Monday, July 22, 2013

Agent system is the source of clothing enterprise inventory

Recently, garment industry inventory problems, much attention has been paid to the "national clothing enterprise inventory enough americans wear three years" rumours abound. Recently, Chinese clothing association secretary-general Wang Zhuo said homogeneity in a certain extent caused the inventory problems of clothing trade, but the essential reason is related to marketing system. At present, many Chinese brands are agent system, stores in the fifty percent to seventy percent belong to the agent of the company is not in the minority.
Wang Zhuo said: "if the agent brands sales proportion is very high, and even about brands, does not consider its own brand style, image, connotation, only consider profit agents tend to challenge the best-selling brands to produce other brand, the brands of the product style will appear the situation of being kidnapped, homogeneity, inventory is inevitable."

At the same time, the enterprise for the forecast of market information and the actual situation, also cause sales lower than expected, resulting in increased inventory. In recent years, under the pressure of capital market, the practice of some clothing brands is devotion to speed, open a shop, the production speed is greatly increased, but its constructions effect is in decline, to some extent, this also adds to the inventory.

In addition, some enterprises because of the imperfection of the logistics, information management level, the market reaction speed is slow, also produced the backlog of inventory.

In spite of the garment industry inventory problem is real, but it is in the controllable range. According to the national bureau of statistics data show that China's apparel industry above designated size enterprises, 2012 years ago, finished goods inventory is 256.966 billion yuan in the third quarter. According to the calculation of Chinese clothing association, 2011, Chinese clothing sale in domestic market amounted to 1.4 trillion yuan, is expected to total $1.7 trillion in 2012. Chinese clothing association, said, according to the data as you can see, now part of the media "national clothing enterprise inventory enough americans wear three years" is not accurate, the industry has not reached the point of "crisis".

In Wang Zhuo view, inventory and inventory has essential difference, right view inventory problem is very important, enterprise in order to maintain normal operation must keep certain inventory. At the same time, the dress is FMCG, strong seasonality, quick change, the need for inventory level is relatively higher. Inventory of clothing industry structure, therefore, it is necessary to for further analysis.

Have learned, at present garment industry of inventory including three kinds of circumstances, one is the finished goods warehouse for pin, slow and incomplete 
defective goods in stock, as well as the raw material excess spare raw material and raw material inventory in the warehouse; Second is channel within the inventory; 

Three is the inventory in logistics link. Among them, only poor, incomplete, and the surplus raw materials, etc., only belongs to the unreasonable stock need to deal with.

At present, the domestic apparel industry and the enterprise attaches great importance to have unreasonable inventory, have taken such as increasing market forecast ability, intensify promotion, strengthen internal management and so on measures to actively digest inventory, now part of the inventory problem of listed companies has been a certain degree of improvement.

Wang Zhuo think, China's garment industry after more than 30 years of growth, is now into a restructuring of the transition period, China's garment industry is facing from the quantity of epitaxial growth to win by product quality, product ideas, to win business model innovation, management advantages to win important changes.Future, as ZRAR, international fast fashion brands such as H&M, uniqlo take seriously gradually to the Chinese market, with its channel sink further, the domestic garment industry will become increasingly fierce competition, the domestic clothing brands and international brands on the front of the competition will be inevitable, but the competition is more advantageous to the domestic clothing brand has reached the international level as soon as possible.

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