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    The Clothing Industry Is Facing M Consumption Pattern: The Mid-Range Products Are Shrinking.

    2012/9/12 16:56:00 21

    Clothing IndustryLiningSeven WolvesClothing BrandInventory

    This year, at home

    clothing

    Retail sales of commodities increased by 9.82%, representing a gap of 12 percentage points from the same period last year.

    It is worth noting that in the first half of this year, the total volume of clothing retail sales increased by only 0.99%.

    This means that the growth of clothing retail sales is mostly driven by the rise in clothing prices.

    A clothing brand leader believes that the current sales situation is better than that in 1 and February, but the hope of "warming up" has not yet been seen.


    Recently, several major domestic clothing brands have fallen into the predicament of high inventory. The seven wolves and nine Mu Wang grew by more than 60% last year. The stock growth rate of Lining, Anta, and the news birds was about 40%.

    Economist Lang Xianping said, "the crisis brought by the Chinese economy has made the garment industry face M consumption mode, 14% of the rich buy high-end products, 86% of the people buy low-grade products, and the middle products are shrinking."


    At the same time, as the clothing brand ceiling gradually emerged, the birds and fir

    Clothes & Accessories

    The multi brand layout of the major garment enterprises such as YOUNGOR, seven wolves and Li Lang surfaced.

    However, "domestic multi brand strategy is hard to see success stories".


    In the face of China's "M" type of consumption structure, how should China's clothing enterprises locate?


    Ai Chis: M consumption structure is very common in many industries and countries.

    So, for a

    Clothing brand

    The first thing to decide is whether to become a high-end brand or a low-end brand.

    In addition, it is not that a market (such as high-end market) will be better than another market, such as low-end market, which is entirely dependent on competition.

    If the high-end market is competitive, then the low end market is a better choice.

    For example, WAL-MART has become the world's largest retailer by focusing on the low-end market. Last year WAL-MART's sales volume reached 447 billion US dollars and its net profit margin was 3.5%, which is a very good result.

    Last year, Sears, the largest mid market retailer in the US, had a turnover of US $41 billion 600 million, losing 3 billion 100 million US dollars.

    )


    Next is the category problem.

    "Clothing" is a very broad concept that can not be recognized as a specific category.

    Therefore, enterprises need to decide what kind of clothing their brands represent, because strong brands are built in narrow categories, such as advanced women's wear, senior men's wear, casual wear, etc.

    Athletic Wear

    And so on.


    Finally, it is the most important problem to solve the problem of "positioning" in category.

    Is your brand the leader of the category or the second brand? Or even worse? The best position is to occupy the leading position for a long time.


    If your brand is the first brand in a single category, it can enter other categories.

    Like Nike's successful campaign.

    shoes

    On the basis of business, a considerable amount of clothing business is developed. If your brand is not the leader in the category, a better strategy is to narrow the focus and focus on the niche market that gives the brand the most chance to occupy the leading position.


    Under the depressed domestic consumption environment, how can Chinese clothing enterprises break through the brand under the cost pressure of raw materials, labor and terminal channels?


    Ai Chis: expand to other countries.

    In fact, this type of expansion will not damage the brand, because in the long run, the best and strongest brand is global brand.

    Every Chinese brand leader in the category has a good chance to become a successful global brand, especially in the apparel industry.

    The reason is that China produces clothing for many high-end clothing brands around the world (the Olympic Games' Ralph Lauren)

    Brand clothing

    It's made in China.

    However, expansion to other countries needs to be a leader in the category, otherwise it will be difficult to build up a global brand.


    In order to get rid of the obvious disadvantages of market profitability, Bosideng pioneered a unique strategy of four seasons.

    How do you view this strategy?


    Ai Chis: Bosideng's four seasons strategy may sound a good idea, but it is very difficult to carry out it. It is mainly faced with the problem of modifying the existing cognitive problems.

    Unless the company spends enough money to educate the consumer about the concept of the four seasons strategy, consumers will only be confused.


    Which type of enterprise is more suitable for launching multi brand? How to implement multi brand strategy?


    Ai Chis: the general principle is this: only

    market

    The leader can take multi brand strategy.

    In other words, before we launch the second brand, we must first win in the first battlefield.


    When the market leader is in an ideal position, it can launch second, third or even fourth brands, but they should launch only one brand at a time.

    This is the successful way of P & G company.

    Decades ago, Procter & Gamble became the market leader through Ivory soap. With the passage of time, P & G launched many new brands, and the goal of every new brand is to occupy the leading position in the market.

    Today, P & G has 24 brands with annual sales of over $1 billion, while the other 20 brands sell between 500 million and 1 billion dollars. Most of the 44 brands are leaders of their products.

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