Nocky and other apparel companies surprisingly "bloody" high inventory

In the most recent month, Daphne’s disputes frequently occurred. First, some media claimed that according to Daphne’s internal staff, Daphne laid off nearly 300 employees at the Shanghai headquarters and three executives in the e-commerce department were also cut. In response, Daphne responded that it was only the company's position adjustment and denied the abandonment of the e-commerce business, but also said that because the e-commerce business performance did not meet expectations, the company would adjust the department, making people feel inconsistent...

Afterwards, some media also revealed that Daphne’s large number of franchisees poured in from all directions to discuss the issue. The reason is that Daphne announced the unilateral agreement with the franchisee in order to promote the direct model. Although there is news that Daphne may adopt a compensation approach to quell the anger of franchisees, the thousands of franchisees who laid the foundation for Daphne's three or four cities in the past three years are irritated when they are about to be abandoned. Can you solve it? At this point Daphne's "cross the river to remove the bridge", so that they can not accept.

Did Daphne cross the bridge to cross the river?

“In the past five years, Daphne’s business in the first- and second-tier cities has become saturated, and they want to move to a larger three- or four-tier city, but Daphne cannot understand the characteristics, scale, spending power and actual incremental space of the local market. , so we use these people who are very familiar with the local market, to join them for the vanguard of the way.” A franchisee from Huangshi City, Hubei recalled that it seemed very helpless, and other people's more anger is from the "money No return." A franchisee stated that in 2009, he invested 500,000 yuan in the Daphne franchise in Zhongxiang City, Hubei Province, and has not recovered the cost for three years. If Daphne no longer allows him to renew his contract, the investment of 500,000 yuan will be lost. .

According to Daphne’s financial statements for the last three years, since 2009, Daphne has shifted its market focus to three or four cities (ie, prefecture-level and county-level cities). As of June 30, 2012, Daphne’s core brand business (namely Daphne brand) had 4,078 sales outlets in three to six cities, an increase of 190 over the same period of the previous year, accounting for 68.33% of its total sales network in China. .

Daphne's latest semi-annual report also said that the Group believes that a stable store expansion plan is very important for sustainable development. Therefore, it has adopted a strategic store plan focused on the development of direct-store stores. It shows that Daphne pays attention to the direct store. Many brand experts in the industry also said: "This move will not only strengthen the long-term development of the brand, but also help the Group respond quickly to market changes."

High inventory caused "bloody"

All appearances show that the franchisee's mission has been completed, followed by Daphne's own feast, and franchisees will become the first victims of Daphne's initial transformation. But on the surface, it appears to be an ungrateful act of the club. Behind it is a problem that has plagued many clothing brands since 2012 – inventory pressure.

It is reported that Daphne’s direct-operated stores will perform seasonal promotions on a quarterly basis for quarterly products. For example, the franchiser claims that the shoe’s purchase price reached 119.50 yuan, which does not include Costs such as freight, labor costs, and storefront rentals, direct sales stores’ price cuts directly weighed on franchisees’ sales performance, and they were collectively engaged by franchisees. The high inventory and affiliation of franchisees made Daphne aware of the negative impact of the franchisee plan, and leaving these franchisee contracts out of schedule when they expired was the most favorable option for Daphne.

This war between brands and franchisees, Daphne is not the first one, it will not be the last one, high interest conflicts and conflicts caused by inventory, so that the brand development strategy becomes confusing. It is true that inventory pressure has become a major problem that needs to be solved for many brands.

The clearance campaign of the sports brand was at the end of August, and many brands were selling at discounts. The slogans such as "50% off at the audience" and "buy one and get one free" abounded. In addition to some fast-fashion brands, casual sports brands also appear "impatient" in the discounted army. Adidas, Li Ning, Nike, Anta, 361 Degrees, Peak, Jordan, Xtep and other sports brands are on the list. Take Beijing Xidan Shopping Center as an example. The original price of 398 yuan was 99 yuan at the end of the season. Clearance, and the shoe size is very full.

