How To Break Through The Stock Pain Point Of Garment Enterprises Under The Supply Side Reform

High inventory, shrinking stores, "closing shop tides"...

For a long time, because of the sluggish industry, the traditional brand clothing enterprises are in constant condition.

Metersbonwe, a leading Chinese fashion retailer, has been losing money and has closed more than 1500 stores in 3 years.

High inventory and low profit

Public reports show that domestic

Metersbonwe, a leading retailer, has been beset by high inventories for years.

The annual report shows that in the first half of 2016, the loss of US bond apparel inventory fell to 118 million yuan, an increase of about 68% compared with the same period last year, and the turnover days of inventory also rose from 149 days in the same period last year to 185.26 days in the first half of 2016.

After the first loss in 2015,

Has not been able to get out of the shadow of loss.

In the three quarter of 2016, the results showed that the operating income of the United States was 4 billion 711 million yuan, an increase of 8.83% over the same period last year. Net profit -1.54 billion yuan, 12.73% less than the same period last year.

Facing the backlog of inventory, there are not many measures to be taken by garment enterprises. Closing stores that are not well managed is more common.

By comparing the data of the annual report, the reporter found that only in the first half of this year, the number of shops under the wedding bird line dropped by more than 90.

Judging from the announcement of the US bond, the number of stores has dropped from 5220 in 2012 to 3700 in 2015.

Over the past 3 years, more than 1500 stores have disappeared.

In addition to closing stores, discount sales are also a traditional practice for most garment enterprises to inventory.

A reporter's visit found that the annual sale of Mei Bang clothing will be sold to inventory, with some discounts as low as seventy percent off. Some of Lining's products are also less than half off in outlets outlets.

For this way to clean up inventory, industry analysts believe that a big price for celebrity endorsements, but if the discount is rampant, brand image is likely to be affected.

Since 2010, due to the sluggish demand, inventory backlog has been a deadlock in the apparel industry.

For garment enterprises, product backlog not only takes up the company's operating capital, but also increases the management cost and profit cost of the company, lengthen the turnover cycle of the product, thereby reducing the overall profit of the company.

The overall profitability of domestic garment enterprises is not good enough due to inventory.

Reporters combed red beans, YOUNGOR, Semir, Meyer, seven wolves and many other apparel industry listed companies released the three quarter of 2016 earnings report, 5 well-known clothing enterprises, only 1 achieved a double growth in business revenue and profits.

Among them, red beans realized business income of 1 billion 740 million yuan, an increase of 0.46% compared with the same period last year; Semir apparel realized business income of 7 billion 124 million yuan, an increase of 15.47% over the same period last year; the business revenue of Meyer reached 302 million yuan, down 11.14% compared to the same period last year.

"The overall trend of clothing is coming down, and the whole world is facing the problem of overcapacity."

Group Chairman Li Rucheng recently said in an interview with reporters.

The clothing industry under the haze is also attractive.

Shanghai's first domestic apparel inventory B2B trading platform - big factory quick clearance platform has quietly become popular in the industry.

According to Liu Chenghui, a big factory CEO, told reporters that the big factory quickly cleared the warehouse and positioned the inventory trading of the brand stock. The platform's unique B2B trading mode enabled the brand dealers and the inventory buyers to stand on a platform for fair trade, breaking many links of the original inventory processing channels, and the platform achieved a lot faster and better, so that both sides benefited. In the 16 year, 260 million of the brand inventory pactions had been completed, and in the 234 line cities along the southwest along the line, there were more than 50 outlets under the brand discount sale entity store, which opened up a new access to clothing inventory processing.

This is a small step in the quick clearance of large factories, and a small step in the supply side reform of the entire garment industry.