Acclimatization, Causing Domestic Fast Fashion Brand Inventory Crisis

Although YISHION and Semir are not listed companies, they can not see the annual reports, but according to the analysis of the insiders, they have many stocks, and most of them are in the channels.

In 2012, the dealers of the new big three big traders also had great pressure. If there were no accidents, 2012 would become their dumping stock year.

Simple imitation leads to growing pains.

In 2011,

Suffer from growing pains and have to face high inventory.

The clothing industry's inventory crisis has exposed the brand crisis, supply chain management and channel policy problems of Chinese garment enterprises.

In the Chinese market, the success of the clothing brand should be accompanied by three brands of brands, channels and products, which will affect their future development.

Old JEANSWEST, Baleno and Giordano, the three largest manufacturers of mass trading, have also been brilliant in the channel.

10 years ago, the core business circle from the first tier to the three or four tier city was almost full of JEANSWEST and Baleno stores. However, because they did not pay enough attention to the continuous operation of the brand, the speed of product pformation was not as fast as that of the new three giants.

"On the brand operation, local mass goods brands generally do not invest enough in brand refurbishment and continuous operation, often after growing into a high-density ad, they rarely continue to build brand, and rely more on terminal stores to support their brand image."

Jie Jie, founder of the Jie Yang Yang institution, said.

Although the channels and terminals of mass goods brands are all over the country, they can almost be everywhere. But in the view of angel, the idea of shops is advertising and brand is wrong. Brand can not be supported by terminal stores only. Brand has its own genes, such as color, pattern, tonality, advocacy and image. All these need to be supported and disseminated through a full range of brand building.

Many consumers are right now.

The brand image still rests on Andy Lau's endorsement, and the association of Muse and bond is also the image of "ten years of" no ordinary road "and Jay Chou's unruly behavior.

Therefore, although the new volume brand represented by the United States and Semir is more active and publicizing than the old mass goods brand in brand input and advertising communication, but in the brand strategy, there is still a lack of higher and long-term planning.

Always wanted to be China's ZARA.

The new brand ME&CITY, launched in 2008, copied ZARA stores from inside to outside.

But unlike international fast fashion brands, China's "fast fashion" is longer than production and channel development, and it is a weakness in product design and brand. The price of ME&CITY, China's ZARA, is much higher than that of the United States, but it is not accepted by consumers.

However, when these crises are gradually emerging, domestic enterprises continue to increase their production while continuing to expand their channels and continue to enjoy the fruits of the high-speed development of the industry in the past 10 years.

In 2011, almost all industries suffered from growing pains and had to face high inventory.

The clothing industry's inventory crisis has exposed the brand crisis, supply chain management and channel policy problems of Chinese garment enterprises.

Multi channel coping with inventory digestion year

In 2012, for China's mass trading brand, the digestion of inventory is not a small challenge, so opening channels becomes the mainstream choice.

Compared with 3 years ago, a large number of channel inventories made it less than two years for dealers of mus.

10 years ago, the "virtual operation" mode has made it the biggest feature of the channel mode, that is, franchising has greatly reduced the initial cost of channel development.

Over the past few years, the United States has gradually increased the proportion of Direct stores, and has invested heavily in the establishment of Direct stores. Today, all the first tier cities have already withdrawn their franchise and achieved direct control, thus strengthening the control over channels.

"Mei Bang's channel mode is mainly based on the branch system. Through consolidated statements, inventory should be visible, which requires us to digest itself for a while."

An industry dealer who did not want to be named said.

While Semir adopts the agent system, 96% of the stores are franchised stores, and the inventory of goods is more backlog in the channel, mainly in the hands of agents, and the buyout + ordering system makes Semir's inventory pressure relatively small.

However, agents must find ways to dispose of the goods. This part of the risk is concentrated on the agent level. If it can not be dealt with and the capital chain breaks, Semir will be able to find other people.

Since the United States has been increasing the proportion of direct battalions in the past few years, the sub company system will show its advantages when the business is better, but in the face of inventory crisis, the risks of enterprises will be relatively high.

According to the key road sports advisory body CEO

Introduction, at present, Lining's practice is to recover inventory from agents, and then enter their discount stores for sale.

It is reported that the United States is also following the example of Lining, to take the inventory of clothing to its discount stores, but also to increase the strength of discount stores. The goal of 2012 is to set up 300 discount stores, which will become the main channel for long-term inventory digestion.

In order to quickly digest the inventory, the practice of the domestic mass merchandiser brand is to take the new product discount, mix the new products with the off-season products together to make sales promotion, especially those down garments and seasonal weak commodities that are not fast changing in style. It is easier to be dumped. In addition, the Internet has become a platform for many enterprises to dump off the season goods. Some of the established electric businesses such as vip.com and Qiao Qiao language have become one of the channels for dumping domestic and foreign brands, and the general discount is below 50 percent off.

