Three Ways For Apparel Enterprises To Inventory

After the fast fashion represents the brand of Max chase and bang, after the huge inventory, tradition

Brands can't escape bad luck.

Data show: as of the third quarter of 2012, only 22 A share apparel listed companies in the third quarter of the total inventory reached an astonishing 38 billion 200 million yuan, and each company's inventory exceeded 100 million yuan.

Compared with the two quarter, 2/3 companies have seen an increase in the inventory of annulus stocks.

In such a grim reality, how to digest huge inventory has become a matter of life and death for garment enterprises.

Under the situation of export market depression and consumption weakness, "inventory" has become a thorny problem for almost every garment enterprise.

Including men's wear, women's wear and leisure.

The quarterly report of the third quarter of 22 A apparel listed companies showed that the total inventory reached an astonishing 38 billion 200 million yuan.

Huge inventory not only engulfed the cash flow of enterprises, but also caused resistance to the expansion of brands and the development of channels.

And how to digest high inventory is testing the survival wisdom of clothing enterprises.

From promotions to special stores

2012, China

The growth demand dropped from 20% in the past year to 10%, which is the first time that men's wear has dropped for the past ten years.

In the reality that sales are not enough, high inventory is inevitable.

According to the 2012 China Daily, the inventory of the birds was 563 million yuan, and the inventory balance of Shanshan stock was 357 million yuan.

Qi Chunhua, head of the planning department of Shanshan Group, said frankly, "we have been trying to find ways to clean up inventory better."

He said Shanshan Stock clothing.

Net profit is only 4 million 60 thousand yuan, down 73% compared to the same period this year.

In order to solve the inventory problem, the company has made a 25 million 580 thousand yuan price fall.

"Our current train of thought is to take part in some promotional activities in shopping malls."

Qi Chunhua told reporters that every year from eleven to Spring Festival is a good time for brand promotions.

Meanwhile, YOUNGOR, a leader in domestic men's clothing, often appears in the 50 percent off sales promotion activities even in the usual sales stage.

However, this is obviously only the most conventional way.

If the inventory of enterprises is below 5%, then this way is enough to consume product inventory and maintain the normal operation of enterprise cash flow.

But even in this way, the price is still unable to reach the minimum, and consumers still do not buy it.

"If you have a good relationship with the market, you will also have the opportunity to enter the brand special sale."

Bosteng men's marketing department Guo minister said.

In order to be able to clean up inventory more effectively or to bring products to market at a lower price, 5 years ago, some big brands began to try to set up special stores in the vacant areas of squares or stores.

"The establishment of special stores is a very effective way to reduce the cost of store rental, or just short rental, thereby reducing costs and reducing taxes.

Therefore, the price reduction is very large. "

A field manager who once worked as a marketing director in a well-known clothing enterprise told reporters.

"The best year is that we sold 130 million yuan of stock through special stores."

At the same time, Tian manager made an account of the journalist. "Usually the price of the garment will be around 70 percent off of the terminal price, while the price of the special store will be less than 50 percent off.

After completing the inventory sale of 130 million yuan in the year, the total repayment amount could reach 50 million yuan.

In this way, enterprises in the process of cleaning up inventory, did not lose money, or even made a small profit.

Subsequently, the form of special store was quickly promoted in the brand of all men's clothing.

"Everyone is doing special stores, and gradually, this mode has lost its attraction, and its influence has been very weak in the eyes of consumers."

Said Tian manager.

Wholesale "change face"

After the failure of special stores, some brands have adopted a more extreme way to clean up inventory and even cut export through large traders.

"This is also a way for many brands to adopt, but this way has a greater negative impact on the brand," Tian said.

Generally speaking, there will be some better traders in the factory to maintain long-term cooperation.

"We will sell the products in a wholesale fashion of 3 to 5 years to a certain trader."

And the size of this trade reaches 10 thousand or so in shirts or suits, almost emptying the stock of a certain area.

Tian manager revealed.

However, wholesale prices are hard to talk about what good prices are.

Mr. Guo, director of marketing at Bosideng Menswear, said that at many wholesale sites, "suits and shirts are not sold in units, but sold in pounds or in units such as" bags ".

In this extreme way to clean up the goods, "we must cut the trademarks, otherwise it will have a great negative impact on the brand."

Minister Guo said.

Wholesalers also have two ways to handle the goods.

"One is that they put up their own brands and sell them in the special store, and the other is that they export these goods to other countries."

"These stock products are exported to Southeast Asian countries more because Southeast Asian people are similar in size to ours," Tian said at the same time.

Li Jiantai, a businessman in Yiwu, began cleaning up stocks in China in 2003, then sold these products to American customers and eventually sent them to the "99 American stores" in the US for retail sale.

Because the terminal price of the product is relatively low, Li Jiantai must find a cheaper Chinese product, and the inventory goods just satisfy the requirements of the US customers for the cheap and high quality products.

According to his own experience, Li Jiantai's favorite product is branded goods.

In his view, this tail cargo is the best quality product, of course, the price is also high tail products.

"For example, a brand-name sportswear may sell for thousands of dollars in the mall, but only 200 yuan in the tail cargo market.

The raw materials and accessories of these products are exactly the same as those of real shopping malls, even with labels.

Most of these products are manufactured by brands instead of raw materials. The quality of products is generally guaranteed. "

Clean up inventory Online

At present, Shanshan has cleaned up its inventory through Internet sales.

Qi Chunhua said that a total of 70 percent off men's coats sold in Shanshan had 2149 sales per month, but the product sold more than 1500 items on that day.

It is understood that Shan Shan Tmall sales in the eleven double sales day, the sales volume of products has basically exceeded more than half of the sales volume of Ping Riyue.

We have eaten the sweet fir, and even delayed the promotion time to achieve better sales.

Yuan Yuanfeng, director of offline operation center of Shanghai Green Box Technology Co., Ltd., said: "many offline brands still want to carry out inventory sales through network channels, and new products are less available.

In order to digest inventory, many offline apparel brands are linked to the famous Taobao brand, such as green boxes and Han dresses, hoping that the other side can promote and manage their own brand online stores.

If they are merely selling goods in stock, "dealers' acceptance is better, and there is little reaction of boycott."

Yuan Feng said that this year's double eleven promotional activities, there are several traditional brand sales of 100 million yuan.

"Such a fast sales mode has great attraction for brand owners with stock pressure."

Yuan Feng said.

However, this pattern is not "perfect" either.

It is very important for successful online stores to maintain repeat purchase rate, but inventory products can not make consumers more interested.

In order to achieve sales volume on the Internet, "it is very important that we should continue to have new styles to attract consumers to keep buying."

In Yuan Feng's opinion, relying solely on simple digestion of inventory is difficult to protect the brand loyalty of customers, and if the enterprise only regards Internet sales as a discount and inventory channel, sometimes it will impact the offline channels and have a negative impact on the brand image of the clothing.