Footwear Industry Reform Will Promote Retail Terminal Operation Mode

< p > < Fujian a href= "//www.sjfzxm.com/news/index_x.asp > > shoes industry < /a > Industry Association Deputy Secretary General Li Jun said in an interview with the media," there is no special statistics of enterprise inventory data now, but judging from various economic operation meetings and the exchange with enterprises, the stock inventory of Enterprises above Designated Size in Quanzhou is about about 4000000000. "

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< p > however, the above data do not count the backlog of channel intermediaries.

Huang Huang, a a href= "//www.sjfzxm.com/news/index_x.asp" > industry < /a >, analyzed that in the spatial distribution of inventory, brand companies generally account for 15%-20% of total, while regional distributors and terminal retail outlets account for 70%-80%.

"If we calculate this, only XTEP international, PEAK sports, and 31st three companies will have less than 8 billion yuan in channel inventory."

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< p > Mr. Huang said that the products in the channel are mainly products in 2010 and 2011, accounting for 25% of the inventory and 40%-45% respectively.

"Domestic shoes and clothing brands generally adopt product wholesale mode, which has led to excessive development and high channel inventory. Now many brands are considering learning ZARA, UNIQLO and other fast fashion brands from < a href=" //www.sjfzxm.com/news/index_x.asp "> brand > /a" directly to the retail terminal operation mode. "

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< p > it is understood that in 2008, enterprises in order to make a breakthrough in Beijing Olympic Games, to channel dealers great pressure on the market, "in those years because of the good market, open shop to make money, so the brand is stronger, and every year to increase the distributor's quota."

Mr. Huang said, "dealers can only accept conditions if they want to maintain the agency or get a lower discount, and because everyone has made money, everyone will think that this year's sales are bad, and they will sell again next year."

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< p > "Chinese brands do not control retail channels, they rely on agents to complete their sales.

The common situation in this industry is that the best seller is out of stock and the mediocre product is backlog. "

In November last year, Chinese founder Chen Yihong publicly pointed out that Chinese companies are large wholesale models, and brands do not control retail channels.

The whole industry is facing the difficulties of "brand + wholesale" mode.

"As long as you sell wholesale and the tickets are finished, sales volume has already been formed for the brand operators. It will not pay attention to the changes in the retail market.

Companies such as Lining and China are slow to respond to market changes, and the inventory is coming out.

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< p > < strong > "futures system" needs to be improved < /strong > < /p >

< p > August 2012, Li Ning Co announced that it stopped publishing the order data of the order meeting in 2013, on the ground that the order data could not represent the future sales situation of the enterprise.

According to Li Ning Co, we will find suitable supplier partners in Southeast Asia to improve the supply chain and enhance the performance price ratio of our products.

Anta has also stressed in the near future that it will adopt flexible replenishment system and flexible supply mode to meet the demand beyond orders.

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< p > it can be seen that Lining and Anta have the intention of readjustment and pformation of the "futures" commodity pattern now widely adopted.

For Brand Company, it is necessary to understand the sales situation of goods in time, so as to increase or decrease orders and improve the operation efficiency of supply chain.

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< p > nowadays most shoe and clothing brands adopt the channel mode of "direct business + Affiliate". Even franchisees consider their own interests and artificially set up some barriers to information feedback or create false information.

Therefore, the supply chain should be more flexible and faster, and it should not only solve the commodity mode, but also reconsider and think about the overall operation mode and supply chain.

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Under P, "integrating terminal and improving store efficiency" is the top priority of most shoe and clothing brands.

In addition to the above mentioned sports brands slash the number of stores, clothing brands also greatly slow down the speed of the shop.

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< p > in the first half of 2012, the seven wolves also shut down 80-90 blue chip shops and children's wear shops with poor performance, with a net increase of 5.

The main brands and sub brands in the first half of this year only increased by 81 and 37 respectively.

Li said that it would prudently adjust the pace of opening up to the market and reduce the risk of expansion in unstable economic conditions.

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< p > a senior shoe clothing observer said: "in recent years, as the number of retail outlets has been saturated, the performance growth of most enterprises has become a bottleneck. The shoe and garment enterprises must break through the retail efficiency."

Judging from the flat effect (that is, the sales performance per square metre per year), most of the shoes and clothing brands in China have less than 10 thousand yuan per square meter per year, and there is a big gap every year with the international brands of 30 thousand -4 yuan / square meter. Optimizing the store structure and commodity mix and improving store efficiency are the "a href=" //www.sjfzxm.com/news/index_x.asp "problem" /a.

