Business Casual Men's Clothing Rings Alarm Bell, Can The Electricity Supplier Become Its Analgesic?

　　 Business casual men's alarm clock frequency response: what is the pain of doing electricity supplier?

If business casual men used to be proud of the capital of the electricity supplier, this kind of capital is being eroded constantly.

Business casual men's alarm clock frequency response

What are the problems faced by business casual men's clothing?

One of the immediate problems is inventory. Since 2011, Bussiness Casual The stock is expanding rapidly, which is mainly due to the weakness of the overall market and the over optimism of the brand.

The selling rate of the seven wolves sold in autumn and winter 2011 is only 65% to 70%, while that of the spring and summer products in 2012 is even lower. As a typical example of vertical integration of business casual men's clothing, "nine Mu Wang" usually sells at a rate of 80%, but the sales of products in spring and summer of 2012 are not satisfactory.

In 2011, the stock of major brands increased significantly. After entering the 2012, the brand increased the intensity of inventory clearance, making the inventory of the brand owners no further deterioration under the overall performance of the market.

When China's sports brand breaks out of stocks, there is hardly any sewer on the market. Up to this day, the major men's wear brands have basically established a three-dimensional inventory digestion mechanism from factory stores, terminal promotions to special sales. On the whole, the electricity supplier as one of the channels, the pressure of selling inventory is still not large.

　　 Business casual men's clothing is more of a crisis, hidden in its offline business itself.

Over the past few years, especially since the outbreak of the financial crisis, business casual men's wear has achieved very impressive growth. But these growth mainly comes from the extension of brand and the price increase of commodities.

Since 2008, the price has been growing at an average annual compound growth rate of 16.7%. This is only the price increase for the dealer. Agents usually pay extra price on this basis. The sale price of the brand has doubled over the past four years.

In addition, the sales growth of Li Lang largely benefits from the extension of the brand. During this period, the number of terminals in the company increased from 2000 to 3268, while the average sales volume of a single store has not increased significantly in the past five years.

The development trajectory of other major brands is basically the same. In 2011, the sales of the seven wolves increased by about 13%. But during that period, the price of the seven wolves increased more than 20% at the terminal. Considering that the products sold by stores are not entirely new products of the season, we can not conclude that the sales of the seven wolves can be reduced compared with that of the stores, but it is certain that sales promotion is very limited for the growth of the seven wolves.

　　 The bottleneck of development is increasingly obvious.

If commodity prices can continue to rise as before, that would be an easy way to make money. The problem is business. Casual men's wear How big is the price space?

CICC has analyzed the price changes of the flagship products from mass leisure brands to luxury brands in the past ten years. After analysis, it is found that brands such as UNIQLO and H&M do not have the ability to raise prices. Taking into account the overall inflation of the society, the products of these brands are actually becoming cheaper over time.

The price of medium and high grade brands, such as Polo, is basically consistent with the overall price level of society. Only luxury can increase the price by more than CPI in the course of development, thus gaining higher premium space.

In contrast, several major men's clothing brands in China are basically located in the middle and high grade range. In a relatively mature market, their prices can be consistent with the overall prices of society. But the price increase of several leading men's clothing brands in the past few years is far higher than this, which can be said to overdraw the future price space. The average price of the black label is 685 yuan. In the foreseeable future, business casual men's clothing prices will continue to increase substantially.

The overall performance of China's apparel industry is a wake-up call for the frenzied rise in business casual men's wear.

China's clothing consumer price index has been negative year-on-year since 1998. But in 2011, the growth was recorded for the first time, indicating that clothing prices have become a common phenomenon in the whole industry.

According to the statistics of China Business Information Center, in 2011, the average sales price of the major large-scale retail commercial clothing increased by 10.46%. Meanwhile, brand clothing prices increased by 20.3% during the same period, and brand clothing showed stronger pricing power. But sales of branded clothing increased by only 3.37%, less than 5.14% of the industry.

　　 Top grade clothes The price increase is as high as 26%, but sales volume has not increased, but has dropped by 12.7% year-on-year. I believe this is all the phenomenon of "price drive" clothing brands do not want to see. The positioning of business casual men's clothing is high in the middle range, and the overall price increase space is bound to be limited.

At the same time, the business environment of business casual men's wear line is also deteriorating.

