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    They All Say That The Clothing Industry Is Howling, But They Are Quietly Erupting.

    2020/4/1 10:41:00 0

    Apparel IndustryOnline OpportunitiesLive Broadcast

    Offline stores are frozen, foreign trade factory orders canceled, inventory backlog... Under the epidemic situation, the pain of the clothing industry is self-evident.

    But there are also plum blossoms in winter. In the hard times, some enterprises have grasped online opportunities, and have taken advantage of their own supply chain integration to stabilize their heels. They have not been hit hard, and are even brewing a wave of outbreaks.

       The magic of live broadcast

    The product is a Menswear brand that provides door-to-door volume customization service. It was founded in 2015 and operates in C2M mode. It hopes to connect users with factories through Internet, mobile payment, big data, and so on, so as to achieve supply chain reengineering and reconstruction.

    Jiang Rong, director of quantity brand, said that sales in March this year dropped by about 30% compared with the same period last year, but the door-to-door business has been gradually restored, and it is predicted that it will return to normal in April.

    In order to improve the state of sale of front end sales, many enterprises have begun to carry live goods, and quantity is no exception. Since the end of February, two weekly WeChat live programs have been launched. There are many raffle tickets and various promotions.

    In fact, last year, volume wanted to set foot in the live broadcast, but no suitable tools had been found until the Tencent was broadcast live.

    In fact, we have been thinking about what live broadcast is appropriate. Jitter, fast hand, Taobao, this square live broadcast needs to establish or cooperate big IP, accurately find user groups, enterprises do not have their own traffic, but also very time-consuming. The live broadcast of Tencent has opened a new door for us, and we found that this is the live tool that quantity products have been looking for. Jiang Rong said.

    Because WeChat and its customers communicate through WeChat, they only need to share the links of small programs to customers, so that they can ensure user accuracy and maintain traffic. "So we don't have to build a net red. We have trained a girl from the training department for two days, and let her know the product and go online. The result is pretty good. The first live broadcast made 500 thousand sales. "

    It is understood that the anchor in the live room is not only showing new products and fabrics, but also showing the collocation of the headquarters designers. Therefore, on the basis of carrying goods, there is another function of live broadcasting, that is, "training". The volume master himself will also watch live study collocation and save screenshots so that he can make a matching recommendation to the client afterwards.

    The sales situation is improving gradually, and the volume of investment is also "particularly good". The three executives of the company have to interview eight or nine people every day. Jiang Rong said that after the outbreak, the volume of products may usher in a wave of outbreak. The company's sales target in 2020 is 195 million, and the recruitment target is 1000. Now it seems that the investment target can be completed in less than half a year, and it will continue to attract talents.

    "The epidemic situation allows us to rethink business models and business opportunities. Many people in traditional stores need to transform, and we see the superiority of quantity models to seek cooperation. At present, the whole supply chain of our group is relatively complete, and the operation is also very good. They do not need to pay for goods and do not need to open a shop.

    Similarly, custom-made services as the core of the gold customization during the epidemic also steadily stride forward.

    Fan Jianbo, chairman of the customized gold company, said that the old employees were very stable, and the new recruits were not as difficult as they used to be, but because the Spring Festival vacation time was too long, and the backlog of holiday orders resulted in the backlog of orders at the beginning of the construction.

    "In terms of business, we have always received receipts and orders, so the epidemic has not had any impact on our cash flow. Clothing customization service is part of the relatively high-end group, consuming power is strong, clothing consumption expenditure accounts for a small proportion of their overall expenditure, so our sales volume compared with the same period last year, in fact, does not fall or rise. The amount of clothing customization has been increasing year by year, and custom-made gold has been growing at an annual rate of nearly three years.

    Similar to the coping strategy, the gold customization program started from April, and was broadcast live every Saturday. But it mainly aimed at the B end for product introduction and technology teaching, including the theme of "2020 new fabric book" and "how to do custom store marketing".

    "Due to the impact of the epidemic, new and old customers can not come to visit, so we have increased the content of the picture and text push in the promotion of new products, increasing the frequency of live recommendation, enabling customers to stay at home and be able to access our new products, and regularly introduce preferential products to help downstream customers better drainage."

       Platform opportunities

    Under the epidemic situation, enterprises that are mainly divided into garment customization businesses are not subject to big waves. The B2B platform, which is mainly based on online business, focusing on supply chain integration, is also relatively stable.

    The core logic of Bai Bo is to build a textile B2B platform by self operation, linking up the upstream supply and downstream demand with extremely asymmetric information, so as to achieve efficient matching and close the transaction. Up to now, there are more than 5000 successful shops and more than 20000 buyers.

    Li Yaping, co-founder of Bai Bo, said: "the fabric industry is mainly cash based and futures are complementary, so the supplier side is stocked with stock. During the epidemic period, the trading volume of our platform has changed little. The wholesale market has been closed down, and it has only just opened about two weeks, so our market share has been greatly improved.

