How Can Garment Industry Get Out Of Inventory Crisis

Here in the world Clothing shoes and hats What the editor of www.net.com introduced to you is how the clothing industry can get out of the inventory crisis?

The inventory crisis in the clothing industry lasted from 2012 to 2014, and the textile and clothing industry in 2013 was named "the most difficult year in history". Due to the continuous sluggish demand, the simple and extensive extension expansion mode of the clothing industry has encountered serious challenges, and a large number of clothing enterprises have closed their stores. Recently, at the training conference on "Policies and Practices for Collaborative Development of Beijing Tianjin Hebei Logistics Industry in the Context of Globalization" jointly held by the Beijing Council for the Promotion of International Trade, Beijing International Chamber of Commerce and Beijing Logistics Association, the insiders interviewed by the International Business Daily pointed out that to a large extent, the inventory crisis stems from poor supply chain management, the establishment of supply chain coordination, and the opening of data to dealers, To reduce inventory costs, or to solve problems.

　 Who's to blame for inventory pressure

At present, China's garment industry is facing increasingly fierce market competition. Xun Wei, the first logistics director of Li Ning Group, is currently the general manager of Guoshang Logistics Group. He pointed out that at present, the clothing industry is facing a series of challenges, such as high retail store rent, declining sales efficiency, huge channel inventory, slow capital turnover, rising material and labor costs, homogenization of brands and products, and so on. "Optimizing logistics and supply chain management is a top priority".

Data show that clothing The market inventory crisis is far from over. De Yongjia, the parent company of the leisure brand Banny Road, announced its financial year performance as of March 31, 2014. The group's total revenue decreased by 12.4% year-on-year to HK $9.86 billion. In addition, its closing of stores in various markets continues, with 388 stores closed in the mainland market.

The former representative enterprise of the clothing industry in Shaxi Town, Zhongshan City, the Pearl River Delta, and the 18 year brand history of Boxian Duoge Garment Trading Company, have stopped work in early May this year. All workers have been demobilized, and their office buildings have been sold for repaying bank loans. "Today's garment enterprises have paid a price in their growth, and most of them are talking like ducks in a teacup, hoping to turn the cost to dealers by reducing inventory." Xun Wei analyzed that after a long period of time, they have fallen into a vicious circle: every time a brand company releases a new product, it has to give credit to dealers, which has virtually brought a heavy burden to supply chain management. The pressure of inventory and capital cost is increasing sharply, and finally comes to collapse.

　 Optimize supply chain

According to Xun Wei, Chinese garment enterprises have entered the cold winter period since 2010. "In the past, clothing enterprises adopted the order meeting system. Clothes in late summer and early autumn were probably produced last spring. At the moment of the development of the global supply chain, this method has changed. The fewer categories, the higher the price of goods. For example, Adi has fewer styles than Li Ning, but the sales situation is much better. "If a product is sold well, we will strive to increase the output in the future, but the subsequent sales may lag behind and increase the inventory invisibly." "According to European experience, we have established supply chain collaboration, more and more enterprises have opened up data for dealers, and the inventory cost in the supply chain can sink by 40%. ZARA is a model of global supply chain management," said Xun Wei, ZARA's supply chain includes four main links: product organization and design, procurement and production, product distribution, sales and feedback. Through the vertical integration and configuration of the entire supply chain, each link is compact and smooth, and the circulation speed of products is maximized.

When it comes to the coordinated development of the logistics industry in Beijing, Tianjin and Hebei, Xun Wei has high expectations. "If the three cities cooperate, the logistics cost will be significantly reduced, and the labor, land and other resources will be more comprehensively and optimally allocated." Xun Wei said for example, the cost of Beijing's cold storage is very high, about one yuan per square meter. If the cold storage is located in Gu'an, Hebei, it will only cost 0.3~0.4 yuan per square meter. "

In addition, online retailers The channel also provides the possibility of logistics collaboration for the clothing industry. "The traditional retail industry is undergoing comprehensive and profound adjustment and reform, and the integration of physical retail and online retail has become a trend." Xun Wei said that on the basis of realizing multi-channel layout and deepening the network, strengthening supply chain management and realizing the linkage management of upstream and downstream can reduce the risk and cost of integrated development. "At present, e-commerce is developing in the direction of big data marketing and consumption guidance. On the basis of e-commerce platform, providing supply chain services, big data services, logistics platform services and supply chain financial services has become the key service development direction of e-commerce beyond commodity business."