Clothing industry opens new order mode

As we all know, most companies in the clothing industry use the sales model of ** ordering. Because 50%~80% of an enterprise's annual sales are sold by this ** order.

"The earliest start of domestic orders began with Li Ning. Its advantage is that it can better avoid the risk of business, brand owners can timely return funds." Key Road founder Zhang Qing said, "The previous paragraph, the industry to do In conclusion, the past sales model is actually problematic and needs to be changed. One is the order model, and the other is the distribution model. At present, inventory is so high that this order model has played a number of negative roles."

“We believe that in the past, the industry’s over-reliance on the wholesale operation model has encountered a bottleneck. From the perspective of industry development, a retail-oriented business model is inevitable. This retail-oriented business model is one of the Innovation.” Li Wei, director of Li Ning’s brand public relations, mentioned in a recent public relations event. Li Wei said that the retail-oriented business model innovation is part of Li Ning’s announced channel revival plan at the end of 2012. Li Ning will adjust the ** ordering patterns that are commonly found in the industry to adapt to changes in the market.

According to Li Ning’s financial report, as of June 2012, the company’s inventories had reached 1.138 billion yuan, and from the perspective of accounts receivable, the inventory held at the dealership level was as high as 2.5 billion yuan, and the two items were added up to 3.638 billion yuan. yuan. According to industry analysis, if such a large inventory cannot be solved, Li Ning's distribution channels will be delayed and its new sales plan will also be affected. If the dealers start to eliminate stocks under repayment pressure, Li Ning's brand and price The system will also shake.

Li Ning Company adopts the distribution model of “brand dealers—all levels of agents—various retailers—consumers” and orders through four times a year, six months ahead of schedule. However, agents often order more products for storage at their own discretion, and brand owners also store more goods for replenishment, and the false demand from both parties has caused the high inventory situation.

Agents determine the quantity of orders through local sales forecasts. The Chinese clothing industry still depends on downstream distributors instead of consumers to provide market information. Second, the extensive production and operation model caused the demand to be distorted step by step. Agents often ordered more goods to be sold out, and brand owners also stored more goods for replenishment.

"Management has an effect called the beer effect. Manufacturers go from agents to distributors to retailers, and vice versa. If there are some small mistakes on the basis of this, they will multiply and cause great errors." Zhang Qing said that because of the out-of-control information transmission, retailers are optimistic about demand, adding orders, brand manufacturers blindly increase production, when the market is good, but also can deal with, once the market demand falls, resulting in high inventory becomes inevitable.

In fact, Li Ning's dealers also realized the drawbacks of this sales model, hoping to adjust or cancel.

"Every time Li Ning wants to open 4 orders, it must be ordered many times each time. This is too stressful for distributors." Li Ning, a company that does not want to be named, said: "Although prices are low, new products are listed. After about half a month, special treatment will be needed to clear the inventory. When the inventory is digested, they will all lose money. In front of them, they will make money and lose money behind. "It is precisely because of the above model that many dealers will order at the lowest price. And prefer to take the high price spot.

Changing the sales model is certainly a weathervane. This time, Li Ning's change of the order will be a guide for the industry. In Li Ning's revival plan, Li Ning said that it will shift from the past wholesale operation mode to more retail and consumer-oriented, provide a unified brand experience through product planning store operations, and improve the supply chain and order model to reduce Cost and time to market.

The double change in operational thinking and model “At present, the ordering mode is still the most mainstream business model in the sporting goods industry. However, what we need to do is to adjust the ordering mechanism to adjust the mix of goods so as to reduce old inventory and upgrade new products. Proportioning, optimizing product groupings, and improving marketing channels are the best ways to revitalize the channel's potential,” said Li Wei.

Prior to this, Li Ning's executive vice president Jin Zhenjun also expressed that he wanted to change the ordering mode. He believes that in China, products are mostly distributed to distributors, and they decide what they want to buy, but many Chinese buyers have different levels. Most of them choose conservative, easy-to-sell products and give up to help promote brand image. The goods.

Li Ning Company is trying to have a dominant ordering meeting. The sales of 30% to 50% of the products sold by dealers are determined by Li Ning.

Li Wei said that after several months of trials, Li Ning has achieved gratifying results and therefore confirmed the choice of this strategy.

Ma Gang, a senior independent commentator in the clothing industry, believes that “it is impossible to return to the spot system at one time, and flexible ordering is a useful attempt.” He has actively promoted the adjustment and reform of the existing ** system in the clothing industry.

It is understood that Li Ning's new policy mainly comes from the experience of Jin Zhenjun in Daphne. Daphne is mainly a direct-operated store. Its distribution is determined by the headquarters. After TPG, the investment agency, invested in Daphne in 2009, Jin Zhenjun led Daphne out of the woods. In Daphne’s two years, Daphne’s share price has risen fourfold and sales have increased by 50%.

