Promotion Is Not A Permanent Solution, It Needs Personalized Route.

Pressure from clearing warehouse to performance pressure

According to the performance report, Mori Mami's quarterly net profit was 225 million yuan, down 39.24% compared with the same period last year. The US bond net profit was 320 million yuan, down 13.4% compared with the same period last year.

The trend of Semir's performance has been revealed from the semi annual report. The data show that Semir's net profit in the 1-6 months was 248 million yuan, down 43.22% from the same period last year.

Lining, a sports brand returning from the Olympic Games, also saw a net drop of 84.9% in the first half of the year.

In explaining the decline in net profits, several

Enterprises have expressed their high inventory of helplessness.

Among them, Lining said, "channel inventory pressure intensified, retail terminal competition tends to be white hot, retail discount has been raised, resulting in a further decline in terminal retail profit margins".

Semir is also distressed, "to speed up inventory processing, resulting in a short-term decline in gross margins".

Data show that at the end of the three quarter, the United States stock has reached 2 billion 199 million yuan, an increase of nearly 25.66% compared with 1 billion 750 million yuan in half a year.

Semir

Inventories increased by 31.28% over the beginning of the year.

Promotion is not a permanent solution.

In the industry view, clothing products greatly reduced, not only dragged down the performance, but also to a certain extent, affect the brand.

Gu Yuanyuan, a teacher at Beijing Institute Of Fashion Technology, told reporters that the brand discount might reduce the brand's original status in people's minds. "Although some popular brands can't copy the operation mode of luxuries without discount, the promotion of products at too low prices will reduce brand power".

Now that the stock expansion is causing sales promotion, why not reduce production? "Too much stall, it is not easy to contract production."

It is said that the famous clothing brands such as Semir and Smith Barney are now infiltrating into the two or three tier cities. "There are a lot of stores in the country. If there are only a few stocks in each retail store, the whole country will add up to a very small number.

And the hidden costs are huge.

According to Sun Liwu, an analyst with Zhuo Chuang information cotton industry, raw material accounts for a relatively small proportion of the cost of garments, but the cost of sales is relatively high.

"Manufacturers can get customers' experience through small profits but quick turnover, so they can understand their customers, but in the long run, they will seriously dilute the profits of enterprises. Even then, the cost of recycling will become a problem.

Now many garment enterprises are like this. They are wandering around the edge of losing money and making profits.

It can be seen that discount sales promotion is not a permanent solution.

The way to decompress Enterprises

The difficulties in the clothing industry can not be solved only by the discount sale of retail terminals. Some experts suggest that China's clothing industry should not compete in price wars.

In Gu Yuanyuan's view, the pformation of Chinese clothing brands is very difficult.

"In fact, the design of famous brands such as the United States and the United States is very consistent with the Chinese market.

Because most consumers require simple clothes, they can wear comfortably.

In addition, most of these brands are "supermarket oriented" sales mode, which is suitable for the consumption level of the domestic market.

Gu Yuanyuan said.

"Domestic clothing brands often carry out sales promotion when they are burning with anger. Some even hold a competitive mentality. They do not hesitate to do their work at the expense of their peers.

Therefore, if enterprises want to get out of the predicament, they should take the initiative to make more efforts in the production process, improve the feedback mechanism of dealers and retailers, and make scientific output according to the market reaction, so as to avoid blindly expanding the market.

At the same time, we must pay attention to real-time innovation in products. "

One industry analyst said.