Clothing Logistics 100 Billion Market To See Fast Fashion Brand Clothing Logistics Mode.

Clothing logistics this 100 billion market, there is no more than 1 billion of the professional logistics enterprises.

The garment industry which tends to be fast fashion needs a specialized logistics pportation distribution system. Whether it can create an efficient and low-cost logistics mode and link up with the apparel supply chain perfectly is also the goal of clothing logistics enterprises.

1, market background of garment logistics

1.1 scale of garment logistics market

According to the statistics of National Bureau of statistics, in 2017, the output of Enterprises above Designated Size in China's apparel industry was about 28 billion 781 million, the first decline in nearly 4 years, the decrease was 8.49%, and the wholesale and retail sales of garment enterprises above the limit were about 1 trillion and 35 billion 640 million yuan, which still had a slight increase compared with 2016.

According to the ratio of total logistics cost to 4.79% of social logistics, the size of garment logistics market in 2017 will be about 49 billion 570 million yuan.

According to the prediction of data from the China Industrial and Commercial Research Institute, it is estimated that in 2018, the output of Enterprises above the scale of garment industry will reach 29 billion 102 million, a small increase of about 1.12%, and the retail sales will increase to 1 trillion and 98 billion 580 million yuan, so the scale of garment logistics market above the limit will reach 52 billion 582 million yuan.

In fact, according to the China Apparel Association estimates, the total garment output of the whole society in 2017 was about 45 billion 600 million pieces. According to this data, the market scale of clothing logistics should belong to the small billion market.

With the continuous development of online and offline retail mode, the market scale of garment logistics industry will gradually expand.

1.2 the influence of garment industry characteristics on Logistics

After many years of development, China's garment industry has shifted from large-scale and mass production to market oriented fragmentation, small batch, multi category and fast fashion.

Clothing is different from ordinary consumer goods. It has strong periodicity and seasonality, and is influenced by the brand. The traditional mode of sales channel is developing towards diversified forms. These characteristics have high requirements for its supporting logistics system.

1.3 the impact of diversification of garment channels on Logistics

China is the largest textile and garment production, consumption and export country in the world. It has a relatively complete garment industry chain and has realized the integration of production, supply and marketing.

With the development of Internet economy and fragmented market, the sales mode of traditional clothing has also undergone some changes. It has begun to form a new sales mode of traditional agent sales channels and online shopping mall simultaneous sales.

According to the different sales means, it can be divided into three categories: Factory monopoly, direct sales, agency sales and e-commerce platform sales.

Among them, direct selling and agency sales are usually carried out in the form of traditional stores, shopping malls, and so on, while online sellers will sell online as the third party sellers of the platform, and gradually upgrade their style to the online and offline modes, inventory synchronization and logistics.

1.4 the influence of clothing concentration on Logistics

Judging from the location of the major clothing enterprises in the country, clothing production has a strong regional concentration.

According to the top 100 enterprises listed by the top 100 clothing companies and the China Apparel Association, the garment enterprises are mainly concentrated in several coastal provinces such as Zhejiang, Jiangsu, Fujian, Shandong and Guangdong.

Therefore, both raw materials and finished products need strong warehousing and logistics support. In the traditional sales mode, large clothing enterprises usually choose the "total warehouse + National warehouse" mode for the establishment of the national distribution network.

With the change of market demand, garment enterprises begin to reduce the number of warehouses and reduce the total volume to the whole country.

2, clothing logistics enterprises characteristics and mode analysis

2.1 clothing logistics classification

According to its supply chain process, clothing logistics can be divided into three categories: production logistics, sales logistics and reverse logistics. According to the types of logistics providers, clothing logistics can be divided into enterprise logistics, third party logistics, e-commerce logistics, instant distribution logistics, etc.

People usually seldom pay attention to the logistics of production process. Attention is focused on the logistics process of clothing sales and reverse recovery.

Nowadays, in order to improve the efficiency of distribution and reduce the cost of logistics, most of the large garment enterprises choose to build their own logistics and carry out the storage and pportation of clothing with external logistics cooperation, but it is basically outsourced by enterprise self built logistics center and warehousing, trunk line and terminal distribution capacity.

2.2 classification of garment logistics enterprises

Because of the different attributes of logistics enterprises serving clothing storage and pportation, garment logistics also presents different characteristics.

1) the enterprise logistics, which was born under the clothing brand business, is affected by the traditional influence of the clothing industry. Its performance in logistics has great limitations and traditional flavor. Basically, it only makes simple warehousing and logistics centers, bulk trunk pportation and terminal store distribution outsourcing.

2) the third party logistics enterprises can be divided into third party logistics enterprises and comprehensive logistics enterprises specializing in garment logistics. Such enterprises provide standardized product services, warehousing and pportation information level is high, and have a complete product storage and pportation system.

3) e-commerce logistics is based on the logistics system of the electricity supplier's sales platform. The integration of warehouse and distribution is its outstanding feature. It relies on the rational layout of pre storage and the prediction of big data to speed up the distribution of clothing.