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< p > < strong > "wholesale" to "retail" into a consensus < /strong > < /p >

< p > 2012, the pformation from wholesale to retail has received unprecedented attention from the footwear industry in Quanzhou.

Anta, seven wolves, Jin Ba, Qipai, Fu and so on, a large number of well-known shoes and clothing brands in Quanzhou, are already or are carrying out this great project.

From wholesale to retail pformation, it is important to increase the proportion of Direct stores and enhance the efficiency of single stores. The pition from parallel growth to vertical growth has become the industry consensus.

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< p > heritage clothing is a company specializing in R & D, design, production and sale of Chao men's menswear. For a long time, the company has implemented a large wholesale business mode, supplying Sanford and other shopping malls and other enterprises, without its own brand and retail terminal.

"We are more and more aware that enterprises have their own retail terminals, and they will be emboldened in the future competition."

Wang Yonggang, general manager of the heritage company, said, "the initial goal of the company in 2013 is to open several own stores, starting with < a href=" //www.sjfzxm.com/news/index_x.asp "> Shishi < /a > and the surrounding areas to create their own retail channels.

In addition to the casual men's wear such as inheritance, there are nearly 1000 stores in Jinyuan women's clothing in 2012, and neighbourhood girls and proud names are also developing their own retail chains. The number of proud channels has doubled over the past two years.

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< p > in the establishment of its own retail terminal, more large enterprises will focus on how to improve customer entry rate and purchase rate, and improve the efficiency of single store.

In the past two years, seven wolves have been pushing forward the strategic pformation from "wholesale" to "retail", and the focus of management and service has been reduced from agents to distributors to ensure that management is optimized to sink to every terminal.

Speeding up the construction of direct operation system is an important goal of its channel construction in the next few years.

It is reported that as of 2011, there were 530 Direct stores in seven wolves, accounting for only 13.3% of the total number of stores. The company plans to add 1200 stores in two and a half years, of which 40 flagship stores and 50 franchised stores are going to take the form of self purchase storefront. By improving the proportion of direct sales, we will optimize the layout and structure of sales terminals, strengthen the control of terminals, and enhance the stability of channels.

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< p > for the current channel pformation of shoes and clothing enterprises, Ding Shizhong, chairman of the board of directors of Anta (China) Limited, said, why do European and American enterprises can make international brands, and Chinese enterprises are very difficult to enter the international market? This requires enterprises to pform the batch brand into a retail brand, from the expansion of the number of stores in the past to the output and quality of more single stores, and to upgrade from the wholesale business mode to the real retail company.

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< p > < strong > the change of shoes and garments has arrived. < /strong > < /p >

< p > > a href= "//www.sjfzxm.com/news/index_x.asp" > shoes and clothing < /a > industry has led to today's high inventory crisis, mainly due to imbalance between supply and demand.

First of all, from the demand side, since the second half of 2011, economic slowdown, weak consumption and high prices have made residents' clothing consumption more cautious. Secondly, online shopping channels have also diverted consumer groups.

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< p > in addition, the cost of testing the benign development of the industry is also increasing rapidly.

The rent of the core business circle of the first tier cities continued to rise. In September 2012, the first floor rental of Shanghai's high quality retail property was as high as 60.8 yuan / square meter / day. The 100 square meter shop calculated that the rent cost of only one year was as high as 2 million 220 thousand yuan.

On the manual side, since the economic crisis in 2009, the cost of labor has increased by more than 15%. In 2011, the number of listed companies increased by more than 20%.

As a result, franchisee profit space is compressed, to further divide up gross profit.

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< p > finally, the bigger problem of footwear industry is that the supply side's operation mode has laid mines for high storage.

The expansion of brand shoes and clothing companies, especially in the initial stage of development, mostly choose franchisee mode for rapid channel expansion.

This rapid and franchise expansion can achieve great results in the early stage of enterprise development, but with the lack of management of brand stores and insufficient control of terminals.

For example, the lack of guidance for franchisees to set up shop locations, decoration, ordering and marketing leads to poor quality of stores, and the lack of strong control and control ability of prices.

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< p > now in China, most brands implement the marketing system of agent affiliate, and agents are profit driven. Brand is only a way and means to make money for them. Their focus is on selling products, and the brand itself is not belong to them.

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In order to obtain profits, agents often ask the brand owners to violate the brand's own wishes and violate the laws of the market, and produce a large number of so-called bestsellers, without considering the brand's own style, image and other factors. P

No matter how popular a particular item is, but the market capacity is limited, a large number of the same products will inevitably result in the final backlog.

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< p > If a brand relies on agent selling, even when it can reach the fate of its brand development, the brand is equivalent to being kidnapped by an agent. Then a reform of marketing system is imperative.

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