Will The Apparel Industry Watch The Sunning Appliance Price War On The Sidelines Of The Jingdong?

This year, round after round of electricity price war frequently attacked, although the public opinion is mixed, but the consumers who are benefited are enjoying it.

This "parity fire" that emerges from the electricity business circle seems to be developing from cyclical to normalization, and seems to be watching the fire.

What does this mean? Will it also follow the footsteps of big appliances?

"From the 15 day, all the Jingdong guarantee is less than 10% cheaper than Gome and Suning chain stores." in the morning of August 14th, micro-blog, a CEO of "Jingdong mall", exploded a new round of electricity price war of Liu Qiangdong, with a large scale and wide coverage.

This micro-blog sends one stone, and a stone stirs up waves.

After that, micro-blog sunning quickly answered, and Gome immediately followed up.

What is interesting is that not only Suning and Gome met the challenge, but by the evening of August 14th, Dangdang, Yi soon network and other electric providers also announced different degrees to take part in the price war.

From 9 a.m. on August 15th, the netizens who had known their minds quickly made a long subscription through online payment, and then pmitted price war information through various kinds of instant messaging tools.

This year, round after round of electricity price war frequently attacked, although the public opinion is mixed, but the consumers who are benefited are enjoying it.

It seems that the "parity fire" rising from the business circle seems to be developing from periodicity to normalization. What does this mean for the clothing circles that seem to be watching the world? Will it also follow the footsteps of big appliances?

Low price and high quality

Liu Qiangdong launched the big power price war. What is the bottom line of Jingdong mall?

Low prices and high quality have always been the pursuit of consumers and manufacturers of many consumer goods, including clothing and consumer electronics.

The retail price of products is not only the price of products, but also the cost of publicity and channel, and labor cost.

Online retailers do not need physical stores and large number of shop salesmen, so they occupy a huge advantage in two aspects: rent cost and labor cost.

At the same time, the increase of turnover efficiency shortens the time of capital withdrawal, improves the utilization ratio of funds, avoids the loss of inventory price as far as possible, and also reduces the cost to some extent.

It allows consumers to enjoy "preferences" at all times.

With the development of consumers' online shopping habits, online shopping products have become the choice of more and more consumers. The Jingdong mall is setting up price wars again and again in the field of home appliances, which will further explode the home appliance online shopping market and promote the upgrading of consumer online shopping.

But why is the big power instead of the clothes? Does the Jingdong also have clothes?

Liu Qiangdong said, "Suning has a gross profit margin of 25%, that is to say, if consumers go to sunning store to buy a refrigerator about 5000 yuan, Suning will earn 1250 yuan, while Jingdong can only sell 150 yuan.

Only if we have enough power to make room for price, other products are not.

Rise suddenly

Although Jingdong's price war is still starting from home appliances, only Jingdong's electricity supplier's behavior does not mean that clothing dealers and garment manufacturers do not bear price pressures from other sources.

As we all know, at present, consumers have more channels and lower prices to choose more suitable products.

Worldwide, a large number of start-up companies have launched in recent years.

Online customization services, trying to get a slice of the $200 billion e-commerce market.

These venture companies, with the support of venture capital institutions, are challenging the market hegemony of Amazon.

Bonobos is currently the largest in the US.

Custom website, and J. Hilburn is the largest shirt custom website in the United States, American Giant mainly sells men's casual wear.

J. Hilburn and American Giant

Directly cooperate with manufacturers in garment styles, fabrics and sewing quality.

Through continuous underground orders throughout the year, the two companies can ensure that manufacturers provide products for them in small quantities.

As for the domestic market, the shops of advanced custom clothes are also gradually accepted by the high consumption crowd.

As far as Yiwu is concerned, there are already a steady number of loyal customers such as Ya Ying, good bird, and movie club.

In the case of a clothing brand, Fan Cheng pin, which is not a professional clothing company and relies on Internet channels, after experiencing many doubts about inventory backlog last year, it also returned to its products in 2012. It is committed to promoting the quality of its own clothing products and plans to make profits in the second half of this year.

All this means that people's yearning for high quality life is not the only goal.

The flattening of channels has become a trend, and the pformation of innovation is imperative.

Competition and change

Reporters visited several shopping malls in Beijing and began to enter the discount sale stage at the end of the summer. Such discount sales promotion was earlier than that.

This is understood by the outside world as "urgent to clean up inventory".

Indeed, the haze of high inventory enveloped the entire industrial chain of textile and clothing, which made the enterprise breathless.

"Cautious production in textile mills, cautious orders in garment factories, and cautious purchase in the sales market have led to panic tightening in the whole industry.

Under tight conditions, the consumer market is becoming weaker and weaker, forming a vicious circle.

A clothing company official said.

Since last year, many domestic

Inventories seemed to explode at once.

It's hard to survive the financial tsunami and meet the European debt crisis.

Labor costs, rising prices of raw materials and changes in the trade environment have made the garment enterprises' business environment "sudden change" in recent two years.

The export orders of some garment enterprises have declined sharply this year. A large number of hoarding goods are forced to be sold domestically, coupled with the economic downturn and relatively weak consumption, resulting in a large backlog of stock.

The rapid development of e-commerce, consumer awareness and consumer behavior are becoming more rational, and the prices of all kinds of raw materials are rising.

Everything is squeezing the profit margins of all consumer goods, including clothing.

"In particular, the RMB exchange rate has risen, and the cost of labor in Vietnam and other Southeast Asian countries has been far lower than that in China. Chinese clothing must be liberated completely from the previous situation of relying on cheap labor to get orders, and the cost of research and development and sales and competitiveness will be the way out for Chinese clothing."

Chen Dapeng, executive vice president of the China clothing association, pointed out the direction of Chinese clothing enterprises in the theme interpretation conference of CHIC2013: "at the moment, the development of Chinese garment enterprises should look inward and explore the internal driving force of enterprises."

The Jingdong's approach is directly compressing the channel space and preoccupying the sites previously occupied by home appliance distributors with traditional channels.

This is a devastating blow to traditional household appliances dealers.

Turn to the clothing industry, clothing dealers and even clothing manufacturers are not fighting with the "Jingdong"?

Whether it is the network marketing business carried out by traditional enterprises, the construction of self run shops to dealers, or the independent clothing brands launched by e-commerce websites, all are trying to prove the new attempt of the clothing industry for the consumer goods market with "channel as king".

But these are changing the sales routines and production routines of clothing dealers and even clothing manufacturers.

overview

"Electricity price cuts can not promote suppliers' sales or start the brand of suppliers, but will affect the market of their products and the sales of distributors.

If the latter continues to lower the price, we will not continue to supply. "

-- a household appliance supplier

"Changing the name" is only the first step in implementing the online shopping strategy, and then the forum will be held in the name of the exhibition city. The main purpose is to invite clothing brand dealers to attend, and then brainwash the brand to the Forum: "either e-commerce or no business."

The effect is obvious.

Now more and more brands are willing to supply directly to us. They have already taken the online shopping channel as the latest battlefield of "going to stock".

And we can also reduce the proportion of goods taken from the "two Hawker".