Faced with the dual pressures of macroeconomic transformation and consumption upgrading, clothing brands must have the determination to break through the butterfly and actively explore the breakthrough port. Under the bad situation of the overall economic environment, consumers' consumption patterns and consumer demand have undergone tremendous changes. The apparel industry segmentation has become more specialized, and peer competition is fierce, while the outstanding designers who meet the consumer demand are lacking. The design property rights are difficult to guarantee, and the plagiarism is serious, resulting in uneven products. In the past, what was produced and what was sold, sellers promoted changes in consumer demand, and now become consumption-driven supply, centering on “consumer demandâ€, seizing the port of demand, creating quality products, reforming the supply chain system, optimizing data applications, and upgrading Service experience, improve the level of business operations management, the ability to solve the problem is in addition to the current difficult problems, and the liberation of the tight collar of the clothing. The solution to the problem is always more than the problem. It depends on who has a quick response and a stronger mental digestion.
Inman expands physical stores on a large scale, what is inventory?
When the real economy was not optimistic, Yinman founder Fang Jianhua resolutely chose to expand the physical store on a large scale. No difficulty, of course not. The hot impulse of his head is certainly not. It is precisely because we challenge when we choose to flee in the face of difficulties, we will find new opportunities and create new possibilities.
According to the 2016 annual report, Yinman's subsidiary Guangzhou Huimei Fashion Group Co., Ltd. (hereinafter referred to as “Huimei Fashion Groupâ€) had an annual operating income of 1.198 billion yuan in 2016, compared with 1.141 billion yuan in the same period last year, an increase of 5.00 year-on-year. %; 2016 annual net profit was 21.37 million, compared with 17.62 million yuan in the same period last year, an increase of 21.28%.
It is understood that the cost of offline stores is not high, but the fact is that online traffic costs and personnel costs are not low, but the efficiency is high. Most of the traditional clothing brands belong to the layer-by-layer distribution system. When they go to the retail store, they have already increased their price several times, almost 5-10 times the markup rate. The retail price to the consumers is generally low, and the distributors only order. Brand goods can be placed on distributors, which directly leads to increased pressure on terminal dealers and franchisees, which in turn becomes an inventory backlog. In addition, the traditional clothing store goods style is fixed, the renewal cycle is long, and most brands open online flagship stores, the price is generally cheaper than the franchise stores, consumers will choose to go to the offline store to try on, remember the style Directly to the online shop to place an order to buy, the offline store has no choice but to fall into the online "fitting room", but for their own performance has to complain.
According to Fang Jianhua, the founder of Inman, in the past five years, the supply chain system has been reformed. Although there are many difficulties in the process, it is gratifying that the supply chain reform is effective, which is also the choice for its large-scale expansion. One of the sources of confidence in physical stores. After the design of the new season, the products will be sold in small batches, and then according to the sales volume of the e-commerce platform such as Tmall, Vipshop, JD.com and the replenishment demand of the franchised stores in the unit, the order will be replenished quickly. Even if the sales volume is not ideal, the inventory is not a problem, and the sales can be directly and quickly discounted to remove this part of the inventory.
If you need to add 500 pieces, from order to delivery, the shipping cycle is short and controllable: 7-10 days for T-shirts, 10-15 days for shirts and pants, and 25-30 days for winter jackets. If there is no good supply chain system, the inventory will back up a large amount of funds, especially the sluggish inventory, long-term occupation of warehouse space, wasting a lot of manpower, material resources and financial resources, which will have a serious impact on the company's cash flow and management operations, perfect supply. The impact of the chain on clothing brand management can be seen. Optimizing supply chain destocking is unstoppable, and Uniqlo and Zara have benefited greatly from their own supply chain and agile inventory requirements. ZARA can put new goods on the shelves twice a week, plus its timely capture of fashion elements, take a personalized route, and a small amount of money, stimulating consumers to buy the psychology of "the next second may not be able to buy."
"Niche brand" Everlane hunger marketing is not discounted, the cost of production is completely transparent
Different from the recent expansion of physical store Inman, born in Silicon Valley, Everlane, an entrepreneurial fashion brand with Internet thinking, has become the most successful "niche" in the past few years in line with the trend of the Internet economy. Brand. Different from the style of multi-category coverage of many domestic clothing brands, Everlane was founded in 2011 with a cotton T-shirt to get the first round of angel investment of 1.1 million US dollars. Hunger marketing clearly hangs on the appetite of consumers, inviting ways to accumulate high-quality customers, and successfully captured 60,000 customers in two weeks, and that T-shirt has only 1,500 stocks.
Everlane's product positioning is accurate: to do high-quality classic basic models that can be worn for 10 years, "less and fine" can best summarize the characteristics of Everlane, using "low-cost APC, high-quality Uniqlo" to describe Everlane is not too much. Everlane does not sell large quantities of products seasonally every year. It will only launch a small number of new products on the website. Each category has no more than 20 items, or add some color to the classics. It is not easy for designers to design a manuscript. And the quantity is not quality.