    Through a strategy of "vertical" and "horizontal", the AIoT equipment in the production link of the upper reaches of the industry is over 100 thousand, covering 10% of the loom production capacity and promoting the industrial chain intelligence and information upgrading to improve the matching efficiency. According to Li Yaping, 100

    It is estimated that AIoT equipment will cover 400 thousand units in 2020, and the capacity of loom production is expected to reach 40%-50%. The total transaction scale will be 2-3 times that of last year.

    "We think that building supply chain is a relatively mature way and mode, and will continue to move forward in the future. If 2B enterprises can build up supply chain step by step, the energy will be larger than before. Individual customers mining and new customers will be promoted. Every change in the supply chain will increase exponentially. "

    Garment pulse synthesis is the B2B platform for clothing supply. It provides source clothing products for online and offline apparel retailers and wholesalers through the integration of original design studio ODM/OEM suppliers. The focus on online light asset mode enables enterprises to operate normally during the epidemic.

    Chen Deming, co-founder and CTO, said that the platform is now on the upgrade every day. Nearly 70% of the shops are on the transformation line due to the epidemic situation. Many suppliers are willing to take the product on the platform. At present, there are new ones every day. But the fashion week and the new supply chain meeting planned to be held in Guangzhou are shelved.

    "Nevertheless, we still see more opportunities. Because the wholesale proportion of traditional lines is large, but the epidemic spawned many online opportunities. We are just doing online wholesale, and I believe there will be more supply chain resources and retail resources in the future. Our vision is to build a first-rate platform for Internet wholesale, hoping to cultivate users from the original wholesale market to see the low efficiency of goods seeking, and transfer to the Internet apparel wholesale platform.

    Speaking of confidence in the clothing industry, Chen Deming said he was cautiously optimistic. "The whole year may return to about seven or eight last year, and those who hold on to it should slowly recover, the better the better. Now, enterprises can persist in survival is victory. "

       As a warning for the future

    At the same time, we still have to admit that the clothing industry exposes too many problems in the epidemic.

    Today, China sells 100 million pieces of clothing and actually produces 2-3 billion pieces. "Even if the clothing industry is now stopped, there will be enough storage for 3 years in the whole country. What is the concept?" Jiang Rong has no regrets.

    "For example, last year's sales of clothing enterprises nearly 18 billion, so this year is expected to be very good, spring itself is also the peak season, about 3 billion of the goods were prepared, as a result, the stockpile of disease quickly became stock. The stock will not sell, and the summer will come again. The autumn and winter will start stocking again. Will the next shipment be done? Can the upstream and downstream suppliers cooperate with each other? The problem faced by traditional clothing enterprises is that inventory can not become cash flow, which affects the operation of the entire supply chain. "

    The depreciation rate of inventories is amazing, and the value of goods is less than half of the value in a year. The increase of spring clothing inventory has a direct impact on the operation of cash flow, and the development of traditional garment enterprises is worrying.

    At the same time, with the outbreak of the epidemic in foreign countries, cross-border procurement has been affected, and the situation of foreign trade enterprises has become more difficult. Some practitioners even mocked themselves: "in 2020, who dares to compare with me?"

    At present, the order of foreign trade factories is down by 50%-60% compared with the same period last year. A large number of orders have been cancelled since mid March. An industry insider told the media, "factories with foreign orders are more sad. They have already started working overtime and shipping goods. They suddenly received the news of the cancellation of the list and suffered heavy losses. Some accept the resignation of employees, and they may stop at any time. "

    In such a severe situation, how can foreign trade enterprises save themselves? How should the garment industry reconsider?

    Li Yaping believes that the next domestic demand will not have much impact and change, the domestic market should be gradually restored, the impact of foreign trade is relatively large, foreign oriented enterprises can turn their eyes to the domestic market, and appropriately strengthen their domestic demand market.

    "However, there is still a big difference between the foreign trade market and the domestic market. Whether the foreign trade factory can adapt to this change, timely adjust the mode of operation, seize more business time and opportunities depends on its ability to adjust itself. It will probably grow better than before. "

    From the perspective of the apparel industry, the epidemic highlights the platform advantages of no inventory and strong supply chain integration capability.

    Compared with traditional clothing enterprises, the great advantage of quantity and gold customization is that there is no stock, but first demand and production. Yu Li Da, the founder of volume products, has publicly expressed the hope that the clothing industry will be transformed from spot model to futures model, so that clothes reproduction can be bought first, so that it can not be wasted, and is willing to open the system.

    In this regard, Chen Deming said that the future clothing industry should consider moving on demand, instead of continuing to advance the layout, mass production of the old road. "And now many supply chain enterprises are already making adjustments, opening their live broadcast and Taobao stores directly to C consumers. The proportion of enterprises that rely solely on supply chain will be smaller and the proportion of diversification will be greatly enhanced.

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