Many people are puzzled that fashion brands may be affected by popular trends to clear their positions. Why is sports brands so eager to promote? Take a look at the mid-year report of these listed brands to be able to know the reason of the inner. As of August 22, the middle five domestic sportswear brands reported that, except for Xtep’s first-half net profit, which rose slightly by 0.3%, the remaining four companies, such as 361 degrees, saw declines in revenue and net profit; in which Li Ning’s 84.9% of the net profit fell first, 361 degrees, Peak, Anta net profit fell 22.99% in the first half, 43.35% and 17%.

In the mid-year summary of these stocks by many financial institutions, it was pointed out that with the slowdown of the domestic economic growth and the rise in store rentals, labor costs, and logistics costs, the raw material costs brought by the increase in cotton prices remained high, and many domestic and foreign sports Brands are invariably caught in a high inventory plight. This year, the slowdown in the growth of the domestic retail market has also affected the speed at which the sporting goods industry clears inventory.

It is very important to clear stocks to break through the stocks, but the clear method is to see the benevolent see the benevolent wise men. Compared with most brands of discount promotions, menswear brand Nogi played an emotional card and put forward a new concept of “March Day”. Successfully cutting into the men's consumer market, the promotion war not only effectively caused the emotions of customers. Resonance, but also tasted the sweetness of sales growth.

In this activity, Nuoqi not only held "Men's Day" large-scale promotion activities in stores across the country and at Tmall flagship stores, but also initiated the online "Men's Day" discussion, sharing feelings or photos, etc. on the Internet. Diversified interactive activities. Not only that, but also for many specific customers, Nuoqi also sent tens of thousands of specially customized men's holiday gifts.

It is understood that just last year, the "Man's Day" marketing campaign of Shanghai No. 1 Yaohan Department Store has achieved great success. In the "summer season" season, it achieved a gratifying record of sales growth of nearly 40% year-on-year. As a "fast fashion" men's wear brand, this year, after successfully advocating the "Men's Day" fashion concept to nearly one million member customers and the general public, this year, Norwich is also bringing together large-scale "man" online and offline. Festival theme series activities.

People in the industry believe that in July and August, there have been festivals, festivals, and other festival activities that have been organized and the discount rate is stronger than in other months. For men's wear brands such as Noci, their customers are different from women's brands, and the words “promotions” and “discounts” generally do not make them more expensive. Therefore, who can attract consumers' attention through innovative and powerful differentiating promotion methods, and can enhance the consumer experience and arouse the emotional resonance of consumers, so that it is possible to break out of the promotion army.

It is true that high inventory is indeed a major concern for apparel brands. However, inventory clearance is not a matter of discount promotions alone, nor is it at the expense of the interests of franchisees. The “factory shop” model introduced from abroad a few years ago has now become one of the methods used by many clothing brands to handle inventory.

As the name implies, factory stores are directly opened near factories or warehouses. They are far away from the city center. The products in the factory store are much cheaper than the similar products in the commercial street, and they mainly deal in seasonal stock products. The factory shop brings together many clothing styles, leaving many consumers to linger. “Today, when I went back to the factory with my husband, I discovered that the original factory store of Goliath was in the immediate vicinity. I immediately rushed in. Finally I picked five pants of 29 yuan, a T-shirt of 29 yuan, and a cowboy dress of 59 yuan, plus one dollar. Buying a dress is less than half an hour. The total price is only 234 yuan.” A consumer who buys clothes at the Goliath factory shop is very excited to tell his shopping experience, and such a discount will obviously attract more. Consumers buy inventory. In addition, more and more brands will choose online stores, outlet stores, and top-level discounts to clear inventory.

In an interview with the executive vice president of the China Apparel Association, Chen Dapeng, I also learned that many clothing brands are currently making various efforts to resolve inventory pressure, but these efforts are mostly positive and they hope to sell. With the brand publicity double harvest. Therefore, companies should also consider all aspects to avoid high-level issues while solving the problem of high inventory.