The Main Reason For The Rise Of Clothing Retailers Is That The Chinese Market Has Great Potential.

The most fundamental reason for the rise of the WAN Dian plan is the huge and hidden potential of China.

International brands such as ZARA, H&M, GAP, UNIQLO and so on, have entered China with a brand new attitude, and the number of stores has been constantly refreshed.

Take the Japanese retail brand UNIOLO as an example, it has 65 stores in China, and the company plans to expand the number of stores in China to one thousand in the next ten years.

In the retail industry, the successful location of mergers and acquisitions is equivalent to merging the successful market, avoiding the dilemma of locating stores and avoiding the risk of developing new domestic markets.

The eyes accelerated to the two or three line cities. After the success of the water test in China's first tier cities, foreign retail enterprises accelerated the penetration of China's two or three tier cities, attacked them more, and broke them from point to point market to scale market.

The urgent need to actively develop China's emerging consumer market with international brands is that China's local brands have not lagged behind in this new round of enclosure movement. "The past five years have seen the voice of the big cities and the two or three line cities in the next five years" has become the theoretical basis for the rapid development of the industry.

It can be said that when foreign brands are preparing to develop thousands of stores, the domestic brands have moved towards the era of Wan shop.

In the latest wave of retail store expansion, many brands in the clothing industry are moving towards the target of thousands of retailers.

By the first half of last year, Anta has broken through seven thousand stores.

After that, there are also Li, XTEP, PEAK, and so on. These brands all claim to break through seven thousand stores in 2010.

At such a speed, there will be a number of garment brands with a terminal scale of 10000 stores in three years.

However, not all brands are suitable for opening thousands of stores, and do not open shops in order to blindly compete for bigger profits.

There must be a solid precondition for the implementation of the WAN shop plan, and the corresponding policies and tactics should be targeted in implementation.

At present, the impulse of expansion of domestic clothing brands is mostly due to the need of market layout, so as to seize the blank of the three or four line market.

With the gradual maturity of the local market and the continuous improvement of purchasing power, it is very necessary for the brand business to distribute "large scale".

As long as the sales have guaranteed, have the source of tourists, their own funds, talent reserves have accumulated the brand can scale expansion.

Of course, there are many brand expansion "services" listed on the need, they will expand the retail terminal in the short term, because the need for the listing of the brand has a huge terminal network, which is fixed assets, can give investors confidence.

Before the listing of clothing enterprises, the number of short-term "assault" terminals has become almost the norm.

"Wan Dian plan" is tempting, but it is not all good.

"Wan shop era" reflects not only the expansion of market capacity and the enhancement of brand strength, but also the acceleration of market integration and the amplification of operational risks.

After the "horse racing enclosure", the market accommodation limit and the differences between agents and brands are torturing the fashion brand's terminal expansion boom.

Agent dealers began to complain about the meager profits, so the "wanton" of brand groups gradually wore the hat of "making bubbles".

In the short term, large-scale expansion of terminals will bring more cost burden to enterprises and bring more challenges to management and management.

The unsuccessful expansion will also have a negative effect on the long-term development of the brand.

Once there is a negative impression in a market due to blind expansion, it will be very difficult for the brand to enter the market again.

In addition to testing brand power, channel power and capital strength, the WAN shop plan is also a factor that can not be ignored. In the past, the practice of simple competition based on cost and price based on the market has not worked.

Concepts, creativity, management, channels, terminals, talents, culture and so on, any one link will directly affect the operation ability and market competitiveness of the brand.

In the future, after large-scale expansion, competition will become increasingly intense and the market will be further integrated. This is the ideological preparation for every busy enterprise.

Future competition is deep-seated competition. Different consumers create different markets. Different consumers have different concerns. Different consumers have different concerns about price and value.

In this era of competition, enterprises should consider more about how to cultivate value customer relationships, not to find more customers for your products, but to find the products that you want for your customers.

Some enterprises choose to develop their own brands to enter the new consumer market. Fukuken Toshiro's second line brand L2 has become an important measure for post marketing development. L2 keeps the core concept of "Li Jian" not too simple while maintaining a certain distance from the main brand to form a dislocation operation.

L2's main products are divided into 3 Series: Student Series, leisure series and fashion party series. This is also L2's innovative design for different levels of young people.

Its product price will be lower than the main brand 20-30%, targeting 20-30 year old young people.

For the two or three level or young consumer market, brand product development system, channel and promotion are different. The value innovator of the enterprise should locate the target on most customers, and is willing to give up some customers, give up some markets, or even give up some benefits that seem to be spitting hands.

No matter whether the channel is floating or sinking, consumers are constantly upgrading. Enterprises should focus on the differentiation of customers' emphasis by further division and customization, highlight the brand advantage and keep the existing market, so that we can get a winning opportunity in this market competition.