“Cut the middleman, the cost of a regular T-shirt is only $7.50, but it’s $50-60 in a boutique.†The founder of Everlane found that the retail profits of luxury goods can be as high as eight times the cost of production. I aimed at such a price difference and expressed the hope to reduce the cost of traditional retail sales as much as possible. The effort is less expensive, and it also earns a lot of sales.
Everlane didn't set up a counter in the mall, and there was no physical store, bypassing the link with the retailer, and never discounted. In the pursuit of eternal sense of design, fashion sense will not weaken with time, the new season is also fashionable and charming after 10 years.
Everlane materials are all fair trade, fair place and cost, such as a silk skirt, the website will be straightforward to calculate your account, 22.17 knife is the cost of raw materials, 12.39 knife labor, 2.99 knife tax The production cost adds up to a total of 38 knives. In traditional department stores or high-end brands, the price will be 190 knives, while Everlane will only sell 98 knives. The price cut will also tell you why the price is cut (for example, recently received an email telling a classic cashmere sweater from 130 knives to 100 knives, because the cost is reduced). A daily T-shirt of $20 is cheap enough. Only sold in the United States, it is conceivable that their version must be suitable for most American consumers, cheap, good materials and good basics, Everlane is definitely the price-performance choice of the American people.
In the country, it is another year's discount season, up to the brand store in Yintai, as small as the clothing store in the alley, the words "discount, sale, clearance" and other words stimulate the eyes of consumers. In the new season, we will not be able to discount, because the inventory has not been removed, and the funds are pressed. As soon as the season-changing clothing brand opens the crazy discount mode, consumers will easily go to large-volume purchases at the time of discounts. When new products are new or seasonal products are kept in the store, there are very few consumers, which directly leads to Sales continue to fall. After all, consumers are becoming more rational in the context of competition among many brands. Products that are “cheap and cheap†can stimulate consumers to purchase. When consumers become more flexible in purchasing goods, the inventory of the store becomes more and more uncontrollable, and often the discount of the goods is required to digest the inventory, the clothing brand can no longer be vigilant. Consumers who like to go to other cities to enjoy the sunshine season in winter can buy summer clothes online during the winter, according to industry experts, this sales are continuing to grow.
Go to the department, go to the department, red collar, focus on the user
At present, the level of domestic clothing design is low, and the products are difficult to excel in fame, and most clothing companies can only work for other brands in order to survive. The owner of a garment processing company secretly revealed that even the listed company Red Bean Group had done OEM work for ARMANI. Many of LV's products came out of a workshop with Vanke Eslite.
There are three main links in the operation of the garment industry: R&D design, processing and production, and brand channel operation. The profit distribution in this value chain is about: R&D design accounts for 35%, brand channel operations account for 55%, and processing production accounts for 10%. This is the smile curve of most manufacturing industries, that is, the manufacturing process is at the lowest end of the price chain, and the return is the least.
With the upgrading of the domestic consumption structure, the cultural identity of consumers is particularly important. As a clothing enterprise, it is not only to inherit the traditional Chinese culture, but also to understand and tolerate the new generation culture. The reason why some new Jinchai brands can go against the trend lies in the analysis and grasp of the culture of the new generation of consumers. At present, many domestic apparel companies, including the Taiping Bird (36.610, -0.09, -0.25%), have successively created young and trendy brands, catering to the “Millennial Generation†that pursues freshness and likes social media. A lighter, faster and cooler fashion era has arrived.
However, the transformation of the garment industry into the fashion industry is not a one-time thing. Not only must we work hard on design, but the breakthroughs in sales channels and production service models also need further transformation and upgrading. Sun Ruizhe, president of the China National Textile and Apparel Council, said that it is necessary to create new value points for connecting with consumers. For example, using mobile social release trends to accurately connect and serve with consumers; for example, consumers can choose their own styles, fabrics, colors, and independently design various details, deep autonomy, and ordinary consumers through intelligent systems. Become a designer and break through the traditional consumer experience.
When the traditional clothing industry is struggling to find a way out, the "fast" with intelligent as the core becomes the direction of the effort to see the breakthrough. If the intelligent design and service and the consumer demand are "unacceptable", the intelligence brings “Fast†will be counterproductive, further increasing inventory pressure. Therefore, the current "conforming to consumer demand" has become the key to the consumption upgrade.
Going to the department and going to the department level, all 30 departments and departments are broken up. The employees come out and become the nodes in the process, so that each employee can turn around the user's needs, and 80% of the middle-level leaders play the role. The role of “firefighter†is responsible for resolving problems that arise at any time and standardizing the process. This is the new reform of the Red Collar. This reform has reduced the management cost of the Red Collar by 20%. The demand of consumers has been met with high quality and high quality. The red collar development has been smooth, except for the intelligentization. The efficient use of its management model has contributed.
In the new era of consumption, clothing brands are “focusing on consumer demand†and are moving forward: changing the original product design ideas, from copying to self-contained style; getting rid of the old brand promotion model, learning brand IP, socializing Communityization of consumption and consumption.
Editor in charge: Yang Bo
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