4) instant delivery is the latest team to join the garment logistics industry. It has the characteristics of high aging, single distribution and so on. It is an effective means to accelerate the last mile of garment logistics.

2.3 typical patterns of clothing logistics

The clothing logistics industry is in memory of a topic that can not be changed -- inventory management.

How to speed up turnover efficiency and reduce inventory backlog? This supply chain problem is actually related to the logistics mode of garment enterprises.

Whether domestic clothing enterprises or international giant clothing retailers, their logistics and distribution play a decisive role in the entire clothing sales process.

1) enterprise logistics -- Anta

Before 2012, the sales of clothing enterprises were mainly wholesale. The goods were distributed to the dealers by regional distributors, and the bulk of the shoes and garments were pported directly from the finished products warehouse to the warehouse of each dealer through the third party logistics enterprises, and then the distributors were co operated with the regional logistics enterprises to carry out the store distribution.

Later, the sales mode of Direct stores began to spread, and the logistics distribution mode of garment enterprises changed. The mode of "total warehouse + National warehouse sharing" began to prevail. Many garment enterprises began to build logistics centers, outsourcing their capacity, forming their own logistics system of clothing enterprises.

Take Anta, the first brand of sportswear in China as an example, its logistics has established a logistics mode of "central warehouse + regional warehouse + sub warehouse" according to its national sales system, and carries out commodity pportation and distribution through sub warehouses covering the neighboring regional stores.

Through self built logistics center, the trunk line pportation is outsourcing by bidding, and the terminal store distribution stage is co operating with the third party logistics in the same city, and the garment logistics is built in the form of only controlling nodes.

At present, due to the change of market demand and the need of logistics cost control, the mode of "central warehouse + regional warehouse + sub warehouse" has begun to change, forming a combination of central warehouses, direct distribution of national stores, pre service warehouses, high sales area DC warehouses, pre stores and post warehouses.

In addition, the global famous brand Nike logistics mode in China also belongs to the main warehouse directly allocated to the national stores, supplemented by part of the city warehouse mode, with the main warehouse of Taicang, Jiangsu as the core, after the product is completed, it will be pported from the factory to the main warehouse in the form of vehicle, and then the allocation and distribution of the National City warehouse and door store goods will be carried out.

Shanghai Hong Di logistics is responsible for the storage management of Nike and the distribution of stores in the northern market. Hagrid logistics is responsible for Nike's warehouse to warehouse pfer and the distribution of some Southern stores.

2) Third Party Logistics -- spring breeze

In the traditional logistics industry, there are a group of third party logistics enterprises specializing in garment pportation. Among them, Shanghai spring breeze logistics is the most representative, and its business is 100% for clothing pportation.

Spring breeze belongs to the vertical garment industry's LTL enterprises. In 2017, its revenue was 328 million yuan, although it was 10.09% lower than that in 2016, but it is still the first income of garment logistics industry.

Its operation mode is similar to that of express pportation enterprises. Regional coverage is carried out in the form of network. At present, the spring wind network has been contracted to the regional network, and the whole network coverage capacity is poor. It focuses on the clothing distribution in Jiangsu, Zhejiang and Shanghai, and the proportion of self owned stores is relatively small. Most of them are franchised stores, and the trunk line pportation is carried by their own vehicles.

Spring breeze provides clothing factory warehouse to store distribution, goods pfer between stores, reverse logistics and clothing storage service.

The remarkable feature of the electricity supplier logistics is the integration of warehouses and distribution. It is possible to use the big data to predict the consumption, and allocate the products in advance to the regional warehouse or the front warehouse.

Pin Jun logistics, as the logistics system under the banner of the only product, carries on the logistics business of the electronic business platform, and carries out the network layout according to the five major regional warehouses in vip.com.

The brand operator arranges pportation capacity to pport the products from the processing plant to the vip.com warehouse, and the logistics operation after the product is sold is Pin Jun's responsibility.

Compared with traditional logistics, there are fewer intermediate pfer links, and its operation mode is generally composed of "regional warehouse Transfer Center - Distribution Station consumer". Vip.com's regional warehouses are less than Jingdong. Therefore, in the logistics and distribution of county and city level, there will be more cargo pshipment links.

At present, the integration of warehousing and distribution of e-commerce logistics is still in the exploratory stage of optimization. The high cost is its outstanding characteristics. 2017 annual report data show that vip.com's logistics costs account for 9.5% of its total revenue, and the annual one-piece logistics cost is about 21.4 yuan, much higher than that of the traditional express industry.

4) the combination of instant distribution and clothing.

In 2018, an interesting phenomenon appeared. It seems that at the same time, all garment enterprises began to cooperate with the real-time distribution platform. The most attractive ones were the handshake of the US group and the Hai Lan home, and clothing logistics began to enter the distribution era with minute time.

The important reason why instant distribution is popular with consumers is that they can receive their favorite products within 1 hours, and the consumer experience is very good. The clothing industry has just grasped this point to launch this business.

