inventory of Guangzhou Shijing town is the main body. Stock market Welcome the most abundant year.

In the clothing market town of China, the place called Shijing, near Guangzhou Baiyun Airport, is probably the least known. Nowadays, most clothing enterprises need them, and many ordinary consumers may not know how many clothes they buy will come from a place where even a few yuan can buy a down coat or suit.

　　 market Sluggish consumption is not the only explanation for the overall decline of the garment industry. 。 In recent years, on the basis of a serious lag in the production and marketing mechanism, the brand's unrestrained expansion desire and the boundless yearning for profiteering have constantly widened the distance between ideal and reality. Now, at last, they fall into the trap they have dug up.

Xia Hua is quite interested in a number of American products produced before 2010, but the price has not been discussed. The bids of the Baron warehouse staff are 93% off of the tag price, while his psychological price is 95% off.

In the industrial area along Cambridge Road, Southeast suburb of Shanghai, Metersbonwe (hereinafter referred to as "Smith Barney") is the most famous company. It is different from the cold and clear circumstances of other companies. The door of the US headquarters is always full of traffic, especially at weekends. For many people in Shanghai, the No. 800 South Cambridge Road is a good place to shop.

The environment there is very good. A large park across the road is clean and tidy, unable to hear the sound of machinery. In fact, it is a logistics park with large warehouses. For light state assets, the warehouse area is a transit station between more than 300 generations of factories and more than 4000 stores.

The greening of the park may be the most distinctive feature in China. The more than 10 acres of open space in front of the Treasury in the United States are not planted with evergreen shrubs, but lush radish, cabbage and cauliflower. In the winter rain, they grew up with the Guqin music on the ground.

The endless flow of people on the north side of the United States headquarters is not rush towards the gratifying vegetables, but rush to the sale warehouse beside the vegetable garden. The signs in the park show that in the warehouse on the north wall, more than 10 categories of clothing are selling at a price of 2-3 fold. From 5 yuan belts, hosiery socks to 150 yuan coat and fur coat, the low price is the source of the charm of the barban warehouse. Even some of this year's new models are being sold at a discount of 3-5.

　 "Mei Bang's warehouse is large. Each warehouse has a large fan with a radius of two meters, and there are more than a dozen large forklifts that can lift. "Xia Hua, a Hunan man, told reporters about the spectacular sight he saw." they have 7 million 500 thousand stocks, my God! " The US barn warehouses are not allowed to go anywhere in the corner. The sale area is restricted to more than 20 large exhibition halls. From these signs, we can see that the exhibition hall was originally supplied. Smith Barney The ordering of agents or dealers.

Xia Huaxiang is not an ordinary customer. He is a specialist in stock collection. Just a few days before reporters visited the barn warehouse, Xia Huaxiang introduced a business to Smith Baron, and bought 70 thousand clothes at an average price of 7 yuan, "from T-shirts to cotton padded clothes."

The reason why it can be bought at such an incredible low price, Xia Huaxiang explained, these clothes are somewhat defective, "but we can still sell them." Xia Huaxiang was also interested in a group of American barn's stock, which was produced before 2010. But on the same day, the two sides could not agree on the price. The bid price of the Baron warehouse staff was 93% off of the tag price, while the psychological price of Xia was 95% off.

　　 For Xia Huaxiang, who has been doing inventory business for more than 10 years in Guangzhou, 2012 is almost the best year ever.

Only those listed companies in these industries provide ample stock of supply. According to the annual report of listed companies, in the first half of 2012, the total inventory of 42 domestic companies was as high as tens of billions of dollars, of which, Lining, the United States and costumes, Semir clothing and the top three companies ranked 1 billion 753 million, 1 billion 473 million yuan and 1 billion 138 million yuan respectively. Of the 42 companies, only 4 stocks were below 100 million yuan.

No matter which stock is taken out, Xia Hua can not digest it. "We take in stock, and a few hundred percent of the total. They will be released in batches, and we will receive them in batches. " In addition, the key question is "the price should be right."

"We usually deal with people in charge of warehouses." Xia Huaxiang did not know Zhou Chengjian, the boss of Smith Barney, nor did he know why Zhou Chengjian was angry because of inventory problems. According to legend, Zhou Chengjian at the beginning of an internal conference earlier this year, he scolded his executives for "three eggs and none" (asshole, bastard, nonsense and inaction).

