Humen Garment Enterprise Life And Death Examination Question: Inventory Clearance

In April and May, there were many people in Humen, Dongguan clothing Enterprises hold autumn and winter order fairs in succession. Under the appearance of a great increase in orders, the backlog of inventory in the warehouse has become a worry for entrepreneurs.

"Dongguan clothing enterprises with their own brands have a lot of inventory, and some enterprises have more than 50% of inventory, which is close to forcing enterprises into bankruptcy." Chen Yue, a senior clothing practitioner, and China Southern School Clothes & Accessories Ouyang Guangyao, Executive Director of the Industry Alliance, said recently in an interview with the Yangcheng Evening News that many Humen garment enterprises are facing the dilemma of inventory approaching the warning line.

　　 All the money earned in recent years is in the inventory

Mr. Chen, the boss of a clothing factory in Luwu, Humen, is going to hold an order meeting for autumn and winter clothing this month. He is very confident about this year's clothing styles. In inverse proportion to his confidence, Mr. Chen's warehouse still has last year's clothes 。 "About 25% of the goods, 20 to 300 thousand yuan, are still able to handle by themselves, and my peers have much more inventory than me. Some peers have earned money in inventory in recent years, which makes it difficult for factories to operate."

Mr. Chen told reporters that, generally speaking, after each order meeting, according to the order demand, the company will increase production in consideration of the possible increase in demand and stock up, "The retail wholesalers think 300 pieces can be sold, while the regional agents think 400 pieces are needed. The manufacturers are afraid of running out of stock, so they produce 500 pieces. In many cases, 300 pieces are just sold, and the remaining 200 pieces are in stock."

"This is a weak point in the clothing industry", Mr. Chen said reluctantly that the production of a garment needs to go through the processes of buying cloth, shrinking, cutting bed, printing embroidery, sewing, and re ironing, which takes more than ten days. If a style is very popular, it will take more than ten days to re produce it after it is sold out, which has lagged behind other manufacturers.

　　 The capital chain of some enterprises collapsed and went bankrupt

Last year, one of the most sensational news in Dongguan's clothing industry was the holder of Guangdong's famous trademark "Stranger"&mdash& mdash; Dongguan Yuanye Garment Factory closed down overnight, and the group of senior executives of the company disappeared. In addition to leaving various debts of about 30 million yuan, there was also a letter of notice issued in the name of the company to all employees, detailing the reasons for the company's bankruptcy, saying that "the capital chain completely collapsed at the end of last year and went bankrupt after the sales began to be sluggish two years ago."

"Poor sales is actually an excess of inventory. It is normal for a clothing enterprise to have an inventory of 15% - 20%, but many enterprises in Humen exceed this amount, and some enterprises even invest the money they have earned in the past few years into the inventory. The backlog ends with the silent disappearance of many clothing enterprises." Ouyang Guangyao, executive director of China Southern Clothing Industry Alliance, said, More than ten years ago, there were not as many factories as there are now. When you buy clothes, you will not pursue so many fashion elements. If you produce any style, you can always sell it. Now it's no good. People are very picky about clothes and won't buy them if the price is not suitable. Due to competition and oversupply, clothing is unsalable, and inventory can directly crush enterprises.

　　 Reducing inventory depends on market analysis

Lu Ling, the boss of Dongguan "Homebook" Clothing Co., Ltd., said happily that his company's inventory was not much. "We have 6 people to form a team to do research and development, market analysis and sales, while many enterprises only have one person to do research and development and sales."

In addition, the "workbook" also analyzes and investigates the market and the sales ability of customers, "We will not blindly pursue quantity. Customers will order 100000 pieces and produce 100000 pieces. Even if sales are expected to be better or new dealers will join us, we will not produce 200000 pieces at once. Although it is difficult to achieve zero inventory, we will strive to control it within 8% - 10%."

　　 Expert recruitment

3 Steps to Reduce Inventory

"There are three steps that can help enterprises reduce the production of inventory." Ouyang Guangyao said, first of all, before the production of clothing, enterprises need to conduct market data analysis; Later, when ordering, I learned about the sales performance of last year from the seller.

Ouyang Guangyao said that after the goods have been delivered to the dealers, there is another way to reduce the inventory. There will be some differences in the aesthetics of clothing between the south and the north. The manufacturers can use the sales channels to sell goods to each other. For example, if a certain style is sold well in the north, but not in the south, the goods in the south can be recycled and shipped to the north for sale.

"If the inventory is still generated, we can organize some public welfare activities to Brand clothing Sell at a lower price so that the brand image will not be damaged. "

　　 Your nightmare, my business opportunity

"Sewer" came into being

Some people make a lot of money through "agent inventory", generally selling them to tier five or six cities at a low price, or selling them abroad through e-commerce

Some people are happy while others are worried. The high inventory makes the enterprise close to bankruptcy, and at the same time, other people find business opportunities.

Li Lin, who once worked as a designer in a clothing company, is now running a Taobao shop in Humen. Last year, he helped a clothing company dump a batch of clothes worth 200000 yuan in a month, earning 30000 yuan in profits.

There are many people like him in Humen, who are called "agent inventory" distributors by industry insiders, while more garment enterprises call this behavior "sewer".

Ouyang Guangyao said, "The distribution method of‘ sewers’ is often to transport the excess inventory to the fifth and sixth tier cities by using discounts or bargains." Another method is to use e-commerce to sell clothes abroad

However, no matter which method, the brand enterprise itself will be hurt by taking the "sewer"