Continue To Promote Channels To Sink, Garment Enterprises, Entities, Channels To Expand More Diversified

In 2018, under the influence of macro market environment and changes in consumer market demand, garment enterprises' strategy of integration, optimization and adjustment basically took on a more diversified trend in channel development.

Action 1: opening more stores

Opening larger stores is a regular move for many garment enterprises to expand their channels. With the extension of more brands and categories of clothing enterprises and the need to satisfy consumers' better consumption experience, clothing enterprises will expand more to shopping mall channels, and more and more large stores will open up.

For example, YOUNGOR said in its 2018 annual report that the company continued to push ahead with the strategy of big stores in 2018, focusing on core cities' core resources.

By the end of 2018, the total number of outlets was 2258, which was reduced by 98 at the beginning of the year, with an operating area of 411 thousand and 700 square meters, and an increase of 17 thousand and 100 square meters at the beginning of the year.

The introduction of face recognition, service robots, intelligent voice shopping guide and other technology means.

Another male garment enterprise, nine herd Wang, said that in 2018, the company built a large, image and high flow shop, set up a store action group, supported the construction of large stores in terms of space design and store retail operation standards; made a special analysis of shopping centres, set up a shopping center shop model, formulated shop opening standards and supporting policies, expanded the shops of OLE, factories and large sale sites, and promoted the construction of inventory digestion channels.

In 2019, we plan to increase the opening of the integrated store and the ole store and optimize the location of the shopping malls. In the future, the new stores will expand the shopping center channels and promote the expansion of the large shops and large county-level stores.

Fu An Na, a home textile company, also said that by the end of 2018, there were about 1310 franchised stores (cabinets) under the company's lines, accounting for about 53% of the total layout of the first and second tier cities in the country. About 129 new stores (cabinets) were added in the year, and more than 250 of the company's stores accounted for nearly half of all the terminal stores.

Action two: open more shopping center stores

Opening more shopping center stores and opening more stores should be a complementary action. It is also a manifestation of the increasingly flattening channels of garment enterprises and the younger image of channels.

Clothing companies hope to gather more traffic in shopping mall stores to attract more fashionable young consumers to shop.

For example, Hai Lan's home said in its 2018 annual report that the company adheres to the principle of "golden section and diamond shop" to expand channels, and continues to increase the strength of shopping centers to develop a shopping mall with benchmark stores.

In the future, we will focus our efforts on expanding shopping centres, preempt high-quality shop resources in core shopping malls and shopping centers, adjust and optimize the marketing network layout of street stores, and maintain the coverage rate of stores in the 234 line cities.

Shoe Dragonfly Red Dragonfly also said in its annual report that in 2019, the company will focus on promoting the development of young sports, urban leisure, high-end products, and the pformation of new production lines. The company will close some of the low and scattered stores, continue to increase the strength of shopping center channels, and attract younger customers with new store images and young fashion products.

Outdoors enterprise Sanfo outdoor said, the company plans to enhance the sales ratio of private brand, extend to the upstream of the industrial chain, proxy more outdoor sports brand, increase ice and snow products agents, set up quality ski shops, choose shopping centers and commercial streets with large traffic volume, and establish a comprehensive flagship store with specialization, professionalization and youth.

Action three: adjust the proportion of direct franchise.

The proportion of garment enterprises adjusting direct franchise is mainly related to the efficiency of channel operation, and is also related to the channel expansion strategy of enterprises. In general, clothing enterprises hope to achieve a balance between expansion speed and efficiency by adjusting the proportion of direct franchise or joint venture.

For example, La Natsu Bell, who made a record loss in 2018, said that the sales of the company's Direct stores in the second half of 2018 were lower than expected, and the three and fourth quarter income decreased by 12.90% and 3.74% respectively.

In 2019, the company will speed up the process of channel pformation and adjustment, improve the profitability of single stores, and form a structural layout with equal emphasis on direct operations, joint ventures and franchises.

On the one hand, we should identify the key areas covered by the direct operation channel, close down the deficit and inefficient stores, and on the other hand, we should implement the way of joint operation and franchisee for the company's blank market at the county level and weak direct management capabilities, and strive for 1-2 years to form a channel layout with more than 50% of joint ventures and franchised stores.

Women shoes enterprises said on Saturday that in 2018, the company continued to set up the brand collection shop "Saturday Mode" and closed some department stores brand chain stores.

As of December 31, 2018, the company has set up 168 brand stores in the country, an increase of 19 compared to 2017, began to change the collection shop in the early stage to direct the main mode, and gradually increase the proportion of franchise stores.

As of December 31, 2018, the number of brand chain stores was 1378, which was reduced by 211 from the end of 2017.

Different from Saturday, another women's shoe company is going to increase the proportion of Direct stores.