According to the US bond report, the stock in the first year (2009) of the company was 900 million, but it jumped to 2 billion 500 million in 2011. According to Shenyang Wanguo's report, 2 billion 500 million of inventories accounted for 1 billion 500 million of the 2011 spring and summer stock and earlier inventories, accounting for nearly half of the US bond net assets (3 billion 200 million). For Xia Huaxiang, the five hundred million or six hundred million in 2010, the autumn and winter and the earlier money were his targets.

For Brand Company, the "tag price" is the brand dignity and honor in a sense. In the warehouse stores in the state of America, we can see that the price of the trench coat and coat tag with tens of hundred yuan is usually over 1000 yuan, although the price is not high in the clothing industry, but at least it includes the research and development capability, management and service in the exclusive store. Any loss of a connotation means the depreciation of the brand.

For example, in the factory stores in the state of the United States, the enthusiasm of the salesmen in the store was not visible. When the reporter walked into the factory shop, a staff member angrily said to a customer who was trying on a coat. "How many times have I told you that clothes here can't be tried on!"

Xia Hua Xiang also does not disagree with the value of the brand. "Now we collect the stock, basically we have to accept the famous brand." however, the brand is eternal, but the brand goods are not. "They can not drag on for too long. The clothes that are over two years old are not wanted."

　 This is China's clothing paradise. This is a secret business. The annual turnover of Shijing as a whole is about 10000000000, corresponding to the sales of hundreds of millions of normal channels.

Reporters first saw Xia Hua Xiang in Qingfeng clothing city, Shijing Town, Baiyun District, Guangzhou. In a prominent position in the clothing city, he runs five connected stalls. There are many famous brands at home and abroad that are heroic at the end and beaten back to the original shape of textiles. The new one or two year old brands are packed with stalls, and the gaps between the sofa, tea tables and desks are stacked with famous brands. People who enter the shop will tread on them if they are not careful.

That afternoon, Xia Huaxiang placed several samples of the wedding bird suit in the channel outside the stalls. The price of this set of tags is thousands or thousands of yuan, and the suit made in 2009 is a trophy for him two or three months ago. It has tens of thousands of pieces, and the unit price is only tens of yuan. In order to maintain their image, the company announced that the labels on the collar had been cut off at the time of sale.

Xia Hua stood outside the door, trying to recommend a batch of new women to a female customer. Down Jackets 。 Judging from the reaction of customers, the brands of these clothes seem quite well-known. Xia Huaxiang offered an average price of 60 yuan. In addition, he recommended a sweater that he just pulled back from the headquarters of Hai Lan home and the "bull" jeans at a price tag of 4000-5000 yuan. If you know that you spend more than 100 yuan to buy a Bulls cowboy here, the bids of the American bartener 93% off are obviously a bit too conceited.

"This is China's clothing paradise. It is also the largest in the world." Xia Huaxiang's friend, Fu Jian Chen Fu Yang, told reporters. The town of Shijing does have such an international flavor. In some clothing towns such as the town, Qingfeng and Jindong, from time to time, black people or Middle East people who carry large bags of clothes or stalls are seen. A large Saudi household is a frequent visitor to Shijing. "He travels four or five times a year, with a translation, a stall and a stall, staring at it in a week." Chen Fuyang said that the Saudi people bought three or four billion from Shijing a year, and once they got about 80000000 yuan.

　　 Not all Saudi people get rich by oil. The Saudi people take the super cheap goods with an average price of less than 10 yuan. "There is no clothing business in the Middle East. It should be sold to other countries in the Middle East."

"No matter what brand is T-shirt or down jacket, when the stock is dragged out, the average purchase price will be a few yuan." In our market, whether we take in or sell, are far below the cost of production. " Chen Fuyang said, "clothing is not gold, it can keep value. Those clothing manufacturers always thought that the cost of 100 yuan clothes, why they sold us $350? They could not bear it.

So it kept pressing, but the thing became more and more worthless. For example, the goods in 2008 and 2009 were not the price issue, that is, a few dollars could not be sold to us. Now even in remote areas, the needs of the public are beautiful, and the style is good. For those listed companies with a backlog of stock, there is not much time left for them.

　 According to the cost structure of garment industry, the production cost of large and medium-sized garment enterprises is about 1.8 to 77% off of the tag price. In the stock market, what we need is not respect for value, but respect for the mentality of cheap love.

No matter how much they despise the stock business, they have to face up to their own situation. The inventory business always goes hand in hand with the expansion process of China's garment industry. In 1998, when Chen Fuyang, 17 years old, took 2000 yuan to leave the florist family in Yongfu town of Longyan, Fujian, and ran to her brother Chen Fufeng, Shijing gathered a huge inventory business. Starting from the earliest clothing city, Shijing now has four or five large garment cities and tens of thousands of shops.

