Who Can Make Money In The Clean Inventory Industry

"To see who can make money in this industry is to see whose inventory is cleaner." It's in this industry Universal law 。

Little known Inventory Expert

Xiahua is very interested in a batch of authentic Meibang products produced before 2010, but the price is not negotiated. The price of Meibang warehouse keeper is 0.70% of the tag price, while his psychological price is 0.50%.

Xia Huaxiang is not an ordinary customer. He is a person who collects inventory“ Inventory specialist ”。 A few days before his visit to Meibang warehouse, Xia Huaxiang was introduced to do a business with Meibang and bought 70000 pieces of clothes at an average price of 7 yuan per piece, ranging from T-shirts to cotton padded clothes. The reason why they can be bought at such an incredible low price, Xia Huaxiang explained, is that these clothes have some defects, but they can still be sold in our place.

Xia Huaxiang very much agree with the value of the brand, now he collects inventory, basically want to collect famous brand. However, the brand is eternal, but brand goods are not. They can't wait too long. No one wants clothes that are used for more than two years.

In China, there are tens of thousands of people like Xia Huaxiang. Although these people come from all over the country, they all gather in the same place in Shijing Town, Guangdong Province. Therefore, they are also called Shijing business gang in the industry.

One file is worth one group company

This is China's clothing tail goods paradise. It's a secret business. The annual turnover of more than 10 billion yuan in Shijing corresponds to hundreds of billions of sales in normal channels.

The first time I saw Xia Huaxiang was in Qingfeng clothing city, Shijing Town, Baiyun District, Guangzhou. In a prominent position in the clothing city, he operates five linked stalls. There, we can see many famous brands at home and abroad that have been beaten back to the original form of textiles: bags of brand names are piled up like new and old, which are full of the first and second floors of the gate, and the spaces between the sofa, tea table and office desk are also full of famous brands, and people who enter the store will step on them if they are not careful.

That afternoon, Xia Huaxiang put several samples of the Campbell suit from the shelves into the channel outside the stall. The suits, which cost thousands or thousands of yuan and were made in 2009, were the spoils of his two or three months ago. The total number was tens of thousands of pieces, and the unit price was only tens of yuan. In order to maintain its image, the company cut off the label on the collar when it sold it.

"This is China's clothing tail goods paradise, and the largest in the world." Said Chen Fuyang, a friend of Xia Huaxiang. Shijing really has a bit of international flavor. In Guangda, Qingfeng, Jindong and other clothing cities in the town, black or Middle Eastern people carrying large bags of clothes or looking at goods at the stalls can be seen from time to time. There is a big Saudi family who is a frequent visitor to Ishii. "He comes four or five times a year, with a translator, one stall at a time, and he keeps an eye on it. Generally, he can get one order in a week." Chen Fuyang said that the Saudi bought 3.4 billion yuan a year from Shijing and once took more than 80 million yuan of goods.

"No matter what brand, T-shirt or down jacket, the average purchase price is only a few yuan when the inventory has to be released. Here in us, whether we receive or sell, it is far below the production cost price. " Chen Fuyang said, "clothing is not gold, it can keep value. Those clothing manufacturers always think, why do they want to sell us 30 or 50 yuan for 100 yuan? They are reluctant to give up. It's not worth it all the time. For example, the price of products sold in 2008 is not a problem. Now, even in remote areas, the demand of the public is to be beautiful and to have a good style. " For those listed companies with a mountain of overstocked inventory, there is not much time left for them. According to the cost structure of clothing industry, the production cost of large and medium-sized garment enterprises is about 1.8-2.3% of the tag price. In the inventory market, what is needed is not the respect of value, but the respect of love for cheap psychology.

According to Chen Fuyang's estimation, there are more than 10 billion transactions per year in the town's tail goods business. Although there are so many shops in Shijing, they don't have to pay a tax of 3000 yuan per square meter in Shijing

Up to now, most of Ishii's advertisements are not published on the Internet. For tens of thousands of people, even the big family such as the Chen brothers is also the boss with no reputation in the clothing industry - they are almost a secret group, only people in the circle will know each other. Sometimes when you live in a hotel, there may be dozens of people who know Chen Fuyang. Chen Fuyang recently met many acquaintances while waiting for a plane at Qingdao airport. You think, tens of thousands of people in some specific places out and in, will certainly meet.