If there is no way to get rid of its own channels and electricity supplier channels, some enterprises will package the whole inventory to the dealers and traders who have relatively strong financial strength, and sell them to some remote areas or overseas markets by means of regional shipment. After all, cheap goods are always wanted to eat; others will flow to the tail market, and sell the inventory to the tail goods purchasing company, and then flow into the tail cargo channel.

Very case

Odd trick digestion inventory

Inventory -- both dealers and branded traders hate it.

Statistics show that in 2011, the total inventory of 84 listed companies in textile, clothing and fur industry reached 70 billion 832 million yuan, an increase of 25% over the 56 billion 742 million yuan in 2010.

To eliminate inventory, enterprises are making strange moves.

However, the process control of real effective inventory control is still in the exploratory stage for most domestic brands in the developing stage.

Method 1: use network to clean up stock.

After the media broke out a large number of stocks of the United States, the stock of Semir and other brands was also concerned.

Among them, Semir stock was 1 billion 300 million yuan, an increase of 30% over the end of 2011.

It is understood that Semir and other fast fashion brands have begun to use the Internet as one of the ways to eliminate inventory.

In addition, brand names such as doctors and frogs are also actively considering the problem of inventory through the Internet.

At present, the famous clothing enterprises on the Taobao platform, such as green box and Han Du medical house, are all partners in the inventory under the digestive line.

People familiar with the matter told reporters, "in order to remove inventory, many offline apparel brands are in contact with these online brands, hoping that the other side can promote and manage the brand online shop."

Yuan Feng, director of offline operation center of green box Shanghai Green Box Technology Co., Ltd., admitted to reporters: "there are already many fast fashion brands to find us, use our mode to develop their online stores, so that online stores can match with offline sales."

It is understood that the above fast fashion brand hopes to create a sales mode called "three networks in one", which will be sold on the "online Internet", "offline offline stores" and "mobile network".

Yuan Feng said: "for many offline brands, the establishment of a network sales system is not just a matter of money.

The core problem is that there is a clear gap between online and offline prices. Mature dealers and agents have resisted brand names.

"Talk to us about some brands of cooperation, and hope that our team can help them innovate the inventory system on the Internet."

It is understood that its main mode is to participate in activities such as Taobao Juhuasuan, and achieve a large number of pactions in the short term.

The green box became the first seller to break through 25 million yuan in last year's Taobao double eleven promotion.

"Such a fast sales mode has great attraction for brand owners with stock pressure."

Yuan Feng said.

However, if we want to achieve sales volume on the Internet, it is important to have new styles to attract consumers to keep buying.

In this regard, the green box's replacement rate reached 60%.

Yuan Feng said that it is very difficult to build high quality online stores on the basis of inventory.

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Method two: wholesale channels to clean up inventory

"China now has 400 million stock shirts."

Liu Ruiqi, chairman of Heng Yuan Xiang, once said that strong inventory caused the price advantage of sales.

Li Jiantai, a manager of a trading company in Yiwu, has recently cleaned up a group of "treasure" - 500 leather bags, and each bag sells for only 20 yuan.

Li Jiantai calculated that the sale of these bags to the United States would double the profits.

Li Jiantai began to stock up in China in 2003, then sold these products to American customers and eventually sent them to the "99 American stores" in the US for retail sale.

Because the terminal price of the product is low, Li Jiantai has to find cheaper Chinese products, and the inventory products just satisfy the requirements of the US customers for the cheap and high quality products.

Li Jiantai usually runs in various processing plants in Zhejiang, but he will not place an order, because in his abacus.

"The price of the order is high, which is 2 to 3 times the price of the tail cargo, and the product production cycle is long. This does not meet the requirements of the customers."

So, going to various factories and taxing goods became Li Jiantai's main job.

According to his own experience, Li Jiantai classified the following categories as follows:

The first is the tail product of brand products.

This kind of tail cargo is the product with the best quality, and of course the price is higher.

"For example, a brand-name sportswear may sell for thousands of dollars in the mall, but only 200 yuan in the tail cargo market.

The raw materials and accessories of these products are exactly the same as those of real shopping malls, even with labels.

Most of these products are produced by the factory instead of the raw materials. The quality of the products is guaranteed, but the sales channels are limited. "

The second is the foreign trade tail cargo.

These products were originally exported for export, but they were sold to domestic products because of their problems.

For example, on the shirt that was originally planned to export, the English alphabet was not printed correctly, but it could not be exported.

The third is defective products.

"Most of these products only have some minor problems. They can be listed if they are repaired."

It is understood that almost every brand has its own stock sales offline, after some products "cut the label", the downstream wholesalers will find their own "look at the goods" and get the samples.

