New Year's wear new clothes is a custom that was passed down from ancient China. Shopping for new clothes during the Spring Festival has also become an indispensable event for consumers.
The “Securities Daily†reporter visited a number of shopping malls in Beijing during the Spring Festival and found that most clothing brands under the banner of celebrating the Year of the Rooster have discounted promotions, and they have made great efforts.
High discount frequency
During the visit, the reporter found that during the Spring Festival, most brands offered various kinds of discount activities, of which 50% was the most common. However, the "Securities Daily" reporter found that consumers want to get a discount of 50% or less, often need to buy more than two products to get.
Taking Beijing Hanguang Department Store as an example, the shopping mall has played the signboard for the 17th anniversary and shouted the slogan of “30% discount for the whole year of the yearâ€. However, the “Securities Daily†reporter found that there are not many products that really hit 20% off, and most brands offer discounts of up to 50% off. For example, brands such as ONLY and TEENIE WEENIESLY have 50% discount on their slogans. If consumers purchase more than two pieces of clothing, they will enjoy another discount of 20% off and 4 discounts on 30% off.
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In addition, Youngor, Jiu Mu, and other well-known men's clothing brands also offer 50% to 70% discount. A salesperson told the "Securities Daily" reporter: "After the Spring Festival, we must change the spring season, and we can also sell more goods through discounts on holidays."
In the face of a number of brand apparel during the Spring Festival launched a variety of discount promotions. According to analysts in the industry, price is one of the main determinants for consumers to purchase goods, especially for products with high brand awareness. Therefore, the discount is the most effective and effective promotion method for consumers. