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E-Commerce Channel Or Solvable Apparel Industry Inventory Crisis

2012/5/15 12:24:00 31

E-CommerceHigh InventoryInventory Crisis

High inventories, both dealers and branded merchants, are all abhorred.

Recently, the listing of Hai Lan's home has been negated. Some people in the industry have analyzed that high inventory has become the main reason for IPO's failure.

Not only is Hai Lan's home, but many american apparel companies, Semir and many garment enterprises in Ningbo, and even the fans of e-commerce, have encountered a huge "inventory war".


E-commerce is undoubtedly a good way to reduce inventory and digest inventory.

Recently, the 2012 Ningbo clothing association e-commerce seminar, many apparel e-commerce industry insiders believe that e-commerce or clothing enterprises to inventory the survival of the road, but clothing e-commerce must continue to bring forth new ideas, in order to achieve sales volume on the Internet, it is important to continue to have new styles, in order to attract consumers to continue to buy.

It is reported that this seminar is the first time the city's clothing industry's electricity supplier conference has been held since the establishment of the Ningbo clothing association's e-commerce branch.


Inventory into clothing enterprises "heart"


A garment factory in Western Ningbo city mainly produces clothing exported to Japan by OEM.

In the warehouse of the enterprise, a lot of clothes were stuffed, most of them were defective products, and some were backlog. Because of the requirements of customers, many trademarks were cut.

"All the hard work earned in one year is in the warehouse."

The head of the enterprise said anxiously.


Inventory is not a problem for Ningbo clothing enterprises.

The United States, which is known as the new three largest seller of goods, is also facing the "growing pains" of inventory, which is called "YISHION", "Semir" and "Semir".

At the beginning of 2012, the inventories of inventor and inventories were up to 2 billion 500 million yuan, most of which were over season goods.


Recently, Hai Lan home clothing Limited by Share Ltd listing is not, the reason is also related to inventory.

The same is true of fan Kai Cheng, which is expected to lose 1 billion yuan from last July to June this year and has a stock of up to 1 billion 445 million yuan.


Statistics show that in 2011, the total inventory of 84 listed companies in textile, clothing and fur industry reached 70 billion 832 million yuan, an increase of 25% over the 56 billion 742 million yuan in 2010.


"Inventory is the biggest problem for garment enterprises, and it is not easy to solve."

Zhang Xiaofeng, vice president and Secretary General of Ningbo clothing association, told reporters that these commodities in the past season are constantly depreciating, which has tightened the cash flow of enterprises to a large extent.


Zhang Xiaofeng believes that unlike other industries, clothing is easy to go through the season, and it is difficult to achieve "zero inventory" in other industries. However, from a deep perspective, the reason for the sharp increase in inventory is due to the uncertainty of consumer demand, and the lack of fashionable "sense", lack of efficient internal resources integration and cooperation with external resources, which leads to the failure of enterprises to respond quickly to the market.


E-commerce to resolve channels


To eliminate inventory, enterprises are making strange moves.

According to the reporter's interview, at present, most brands basically solve the inventory problem through the following ways: set up special stores in large shopping malls, distribute them as promotions to distributors, sell trademarks to other brands, sell them through wholesale markets or sell them to others at a low price.

If these methods are not operated properly, they will not only slow down the clearance of the tail cargo, but also make the flow of funds unsmooth. What's more, it will affect the brand image of painstaking efforts.


"The electricity supplier mode can help clothing enterprises to solve the inventory pressure and even achieve the goal of selling products. If we do well, the production and marketing rate can reach 95%."

Dai Chengqi, executive deputy general manager of Ningbo waldoran Technology Co., Ltd., who is responsible for Tonlion brand e-commerce, told reporters that at present, clothing enterprises are mainly e-commerce or inventory, but some of them are relatively mature and new products are also growing.

At present, Tonlion brand e-commerce accounts for about 20% of new products sold.


It is understood that Bo Yang's casual wear brand Tonlion began to enter e-commerce in 2009, sales in 2010 amounted to about 70000000 yuan, sales in 2011 amounted to more than 200 million yuan, and this year's sales plan is 350 million yuan ~4 billion yuan.

Bo Yang home textile is currently the sales leader of home textile brand on Taobao. It began to do business in 2009. Now the sales volume of network and entity has accounted for 50%, reaching 300 million yuan.

In November 11, 2011, "singles day", Taobao mall sales exceeded 40 million yuan brand stores, three were GXG, camel costumes and Bo Yang home textiles.

This means that 3 stores have a turnover of more than 28 thousand yuan per minute.

In the 3 brand shops, GXG and Bo Yang home textile two merchants all come from Ningbo.


"Now that there are so many people online shopping, not joining the network sales, is to give up this cake voluntarily."

Zhang Xiaofeng introduced that more and more clothing enterprises in Ningbo began to enter e-commerce.

On Taobao, many brands in Ningbo, such as Shanshan, Luo Meng and Taiping bird, have opened the official flagship store.

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