Opportunities And Reasons For New Revolution In Garment Industry Channel

Led by E-commerce

Under the new channel flag raising revolution, the formats of major channels are being reshuffled, the seating times will be rearranged, and the channel mode is undergoing a new round of innovation.

China's circulation sector is taking place and will continue to undergo profound changes. We can call it a "revolution".

The reason for this revolution is mainly due to three opportunities and reasons:

First, the new generation of consumers will come to the front desk.

They are mainly represented by "after 70" and "after 80".

They are highly cognitive consumers who are more independent, more individualized, more demanding, more demanding in quality of life, richer in life experience, more focused on aesthetic and spiritual values, and more understanding of the value of products.

Price ratio has a clearer judgement, the rationality of decision-making is higher, the ratio of self identification buying behavior is higher, and the awareness of rights is stronger.

At the same time, they also pay more attention to convenience in the choice of channels, and are more accustomed to shopping through the Internet.

The 4C theory of marketing, customer demand, cost, convenience and communication, two C, demand and convenience, are truly embodied in them.

Second, at present, the channel industry itself has many problems and defects.

1. the rate of increase in traditional commercial forms (such as department stores) is too high, that is, the difference between the purchase price and the retail price of goods is high.

For example, clothing products are often up to 20% or even more than 40% points, which is bound to push up commodity prices.

This year, many consumers found that in large department stores, clothing, leather shoes and other goods are very expensive.

The high markup rate of shopping malls leads to a vicious cycle in some shopping malls: high commodity prices, low consumer purchase intention and reduced sales volume; in order to maintain sales volume, suppliers are forced to set higher prices or reduce costs and reduce customer utility.

The high rate of shopping malls also leads to bad money drives out good money in the shopping mall: customers with high value brands are hard to undertake the high markup rate of shopping malls, so they are forced to withdraw from shopping malls.

And some so-called foreign brands can get the brand premium and survive in the shopping malls.

This leads to the deterioration of the brand structure in the shopping mall, thereby damaging the customer value.

2. the circulation cost of the whole society is high.

This is reflected in many aspects of circulation.

In the retail sector, the rental and labor costs of shopping malls are still high. It is difficult to maintain the high rate of increase without raising prices, and the high rate of increase does not bring about an ideal profit.

In logistics, the fact of high cost is well known.

3. in the whole commodity value chain, the profit distribution between manufacturing and channel is unreasonable.

The irrational distribution of interests results in various effects: first, forcing manufacturers to develop vertically controllable channel systems, such as franchised stores; secondly, forcing excellent brands to leave the chain stores and supermarkets.

Eventually, the situation of unreasonable commodity varieties has emerged in some supermarkets. The products sold are either international brands with the right to speak or occupy a high market share. Supermarkets are not allowed to sell because of their image and sales considerations, or they are low quality products with low customer utility and low purchasing capacity.

Third, the progress of Internet technology has promoted.

Changes in the field.

This includes the upgrading of bandwidth channels, as well as the progress of network application technology, such as e-commerce technology, search technology, payment technology and so on.