The "People'S War" In The Market Of Clothing Sunken

There was once a simple idea spread among economists: if a city is developed from three to six lines, it should be noted that there are not many couples shops in this city.

Because in the domestic business environment, three to six lines of small cities and small towns are often the most active and extensive commercial networks in China.

As a self-employed person, the small and small shops have carried the necessities of life in a region. They are the core nodes of the retail industry, and are also the smallest cells built into China's economy.

As a representative of the self-employed, the husband and wife shop is a magical group in China. They may earn money and be able to take risks.

The cost and profit structure of individual businesses fluctuates greatly. From the perspective of individual entity store operators, the net profit they earn is also not satisfactory.

We can take clothing stores as an example to observe China's sinking retail market, so as to understand China's consumption classification.

Cost mountain

Almost every year, relatives and friends consider opening a clothing store in the three or four line city.

In their view, opening a clothing store is probably the best business in the world.

The profit of a garment may be as high as 100% or even 200% or 300%. As long as slaughtering 1-2 guests a day, it seems that the expenditure of one day has been balanced.

The rest of the time may be played by playing with cell phones and pulling home rules in the store.

In addition, clothing stores do not have a shelf life like food, nor are they good or bad at restaurants. This is a business with almost no threshold.

The ideal seems to be very plentiful, but every year we can see a clothing store open in less than half a year in three or four line cities.

We can take a good account and see if the clothing store is really as easy as making money.

Take the three or four line city solid clothing shop as an example, it is located in two types of business circles in the city, with an area of 50 square meters and 2 salesmen, whose cost is probably composed of four blocks.

Transfer decoration: shops pfer costs in the range of 100 thousand -20, the general contract period is 3 years, the long contract will be 5 years, the cost of decoration is also between 10-20 million;

Store rent: 50 square meters monthly rent in general is more than 8000 yuan, or two types of business circles, if it is a kind of business circle rent is more expensive, professional calculation next year rent between 100 thousand - 300 thousand;

Labor costs: 2 employees, using the basic salary + commission + bonus accounting method, in the case of relatively low wages in the mainland cities, an employee's annual salary is between 40 thousand and 60 thousand.

Other costs: travel expenses, utilities, purchase costs, depreciation of equipment, we can calculate about 50 thousand.

This slightly decent shop costs between 400 thousand -80.

Of course, we can also see some small shops in some small streets in the small town, which are only about 20 square meters. This kind of shop is often a wife and wife store.

But even if the cost is saved, the decoration is simple, and no salesperson will be employed. The cost will be at least 100 thousand -20 a year.

Take a garment with a production cost of 200 yuan and a price tag of 1000 yuan next to the store, for example, it may get 300 yuan in the hands of the dealer. The price of the goods taken to the self-employed person is 400-500 yuan, and the final 7-8 discount price is generally between 700-800 yuan.

It seems that profits are about 100% of the price, but the reality is far from ideal.

Osseous reality

Next, we will analyze the cost and risk behind the seemingly profiteering of clothing operators.

Electricity supplier impact: the impact of electricity providers can not be ignored.

You know, due to the existence of rent and labor costs, most of the actual clothing stores are actually selling at a higher price than the electricity suppliers.

Every time you go to a store to take photos, shop assistants often express their dissatisfaction.

The real worry of the shop assistant is that you take the picture and scan the code to find the same money in Taobao, and see how much the price is lower.

In front of the electricity supplier, the entity store is almost uncompetitive.

Therefore, more and more physical clothing stores announced the clearance sale because of the impact of the electricity supplier, and some even wrote such words at the door of the shop: "Ma Yun has been harming, going home for farming, clearing the warehouse at the end of the month, and not leaving one."

Storefront cost: storefront is often the biggest cost of a physical clothing store.

In front of us, the cost structure has been very clear, even pfer belt decoration plus rent may occupy more than 60% of the total cost.

After the completion of the 35 year contract, how did the contract not be renewed? Finally, the shopkeeper needed to find a new store. When the cost of the decoration was taken again, it would be one hundred thousand.

It can be said that the cost of storefront is becoming the biggest.

In the final analysis, entity operators are now working for landlords. The problem is the real estate market.

Inventory risk: the biggest problem is inventory and cash flow risk.

The self-employed people are always facing the pressure of funds and the problems of turnover.

Though I said before, the profit of a garment may be 100%, but not every piece of clothing can be sold.

Many clothes have been smashed in the warehouse of self-employed households after changing seasons and new ones.

A self-employed person can't look like a garment manufacturer to find a distributor to shift the inventory pressure, and can only digest it on his own.

It takes 2-3 years for some self-employed individuals to sell out a shipment.

There are 200 thousand stocks in the warehouse, and maybe 50 thousand of them are out of stock.

So you can often see such a scene in the three or four line city. When a clothing store opened, it was full of flowers and flowers. After half a year, the store was cleared for sale. After half a year's sale, it closed down.

A large number of people who thought that the clothing business was good enough to do so were muddled into the market. Finally, they were badly beaten and chose to work honestly.

Third choice

Clothing stores opened in the past, either offline or Taobao electric.

So are there third options, especially those that can peel off store costs, and do not buy advertising traffic or even inventory?

Under the current social e-commerce path, there are already third options.

