How Does The Clothing Brand Go Against The Trend And Grow Towards The Sun?

In October of this year, the Chinese version of "ZARA" La Natsu Bell Q3 earnings showed a revenue of 5 billion 757 million yuan, down 7.16% from last year's year, from 2 to more than 2 billion from last year's Q3, and a direct loss of more than 8 billion yuan this year. Earlier, there was data disclosure that La Natsu Bell's controlling shareholder Xing Xing Xing shares pledge ratio of nearly 100%. Behind the real control of the pledged warehouse, La Natsu Bell shares only left 2400 stores in the first half of 1/62019, from the 2019 Q3 earnings report, La Natsu Bell from profit to loss has become a reality.
It is noteworthy that La Natsu Bell has not been the first to suffer a sharp decline in performance. Metersbonwe is the memory of countless 80 and post-90s. The performance report released by its listed company Smith Barney apparel shows that in 2019, the loss of Q3 US bond clothing was 238 million yuan, and the loss margin increased. Besides, the retail environment is weak, and the delivery period and inventory are a big drag on profits. In retrospect, the number of stores in the United States declined from more than 5000 in the peak to more than 3700.
2019 seems unfriendly to China's apparel industry. On the one hand, the retail environment is weak. On the other hand, demographic dividend is fading, clothing brands are increasing year by year, and overseas brands are constantly entering the Chinese market. Closing stores, losing money and selling unmarketable stocks seem to be the three major keywords of Chinese clothing brands in 2019. From the perspective of the history of Chinese clothing enterprises, the data scale is more concerned when developing rapidly. However, in recent years, clothing enterprises frequently fall into crisis, inventory is unsalable, and stores are closed. In the face of these, they seem to face the situation of transformation and Transformation: when market commodity saturation is too high and consumers choose too much room, how can brand operators change from demographic dividend to efficiency dividend?
　　 The transformation of clothing brand: the rise of e-commerce
Remember from 2009 to 2014, when the electricity supplier flourished, it was also the birth stage of the Internet brand and the stage of rapid development. When the overseas marketing strategy gradually entered the Chinese consumer market, the most common heard was the "multi category, multi brand" wolves tactics. These brands, who have few or even dozens of brands at hand, from children to old people, from women to men, seem to want to make up 1 billion 400 million Chinese consumers. All brands are expanding blindly, whether it is the new Internet brand or the traditional brand, everyone is expanding their brands and expanding their products. With the maturity of the consumer market, the path of barbaric development is no longer suitable for the market rule. In contrast, the cost is rising, the inventory pressure is rising, and the selling and selling turnover continues to fall. Clothing enterprises may not have realized the crisis at that time, but some brands have been in crisis.
From 2012 to 2014, Lining, a famous sportswear brand in China, also experienced a crisis. Inventory was unmarketable, cash flow was tight, store operations were not good, and foreign brands and domestic brands were being attacked inside and outside, so that Lining almost fell into inventory in those years. Finally, stores tightened, electricity providers cleaned up inventories, accelerated inventory sales, and cash flow to revitalize the famous sports brand.
At that time, the electricity supplier became a channel for traditional brands to clean up inventory, which also gave rise to opportunities for emerging channels such as e-commerce. The more players can enter the Bureau, the traditional electricity supplier is not the early electricity supplier. For brands, the efficiency of these channels to inventory is too low. They also begin to value the channel of e-commerce. They will explode products, new products, and even develop a product line separately, and directly enter the electricity supplier channel.
Is flexible supply chain effective?
Beginning in 2014, with the Internet brand as the representative, they began to focus on the short and fast supply chain mode, which is known as the "flexible supply chain". According to Baidu encyclopedia, flexible supply chain is referred to as supply chain management flexibility, which refers to the agility of supply chain for demand change, or the adaptability to change of demand. The change of demand can also be called uncertainty or risk, which is an objective phenomenon in all aspects of the supply chain, between enterprises and enterprises or between the enterprises and the ultimate consumers. The uncertainty of demand will increase the difficulty and cost of supply chain management.
