OEM For Men'S Men'S Wear Trade

Foreign trade slump: abandoning OEM to switch to electricity supplier

The parent company Kell Garment Co., Ltd. is located in

Shishi, Quanzhou, has been engaged in garment processing for more than 20 years. It mainly trades in foreign trade for some foreign brands, including ZARA and other international famous brands.

In Jinjiang and Shishi, Quanzhou, there are many other OEM enterprises.

Wu Zhichao recalled that from the 08 year, the situation of foreign trade has gradually become worse. Quanzhou's foreign trade OEM enterprises have become more and more difficult to survive. Orders have been shrinking year by year, and a large number of foundries have collapsed.

Many international brands have shifted their factories to Bangladesh and other countries with lower labor costs.

On the other hand, the e-commerce industry is booming. Wu Zhichao once tried to run the offline stores and Taobao stores. It was found that both the traffic and sales volume were far better than those in the offline stores.

So in 2010, Wu Zhichao gave up two original stores and decided to concentrate on online business.

In October 1, 2010, the Agel Ecommerce Ltd was formally established.

From the very beginning, Wu Zhichao firmly decided to make an original network distribution brand. He explained it in two ways.

On the one hand, he believes that the distribution mode can give full play to the advantages of the supply chain provided by the factory itself.

On the other hand, the factory's many years of processing experience made Wu Zhichao feel the constraints of his own brand.

Wu Zhichao introduced that after two years of adjustment, the current online trading volume of enterprises can account for 70% of the total paction volume.

In 2011, the business income of e-commerce reached about 70000000 yuan, while the traditional foreign trade processing income was only about 30000000 yuan.

"Now our factory is mainly manufacturing for the male brand.

Instead of doing some processing, we only maintain some large customers who have been working together for a long time, with orders, we no longer have to open up new customers and find new orders.

Wait until the development of the electricity supplier is more mature, and we may totally abandon the foreign trade foundry business.

Wu Zhichao said.

Wu Zhichao said that when the male distribution system was launched in 2010, there were no restrictions on distributors, as long as business applications were successful.

As a result, the price of Ge men's brand in Taobao has been extremely chaotic for some time.

In 2011, Wu Zhichao statistics found that at the most time, the brand shop of Taobao's last generation was more than 8000.

But the quality of the shops is different. Many shops only have one or two men's products on the shelves, and some shops even have no one running.

After that, Wu Zhichao strengthened control over distribution channels.

The measures include: according to the grade of the store and the monthly sales volume of the male brand in the store, the distributors are divided into four levels, adopting different supply and preferential policies, requiring distributors to pay certain margin, stipulating the lowest price for the sale of single products, and setting up a special price control and control group to conduct regular checks; for the shops that sell mainly male products, a unified shop decoration is provided, and a unified picture and promotion support are provided.

Wu Zhichao introduced that after the drastic reduction, there are only more than 1000 distributors left on Taobao, and the price chaos is no longer there.

Wu Zhichao said that the biggest feature of the distribution of men's men can be summed up in a slogan of men's men: that is, "how all types are".

In addition to supplying products directly to distributors, the company also provides diversified cooperation such as "change the standard to replace the standard".

In addition, Ge men also allow competent distributors to develop offline agents.

"Although there are only more than 500 people left in our factory now, in Quanzhou, we have 5 or 60 parent cooperative factories, not only small ones, but also large ones."

Wu Zhichao said.

In addition, Ge men and many famous brands have reached a strategic partnership to help them design their styles and produce garments.

"For example, we have designed 10 styles, maybe we only use four or five of them, and the rest are sold to some other brands.

They have chosen the style, and we can make it directly for them. "

Wu Zhichao explained.

Expanding the proportion of self run: unspeakable pros and cons

Wu Zhichao said that in 2012, there were two major plans for men, one is to build their own channels, the other two is to develop mobile terminals.

Wu Zhichao said that the current distribution of Taobao still occupies more than 70% of the total electricity turnover of the male electricity supplier. Sales of self channel can account for 20%, and the remaining 5% to 6% sales are Alibaba's 1688 websites wholesale.

In addition, it is worth noting that in order to ensure the interests of distributors, Ge men still do not have Tmall flagship stores.

In the future, men will also develop more proprietary channels to differentiate themselves from the styles of distribution channels.

In addition to increasing the expansion of self operated channels, Ge men are still vigorously developing mobile terminals.

In August 2012, the Xiamen branch of Ge men officially entered the software park in Xiamen. It is mainly responsible for the development of the mobile terminal and the creative marketing in the future.

Wu Zhichao said that the male mobile terminal will be launched in two months, including the two forms of APP and WAP website, but Ge men do not intend to move the distribution platform onto the mobile terminal.

The mobile terminal will mainly sell self owned products for men.

Wu Zhichao said that at present, there are more than 70 men's e-commerce teams. After the gradual expansion of the self operated platform and the Xiamen branch, the men became anxious for the lack of e-commerce talents.

According to the analysis of the industry, the expansion of self employment by men is conducive to improving gross margin and strengthening brand building.

However, the lack of retail experience and the inevitable large amount of marketing investment in self operated channels will be the two major problems faced by men.

Wu Zhichao predicts that by the end of this year, sales of male self operated channels will account for 50% of total sales.