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The Average Life Expectancy Of Clothing Brands Is One And A Half Years? &Nbsp; Retail Stores Are Facing Crisis.

2011/8/11 15:33:00 51

Apparel Brand Retail Is Facing Crisis

According to the statistics of relevant departments, the current market in China clothing There are more than 10 brands, and the replacement speed is very fast. Every year, more than 2000 brands are eliminated. In 2000-2005 years, the average life expectancy of the top 500 clothing brands in China is only 1.5 years. In the trademark register of the trade and Industry Bureau, the fastest replacement industry is the garment industry. There are not many garment enterprises that successfully run the brand in China.


However, the development of clothing brand is China. clothing The only way for the industry to become regularized, standardized and internationalized. With the huge number of brands increasing, there will be some confusion in the industry. For brand recognition and recognition, there is a big gap between China's second tier and three or four tier cities. The biggest difference is the change of clothing management mode, which will lead to a considerable number of garment retailers heading for a dilemma.


A well-known underwear company in which a friend of mine once worked was mainly engaged in bra products, pajamas and other lingerie products. At that time, the sales department counted 928 national monopoly outlets, but only 88 of them had annual turnover of more than 250 thousand, even 10%. And there are 536 franchised stores with an annual turnover of less than 100 thousand, accounting for nearly 58% of the total. How much profit can the 536 franchised stores have in terms of cost, rent, labor, taxation and management? How much confidence do these store owners have to keep the store open?


I have visited many clothing streets in the country and interviewed many exclusive stores. Boss It is found that nearly 80% of clothing stores are at least not in an ideal state of profitability, and there is a widespread phenomenon in various cities: the mainstream brand stores generally earn normal profits, while most of the small and medium-sized brand stores are doing business at a low level; the clothing stores in mainstream sections can also look more prosperous, while most minor clothing stores are mostly open.


For ordinary clothing retailers, they are not franchised stores or exclusive stores. brand Routes, they run their own personality and characteristics of clothing stores, sourcing through wholesale markets or wholesale online. In such a brand oriented sales trend of clothing, this part of the clothing store will face greater challenges. To do franchising or monopoly, the cost is much higher than the previous business mode. It is also necessary to die according to Lao Lu Zi's quality and service.


At the same time, because of monopolization, consumers are faced with different kinds of needs and are faced with four seasons' choice. Few brands in China can offer products that are popular throughout the four seasons. Some branded products have advantages in shirts and skirts. Some of them are in Down garments or woolen sweaters, while others are famous for their suits. For example, the strength of Erdos is woolen sweater, seven wolves are casual clothes, and the main business of Persian is down jacket, and the advantage of nine herding king is western trousers. So for a single brand store, the product has its limitations to some extent, and it can only meet the needs of consumers. Many stores often subsidize the off-season with the profit of the peak season, so the pressure is relatively large. Sometimes, in order to make up for product defects, many stores will introduce some other brand products to supplement sales, but this will inevitably impact the integrity of the monopoly system and make the monopoly lose its meaning.


A clothing retailer in Ji'nan, Shandong said, "I do not join or do monopoly. To tell you the truth, good brand affiliate fees can not afford at present. Although brands are everywhere nowadays, there is too little strength to guarantee long-term quality and quantity protection. In most cases, it takes one year to change brands in second years. Nearly half of our stores in this area are like this. The purchase must go to the field, the cost is not low, and most of them are not guaranteed. Reporters also visited several other areas of clothing stores, brand stores accounted for most of the busy street stores. But like some three or four line city shopping centers, there are a lot of non famous brand stores, namely, small and medium-sized clothing brands. Moreover, this quantity exceeds the number of famous brand stores. These brands are characterized by low popularity or lack of popularity, but the products are of good quality and good style, and they can also get goods like wholesale clothing.


Baton network operation director told reporters: "making brand is the right direction of development, but it takes time. It is impossible for every brand to become a second-line brand or an international brand. Now every dealer or manufacturer with some strength is making their own brand. No matter the brand develops to any point, the famous brand will always be a small part. Most of the brand operators will become small and medium-sized brands. The development of small and medium-sized brands must be diversified so as to ensure their survival and development. If we only join in the first place, most of them will die. Most brands are unable to support a standard brand process. There must be such a problem. Can join in, but also do wholesale, the two roads at the same time. All stores in China can't sell only those well-known brands, and the market for small and medium-sized brands is huge. If you are just an ordinary clothing retailer, genuine wholesale will be the most important purchasing direction in the future.


Brand retailing is not a crisis at all. Brand is an upgrade standard for clothing management. This standard will effectively promote small and medium-sized brands, improve product quality and service. Apparel retailers can manage the marketing, procurement, group and other forms through the Internet, which will greatly reduce the cost of operation. There is nothing wrong with buying a brand by the ordinary people. The important thing is that big brands have the value of big brands. Small and medium-sized brands also have the value of small and medium-sized brands. Clothing retailers also have their own unique value.

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