The town's tail business, according to Chen Fuyang's estimate, has an annual transaction scale of about 10000000000. Despite the high level of business aggregation, Shijing's store rentals are still very cheap, a shop of more than 20 square meters, with a monthly rent of only 3000 yuan. According to Xia Huaxiang's statement, Shijing's tail shops do not have to pay taxes, and do not pay management fees. "In Guangdong, such a small business, they can not see."

Without advertisements, the vast majority of Shijing merchants do not publish information today. Among the tens of thousands of people in the tail cargo group, even the big brothers such as Chen brothers are also well-known bosses in the clothing industry. They are almost a secret group, and only those in the circle will know each other.

"Sometimes I know dozens of people who live in a hotel. I recently met many acquaintances at Qingdao airport. You think, tens of thousands of people in some specific places to enter, will certainly encounter. "

It seems that everywhere in the country, businessmen from Fujian are easy to gather. According to Chen Fuyang's estimate, in the tail cargo market of Shijing, Fujian accounted for 1/4. However, the tail cargo is not a monopoly business of a regional businessman, but there are thousands of Chaoshan and Sichuan people.

Fujian businessman's strong expansion has made Chen Fuyang, who is only 33 years old. In Shijing, he not only runs ten or twenty stalls, but also works with the president of the Fujian chamber of Commerce in Shijing to invest in the property of "Meng Jia children's clothing world". In this world of children's wear, 5 hundred million of children's clothing is sold every year, accounting for half of the children's clothing market in Shijing. "Those who started earlier, now basically no longer run the tail cargo themselves, instead of hand over the files to the people brought out to do business, and do their own real estate or other projects."

Chen Fuyang said that in Shijing's stock market, people who invested more than one billion in cash were considered to be predators. At first glance, this figure is not much compared with those of large clothing listed companies, but in the stock market, the turnover efficiency of funds is much higher.

In the clothing production and marketing enterprises, they can make four seasons garments and invest four times a year, while turnover in Shijing is unlimited. "What is the concept of one hundred million? According to the clothing production and marketing enterprises, the positive price is at least 500 million. Moreover, we are collecting millions of dollars today, and collecting millions of money tomorrow, and the money has been rolling, and the number of 500 million has to be doubled. "

Sitting in the shop of the world's "Hai Qi long dress", Chen Fuyang pointed to the dense shelves and told reporters: "these samples are still hanging here today, and they may be sold out tomorrow." Chen Fuyang has operated more than 100 brands of tail cargo altogether, and the samples are mostly hung up in the shop. "We sell tens of thousands of pieces of goods for each brand. You know, the production and sale of millions of garments in a year is already a super large group company in China.

　 As for the about 10000000000 annual turnover of Shijing, it is a more alarming figure. According to the price leverage of tail cargo, it corresponds to hundreds of billions of sales in normal channels.

The high inventory of garment enterprises is the total explosion that has been accumulated for many years. The closure of a garment enterprise is often a time when inventory helps.

In Shijing, we can see a kind of business that rules most about rivers and lakes. "If you can find a single piece of goods and let me pay for it and earn 100 thousand yuan, I will pay you 50 thousand. Interest on capital, warehouse rent and other expenses will not be taken care of." for many years, the shopkeepers in Shijing have split accounts with the people looking for goods. There is no contract between the two sides, which is based on the practice of spontaneously formed businesses. Chen Fuyang said that in the children's clothing circles of Shijing, there are hundreds of people who win by looking around the goods and bosses.

He is very dependent on this group. "I have to pick up fifty or sixty calls from them every day. In the fifty or sixty single business, I will pick up a few orders selectively, then pick up two or three single goods and pull them back."

That's how he came. When he was 17 years old, he had 2000 yuan in his pocket. "It costs 10 yuan a day to take a bus, buy a bottle of water and have lunch. Money in hand is not enough to fight. " But it is to collect a cloth today and save a bundle of clothes tomorrow to save money. Seven or eight years later he became a boss.

It is not easy to run out to pull the order. "If people want to be familiar, goods must be seen accurately, and they will be haggled. You know, there are more tigers than pigs in any industry. " In the early years, Chen Fuyang went out to see the goods. He often went there for one or two months.