The 2018 annual report of Tian Chong fashion shows that there are a total of 1925 stores under the company's lines, up to December 31, 2018, including 1377 direct outlets and 548 stores. Compared with the shops at the end of last year, there are 91 new outlets in the stores and 93 outlets in the stores. The company centers on the shops in the central city and key business areas, while developing new large shopping centers and commercial complexes.

Children's clothing enterprise also said that the total number of company stores was basically the same as last year at the end of 2018, the number of direct shops increased by 16 compared with the beginning of the year, and the number of stores in the stores decreased by 18 compared with the beginning of the year, and the area of direct shops increased by 5829.63 square meters from the beginning of the year.

In 2018, the company accelerated the structural adjustment of the shops under the direct line, closed down department stores that did not meet the performance standards, expanded the shopping center shops, and increased the number of shopping center stores to 264, accounting for 26.67%, representing a 8.19 percentage point increase at the end of 2017.

The company's new outlets are mainly developed in economically developed areas such as provincial capitals or regional central cities.

Action four: pay more attention to the development of OLE channel

While opening more shopping centers, stores, gathering stores, flagship stores and image shops on "tall and big" stores, garment enterprises also have another inclination, that is, how to deal with inventory and deal with inventory problems better.

In the current macro market environment, it is estimated that more clothing enterprises will pay attention to the development of OLE channel.

For example, Taiping bird said the company would have previous street shops, department stores and shopping centers.

The "four wheel drive" mode has been upgraded to "new four-wheel solid drive" channel layout. First, optimize street stores, two is to strengthen shopping centers, three is to upgrade department stores, four is to focus on the development of OLE, and in 2018, the company's retail sales exceeded 300 million yuan, up 70% over the same period last year.

Another popular clothing business Semir clothing also known as the company in 2018 and the famous chain shopping center to carry out strategic cooperation, the layout of high-end channels, focusing on promoting shopping centers, department stores and outlets development, to form a pan shopping center and exclusive stores and electronic business full channel mode.

Meanwhile, in the 2018 annual report, the positioning of high-end women's clothing enterprises, VGRASS, said that the number of VGRASS shops remained relatively stable in 2019, and expand the outlets, benchmarking shops into the first tier cities landmark shopping malls, and develop suitable for VGRASS brand positioning online model, e-commerce channels.

Action five: continue to promote channel sinking.

For the clothing enterprises which belong to the mass consumption sector as a whole, the potential of mass consumption comes from the development of urbanization and the expansion of domestic demand and consumption market demand. In this sense, the consumption upgrading and personalized diversification demand based on the second tier cities and the demand of capillary lines for three or four line cities are the two driving forces of garment enterprises' channel adjustment.

Therefore, in conjunction with more shopping centers and direct outlets in large cities, some garment enterprises have opened more franchise stores in the three or four tier cities to further sink the channel.

For example, in the 2018 annual report, Smith Barney said that the company built benchmarking shops in the first and second tier markets, and the three or four line market joined the cooperation mode. In 2018, the distribution revenue increased by 33% over the same period.

In 2018, the company put forward plans to further tilt to the three or four tier cities in terms of channel expansion, adopt a parallel development strategy of "100 cities and thousand stores" + shopping centers, and develop the county level market with the strategy of "100 cities and thousands of shops".

In 2019, the company will continue to upgrade its brand, upgrade its products, upgrade channels and upgrade its retail products, and promote the parallel channel strategy of shopping centers and traditional business circles.

Home textile enterprises Luo Lai life, said the company in the channel construction to take the big store strategy, in the first half of 2018, the national brand added 65 more than 300 or more flagship stores, at the same time, increased the channel sinking strength, open shop net increase area of more than 30 thousand square meters.

The company adopts the mode of combining direct operation and affiliation, and consolidates the advantages of the first and second tier market channels, and penetrates into the three or four line market at the same time.

Another household textile enterprise Fu Anna also said that the company's offline channels mainly focus on the first tier, second tier cities and the three or four tier cities with good economic conditions. After the optimization of the terminal stores in 2018, by the end of 2018, there were about 1310 outlets under the company's lines. The company accounted for about 53% of the total terminal layout in the first and second tier cities.

In the future, the company will consolidate the channels of first and second tier cities, and expand the high-quality franchising channels of the three or four line cities.

On the whole, garment enterprises in 2018 have both invariable aspects and some new trends in the adjustment of physical channels.

More stores, more channels to move to shopping centers, and channels to sink can be called "invariable" actions. More attention should be paid to the ole channel and more adjustment of direct franchise channel structure. This shows that the clothing enterprises have a more realistic adjustment trend in the current market environment and development cycle. Correspondingly, many garment enterprises have speeded up the shutting down and downsizing of the loss and inefficient shops.

With more diversified, flat and younger channel development strategies, "survival" and further development should be the main line of adjustment and expansion for many garment enterprises under the current and future channels.