Quanzhou Footwear Industry Seeks Common Direction For Breakthroughs And Promotion

< p > "we are conducting second wars." Ding Shizhong, chairman of the board of directors of Anta (China) Limited, said in an interview with the media during the two sessions this year. Ding Shizhong said the second war is the management of combat results after the attack of the city, and is the integration of the market, that is, from the highly wholesale business model which was highly dependent on the past, to the retail and consumer oriented retail business mode. This is also the common direction of Quanzhou a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > service industry to seek breakthroughs and upgrading. < /p >
< p > shoes and clothing enterprises in Quanzhou are no stranger to the wholesale mode. Through the rapid distribution of goods and the expansion of horse race enclosure, the wholesale mode helps Quanzhou shoes and clothing brand achieve rapid growth and completes the upgrading of capital level through listing. < /p >
< p > however, after the slow growth of the market, the drawbacks of this model begin to appear, and the problems of oversupply, inventory backlog, and management lag lag the progress of the shoe and clothing brand. Hong Hong, a well-known sports brand in Quanzhou, told reporters that in the wholesale mode, the brand company accounts for 15% to 20% of the total inventory space, and 70% to 80% of the regional distributors and terminal retailers. "When the market is good, dealers have some inventory is not a problem. As soon as the market slows down and inventory backlogs become more and more, the problem arises." < /p >
After "P", the reflection of enterprises also follows. "In the wholesale mode, the brand does not control the retail channel, and the sales depend more on the agents." Chen Yihong, founder of Chinese trend, has publicly pointed out that the industry is facing the difficulties of "brand + wholesale" mode. < /p >
< p > Ding Shizhong is also thinking about the disadvantages of this model. He believes that the biggest drawback of the "brand + wholesale" mode is that the information is not smooth. For brand dealers, sales can only be realized as long as they go wholesale, but they can not feel the changes in the market and retail terminals. < /p >
< p > in order to better understand the needs of consumers and the changes from the market, Ding Shizhong changed the order mode of Anta to single store order from 2012. The original order is wholesalers and franchisees ordering, now 8000 stores in the country, each store has a separate order. < /p >
< p > Xia Youqun, vice president of Limited by Share Ltd, also tries to solve the problem of disjointing products and orders with the terminal market. "Single shop order" refers to the purchase order of the shop as a unit. After considering the sales data, the space display capacity, the business district characteristics, the industry development status and other factors, the purchase volume is obtained, and this is the basis for ordering. In this mode, the style is directly selected by franchisees and even store managers who are more familiar with the market. The order quantity is based on terminal data. In the 2013 winter new product order meeting, this mode has become an important part of the channel change. < /p >
< p > PEAK CEO Xu Zhihua is pushing forward the transformation is the channel "flat", the goal is similar to the single store ordering mode, through the implementation of a more flat market sales system, from the traditional "Brand Company - provincial distributor - city distributor distributor" four level market sales system, reduced to "Brand Company city (county) distributor - franchisee" three level distribution system. "Reducing intermediate links and speeding up the decision-making process will enable companies to discover changes in the market and consumer spending habits in a timely manner, thus producing marketable products." < /p >
< p > however, under the concept of "second wars", Ding Shizhong wants to try not only to change the way of ordering, but also to adjust the whole business mode. "The past development mode basically is to advertise the brand first, and then sell the goods to wholesalers. In the future, we should think about how to go from" wholesale "to" retail ", and the whole supply chain process should be considered. Since 2012, the word "brand retailer" has been repeatedly mentioned by Ding Shizhong. < /p >
< p > in fact, the mode of "brand + retailers" is the business mode of international fast fashion brand ZARA and UNIQLO, which is a mode of integration of industrial chain from commodity planning to manufacturing and terminal retail. Quanzhou a target= "_blank" href= "//www.sjfzxm.com/" > clothing "/a" brand name has been trying this mode, through the integration of a target= "_blank" href= "//www.sjfzxm.com/", "designer" and "excellent terminal sales force" two forces, to build their own core buyer team, and realize the transformation from factory to clothing brand retailer. < /p >
In order to achieve this transformation, Ding Shizhong is carrying out a new theory of "Party B", that is, "all brand retailers are Party A, consumers are Party B, and consumers are concerned about why buying is more important than simply giving P goods." In his view, the key to healthy growth of retail industry lies in the effectiveness of commodity innovation, store display, and retail management. < /p >
< p > seven wolves are also implementing the "wholesale to retail" strategy, relying on the upgrading of products, supply chain and terminal management to promote the promotion of single store as the key to future growth. < /p >
< p > "many shoe and clothing enterprises in Quanzhou have begun to take advantage of the manufacturer's brand and have advantages in design, raw material procurement and production. Next, we should emphasize more details on retail, including upgrading of products and retail management skills, and transformation to private brand retailers. This is also the trend of development." Yang Shuqing, a professor at the school of business administration, Huaqiao University, said. < /p >