For example, in the S2b2C mode electronic business platform such as love inventory, if a self-made inventory distributor is pformed from a self-employed person, it can form a more flexible mode: distributors can provide crowdsourcing services such as customer service, sales, after sale, delivery and so on. Distributors can directly forward merchandise information to WeChat's friends circle through selling the information on the love inventory platform, and users will jump to the platform to place orders when purchasing orders.

1, cost advantages, distributors do not need to open stores at the end, do not need to purchase inventory, directly stripping the store costs and inventory costs.

Moreover, the net profit generated by the total distributor will be as high as 15%-30% and does not include the power of the distributor to raise the price automatically.

2, category expansion, from the point of view of goods, can also extend from clothing to many categories. Clothing products are not seasonal explosive products, new products, inventory can be different.

In the past, clothing stores only sold clothes, but as distributors, wives and wives could not only sell clothes, but also sell home textiles or even some daily necessities.

A relatively rich category structure is formed.

3, eliminate risk, no inventory risk, rent, labor risk, and even do not need cash flow.

Because distributors' profits come from their own markup profits.

Although goods are sold from distributors, they are actually shipped from the warehouse of the manufacturers.

Distributors only need the mode of wife and wife shop to be responsible for marketing, and only after growing up will they build their own team.

We can count the bill again.

Take a garment with a production cost of 200 yuan and a price tag of 1000 yuan next door shop as an example.

The cost price may be 250 yuan for manufacturers to love inventory distributors.

Love inventory distributors can freely increase their own price, the selling price is 500 yuan, to earn 100% of the profits.

This price is much cheaper than the 700 yuan -800 yuan after 7-8 discount online shop, but it eliminates other cost and risk factors.

Under such a mode, the self-employed people are almost secure, and they can light up simply, just like ants and soldiers to carry on the national dress, home textile and retail.

Really do sit at home every day, send and receive WeChat, sell a few clothes, the rest of the time to play games, watch TV.

In this mode, not only the self-employed, but also the clothing factories can deal with the inventory to the distributors and avoid the warehousing costs.

Users are able to get good quality products through the way of "picking up the leak".

People's War

What is most expected of this model is that it can not only save Chinese coastal factories, but also save three or four - line cities' self-employed individuals.

Let the two most realistic economic sectors of China survive through this internet mode.

The real economy must win the "people's war".

You know, the coastal factories and the self-employed of the three or four tier cities are the most important part of China's economy. They are not only operators, but also consumers. They are also the main force of the "people's war".

70% of China's population live in counties, while county economy accounts for more than 50% of GDP.

According to the survey report on the importance of county economy, there are fifty thousand or sixty thousand small towns and towns in 2860 counties across the country, which concentrate more than half of the country's purchasing power, accounting for more than 1/2 of the total retail sales of the whole country.

In addition, farmers purchase more than 70% of the city's stock, which has concentrated 60% of the country's money circulation.

Over the country, there are more than 6 million small shops, most of them are husband and wife shops, more than 70% are in 3-6 line cities, and the number of stores in the past 10 years is basically stable.

Shopkeepers at the age of 80% are over 45 years old, and are usually not very familiar with smart phones and the Internet.

Shopkeepers spend more than 12 hours a day on average, and spend 15 hours a day in Southern China.

Clothing stores and convenience stores are the business they will think of for the first time.

The coastal factories and the self-employed households in the three or four line cities are not only large, but also related to the employment rate.

In order to stabilize the Chinese economy, the cells have been stabilized.

For individual businesses, the infiltration of Internet technology innovation to the three or four line cities of China and the five or six line cities has made the individuals of the sinking market more choices. They can be more wide in the field of operation, even the "heavy" conditions of storage and logistics have been solved.

They can make use of WeChat and social networking providers to conduct low cost business pactions in acquaintances, acquaintances, and wider word-of-mouth circles in small cities.

For consumer groups, distributors can purchase relatively inexpensive and cheap goods, which have the cost performance of Taobao, Tmall and Jingdong.

The retail brand of the county itself is not as complete as that of a second tier city, but the social business has brought more brands into the sinking market.

Users in the sinking market can satisfy their desire for famous brand consumption at a lower price.

For manufacturing factories, the coastal garment factories are also trying to understand people, goods and fields in a more three-dimensional way.

At present, the most difficult part of any retailer is to sink the market.

Most of China's goods end up in the market under the county line, but this part of the market is like a black hole.

Self employed workers are like the capillaries in the retail industry, but the user portrait data, logistics data and goods sales category structure data in capillaries are almost unknown.

But in the process of social e-commerce pactions, every paction, every order, every promotion, will generate countless data.

Sales data are cleaned, processed and modeled to help apparel enterprises pform their strategy, logistics, operation, management, marketing and marketing.

Let the small and medium sized factories that are at the edge of life on the southeast coast have been reborn.

Production, operation, employment, consumption, and so on a complete closed loop, because social business is closely linked together, cooperating to avoid those costs and risk factors, and regain liberation.

The sinking market of the 3456 tier cities has been completely opened up, and it is healthier and more sustainable than the former abnormal market, sluggish consumption and heavy cost.

This "mass movement" and "people's war" that concern individual businesses can even pform China's economy in a subtle way.