Online Competition Between Clothing Stores And Traditional Purchases

1, cost advantage

A, time cost - 2-3 days from wholesale to market.

B, the cost of incoming accessories - round-trip fare, accommodation fees, logistics costs can be omitted.

The urgency of a and purchase is reduced.

Going to the wholesale market in person, because of the time limit, it can not take a long time to pick and choose, some clothes may not be in the same place, but forced to purchase quickly under the pressure of purchase.

But online shopping can take time to choose slowly.

The validity of B and purchase basis is increased.

The traditional way to purchase goods and choose money is to rely on one's own eyes. Two is based on the recommendation of the boss, and the three is based on the feedback from customers. In contrast, online purchase is based on three sources, and the source of feedback from customers is wider, feedback is more timely, replenishment is faster, and the additional cost of replenishment is gradually decreasing.

3, wholesale quantity restriction advantage

In general, online wholesale is basically ten batches, and some even get together, so that to a certain extent, the selectivity of physical shops has increased a lot.

4, inventory pressure advantage

Because online purchase can be very low volume, relatively speaking, the pressure of buyers' stocking is gradually decreasing, and the risk of inventory backlog is decreasing, which is equivalent to less investment and lower cost.

5, wholesale price pparency.

Formal wholesale websites, such as the formal wholesale agent, will have a clear price show, compared with the traditional channels to purchase, more reduction of the price of the link, the price pparency further open, is conducive to further selection and measurement;

6, capital turnover advantage

Wholesale markets are usually cash in stock, and they invest a lot of money at once. But they need to sell all the clothes they sell before they can return the funds. During this period, the funds will take longer. If a large investment is made, there will be only a lot of interest on the banks. Online shopping can be more flexible, and it can be sold for many times.

7, style renewal advantage

Whether the style is good or bad is the key to business prosperity. It is not possible to frequent wholesale market purchases. With 2 counts per month, the clothing style update can only be 2 times a month. It can not keep up with the fashion trend, but it can not expand its business opportunities. However, online clothing brands such as MOOIEE will update more than ten times a month, which is more than 5 times faster than the traditional channel purchase. It can easily purchase new models and increase customer turnover rate.

The comparative cost of the above two examples is as follows:

Suppose that every time we go to the wholesale market to invest 10000 yuan, the unit price is 50, the quantity is 200, and the selling price is 120 / pieces, the profit is:

120*200=24000 (Sales)

10000 (clothing cost)

400 (round-trip travel cost)

150 (accommodation fee)

100 (other expenses)

According to the monthly net profit of 10000, the daily output value is 300, and the wholesale stock is 3 days, and the output value is less than 3 days, that is 900.

Composite cost: 10000+650+900=11550

The profit is: 24000-11550=12450

And from the wholesale network, the cost of clothing is eliminated. That is to say, changing channels will cost less than 1550 each time. The equivalent of 40 yuan for the same quality is only 32, 25, and above.