Market Observation: The Secret Of Clothing Tail Goods Market

"Here it is China's clothing tail goods paradise It's also the largest in the world. "

　 　 Little known Inventory Expert

　 Xoceco Compared with a batch of genuine Meibang products produced a few years ago, they are very interested, but the price has not been 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, and is also called "inventory expert". 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 textile

The first and second floors of the stalls are full of brand names piled up in packages, 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 ten years ago, are the spoils of his two or three months ago. There are tens of thousands of pieces in total, and the unit price is only tens of yuan.

In order to maintain the image of the company, the label was cut off.

"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 the town's Guangda, Qingfeng, Jindong and other clothing cities, black people 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. And those clothing manufacturers always think, 100 yuan cost of clothes, why to sell us 30 or 50 yuan? They are reluctant to give up. So it's been pressed, but the more it's pressed, the less it's worth. "

"For example, the goods of 2008 and 2009 are no longer a matter of price. Even a few yuan can't be sold to us. 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.

In spite of the high concentration of merchants, the shop rent in Shijing is still very cheap. The monthly rent for a shop with more than 20 square meters is only 3000 yuan.

According to Xia Huaxiang, the tailstock shops in Shijing do not have to pay taxes or management fees. "In places like Guangdong, such a small business is not valued by the government."

There is no advertisement, and the vast majority of Shijing merchants do not publish information 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. At first glance, the turnover rate of large companies in the stock market is not much higher than that of those listed companies.

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. What's more, we collect millions today and millions tomorrow. The funds have been rolling, and the figure of 500 million has to be doubled many times.

Chen Fuyang has operated more than 100 brands of tail goods, so many samples can't be hung in the store.

"We take tens of thousands of pieces for each brand. 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. "

Business with the most 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.

Hu Haidong, who opened a children's clothing factory in Hangzhou, has been dealing with Chen Fuyang for several years and appreciates Chen's style.

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.

How much money can be recycled in Haidong? It's necessary for this group to recycle waste.

"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 may be exaggerated, but it is also close to the truth.

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 in Shijing, the inventory still has a long tail, such as Chen Fuyang and Xia Huaxiang, who are the first level of the inventory market, and then there are inventory distributors all over the country who are looking for tens of thousands or hundreds of thousands of goods.

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

In the information age, the changing speed of fashion is 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.

In the long run, clothing business is a combination of fashion, quality, price and sustainability. However, problems in a clothing company are often reflected in the inventory.

"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 inventory days of most clothing enterprises are more than 150 days, and a few enterprises can control the inventory days within 100 days.

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