By the end of 2011, seven wolves had developed 530 direct battalion terminals. However, if we take the cost of goods in the first generation, we will lose about 3/5 of the stores.

A very helpless reason is that the cost of brand direct operation will be higher than that of franchisee. Franchisees can enjoy greater benefits in terms of tax and so on. If half off gets the goods, franchisees usually get about 10% net profit, but it is hard to make profits if the brand is straight.

The strategic input of the brand to the terminal also makes the brand suffer from more and more strategic losses. About half of the new stores added to the seven wolves are strategic outlets. The strategic Direct stores are mainly located in cities which are not willing to enter by agents such as the north, the upper, the deep and the deep. With the increasingly fierce brand competition, if the brand itself does not occupy the terminal, the market will be occupied by the opponent. This is also the significance of brand to bear losses. Seven wolves have lost three consecutive years in some shops in Shenzhen. But considering the strategic significance of the store to the brand, the seven wolves will do it.

China's business casual men's wear is very good at realizing the dislocation competition in the initial stage. But when the brand grows to a certain scale, the space of "dislocation" will only become smaller and smaller, and the competitive environment of the brand will only become worse and worse.

　　 those Electronic Commerce Hope bred

Electronic commerce represents the future. Few people will refute this sentence. But what is the future of e-commerce? What is the future of e-commerce? I believe no one can really speak clearly.

Everyone knows what to do in practice.

Ideally, e-commerce is seamlessly linked to traditional business systems. For many of China's franchise brands, it is the biggest problem to get through the interests chain online and offline.

domestic Garment industry In this regard, the earliest exploration should be Giordano. In December 2003, Giordano's official website was launched. Through ERP integration, Giordano opened up online products and users online. In 2008, Giordano realized the sharing of logistics network under the logistics link and the line, and e-commerce could use the offline storage to deliver goods nearby.

JEANSWEST's business strategy is similar to Giordano's. JEANSWEST also adopts the O2O mode combining online and offline. Logistics is responsible for the Logistics Department of the traditional business, and is shipped near the 13 regional warehouses. What is more radical than Giordano is that JEANSWEST will completely divide the performance of e-commerce based on geographical ownership to 13 sales branches under the line, and the electricity supplier of the company only receives rebates from these 13 branches. In this way, JEANSWEST really realized the use of e-commerce to serve traditional businesses.

But the case of Giordano and JEANSWEST can not be copied in the men's clothing brand. The proportion of Giordano and JEANSWEST's direct operation is very high, all over 70%, which makes them less resistant to profit distribution when expanding their business. Just as importantly, the price of casual clothing brand is not high enough, and the popular price can easily be accepted by consumers.

Local business casual men's clothing in these two aspects of the conditions do not have: the proportion of direct business is still relatively low, the price of goods is relatively high. Therefore, business casual brands can not directly replicate the development path of Giordano and JEANSWEST.

After selling the inventory, this part of the expedient is partly. Men's wear brand Started the exploration of merging online and offline.

From selling inventory to developing network dedicated supplies, and then trying to integrate online and offline, this is Mark Ed Faye's business development path. In the choice of integration path, the strategy of Wang Yuwen, director of the electricity supplier of mark Hua Fei, is to roll out the booth in stages and sub brands. Mark Ed Faye chose the company's smaller plate and straight battalion to occupy a relatively high SHAKE for O2O attempt.

In addition to the background system docking and warehousing, the key is how to balance the interests between the lower and lower parts of the line. Mark Ed Faye's current solution is shared interests and cost sharing. Offline traditional business departments continue to assess in traditional ways, while e-commerce business only examines sales rather than profits in the short term.

O2O linkage is also the ultimate goal of the seven wolves electric business. The "five steps" of the electricity supplier proposed by the seven wolves are brand e-commerce, network distribution portal, online and offline commodity trading platform, CRM brand ecological system and O2O linkage. The seven wolves have basically completed the first two steps.

After so many years of adjustment, the seven wolves have established a very firm control over the terminal. In 2011, the seven wolves further put forward the development strategy of "rationalizing the value chain, reducing unreasonable profit distribution, and making the supply chain tilted to the profit free terminal". It is not difficult to find out that the so-called "unreasonable profit distribution" of the seven wolves is the generation.