Hu Haidong and Chen Fuyang, who opened a children's wear factory in Hangzhou, have been dealing with each other for several years. They appreciate Chen's style of action. "When he came over to collect the goods, we did not let him enter the warehouse. He just took out the samples and told him how many. When he saw it, he put down the deposit, and we packed it. He came and took the goods in second days. There are some cautious tail goods owners who usually hire several people to check the pieces. Chen Fu Yang is much happier than them.

In 2010, tens of thousands of Hu Haidong's stocks were cleaned up by Chen Fu Wang. "If we meet a large warehouse and the stock is too large, he will join several people in the circle." Hu Haidong said that the existence of this group is very necessary. The pile of stock there is already a waste product, and how much money can be recovered, which is better than the borrowing of private usury to supplement the working capital. Especially in recent years, the loan sharks in all places have reached more than three points.

"A shipment of tens of thousands of pieces, a few hundred pieces, or mixed with some defective products, can be ignored for us. We only give an average price according to the proportion of each category. " Chen Fuyang said that there are too many sources of inventory now. "Now China's children's clothing includes stock, and domestic children can't wear it in ten years." This may be exaggerated, but it is also close to the truth.

As Hu Haidong pointed out, the high inventory of garment enterprises is the total explosion that has accumulated over the years. "You think, in many enterprises, there are three or four years ago in the warehouse. When there is a good year, some stocks may not be much, but now many businesses are closing in on the stock market, and inventory can kill the business.

In addition to children's wear, the sporting goods companies listed before and after 2008 are now big inventories. The annual reports of these listed companies show that several companies including Lining, PEAK, Hongxing Erke and so on have already turned off more than 1000 stores. The narrowing of channels has made it even worse for inventory clean-up.

Hu Haidong once worked as an executive in adult clothing and children's clothing enterprises in Fujian and Dongguan, and had considerable say in the drawbacks of clothing production and marketing. "The production and marketing cycle of domestic enterprises is too long. When a company makes a production plan, it often starts playing the edition a year ago, placing the order, but now the fashion sense is getting stronger and stronger. Who knows what the market will be popular after a year? "But for those companies eager to go public several years ago, they often rush ahead of the market and borrow money to expand the channels," all of which create a false impression of demand. "

So, the slump of foreign trade has contributed greatly to the scale of China's inventory. "Now the Customs at the coast are stacking up quite a lot of junk. When the company falls, everything is left behind at the customs. There are hundreds of thousands of them, and there are many such businesses. Chen Fuwang said.

Although some famous companies are often proud of their inventory, they will also seek timely rain on these rivers and lakes at a certain time. One night a few years ago, Chen Fu Wang received a call from Dongguan, saying that a boss needed 20 million yuan in cash. Chen Fu Wang's overnight contacts put the money together to pick up the goods. Recently, Chen Fu Wang's friends also made a large order of 17 million yuan.

Do not underestimate the ability of the inventory gang. With the expansion of the garment industry over the years, the inventory Gang is also expanding. "Before we put together 20 million, we need many stalls, and hundreds of thousands of companies are gathering together, and now we can only take two out." Chen Fuwang said that this business is all cash transactions, no credit or no debt, no simpler business than this.

The closure of a garment enterprise is often a time when inventory helps. For those workers waiting outside the factory gate to wait for wages, the appearance of the inventory Gang is of great significance. "Factory failure is often the result of wage dragging, factory rent dragging, and creditors' money owed. People in factories, and people in government, as long as someone talks to us about prices, we will go and pull the money."

　　 "Profiteering mentality has led to the malformation of the entire industrial chain. For example, the cost of the dress is 1200 yuan for 100 yuan, so many people follow suit. In fact, clothing itself is a low platform industry.

"As long as people are still wearing clothes and still making clothes, they can not have no stocks." Zhou Jixiang, a salesman of the clothing of the hundred generations of Sichuan, explained the reasons for inventory from the anthropological point of view. The 87 year old young man came from Changsha, like his fellow townsman Xia Hua, in Hunan, where hundreds of thousands of enterprises saw the tail cargo.

"Enterprises deal with inventory, first of all, they are selling at their own stores, selling them to us or donating them to remote areas, and then destroying them." Zhou Jixiang said Europe's luxury brands do the same.

We read about the contents of the millions of gallons of milk poured into the gutter by the capitalists during the economic crisis. Does this mean that the evil of capitalism is questionable? Because milk may be out of date. As for clothing, in fact, it will expire, "in the warehouse for more than two years of clothing, how many moldy, wear the line may collapse." Zhou Jixiang said.

