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    Jiangsu Rongyue Textile Co., Ltd

    138-1667-2429

    : Manager Hua

    : +00886-138-1667-2429

    :+00886-515-82209488

    : Mark@rytextile.com

    : Science and Technology Innovation Park, Siming Town, Sheyang County, Yancheng City


    Where is the future of traditional clothing enterprises under the impact of e-commerce trend?

    2020-07-25 09:04:19
    second

    Clothing is one of the traditional industries with a high degree of internet involvement, accounting for more than 20% of online shopping share. In the past two years, the profits of traditional clothing enterprises have declined and stores are hard to sustain. We can't help asking, has the moat of traditional clothing industry been filled by the Internet?

    Q: Mr. Wu, I'm a garment enterprise. In the past ten years, I've been advertising and branding, relying on the agent, dealer system and store expansion, plus quality assurance, the benefits have been good. But in recent years, e-commerce has had a great impact on the original stores. Many people buy clothes to try in the stores, and then buy them online, or buy high-end imitations directly online. We also try to sell clothes on the Internet, but online and offline always feel left hand to right hand. What do you think we should do?

    Wu Xiaobo: our own stores have become experience stores for others. From this phenomenon, we can understand the embarrassing situation of Chinese traditional clothing enterprises.

    On the one hand, clothing online shopping is popular. According to the statistical data released by iResearch, in 2014, the scale of China's online shopping market reached 2.8 trillion, of which clothing exceeded 610 billion, which is a major category, with a year-on-year growth of 41.5%. In 2014, the top ten brands in tmall's single store's sales volume ranked third, but none of them is a traditional Chinese clothing brand.

    Correspondingly, there is a lot of sadness in the channels under the cable. Sports brands suffered first. Since 2013, Li Ning, China trend, 361du, Anta, peak, Tebu and other companies have closed more than 6000 stores. Then there were men's wear. In the first half of 2014, there were 347 stores closed by qipilang, 88 stores closed by Aige and 73 stores closed by jiumuwang. It's almost women's clothing enterprises' turn.

    Clothing chain stores with closed doors

    The big moat of the traditional clothing industry is the pyramid distributor system. The bigger the pyramid, the more consumers the clothing brand can reach. But this "pyramid" is based on the information asymmetry between the supplier and the demander. The consumer does not know the cost of the clothes he buys. Remove the pyramid layer by layer profit, a 1000 yuan clothing, the cost may only be 100 yuan.

    As Liu run said in "traditional enterprises, the Internet kicks the door", under the impact of the Internet and mobile Internet, "all business models based on information asymmetry will not exist, and will be faster than expected.". Now the Internet is filling this moat. If your industry relies on pyramids, you should consider starting a new moat, whether it is efficiency, brand value, or something else.


    Dealing with the impact of e-commerce is a step in the transformation of garment enterprises. The following simple case can be used for reference.

    Case: the e-commerce road of a men's clothing listed company

    Fujian, a listed company focusing on men's wear, has thousands of physical stores, and its performance is booming.

    However, on the e-commerce platform, tail goods and fake goods are rampant, and the price and price are also greatly different, which seriously damages the brand. The boss of the company saw this situation and knew that the business network was the general trend. With a big hand, he asked the marketing department to open its own flagship store in tmall mall. On the other hand, tmall also cooperated with tmall to close down the stores without legal authorization. Unexpectedly, one group of stores was closed, and another group of stores rose again after a period of time.

    The boss thinks, since hard encirclement fails, recruit safe, bring this batch of "illegal" net shop into his system. After a period of negotiation, we have successfully reached cooperation with shopkeepers with large sales scale. The company gives the legal status of official authorization, while the online store obeys the overall requirements of the company online and offline in terms of image, promotion, product structure and service standard. In addition, it also needs to maintain the unified price between online and offline. These stores have become the external forces of the brand. The muzzle of the gun is consistent with the outside world, and they fight against counterfeiting together. The sales volume of these stores has also risen sharply, which can be comparable to that of the flagship stores.

    But after a period of time, there is a new problem, that is, the internal friction of network distributors. Therefore, the company invited these distributors to the headquarters for a second time to conduct coordination. According to the strong characteristics of online shopping, the company divided the categories for them, focusing on each category, and supporting them in the treatment of selecting goods, taking goods and returning points at the end of the year.

    After twists and turns, this traditional clothing enterprise has finally made its e-commerce business more impressive. In the past two years, the sales volume of double 11 has been ranked in the top of similar products. In this process, the company greatly reduced inventory and improved profits through e-commerce channel marketing.

    Balancing the online and offline channels is only an important step in the transformation of the traditional clothing industry. But if you think this is enough, it is a big mistake, because on the Internet, you will find more competitors with lower prices, more styles, faster product iterations, or more personalized designs.

    1、 Demand from the Internet and do the right thing.

    For example, add more added value to the existing product design, whether it's function, experience, or the pertinence of the crowd's personality.

    2、 Ask for efficiency from the Internet and do things right.

    For example, the printing, cutting, sewing, finishing and other processes of clothing are modularized and divided into different factories, and an advanced information system is used to create a flexible supply chain to realize the terrorist organizational efficiency.



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