It is understood that the sale of tail goods factories, products may reach hundreds, thousands of pieces, and usually only in a one-time purchase of all products, it is possible to get low prices.

Method three: Refactoring process to reduce inventory

At present, there are only international brands such as UNIQLO, HM, ZARA and so on, which can effectively control inventory cost.

After deciphering the supply chain of these fast fashion brands, some enterprises in China are trying to rebuild their supply chain.

Sheng Jingsheng, chairman of the clothing brand Luo Meng, announced that it would achieve "zero inventory", while Luo Meng was also setting up a framework for "zero inventory" dream.

It is understood that Luo Meng's basic principle of zero inventory is that the headquarters through a strong logistics, cargo control system, the allocation of goods between different regions, reduce dealer inventory, dealer inventory products can be returned to the original price to Luo Meng.

To this end, Luo Meng began the construction of information technology, one of which is controlled by ERP, which guarantees the speed of shipment and connects production, terminal, headquarters and more than 1000 dealers to facilitate inventory. The other system is the Internet of things system, that is, every piece of clothing is equipped with chips, so that every product can monitor its location at any time and facilitate allocation.

In terms of institutional setup and staffing, Luo Meng has invested heavily in setting up 50 staffing control centers at headquarters, constantly updating dealer inventory and product demand information.

In the 20 provincial branches, a cargo control center of a branch company should also be set up so as to ensure the controllability of the national allocation of goods.

The system that Luo Meng finally hopes to form is that every store's stock information is clear at a glance, and the most economical and efficient way is to realize the nearest allocation.

At the same time, when each garment is out of factory, it has been set up the flow graph, which will be planned at different time points.

In order to ensure this kind of intensive pportation, Wang Yong, the head of the control department of Luo Meng, adjusted the form of logistics.

"The products shipped from the factory to the Fenghua headquarters can be resolved through the form of motor vehicles, because the factory is very close to headquarters."

And from headquarters to local branches, "we cooperate with airlines to realize air pportation."

The key link is from distributors to distributors everywhere.

"In some areas, we have our own distribution vehicles, but most of them are working with local logistics companies."

However, due to numerous links, in order to achieve the 15 day plan from the order to the counter, Luo Meng began to update his logistics system.

"We are looking for new and nationwide logistics partners to deliver more links to more capable enterprises."

Wang Yong said.

After the above allocation, the final remaining products of Luo Meng will be sold in a unified way through discount stores and Oteri J.

Journalist observation

Fast fashion has become red sea

Over the past two years, domestic sports brands have begun to invade the fast fashion market. They gradually get rid of the limitations of professional sports and develop more leisure and fashionable products, and the prices are low.

These sporting goods enterprises themselves are also growing at a high speed, expanding vigorously, taking advantage of their business in various regions, opening up their stores and competing fiercely with traditional mass trading brands.

Nowadays, the core business circle of every city, whether it is a fast fashion brand or a sports leisure, is basically competing in a business circle. It is almost the same as that in the field of clothing sales. The domestic sports and leisure brands are also caught in a high inventory of whirlpool. From Lining, kappa, 361 to Anta, PEAK and XTEP, there are varying degrees of inventory pressure.

After 10 years of rapid growth, China's clothing industry has come to a turning point. Its brand is weak and its design ability is insufficient. The problem of product homogenization has seriously affected the development of Chinese clothing brands.

China's fast fashion clothing has become a big red sea. The product design has no difference, lack of individuality and low price. It is the same big shop, the business circle has the same choice. With the growth of the consumption ability of consumers, they will not hesitate to get rid of the consumption of these low-end products.

The strong invasion from international fast fashion brands is also eating away the market of local fast fashion brands. In 2011, the international fast fashion brands headed by ZARA, UNIQLO and H&M in the year of the year hit the market in the domestic market, H&M opened 31 new stores, and 43 new stores opened in UNIQLO, and ZARA opened 29 new stores with 92 stores.

Moreover, these international fast fashion brands will have bigger opening plans in 2012, and UNIQLO claims that it will open 100 new stores this year.

Generally speaking, the international fast fashion brand's product strategy and brand operation ability are stronger, the resources superiority of the channel development is also more prominent, and the negotiation ability with the first tier business circle, the focus business circle and the gold shop is stronger, and the conditions are favorable.

For example, in the year of Xidan Joy City and Chongwenmen Ruicheng City, in order to attract H&M to enter, they offer very favorable conditions and provide the most suitable venue.

These are unmatched by domestic brands.

China's local clothing brand has reached a new stage of development, and needs to rise to the national strategy. In this regard, enterprises need to first establish the pattern of entrepreneurs, and entrepreneurs will decide the way out for brands. In addition, in the next 10 years, brand driven must be the main driving force for enterprise development, rather than channel driven.