The winter of the rich in clothing vs. the spring of the stock aisle

Absrtact: The winter of the rich in clothing vs. the spring of the stock aisle the rich collectively fall into high inventory, but the goods will be the transition inventory clean up the site and achieved success. However, the high growth of the product will also attract a large number of peers to follow suit, in the encircle

The winter of the rich in clothing vs. the spring of the stock aisle

Clothing industry, the rich collectively fall "high Inventory", the only product will be the transition inventory to clean up the site and achieved success. However, only the high growth of the goods will attract a large number of peers to follow suit, under the "encircle", the only product will be prosperous can continue for how long?

2013, the clothing industry suffered a cold winter, "performance decline", "High inventory" and "close" to become the top of the garment industry in the head of the rich sword, and constantly test the ability of these entrepreneurs to deal with the crisis. In the garment industry aihongbianye, to clean up the stock as the main business will be ushered in the development of the spring, its chairman Shenya also selected the first "new Wealth 500 Rich list" to 9.14 billion yuan wealth value ranked 131th.

Clothing Rich Winter: inventory, closing, performance decline

Clothing industry inventory crisis continued from 2012 to 2013, the 2013 Textile and garment industry is dubbed "the most difficult year in history," the first name. As demand continues to be sluggish, the garment industry has been severely challenged by the simple and extensive extension of its expansion model. According to the investigation of China Cotton Textile Industry Association, the first half of 2013 large enterprises started to 85–90%, medium-sized Enterprises about 65%, small enterprises discontinued, limited production further intensified, the operating rate of only 30%, cotton yarn products Average inventory turnaround time reached 20-30 days.

In the 2014 "New Wealth 500 Rich List", consumer goods industry in the first three strong, the apparel industry only Shen International Ma Jianrong and Huang Guanlin was selected, Shen International is not a typical clothing brand, it main OEM and export, through the construction of Vietnam and Cambodia to reduce costs, access to the growth of performance. In the past 3 years, MA Huang's portfolio ranked 13 from the consumer goods industry to 3rd place this year.

Most of the rich in the garment industry do not Ma Jianrong this kind of good luck, many rich people because of the decline in the new Year's rich list. From the 2012-2013 "new Wealth 500 Rich List", 7 apparel industry leaders disappeared from the list, including Li Ning, Lee Lang, China trends, 361 degrees, Pathfinder, sports and Saturday. And from 2013-2014, there are two clothing business leaders fell out of the rich list, they are searching for the Ma Hong family and rich birds Lin brothers.

The annual report shows that 2013, Li Ning, anta, horse, 361 degrees, China trends, special step six brand inventory reached 942 million yuan, 689 million yuan, 366 million yuan, 409 million yuan, 183 million yuan and 537 million yuan. Affected by inventory, closing tide in the various sports brands in turns staged, the six brands 2013 years of closing number has exceeded 3,000. These companies, in addition to China's trend of net profit growth in 2013 years, other companies have not achieved growth, including 361-degree net profit is down 70%. Anta Shizhong Family and Special Step international Ding family although still remain in the 2014 rich list, but also inevitably suffer from the difficulties. Anta closed 318 last year, net profit fell 3.2%, special step profit is 25.2%, and contraction front, will be part of the Guangzhou branch of the business unit moved to Xiamen and headquarters in Quanzhou.

Non-sporting brands have also felt the chill of the industry downturn. In the "2014 New wealth 500 Rich List" List of enterprises, the United States apparel, Bo, nine King, seven Wolves and O ' Connell International all recorded a fall in net profits, including the United States, the net profit fell by 49%. As a result of weak retail channel performance, in the first half of 2013, seven wolves due to inventory pressure net close 152, accounting for the total number of direct terminal 1/4. The king also closed 59 stores during the same period to control operational risk. In January 2013, a letter from Hong Junming, founder of the cyber-bully group, said that "Jin Pa has suffered the worst market downturn in history".

Only goods will be against the city

In the face of huge inventory pressures, brand makers typically digest inventory through four main means: the product shelves to the various electric business platform, through the electric business channels for sales, increase the online and offline sales of the product discount strength for promotion, and professional tail cargo channel cooperation, such as some tail goods mall, etc. close some offline entity shop.

When the brand in order to reduce inventory, helping businesses clean up the inventory of the electric business platform has ushered in the development of the spring. Only the "Flash purchase" mode of the product will be one of them. The so-called flash purchase is every commodity will have a shelf time, all goods in the shelves in a few days will be sold out of the shelves. Only goods will be on the same day shelves will not be a lot of merchandise, and there is no search box on the Web page, consumers can only accept the goods listed on their shelves. This model allows users to pay more attention to the recommended products, but also achieved the only product will be clear inventory efficiency. According to statistics, only goods will normally be in 3 days or so can complete inventory clean-up, the sale rate of each brand in 50-80%, efficiency higher than offline channels.

In addition, the only product will adopt the membership model, the brand does not need to invest in marketing and promotional costs. It can also provide customers with free characteristics of the target customer analysis, such as gender, age, geographical, etc., to help businesses pinpoint to potential customers. Compared to the line under the channel 40–50% Buckle point, only the product will be located between the 20–30%, leaving the brand more profit space.

The only product will initially not sell inventory, it began to position as a luxury website, in March 2012, it as a luxury discount electric dealer's identity landing NYSE, but suffered a "bleeding listing." The original price was set at a 6.5 dollar low, the start of the day closed down 18%, followed by a few days. Before the listing, only the goods will have 3 consecutive years of loss, the 2011 net loss is more than 107 million U.S. dollars.

After 2012, the performance of the commodities meeting was significantly improved, mainly because the company's strategy of changing its position from a luxury discount distributor to a Volkswagen brand, "Auschwitz", has been effective. As a result of the scale effect gradually formed, the company and the supplier's bargaining power to improve, followed by the gross margin and performance of the promotion. Its 2012-year net loss narrowed to $9.47 million trillion, and revenues surged 204.7% to 690 million dollars. In 2013 years, only the goods will turn to profit, achieve net profits 52.3 million dollars, revenue increase 145.14% to 1.697 billion dollars.

The continued improvement in performance has also led to a strong rise in share prices. On April 17, 2014, the closing price of 142.53 U.S. dollars to calculate, only the goods will have reached the beginning of 77.74%, in the past year, the share prices have increased by 426.48%. Its market value of 7.933 billion U.S. dollars, in China's internet retail stocks ahead, Dangdang share price of 12.08 U.S. dollars, the market value of 970 million U.S. dollars, only a fraction of the goods will be. The price of Macaulay is 3.68 U.S. dollars, the market value is only 46 million U.S. dollars. Orchid Pavilion Set potential shares of 5.58 U.S. dollars, the market value of 273 million U.S. dollars. Deutsche Bank also released its research report on April 14, expecting the goal of doubling revenue by 2014.

In the only product will be stimulated by soaring stock prices, has never boarded the "new wealth 500 Rich List," the only chairman of the Shenya was selected for the 2014-year list, to the end of 2013 only goods will be 83.68 U.S. dollar price calculation, Shenya personal wealth of 9.14 billion yuan, in the rich list ranked 131th.