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    Collective Discount And Self-Help Of Clothing Brands: Online And Inventory Clearing In Post Epidemic Era

    2020/7/11 14:24:00 0

    DiscountTimeBrandBrandOnline

    During the "618" period, Ms. Wang, an editor of a publishing house in Beijing, purchased several lululemon yoga clothes on an e-commerce platform. Due to the impact of the epidemic, social contact decreased and household consumption expenditure was reduced, which was the only clothing she bought in the first half of 2020. The reason for the purchase is the brand's rare 50% discount promotion, and the clothes of this brand are almost the "class clothes" of her Pilates class.

    On July 9, the person in charge of relevant business departments of Jingdong e-commerce platform told the 21st century economic report that as the first national consumption Festival after the epidemic, "618" this year has self-evident value in stimulating consumption, helping brand businesses clear inventory and improving cash flow, and the clothing category on Jingdong platform has also launched the largest sales promotion in history.

    In the past two months, famous sportswear brands, including Nike, Adidas, skykey and lululemon, have been clearing inventory on e-commerce platforms with rare promotional discounts. On a global scale, China is a relatively early recovery region of the consumer market. The efficiency of clearing inventory in the Chinese market through e-commerce platforms also gives some footwear brands the hope of global de stocking.

    Online promotion stimulates inventory clearance

    Although many shoe and clothing brands are reluctant to publicly respond to inventory clearing and inventory pressure, due to the impact of the epidemic, a large-scale "618" e-commerce promotion has been fully manifested.

    For sports brands such as Nike, the top priority now is to clear inventory as much as possible. In late June, Nike executives said in a conference call that they could clean up inventory at a higher profit level. At present, discount sales are taking place in the whole market, but Nike's discount is less than what they see in the whole industry market. The strong stickiness between Nike brand and consumers is prompting them to clear inventory faster.

    In the first quarter, they started the inventory planning process mainly in case. In addition, actively expand business and cooperate with other platforms to develop different marketing methods to digest products.

    Jingdong group replied to the 21st century economic reporter that during the "618" period, Jingdong clothing took a series of supporting measures to help the major brands quickly return to blood. In the first 30 minutes of June 18, the turnover of sunscreen clothing, sunglasses, sunshade caps, ice sleeves and other sunscreen products increased by 120% year-on-year, the turnover of BM style women's wear increased by 200%, and the turnover of overall body shaping and body building products increased by 638% year-on-year.

    In May, vipshop's top management said in a conference call with analysts after the release of vipshop's financial report that the discount market dividend would last at least until the end of this year, because vipshop did see the huge number of goods in stock. In addition, the dividend also came from taking more shares of offline Market online.

    On July 8, vipshop's relevant person in charge told reporters that in the past three months, major sports brands have increased their stock in vipshop. At the same time, they have launched activities such as "60% discount for new products", "30% discount for classic models" and "direct delivery of goods from stores" and other activities. The sales volume of Nike doubled year-on-year. International and domestic sports brands such as FILA, puma, Anta and Li Ning increased by nearly 150% compared with the same period last year. During the "618" period, Nike, Puma and other well-known foreign sports brands achieved 100% growth on vipshop platform compared with the same period in 2019.

    According to vipshop's feedback, in the past half year, due to the increase of home scene and the attention of users to healthy lifestyle, the growth of sports, home and leisure clothing is faster.

    One step forward in Digital Practice

    When talking about the Chinese market, executives of several foreign enterprises, including Nike, all mentioned a similar point of view: the Chinese market has a good digital foundation by clearing inventory through online promotion. Chinese consumers are used to electronic payment and shopping through e-commerce platforms. In recent years, many foreign consumer brands, including Nike, Starbucks, McDonald's and KFC, have made a lot of digital innovation in the Chinese market, and the market acceptance is also very high.

    Offline, disrupted the physical impact of the retail. Online sales can overcome the distance barrier, not only plays an important role in the anti epidemic, but also plays an important role in the recovery of consumer market after the epidemic. The innovation and practice of digital transformation invested and publicized by consumer enterprises in recent years has been tested in the epidemic situation. At the same time, the epidemic situation has made more consumers move to the Internet, which further strengthens the online consumption habits of consumers. It is an opportunity for enterprises to attract online members or fans.

    For the e-commerce platform, affected by the epidemic situation, the online effect of clothing brands is also obvious.

    Vipshop said that first of all, clothing brands not only put the sales channels on the line, but also deepened the reverse impact of online channels on the supply chain. For example, vipshop and the brand jointly develop products, customize exclusive explosive products, and help brands quickly return orders according to the platform big data feedback, which greatly improves the efficiency of the supply chain.

    Secondly, we will vigorously promote the sales of new products and accessories according to the sales status of the brand.

    Finally, a large number of brands have realized the connection between offline stores and vipshop online sales, which has accelerated the turnover speed of goods, and let the goods of stores reach consumers directly through vipshop's platform. All these are the performance of accelerating the online de marketing of brands.

    Jingdong group, on the other hand, said that Jingdong has developed a new path for in-depth innovation and integration of online and offline clothing brands after experiencing suspension.

    It has opened up a variety of online shopping modes, such as "closing shop, shopping with cloud" and so on. At the same time, Jingdong also provides a variety of marketing tools, such as supporting the off-line clothing and opening up the marketing platform.

    During the period of "618" this year, Jingdong cooperated with well-known brands at home and abroad, and twice opened the online otellist to sell and clear the warehouse, which effectively stimulated the consumption vitality and enabled the businesses to realize their cash more efficiently.

    According to Jia Shaohua, former vice president of Yiwu vocational and Technical College of industry and commerce, the reason why live e-commerce in 2020 attracts the attention of the local government, the capital side and even the whole society is that many manufacturing industries around the world are facing the problem of de stocking in this year. The online delivery of consumption scenes by e-commerce live broadcasting is also an important way to help enterprises De inventory. Therefore, whether it is the "618" e-commerce platform promotion or e-commerce anchor carrying goods, it is the rigid demand of many manufacturing enterprises to sell goods to inventory in 2020.

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