For example, a brand can take a small amount of money and quickly test the market response. If sales increase gradually, and then enter the big goods production, if sales are not good, immediately enter the clearance stage. With the increasing performance pressure year after year, the external processing plant has obvious peak season. Brand manufacturers still have to predict the burst, mass production and reduce the cost of products. Insiders said that the rise of the flexible supply chain still came from the problem of unsalable inventory of brand dealers, which allowed brands to fall into a dilemma and inventory. On the one hand, there was no deep inventory, which represented the pressure of performance. On the other hand, it did not solve the problem of unsalable inventory, and it might become the straw that crushed the enterprise.
In the media, the news that inventory handling is difficult to overwhelm a garment enterprise has been heard frequently. In the face of many pressures such as inventory and revenue, how to speed up the stock circulation and enhance efficiency has become a point of all enterprises. One careless business may push the enterprise to the abyss of abyss. However, properly handled, there is still a chance to survive. With clear inventory and withdrawal of funds, the brand strategy can be adjusted again, which is more in line with the current consumer market. The real meaning and value of the promotion of flexible supply chain is to help enterprises manage the supply chain, improve the turnover efficiency of goods, and the efficiency of capital utilization.
　　 When the revolution comes, it is the king's way to improve efficiency.
In June of this year, AI research, a leading research institution, released the first domestic inventory electricity supplier report, "2019 China inventory electricity supplier Industry Research Report". The data show that the market size of the inventory electricity supplier will reach 150 billion in 2022, and the inventory business platform represented by S2b2C is becoming the "savior" of garment enterprises. They are using the way of inventory electricity providers to speed up the circulation of goods, and enhance the efficiency of sales and capital withdrawal.
In October 9th this year, according to Ali auction official website information, fortune Limited by Share Ltd's receivable prepaid bonds, long-term equity investments, inventory and other bankrupt assets were encountered after 24 hours on the shelves. The auction lasted from 10 hours in October 8th to 10 hours in October 9th, and the starting price was 283 million 720 thousand yuan. According to Ali's auction information, no one has signed up for the bankruptcy assets of the rich birds. A total of 91 people have set up reminders and 6334 onlookers. Rich birds did not find a way to improve their efficiency in the process of change, whether it was cash or cash flow, which led to bankruptcy.
It is reported that at present, many domestic garment enterprises including Metersbonwe want to learn the fast fashion mode of ZARA and H&M, such as increasing the styles, reducing the quantity of single goods, shortening the replenishment cycle and supplying time, and reducing the selling price of related products. But at the present time, not only one enterprise can succeed, but also some enterprises even derive a series of other problems, such as rising cost and frequent quality problems. The analysis points out that although China's garment enterprises are up to standard, they do not have the "software" of international fast fashion brands such as UNIQLO, ZARA and H&M, such as cost control and inventory reduction. Take the supply chain as an example, because of the large scale and the large number of brand shops, the "fast fashion" brand has absolute initiative in the "dialogue" with the upstream suppliers, and can get the raw materials at the lowest price and speed, which is not possible for the domestic brands at present.
The revolution of garment enterprises is not only to copy the overseas brand directly, but to find the crux of their own problems and find out a way of development for their own enterprises. Perhaps the road to change is a little lonely and tempting, but the core lies in efficiency. For a clothing enterprise, what is the lifeline, goods and capital, and how to improve the efficiency of the two uses is perhaps a problem that domestic brands should think about.
Goods, for the brand, is both the source of performance and the straw of the enterprise life. How to raise the turnover rate of goods, how many unmarketable stocks there are in the warehouse, how to deal with it in a large scale and how to deal with it privately will be faced by enterprises. Besides, the importance of money is beyond doubt. How to quickly withdraw funds and raise the number of funds may reduce the risk coefficient of enterprises. For example, a clothing company has a cash flow of 10 million, and now it has a turnover of 10 million times in a year of 2, a turnover every six months, with a turnover of 12 in the next year and a turnover every month, so as to effectively solve the problems brought about by the stock market's unmarketable inventory.
Clothing enterprises tend to be aligned with past successes in the transformation of thinking, but the scale effect of wolves tactics has been completely unable to meet today's consumer demand. Clothing enterprises can save themselves, perhaps in clearing inventory, but also have to rethink the logic of spending, improve the efficiency of capital use, and the efficiency of goods circulation. To reduce their own cost and quickly clean up inventory is the only way for clothing enterprises to survive. But at this time, it is still impossible to solve the foundation of clothing enterprises or brands in the consumer market. Learning to understand consumer demand and meticulous operation may be the key factors for the clothing enterprises to save themselves now.