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Confusion in the transformation of apparel companies

Release time: 2015-04-17 09:44

Standard Group (Hong Kong) Co., Ltd. Textile Industry Information: Confusion on the transformation of apparel companies. Where do physical stores lose weight, what is the way out for traditional clothing companies? What kind of “scraping and healing” is needed for transformation to become an e-commerce company? Hubei clothing enterprises explore in practice.
The transformation of e-commerce requires an innovative model to enter the Emperor clothing, and the factory area is busy. According to the relevant person in charge of the company, Aidi's stores across the country have reached 1,500. In recent years, the expansion of e-commerce has grown even more rapidly with the expansion of stores under the strategic layout of “100 cities and 1,000 stores”. In 2014, online sales accounted for a quarter of total sales.
"Learning Internet thinking is not simply opening an online store, but changing all aspects of design, research and development, production, and sales." The person in charge said that this is Internet + supply chain thinking. In the past, how to design and produce styles was the "leader of the market" for enterprises, and when entering the Internet, user needs were personalized and differentiated, and the company was "following the information." Product development has increased from dozens to hundreds, and style designs have increased from hundreds to thousands. Which styles are popular will be known within two or three days. Products with poor sales volume are immediately adjusted. The online response is fast, which drives offline physical store sales to benefit from it, and the two go hand in hand.
Mao Lin, chairman of Maoren Group, said that traditional clothing companies' transition to the Internet is not easy, especially for companies with a large number of physical stores. They must not only develop online business, but also take care of offline physical store interests. The pressure is not small. Catman was the earliest clothing company engaged in e-commerce in our province, but the development was not smooth in the early stage. Later, a special e-commerce company was established. After integrating multiple resources, the network sales surged. This year, online sales are expected to account for one-third of the company's total.
In this regard, Lin Yinfa, the chairman of Dou Yi Clothing, deeply felt the same. Three years ago, the company planned to transform e-commerce, but considering that cheap online sales would put physical store operations in a dilemma, the plan was stranded.
Mao Lihui, a well-known clothing brand analyst in the country, said that in 2014, the scale of national clothing online shopping transactions exceeded 300 billion yuan, and the market space was huge. At present, there are less than 50% of thousands of clothing companies in Hubei engaged in e-commerce, which is far behind Guangdong, Fujian, Zhejiang and other clothing provinces. To grab the "cake", we must innovate our business model and catch up. For example, Qingdao Red Collar Apparel Group has developed a personalized service online, with daily orders reaching 2,800 sets, annual sales exceeding 2 billion yuan, and zero inventory.
There is still room for analysis in the physical stores. Industry insiders analyze that there are three reasons for the current tide of closing stores for apparel companies. First, online products are cheap and affect their sales; Expensive rents and soaring labor costs make it impossible for companies to bear.
A clothing company in Wuhan estimated that a 100-square-meter clothing store opened in a business district, and the annual rent exceeded 800,000 yuan. Taking into account other expenses such as decoration, labor, and counter props, the total cost for a year was at least 1.2 million yuan. the above. If you open a counter in a large shopping mall, the cost of the same area will be at least 2 million yuan. Many stores or counters have become image stores.
Taking Dou as an example, the company has a more than 200 square meters specialty store in Guangzhou, located in the core business district, with an annual rent of up to 8 million yuan, and a fixed loss in operating.
Does this mean that the store development has reached the ceiling? "No, the store development will continue, but we must pay more attention to quality and efficiency." You Lin said that 90% of annual sales of international brands such as H & M, ZARA, UNIQLO are completed offline. The store expansion in the Chinese market is still continuing. However, these brands are superior to domestic companies in all aspects such as refined management, service, and speed of product replacement, which is worth our study. “Every year, China ’s clothing consumption shows a growing trend, and there is a lot of room for physical stores to develop, but it is necessary to intensively cultivate and upgrade services to meet consumer needs.” Said Han Jixiong, chairman of Suizhou Bingzi Clothing Co., Ltd. Since 2013, the company has transformed into an independent brand, with a focus on the "Song Girl Style", taking the niche route, and opened more than 30 stores in the country within two years without any loss, with annual sales exceeding 70 million yuan.
Ai Di and other Hanpai clothing company leaders said that with the integration of online and offline, physical stores in the future must pay more attention to experience, service, and meet the personalized needs of consumers, so as to further develop in the Internet outlet.

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