This online sales and offline instant delivery mode seems to be very good, but there are actually some shortcomings.

Clothing immediate distribution is to store stores as the form of front-end stores around consumers. However, the problem behind the store is that the warehouse is small and the products are few. This leads to low order fulfillment rate and can only sell hot products, so there will be no bigger breakthroughs in a single amount of instant delivery.

international

There are more than 2100 stores in 88 countries around the world, producing about 450 million items a year, sending them to global stores two times a week.

Zara is the representative of fast fashion in the world. It has a flexible production plan. Only 15% of the garments will be produced ahead of schedule. More than half of the clothes will be designed and manufactured in two weeks during the hot season, and then will be delivered to the global stores within 2 days. This will depend on its strong logistics and distribution capabilities.

Although more than 50% of Zara's clothing is produced near Spain, 26% in other European countries and 24% in Asian countries, it will not enter the local market in the near future after production. All products need to be returned from the origin to the Spanish logistics center and then sent to the global stores.

In the fashion consumer goods industry, Zara has invested much more in logistics than advertising costs. Its operation efficiency is very high, inventory turnover rate reaches 80%, basically no inventory, Zara DC is basically a pshipment warehouse instead of storage bin.

All goods are carried out in the form of LTL. In Europe, the time limit is 24 hours for land pportation, and the other long-distance pportation is all air pportation. The time limit for China and the US market is 48 hours, Japan is 48-72 hours, and the end to store distribution is outsourcing to the third party logistics enterprises.

Fast logistics is an important part of Zara supply chain, and also an important guarantee for its fast fashion first brand.

6) garment line

In the wholesale clothing market, there are a group of specialized pportation services between wholesale markets. This part of pport capacity is known as the apparel line, and its business is simply the LTL pportation between the wholesale clothing market.

This part of the line is very traditional, no pshipment, single line straight hair, but the service time is particularly high, in line with the wholesaler's logistics demand, is the general network enterprises can not match.

3, the Institute of Transportation Research

3.1 the third party logistics of garment industry 500 million ceiling is hard to break through.

The seasonal, multi SKU, non-standard, brand and business models change greatly, and the business flow itself is unstable.

Generally speaking, garment logistics enterprises are unable to support the needs of many brands' logistics programs.

It is difficult to grow a professional giant in China.

The fragmentation of the clothing logistics market is a long-standing state, and the improvement of its concentration degree is very difficult. For its reasons, it is easy to find that the way of clothing enterprises to deal with logistics is rough and rude, only the ton side quotes, and the logistics enterprises should turn them into truckload, zero load and express pportation.

In the market, there are few clothing logistics enterprises capable of receiving more than 5 brands of logistics operations, basically one to one, one to two services.

Clothing logistics enterprises all take the big customer strategy, and a single big brand business may occupy more than 20% of its revenue (for example, before spring wind logistics accounts for more than 50% of revenue). At present, the replacement rate of large brands is fast, and the survival time is short. The logistics enterprises are easily subject to its restrictions (such as Xi long long, Del Hui, etc.).

At the same time, many small brands in the market are small in scale, but have a high demand for logistics solutions. It is difficult for a single logistics company to undertake a number of businesses and exacerbate the dispersion of the market.

Simple third party logistics is difficult to make bigger. After years of development, it is now difficult.

The biggest third party logistics enterprises lingered about 3 hundred million of spring breeze logistics, while other clothing enterprises such as Huaqi, Ward, Xinyi Tai and Hong Di did not break through the 200 million mark.

3.2 turnover efficiency is the core of competition.

Clothing is different from fast moving products and other industries. Fast turnover is its characteristics. Inventory management, distribution time and return handling are relatively high requirements.

Simple timeliness is of little significance to clothing. The supply chain service capability of the whole chain can win a higher price. The gross profit of the third party logistics enterprises in the garment industry is generally higher than 20%.

The biggest problem of clothing enterprises is inventory. Inventory is also considered to be equal to death. Most of the garment enterprises that are dying out are inseparable from inventory.

Traditional clothing enterprises have a long production and marketing cycle, and the production plan will be carried out one quarter or half a year in advance. More products need to be filled in the warehouse. Nowadays, clothing consumption demand is individualized and developing towards fast fashion.

The logistics of clothing enterprises are basically warehouses, and warehousing has become a great burden. It is necessary to optimize the logistics mode, reduce the whole country's warehouses, and set up the necessary urban front-end stores (PS: at present, the forecast of big data consumption tendency is not accurate enough, and there is a certain risk in the preposition silos), and the operation of the main warehouse directly with the national stores will strengthen the logistics operation and planning, which will effectively reduce the risk.

3.3, the dominant platform of business flow can be bigger.

According to the whole industry calculation, the largest enterprise of garment logistics is vip.com. According to the annual report in 2017, vip.com's logistics expenses account for 9.5% of its total revenue, and its annual logistics scale is nearly 7 billion yuan, thanks to the essence of its business platform.

Li Feng, a typical enterprise of garment supply chain, is dominated by business flow.