Many people in the industry believe that the days of the success or failure of the trade fair will never return. The battlefield on the front line of the terminal is the place of victory and defeat. Industry insiders believe that companies such as ZARA, a fast-fashion brand, should learn to respond quickly to the supply chain model. One industry person has made a more metaphorical analogy: fast supply chain management looks like drinking red wine. He plans to drink three bottles and open one bottle first. If the other person has poor drinker, he can drink just after the drink is finished. Drink a good time, overdue stop and stop. According to an accurate estimate of the other party's drink to open, fill, tune, and retreat. Wang Yiming, a sports marketing expert, believes that Jin Zhenjun does have some experience, but whether he can succeed on Li Ning is still questionable. Because the sporting goods industry is still very special. In the final analysis, the most important thing now is the distributor’s confidence index for the Li Ning brand. With confidence, everything is not a problem.

The high inventory calling for pre-sales model is actually not only in the apparel industry, but also in many traditional industries in China. How to solve the problem of high inventory, has become a hangover in the hearts of countless manufacturers. In the “Double 11” shopping carnival that ended in 2012, Tmall and Taobao achieved a transaction volume of up to RMB 19.1 billion in Alipay. There are still 30 days before the “double 11” big promotion in 2012. Tmall has released the first large-scale formal C2B pre-sale campaign since the establishment of e-commerce, which has aroused great concern in the industry.

The pre-sale rules are as follows: The activity time is from October 15th to November 10th; For pre-sold goods, consumers can pay a 10% deposit first, and then pay the final payment on November 11th, the merchant will be on November 12th. Delivery; pre-sale goods are provided with postal services, at the same time, after a successful down payment, buyers have access to Tmall red envelopes; pre-sales are mainly five times, the first for big-name, luxury goods, gold, winter clothing limit** The other four games are home/home improvement, car/supplies, living/individual, digital/home appliances.

The so-called pre-sale model is to use the Internet to rapidly aggregate individual and dispersed consumer demand information in a short period of time and give manufacturers a large-scale purchase order. After the vendor obtains orders in advance, it can proceed from the back-end, middle-end, or front-end of the supply chain. Optimization, more accurate targeting of consumers, early stocking, elimination of inventory, more efficient management of the upstream and downstream supply chain, so that production costs, circulation costs, inventory costs can be significantly reduced, while giving consumers the lowest price, while also the greatest degree Protected the seller's profits. In short, pre-sale is the first sales order, deposit, and then organize the development and production, and then transport, circulation, and finally achieve terminal sales, which is a great impact on the offline buyer system, will gradually subvert Traditional sales methods.

What will happen if the pre-sale model is placed in the apparel industry? From the point of view of clothing retailing, the entire channel inventory is very large. If during this process, some of the important products are turned to online channels and turned to customization. For example, a new type of clothing will be sampled first, then sample clothing will be displayed, and orders will be received. , And then organize mass production, in short, the dealer to decide what kind of production in the end, how many pieces of production, then this will be able to greatly change the competitive position of the manufacturers in the market, to achieve maximum low inventory.

"Small businesses" are in a contrarian high growth Compared with big brands, as a rising star, Souter and Pathfinder are less affected by the slowdown of the industry.

Tao Xu, a representative of Pathfinder Securities Affairs, said, “Our event has already been announced, with an increase of more than 50%. Since we are in the subdivision area, the outdoor industry is still at a peak of rapid development.”

The staff of the Securities Department of Sutut Special also stated that “Our 2013 event was in line with expectations and the overall growth was good. The high growth mainly depends on the extension of the brand.”

Founder Securities analyst Zhang Baoping believes that Soufun is precisely positioned in three or four types of cities. These areas are undergoing urbanization and consumption upgrades, and are relatively less affected by the macroeconomic crisis. Different from other casual wear companies, the company controls costs in the procurement process, and wholesale discounts are low in the wholesale sector. Most dealers' retail links benefit consumers, and cost-effective products have won more favor among consumers.

Founder Securities estimates that the company’s channel capacity is about 10,000. There are currently more than 1,700 stores. Before the number of stores reaches 3,000, the main focus is on channel-based expansion (more than one street, open quality Large stores, to the second floor of the air development, the future high growth is still possible.

“We believe that the search for the special brand positioning is clear and the brand awareness will increase after the listing. The accumulation of rural population in the third and fourth tier cities will bring the continued prosperity of low-end consumption, and the company’s cheap and fashionable positioning will fully benefit.” said GF Securities analyst Lin Hai However, the search for the extension of the special remains high.

Ci Xinghai, a researcher at CITIC Securities, pointed out that Souart has opened new orders for spring and summer 2013. It is expected that the amount of orders will increase by about 45% year-on-year.

“According to our calculations, the outdoor industry’s channel capacity is 2,874. As of May 2012, the company has a total of about 1,200 stores, targeting only the Pathfinder’s main brand, and will more than double its expansion space. The number of stores will increase by more than 400, and the growth rate of channels will be approximately 38.4%.” Chen Zhengyi, an analyst at Founder Securities, said that in the next few years, the expansion is still the company’s main focus. The overall growth rate of second-tier and third-tier cities in the outdoor industry was faster than that of the first-tier cities in 201. Pathfinders have obvious advantages in the second-tier market, with a market share of 15.09%, ranking first. In the future, the company will accelerate the layout of second- and third-tier cities. In addition, Pathfinder stores have only 610,000 yuan in store efficiency, which is a big gap between the sports brands on the same floor of Li Ning and Anta, and there will be much room for improvement in the future.