Clothing Industry: High Inventory Of "Bloody War"

In the last month, Daphne should have a headache.

First, there are media, according to the Daphne employees, Daphne in

The headquarter laid off nearly 300 employees and 3 directors of the electricity supplier department.

In response, Daphne responded by saying that it was only the company's position adjustment that denied the abandonment of the electricity supplier business, but added that the company would adjust the Department because of the failure of the electricity supplier's performance, which makes people sounded contradictory.

Later, the media also revealed that a large number of franchisees from Daphne poured into Shanghai's request for comment from all sides.

The reason is that Daphne has unilaterally announced a contract with franchisees in order to promote its direct mode.

Although there is news that Daphne may take compensation to quell the anger of the franchisees, but in the past 3 years, Daphne has laid down three or four cities on the market base of thousands of franchisees, in the time to be abandoned when the anger is compensation can be solved, Daphne at this time, "let go of the bridge", so that they can not accept.

Daphne crossed the river and broke the bridge?

"In the past 5 years, Daphne has become saturated in the second tier cities, and they want to move to the three or four tier cities with larger increments. But Daphne can't understand the local market's characteristics, scale, consumption ability and actual incremental space, so we use them who are very familiar with the local market to play a pioneering role for them."

A franchisee from Huangshi, Hubei, recalled that he was very helpless at the time, and the more anger of others came from losing blood.

A franchisee said that in 2009, he invested 500 thousand yuan in Daphne store in Zhongxiang, Hubei, and did not recover the cost in 3 years. If Daphne did not renew his contract at that time, the investment of 500 thousand yuan would be wasted.

According to Daphne's latest 3 years of earnings report, since 2009, Daphne has shifted the focus of market development to three or four tier cities (i.e. prefecture level and county-level cities).

As of June 30, 2012, Daphne's core brand business, that is, Daphne brand, had a total of 4078 outlets in three to six cities, an increase of 190 over the same period last year, accounting for 68.33% of its total sales outlets in the mainland.

And Daphne's latest semi annual report also said that the group believed that a stable shop expansion plan is very important for sustainable development, and therefore adopted a strategic opening shop plan to focus on developing direct stores. Daphne's attention to direct stores was visible.

Many brand experts in the industry also said: "this will not only enhance the long-term development of the brand, but also help the group to respond quickly to market changes."

"Murder case" caused by high inventory

All appearances show that the mission of the franchisee has been completed, and the next is Daphne's own feast. The franchisee will become the first victim after Daphne's initial pformation.

But on the surface, it seems to be a "ungrateful" drama of the club, but behind it is a stock pressure that has plagued many brands of clothing since 2012.

It is reported that every season, Daphne stores will offer discount sales to the seasonal products. For example, a shoe with a promotional price of 99 yuan is taken as an example. The franchiser said that the price of the shoe reached 119.50 yuan, which did not include freight, labor costs, store rents and other costs. The direct sale of the store directly suppressed the sales performance of the franchisee, so they were collectively protested by the franchisees.

Franchisees

With protest, Daphne realized the negative impact of the franchisee's plan, and when the franchisee contracts expired, it would be the most favorable choice for Daphne to put aside the cumbersome and timely launch.

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The battle between the brand and franchisee, Daphne is not the first, nor will it be the last one. The conflicting interests and conflicts caused by high inventory will make the strategy of brand development complicated and confusing.

It is true that inventory pressure has become a major problem for many brands.

Clearance campaign for sports brands

At the end of August, many brands were on sale, and slogans such as "full court half off" and "buy one get one" were everywhere.

Apart from some fast fashion brands, leisure sports brands also appear "restless" in the discount army.

Adidas, Lining, Nike, Anta, 360 degrees, PEAK, Jordan, XTEP and other sports brands are listed in it, taking the Beijing Xidan shopping mall PEAK counters as an example, the original price is 398 yuan.

They cleared 99 yuan at the end of the season, and the shoes were very complete.

Many people are puzzled. Fashion brands may be affected by the trend of fashion. Why are sports brands so eager to promote sales? Look at these listed brands and find out why they are inside.

As of August 22nd, China's 5 local sporting goods brands reported that except for the first half of August 22nd, the net profit of the company rose by 0.3%, and the rest of the 4 companies' revenue and net profit fell to varying degrees. Among them, Lining ranked 84.9% in net profit, and the net profit in 31st, PEAK and Anta fell 22.99%, 43.35% and 17% respectively in the first half of this year.

In many financial institutions' reports on these stocks, it is pointed out that with the slowdown of domestic economic growth and the rise of store rentals, labor costs and logistics costs, the cost of raw materials, which is brought by the rise in cotton prices, remains high.

This year, the growth trend of domestic retail market is slowing down.

Inventory clearance speed.

Clear inventory to break through

Clear inventory is very important, but the method of clearing is benevolence and benevolence.

Compared with most brands' discount promotions, the men's brand brand notched an emotional card and put forward the new concept of "83 men's Day", which successfully cut into the promotion war of the men's consumer market, not only effectively aroused the emotional resonance of customers, but also tasted the sweetness of a larger increase in sales.

In this activity, not only did he organize online "men's Day" promotion activities online, but also launched various online activities such as "men's Day" topic discussion, sharing Festival speeches or photos, and so on on the Internet.

Not only that, but for many specific customers, Nash also sent tens of thousands of specially customized men's mysterious holiday gifts.

It is understood that last year, the "men's Day" marketing campaign of Shanghai's first eight hundred companion department stores has been a great success. In the "summer light" season, the sales achieved a year-on-year growth of nearly 40%.

As a "fast fashion" men's brand, after successfully promoting the fashion concept of "men's Day" to nearly one million member customers and the public last year, this year, even on the line, online and offline jointly organized a series of "men's Day" theme events.

According to the insiders, in July and August, various festivals such as season changing and Tanabata have been gathered, and the intensity of discount is stronger than that of other months.

For men's clothing brands such as the odd ones, their customers are different from those of women's clothing brands. The words "promotion" and "discount" generally do not allow them to pay more.

Therefore, who can attract consumers' attention through innovative and powerful differentiation marketing methods, and can enhance the consumption experience and arouse the emotional resonance of consumers, will be able to break through from the sales force.

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Admittedly, high inventory is really a big worry for clothing brands, but clearing stocks is not only based on discount sales, but also can not be solved at the expense of franchisees.

A few years ago, the "factory store" model introduced from abroad has also become one of the ways that many clothing brands handle memory.

The factory store, as the name suggests, is a shop directly opened near the factory or storehouse, far away from the center of the city, and the goods in the factory store are much cheaper than those in the commercial street.

Factory shops bring together many styles of clothing, which make many consumers forget.

"Today, I returned to my factory with my husband and found that the factory shop of Gloria was in the vicinity, directly rushing in, and finally picked up 5 pants of 29 yuan, a 29 yuan T-shirt, a 59 yuan denim dress, plus one yuan to buy a dress, less than half an hour to buy so much, the total price is only 234 yuan."

A customer who buys clothes at Gloria factory shop excitedly tells about his shopping experience, and such a discount will obviously attract more consumers to purchase inventory.

In addition, more and more brands will choose online stores, outlets, discount and other channels to clean up inventory.

Not long ago, Chen Dapeng, executive vice president of the China clothing association, also learned that many clothing brands are making various efforts to solve the inventory pressure, but most of these efforts are positive, and they hope that sales and brand promotion will be bumper.

Therefore, in solving the problem of high inventory, enterprises should also consider all aspects to avoid vicious events.