Joint Clearance Is The Way Out For The Second Line Brand Of Garment Industry.

Recently, there was news that Nike We are planning to set up forty or fifty factory stores that sell off season products at a large discount price in China. Such a scale will enable Nike to fully cover the second tier cities. The latter is the key market of the second tier sports brands in China. The price advantage will also be lost in front of the factory's high discount, so it is not difficult to understand that Nike's move has made the second tier brand feel at stake.

　　 clothing The most notable feature of the industry is the many styles and short life cycle of the products. A few years from a few years, the automobile manufacturers can sell several cars each year. The successful models can be sold for more than ten years, and computers and mobile phone manufacturers are similar. However, the clothing manufacturers will launch hundreds of hundreds of styles every season, and most of them will only sell for one season, and then they will become seasonal products and depreciate greatly.

At the same time, clothing consumption is highly emotional and impulsive. Many demands are generated by close contact with goods on a specific occasion, and usually need to be compared and tried on the spot. This requires manufacturers to set up a large number of retail outlets and mass distribution, so as to fully cover the target audience and create enough contact opportunities.

These two points constitute a great pressure on the inventory. The large number of colors and sizes, and large area distribution, will naturally put many stocks on the channels and terminals and eventually become over season products. This loss constitutes a large part of the cost structure of the garment industry, so the ability to control them effectively, that is, the so-called "clearing" capability, will become a core advantage of the company.

The older one is the discount in the store, and the new area and the discount area are separated from the store. The problem is that the same place with the discount goods will seriously affect the sales of new products. Even if the season is put in a humble corner or upstairs, the discount method itself will affect the brand image, shake the trust of consumers in pricing, and weaken the halo effect of the high price, so the discount rate will not be too great.

Later, a more brilliant approach was developed. Through repurchase arrangements and the establishment of large factory shops in remote locations, the new products and seasonal products markets were clearly segmented in geographical location, target consumer positioning, shop image and shopping experience. This can not only increase the discount rate to speed up inventory turnover, but also reduce the impact of discounts on new products. At the same time, it also avoids making seasonal products occupy valuable retail terminals in downtown areas, so that retailers can reduce the pressure on inventory and capital, and more focus on improving shopping experience.

For high-end brands, the advantage of doing so is that they can squeeze the second line brand down with the high discount of factory stores, and this extrusion is very destructive. For consumers who value the grade, buy a pair of off season Nike. shoes It may also be better than buying a new brand of second line brand, but the price is almost the same.

However, when adopting a similar clearing strategy and coping with the pressure from the front line, the second tier brands have many disadvantages. First, the cost structure, the second line brand pricing is lower, the proportion of the direct cost of the components is higher in the cost structure, and the correlation between output and total cost is higher. Therefore, it is more difficult to implement a large number of goods distribution and use the high discount and quick clearance strategy after the season, because they can not afford a high discount.

Secondly, the size, the sales volume of the second tier brands, the number of designs and the size of the target consumer groups may not be able to support them to open factories in large areas like Nike. Moreover, with their pricing, if they are also discounted by the magnitude of Nike, it will be difficult for them to maintain their decent shops and services, and perhaps they can only tear the trademarks to the stalls or open channels on the Internet. If we want to imitate the way of clearing the factory shops, it seems that they can only come from third parties, set up a joint warehouse store with many second brands, or organize a multi brand high discount sale on the Internet regularly as vip.com does.

However, under the strong impact of the first-line brand, the problem of clearing the warehouse is only one of the challenges. Downpressing is a more serious threat. The second line brand can only build other protective barriers outside the price, such as the uniqueness of its function or characteristics. market Subdivision of local brand status, manufacturing efficiency or channel control advantages.