The Traditional Business Model Of Garment Industry Is Facing Major Challenges.

< p > "Semir intends to acquire high-end entertainment" a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > GXG, Lining Anta intends to enter the world's largest sports retailer Intersport, van guest from a single clothing business to comprehensive (market area) type electricity supplier door pition......

Recently, domestic clothing enterprises have repeatedly heard the sound of inventory improvement, and domestic garment enterprises have also explored and pformed their own characteristics in response to the pressure of inventory pressure.

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< p > industry insiders say that cash flow is tight, profits are declining and dealers' contradictions are becoming increasingly prominent. It has become a universal problem in the industry. The traditional business model of garment industry is facing major challenges, and the industry shuffling is about to begin.

But such a period is also a major business opportunity for enterprises.

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< p > < strong > < < > > inventory effect > /strong > < /p >.

< p > over the past year, the domestic apparel industry has been suffering from high inventory pressure due to macroeconomic fluctuations and industry competition. The stock crisis has spread from sports a target= "_blank" href= "//www.sjfzxm.com/" to "dress /a" to casual wear.

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< p > "traditional business models usually have two forms: one is the large supply chain represented by ZARA, Spain, which is characterized by the efficient supply chain with the core of small customer orders.

Take ZARA as an example, it has established a fast supply chain with 3-4 day production cycle, 2 day logistics cycle and 85% sales rate; the other is the order meeting mode, which has set up a wholesale platform with fixed location and large orders, which provides opportunities for partners (downstream manufacturers and distributors) to make money.

He consulted partner Lu Mou du to the China Economic Times reporter.

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< p > Lv Moudu believes that in the past ten years, the mode of large supply chain and the mode of placing orders have achieved great success in China.

Although the mode of ordering will not be advanced in western management theory, it is easy to realize rapid scale, effective pmission of performance pressure and incentive to dealers. The result of industry selection is that most successful enterprises in China are adopting the order form.

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"P >" however, the order meeting mode encountered a turning point in 2012 and broke out a comprehensive inventory crisis. 6 famous sports brands had 3 billion 800 million yuan inventory, with an average of 600 million yuan per enterprise.

These huge stocks not only eat the profits and cash flow of enterprises, but also are causing a fatal centrifugal effect on the channels.

Lv Moudu said.

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Under the high pressure of P, enterprises have been looking for a way out, including opening factory shops, campus shops, discount stores, etc., and digesting inventory on the electronic business platform has become the mainstream way to inventory.

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Lining's inventory was released at the end of 2011, which was $1 billion 130 million at the end of 2011. The inventory at the end of 2012 was 920 million yuan. The inventory at the end of 2011 was 620 million yuan at the end of 2012, and increased to 690 million yuan as of December 31, 2012. According to Semir's three quarterly quarterly report, Semir had 1 billion 439 million yuan in stock, while the end of 2012 had dropped to 1 billion 85 million yuan; Metersbonwe's stock decreased from 2 billion 500 million yuan at the end of 2011 to 2012 yuan at the end of 2012.

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< p > < strong > how to break through? < /strong > < /p >

Less than P, the domestic garment enterprises, which suffer from early expansion and bring in inventory, have begun to explore pformation after the improvement of inventory conditions, mainly from the aspects of products and channels.

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P, Semir, one of the domestic leisure apparel giants, will buy GXG, which is the main high-end casual wear brand in China. It will also introduce the Italy entry level luxury children's wear brand Sarabanda in September this year. In March, it also plans to introduce high-end men's and women's clothing brands in Europe and South Korea.

"The next step for garment enterprises is to expand from simple management to core competitiveness."

Zheng Hongwei, vice president and deputy director of Semir, once said.

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Lining, the leading brand of domestic sports apparel, also said in December last year that it would implement the channel revival plan in an all-round way, and support dealers to clean up inventory, buy back, reduce debt and rationalize sales network, so as to support dealers to strengthen their retail capabilities. P

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"P >" should be noted that the new mode of clothing industry in the future will be driven by information technology.

How to make a specific enterprise succeed quickly? Innovation lies in the building of new core competencies: building a brand or product platform.

The ideal mode of clothing enterprises in the future is to build a brand or product integration platform with small organization characteristics, and build it into a core competitiveness. At the same time, with the help of Internet platform technology and logistics, it will provide consumers with a target= "_blank" href= "//www.sjfzxm.com/" > brand clothing < /a > which embodies certain design concepts, product characteristics and quality characteristics.

Lv Moudu said, at the same time, enterprises can also carry out information innovation with the products themselves.

For example, garment enterprises will make full life cycle management around consumers, provide customized clothing at all stages, and make use of information technology to innovate product information.

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