Chen Fuyang said that in Shijing's inventory market, people who put in more than one billion cash to do it are considered big crocodiles. This figure, at first glance, is nothing compared with those large clothing listed companies, but in the inventory market, the turnover efficiency of capital is much higher. In clothing production and marketing enterprises, the most four seasons of clothing a year, investment turnover four times, and in Shijing turnover is unlimited. What is the concept of one hundred million? According to the positive price of clothing production and marketing enterprises, it is equivalent to at least 500 million. Today, we've been collecting millions of dollars, and we've been collecting millions.

Chen Fuyang has operated more than 100 brands of tail goods, so many samples can't be hung in the store. "Each brand is tens of thousands of pieces. We should know that it produces and sells millions of pieces of clothing a year. It is already a super large group company in China. "

The most business rules

In Shijing, we can see a kind of business that stresses the rules of the river and the lake. If a can find a piece of goods and let B collect them, if they can earn 100000 yuan, B will give them a50000 yuan. Interest on capital, warehouse rent and other expenses are not to be taken care of. For many years, the shopkeepers of Shijing have shared accounts with the consignors in this way. There is no contract between the two parties. The basis is the custom formed spontaneously in the trade. Chen Fuyang said that in Shijing's children's wear circle, there are hundreds of people who rely on looking around and win-win with stall owners.

I've been working with Chen Dongfu in Hangzhou for several years. When he came to receive the goods, we didn't let him go into the warehouse. We just took out the samples and told him how many pieces there were. He took a fancy to it and put down the deposit. We went to pack it. He came to take the goods away the next day. If there is a large warehouse and the inventory is too large, he will unite with several people in the circle to collect it. Hu Haidong said that the existence of this group is very necessary. The inventory piled up there is already waste. It is better to recover some funds than to borrow private usury to supplement working capital. Especially in recent years, the market of usury in various regions has reached more than three percent.

"A single tens of thousands of pieces of goods, a few hundred less, or some defective products, can be ignored for us. We just give an average price in proportion to each category. " Chen Fuyang said that the current stock of goods is too much, "now the children's clothing produced in China, including stock goods, can't be worn out by domestic children in ten years." This is close to the truth, but it may be exaggerated.

Although some well-known companies tend to be proud of the inventory Gang, they will also have to ask for timely rain in the river and lake at a certain time. One night a few years ago, Chen Fuyang received a phone call from Dongguan saying that a boss was in urgent need of 20 million yuan in cash. Chen Fuyang's overnight contacts gathered all the money to get goods. Just recently, Chen Fuyang's friends made a large bill of 17 million yuan.

Don't underestimate the ability of the inventory gang. With the expansion of the clothing industry for many years, the inventory Gang is also expanding. Chen Fuyang said that in the past, we used to raise 20 million yuan, and we had to have a lot of stalls. Now only two companies can take it out. This business is all cash transactions. There is no business that is simpler and more direct than this.

Chen Fuyang said that at present, to a large extent, Shijing town is the last destination of clothing inventory. However, even if the distributors reach the first level of inventory, they still have tens of thousands of stocks in the market. Because the clothing stock in the current market is too large, no one can guarantee that Shijing inventory can be completely digested. Chen Fuyang revealed that we are also very careful in collecting clothes, because we have also generated inventory. For example, in the first half of last year, I collected more than 1 million pieces of clothing, and in the second half of the year, 15% of the clothing was not sold. This is very abnormal in this industry.

Inventory life and death battle

The times of fashion and information are changing faster and faster. It's not just the latest fad every quarter, but users are increasingly pursuing their own style.

Naturally, clothing brands have higher and higher requirements for inventory management ability.

However, in the long run, the combination of fashion and quality is the first problem in a company.

"To see who can make money in this industry is to see whose inventory is cleaner." It's a general rule in this industry.

The appearance of vipshop's inventory sale mode represents a long-standing problem in this industry. As early as 2012, the total inventory of 42 listed clothing enterprises, including Li Ning, Anta, 361 degree, Tebu and peak, reached 48.3 billion yuan.

And now, inventory is still the bomb of these enterprises' embezzlement of profit margin.

The latest research of Oriental Securities shows that most clothing enterprises have more than 150 days of inventory days, and a few enterprises can control the inventory days within 100 days.

　　 stock It is the life and death battle of enterprises, which is a long-term game between efficiency and cost.