So far, we have not heard of any enterprise openly destroying clothes. The moral standards of Chinese clothing merchants who are frugal are also higher than those of American businessmen in the era of excess capitalism. In any case, the era of Chinese clothing industry is over.

In Shijing Jindong International Garment City, the reporter met Liao Liangzhong, general manager of Zhou Jixiang's boss and Bai Chuan's clothing. According to Chen Fuyang, Liao Liangzhong is a big family in Shijing in the field of adult wear. On the afternoon of waiting for Liao Liangzhong, the reporter saw the "hundred rivers and one generation customer service vehicle" in the clothing city, and many home "hundred rivers Department" clothing store, even more believed Chen Fu Wang's argument about "Liao is the big shareholder of the clothing city". On the same day, a stall in all rivers is selling "international brands" DEVIDERO and BULL at ninety percent off to 85% off prices. According to Liao Liangzhong's plan, Jindong clothing city should be made into a Oteri J rather than a slovenly place.

Liao Liangzhong, 42, from Meizhou, Guangdong, was born in 1992. She opened a garment factory in Guangzhou, and then opened a lot of retail outlets in Guangzhou's Whampoa and Dongshan estuary. After 2000, he joined the inventory gang in Shijing.

He has another opinion about the high inventory of clothing: " China's garment enterprises have made huge profits in history, attracting many people to chase. The mentality of profiteering has led to the malformation of the entire industrial chain. 。 For example, the cost of the dress is 100 yuan, and he sells it for 1200 yuan and sells it. So many people follow suit. In fact, clothing itself is a low platform industry.

In order to sell high prices, clothing companies are crowded to high-end shopping malls, but anyone in high-end shopping malls will have to cut a knife. "Shopping malls 28% points." Even a first-line brand has to go a lot. For example, if you want to enter a shopping mall in Guangdong, you have to find a couple of people to give 500 thousand yuan or 1 million yuan to go in. These costs are spread to costs, and the price is naturally distorted.

Even street shops, the rent in the past few years is also unusually high. "Dongshan Kou and Huangpu area commercial street, the rents are sky high prices. After a month, a few shops will earn ten thousand yuan, but if I do not do it, I can get a rent of eighty thousand or ninety thousand yuan if I sublet the shop to others.

Especially after 2002, when the sports brand was rising rapidly, the rent of the commercial street in all parts of the country was soaring. Sports brands are already embarrassed by the cost. Companies that are not listed can not afford to support them, even if the listed companies are not. Because of the economic downturn, the scale of consumption is also much smaller.

The high cost of the channel coupled with the sluggish consumption directly led to the rapid decline of the garment industry. "As far as I know, the sales rate of the second tier brands is less than 50%, or even some people's sales rate is less than 30%. So the market is finished.

Therefore, we want to be an otter, and pursue the reasonable profit at the same time. This idea is becoming a reality. Now a shop with 400 square meters upstairs and below Liao Liangzhong can sell twenty thousand or thirty thousand yuan a day. When it is good, it will be forty thousand or fifty thousand yuan, and the store will only rent 10000 yuan a month. "It's better to spend 50 thousand yuan to rent a shop in the prosperous area. My main business is wholesale, but now retail can support my expenses. " In addition, the hundred Chuan generation and other garment enterprises are different, the process is simple, there is not so much additional link expenses.

Liao Liangzhong thinks clothes industry The era of profiteering should end. "Those listed companies used to be highly profitable. Our profit margin is only 30%, and they have a 300% profit. " Today's huge inventory is only the price paid for that year's huge profits.

It is obviously not enough to digest the huge amount of stock in the clothing industry, slow sale at the franchised stores, or the special sale in the factory stores, but it is even more unrealistic to place the hope on the electricity supplier. "Inventory goods tend to have many styles and a small amount of money. Moreover, we require a high turnover rate, sorting and photographing a lot of things that are not worth much, and then hiring many people to sell them online, which is not cost-effective."

To a large extent, Shijing town is the last destination of clothing inventory. However, even in Shijing, inventory also dragged a long tail, such as Liao Liangzhong, Chen Fuyang and Xia Huaxiang, they are the first level of the stock market, and there are also inventory distributors who are looking for tens of thousands and hundreds of thousands of them to fight for goods.

No one can guarantee that Shijing's inventory can be completely digested. "We are very cautious now, because we also have stocks. In the first half of this year, I collected about one million pieces. clothes Up to now, 15% have not been sold, which is very unusual for us. Liao Liangzhong said.