Negative Growth Has Become A Hidden Disease Of Clothing Retailing Industry.

Here world

The small hat of shoe and hat net tells us that after the closing of retail stores, the net profit will decline again.

Following the continuous "closing shop boom" in the first half of 2014, negative growth began to be a major problem that plagued the retail industry.

According to Wind statistics, as of October 29th, 88 retail businesses announced the three quarterly report in 2014, of which 31 business retail enterprises net profit fell, accounting for 35%.

The journalist launched a survey to the heads of dozens of retail enterprises. More than half of the executives said that the sales of golden week decreased compared with the same period in 2013. About 30% of the enterprises maintained stable or slight growth (the main growth came from new stores), while less than 10% of the enterprises indicated that the rally was obvious.

"National Day sales determine the sales trend for the next three months."

Hu Chuncai, general manager of Shanghai Shangyi consulting, told reporters that in view of the performance of retail enterprises during the national day, we can judge that the retail industry is facing a huge market test.

Most retail businesses in China have been defeated in the face of market challenges. In the first half of 2014, supermarkets and department stores closed more than 160 stores.

Corresponding to the "closing shop tide", not long ago, some large shopping malls and shopping centers had different degrees of "rent out tide". Merchants who could not afford the rent had chosen to escape.

There are signs that the era of physical retailer running around is gone: rent and labor costs are rising, and under the pressure of competition, passenger flow has been diverted and profits have been diluted. Although the absolute value of the total retail sales of social consumer goods is growing, the amount of consumption scattered to every retailer is very small. Physical expansion of physical retailers has reached the border, and the former is the abyss of loss.

The crux of the underlying causes of rising costs and shrinking revenues is that the existing profit models have been difficult to sustain.

After more than 10 years of rapid development, it can be said that the traditional retail industry has eaten up the "old version", and the "successful experience" that has been profitable before seems to be eliminated by the times.

For example, relying on scale procurement to lower procurement prices and get higher supplier rebates, the scale effect of the chain's repeated profit models has begun to weaken, that is, when the procurement scale reaches a certain number, even if the price is increased by ten times, the purchase price is also very difficult to reduce.

Sun Weimin, vice chairman of Suning cloud business, told the newspaper reporter that Suning had formed such a pattern when he started his two venture, gained a higher rebate from the scale advantage, and expanded the profit investment network further.

Such snowball enterprises step by step.

In today's context, this model is no longer feasible, so Suning began to increase its own brand and buyout the proportion of exclusive brands.

Then take the large part of the profit source entry fee in the traditional chain enterprises as an example. When the entry fee is increased a little bit or even exceeds the scope that the supplier can bear in the past few years, the effect is beginning to backfire.

Taking a large retailer as an example, with the monopolistic position in the regional market, in 2013, "creativity" put forward the practice of supplier's "bidding" admission, trying to crush the last drop of oil and water on the supplier, resulting in the collective abandonment of suppliers.

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The main reason for the current predicament is that consumer shopping habits have changed, and the physical retailer's own business model has not changed.

Wang Tian, chairman of BBK group, said.

However, on the other hand, the industry crisis has also brought opportunities to some enterprises. Entrepreneurs who are well versed in the survival of the retail industry have already identified the expansion margin of future entity retailers.

As a result, the powerful predators take the opportunity to "copy the bottom" so as to gain the leading position in the next round of horse race, while some small and medium sized retailers who are hopeless will be able to cash in and sell a good price.

In fact, around 2008, the "leftover king" that the industry once shouted, did not finally show up, because at that time, though encountered.

Crisis, but still far away from the other side of the ocean, its impact is far from affecting the Chinese consumer market.

Nowadays, under the influence of multiple factors such as the impact of the electricity supplier channel, the slowdown of the economy and the uneven development of the industry, the era of "leftover is king" has really come.