Local Shoes And Clothing Brand Is Unique, Blind Expansion Without Effect.

Although the distance London Olympic Games The opening is less than 80 days, but for the mainland. Shoes and clothing brand It seems that 2012 is not a good day. "Going to stock", "adjusting structure" and "slow cutting" have become the main problems they are facing. Whether for brands or distributors, 2012 will become their inventory digestion year.

Crazy expansion and hidden danger of inventory

"Product homogenization, price close to each other, industry growth is limited by the growth limit of the channel, and inflation in the economic environment, and the decline in purchasing power" result in inventory problems emerging. In view of the reasons for the high inventory, the independent critic of the industry is Ma Gang.

However, more people in the industry attributed the fact that the expansion rate of local shoes and clothing brands exceeded the growth rate of the market. Chen Xiangjiang, a dealer in sports brand in Quanzhou, told reporters that the high growth of sporting goods in the past few years has attracted a large number of enterprises to enter the industry. In order to seize the market quickly, enterprises often take the way of quickly opening stores and expanding production capacity, ignoring the bearing capacity of enterprises themselves and the market.

"For example, the original market has increased by only 20% a year, and the enterprise has produced more than 60% of the products. A large number of products have naturally become a backlog of goods. For example, the original sporting goods shop in one block is nearly saturated, some enterprises continue to enter, shops rent naturally rises, and the profits of single stores are bound to slide." Chen Xiangjiang said.

A data from Dongxing securities also showed that the number of new local sports brand enterprises listed in 2007 to 2009 reached nearly 2, and the number of terminals increased by nearly 2 times at the end of 2009 compared with the end of 2006. In fact, in 2010, the expansion of domestic sporting goods enterprises' channels was faster, and the top three or four enterprises almost broke through 7000 barriers at the same time. The rapid expansion of the channel exacerbated the conflict from the channel, to a certain extent, the hidden danger of high inventory.

Extensive operation leads to overproduction.

In addition to the speed of expansion, the extensive operation of local shoe and clothing enterprises in production and sales, to a certain extent, also makes production deviate from the actual demand of the market, thus forming high inventory.

It is understood that most garment enterprises plan to determine the number of production through the order. The general clothing enterprises can make annual orders in a year, determine the output according to the order quantity of the customers at the order meeting, and then arrange the production. This mode, because of relying on the channel providers to provide information rather than consumers, often causes the sales volume of clothing to be lower than expected, resulting in a backlog of inventory.

In addition, enterprises usually exaggerate demand when making inventory turnover plans. "For example, consumers need 100 items of clothing, and retailers think they need 150, and agents think they need 200 pieces. They will expand to 250 factories, that is to say, every time they sell 1 items, manufacturers will have to prepare 2.5 items at least for inventory turnover. Sometimes they will exceed that proportion, thus forming a large number of stocks." Insiders said.

"Inventory pressure will also form a conductive effect in the industry." Dong Xinda, deputy general manager of the shoe net, said: "when the domestic stock of first tier brands is overstocked, and entering the stage of digestion and inventory, on the one hand, it will affect the orders of downstream OEM enterprises. On the other hand, while the first line brands expand sales through promotion, consumers' demand for the two or three line brands will be reduced, resulting in a reduction in the sales of two or three line brand products and an increase in inventory."

Brand characteristics are hard to compete with international brands.

In fact, local brands are collectively trapped in the "high inventory" whirlpool. Apart from the overall economic environment and blind expansion, the competition from international brands and the lack of brand names on local brands also affect sales volume to a certain extent.

Beginning in 2010, Nike and Adi began to consolidate their absolute competitive advantage in the Chinese market through the channel sinking under the premise of increasing the price of domestic brands. In 2011, Nike released several shoes with a price of around 300 yuan, announces its formal march into two or three tier cities. Adidas also launches products priced closer to the two or three line market for consumers in China's small and medium-sized cities.

"No doubt, in the face of a pair of Anta shoes with a price of 300 yuan and a pair of Nike shoes with a discount of more than 300 yuan, the international brands with discount will become the choice of more consumers." There has been a systematic study of the relationship between pricing and consumer purchasing power. Now Xie Zhiqiang, who works in the Promotion Department of AI Shang Network Technology Co., Ltd.

"At present, the main problem of the local shoe and clothing brand is still that the product is homogeneous and no brand characteristics are formed, which leads to the low viscosity of the consumers. Under the international brand strategy, consumers are easily shunted." Insiders said. It is understood that one of the ways Adidas solves inventory is to create brand characteristics, to provide things that other brands can not provide, to make people without me, and to do a series of brand building activities to improve consumers' experience, "not only to sell goods to distributors, but also to let consumers buy products from dealers."