Channel Storm Sweeps Garment Industry
With the weakening of the traditional and international comparative advantages of garment industry, the increase of residents' income and the upgrading of domestic clothing consumption, the growth mode of China's garment industry is shifting from export oriented to domestic demand, and industry competition is changing from traditional low-cost competition mode to multi-level competition based on brand and channel. But with the replication and imitation of one wave brand publicity, many garment enterprises gradually turn their attention to the updating and changing of channel mode.
Dispute over "service enterprise" mode
There are usually 4 kinds of channel modes in China's apparel industry: agency system, direct operation, franchising and e-commerce. Agency system is the development of general agents in the main sales areas, and then the development of two or three tier dealers. The seven wolves and nine herd kings are developing regional markets through agents. YOUNGOR mainly develops direct business mode, and now has more than 2000 sales terminals, including shopping malls and direct stores over 40%. Hai Lan's home has been franchised for rapid development. PPG has a unique way to sell products directly on the Internet. Either way, it will invest huge channel construction costs.
Disadvantages of "service enterprise" mode
Although the agency system can achieve the fastest pace in the country, with distributors' original channels, the whole country's distribution can be realized. But with the continuous development of a brand, the contradiction between dealers and agents is increasing day by day. No wonder the seven wolves should change from traditional agency system to direct operation system, even if the road ahead is difficult. Although the form of franchising can quickly realize the withdrawal of funds, franchisees also shoulder part of the channel risk. But share profits with franchisees. This is certainly not the best channel mode for an enterprise. "Controlling the retail terminal is equivalent to controlling the source of profits". This is the purpose of many enterprises choosing to do direct business. YOUNGOR, the Chinese shirt giant, has invested huge sums in building up its upstream and downstream enterprises, and invested huge amounts of fixed assets. Obviously, YOUNGOR's direct mode is not the best. What about the form of e-commerce? PPG, a pioneer of e-commerce in garment industry, once dominated a closed loop supply chain with low manufacturing cost and rapid response, and outsourcing mode of production, logistics and quality inspection. However, with the continuous replication of its channel mode, its mode has gradually lost its advantages. "The odd mode" -- refraction the future of China's clothing retailing industry
In the face of the increasingly strong bargaining power of the channel, the trend of terminal dominance is becoming more and more obvious. Whoever has the terminal advantage will win the competition in the next garment industry. Notage, as a young enterprise, was once ignored by the public. But with its stores all over the country, with its increasing brand awareness, it has successfully implemented the shareholding system reform. Today's odd has long been the darling of the masses and the media. Even after the media learned about the model, he shouted: "the odd mode" will reflect the future of China's clothing retailing industry.
The "notting mode" is the light asset operation mode of "high visibility channel brand + chain operation + most of the direct store ideas + Information Management + membership management". China has always been the main production base of world garment production. After joining the WTO, many small and medium sized enterprises with OEM mainly shifted from export to domestic sales under tariff barriers, which directly resulted in the continuous overproduction of domestic garment production capacity. Under such a macro background, he used the ability of other manufacturers to make his own use, but he did not make factories in order to form his retailers. The direct channel mode of "headquarters store" was directly adopted by the company, which saved the intermediate links and accelerated the circulation between the industrial chains. On the one hand, it helps to improve the customer's delivered value, deepen customer's preference for the brand, and strengthen the management of membership system. On the other hand, it uses information management to achieve good information exchange between the manufacturer and the marketing department of the headquarters, which is better than the traditional clothing enterprises' "design ordering - small batch production - collecting market feedback - adjusting strategy and mass production". Obviously, the repeated mode of "collecting market information - Design - small batch production - market feedback information and improved design" is a good way to produce marketable products and reduce inventory. Even to adjust the market demand, always follow the preferences of the consumer, always keep the product in the front of the fashion. Today's era is a consumer oriented era, rather than a purely market promotion era. Notches are the consumers who control the terminal through their unique direct channels. They cultivate a group of loyal customer groups through the way of member management, and are also a group of brand advocates to enhance the visibility and reputation of their channel brands.
Of course, the vast majority of manufacturers are also concerned about the problem. How to cooperate with the vast number of manufacturers has also become a very important link in the model. Through the construction of several industrial parks in various parts of the country, the company invites manufacturers from all over the country to come and open factories. Through the way of manufacturers, it can form industrial clusters in the park, reduce costs and waste, and form a win-win situation. On the other hand, it also formed a strategic partner through reducing the manufacturer's discretion.
In the Qing Dynasty, Hu Xueyan, a red top businessman, said, "a country's vision can make a country's business. A province's vision can make a province's business." Whoever can find the best channel mode will dominate the market. The best model for the future clothing industry is to integrate all kinds of resources for consumers. To be exact, whoever can give consumers more customers' pfer value at the lowest cost will become the overlord of the industry.
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