Fierce Competition In The Market, Clothing Industry Need To "Save Themselves" To High Inventory

The inventory crisis in the apparel industry continued from 2012 to 2014, and 2013.

It is known as "the most difficult year in history".

Because production is larger than demand, the extensive expansion mode before the garment industry has been seriously challenged, and a large number of garment enterprises have closed shop.

Inventory generation

China's garment industry is facing increasingly fierce market competition.

The big reason is Sun Rongguang, the founder of Ku pants.

The former clothing enterprises adopted the order meeting system, and the clothing in late summer and early autumn probably started in spring last year.

Under the development of this supply chain, the homogenization of products is rising, and the price of goods has increased.

When a product is sold well, the output will increase in the rear, but subsequent sales may lag behind, which will increase inventories in an invisible way.

Data show that the vicious circle of this industry chain has led many garment enterprises to enter a downturn.

Baleno's parent company, Baleno, released its results for the fiscal year ended March 31, 2014, saying its total revenue decreased by 12.4% to HK $9 billion 860 million.

In addition, its outlets in various markets are continuing, with the number of outlets in the mainland market reaching 388.

De stocking is imminent.

In fact, the clothing brand to some extent is not a high performance, but to go to inventory capacity.

Who will first clean up inventory to a reasonable level, so that the channel to restore vitality, who can be the first recovery in this low tide.

360 degree has said that in view of oversupply, controlling inventory is an important task for the company. Distributors and companies are cautious about issuing and accepting orders.

There are also many clothing enterprises to go inventory way is to stock down to the downstream sales channels, so that although clothing enterprises inventory decline, but the channel inventory increased.

In the absence of obvious improvement in the industry demand, the digestion capacity of the channel has not been raised, and the high inventory problem has not been solved.

Optimizing supply chain is an effective way to solve high inventory problem.

With the establishment of supply chain coordination, inventory cost can be reduced by 40% in the supply chain.

It is the example of supply chain management.

Sun Rongguang said, the supply chain of Kaka pants includes three links: product design and production, supporting product development, sales and service, through the vertical integration and distribution of the entire supply chain, so that each link is compact and smooth, and the flow rate of products is improved to a maximum extent.

Sun Rongguang: before the clothing production is six months ahead of schedule, board, debugging, reproduction, will generate a large number of inventory problems.

The Kaku team proposed that the supply chain should be optimized to make joint breakthroughs with manufacturers.

Pressing fabric is not pressed. It can change the style and adjust the order at any time.

It further optimizes the fabric of pressed germ cloth, pre - weaves the white germ cloth into the cloth factory, and adjusts the color and quantity of the dyed fabric at any time.

In addition to the normal processing fee for factories, there are year-end dividend payments, prompting manufacturers to cooperate actively and form mutual interest communities, thus solving the inventory problem from the root.

Do not neglect the most important design link in the industry chain. Homogenization of products is a way to arouse consumers' desire to purchase and solve inventory problems thoroughly.

For example, the normal trousers are designed according to standing posture. When people sit down, the waist muscles accumulate, but the size of trousers does not change, causing people to feel pressure on their waist and legs.

As a result, the Kaka pants have increased their telescopic force at the waist according to their sitting position, and adjusted the design of wave bottom, cross section and provincial road, and improved the function of the trousers fabric, so that the appearance of the pants has no obvious difference from the conventional trousers, and has maintained the quality sense of the high-end trousers.

In order to ensure the comfort of the pants, a series of related products, such as elastic belts, antibacterial underwear, etc., were also developed.

In addition to the production link, we should also solve the inventory problems from the retail perspective, such as cooperation with the electricity supplier, increase sales promotion efforts, and so on, so as to create a sales model of "three networks in one", so as to digest the growing inventory.

In fact, the effectiveness of clothing enterprises' inventory self rescue measures remains to be seen. Before the inventory problem has been effectively solved, the overall prosperity of the garment industry will not be substantially improved.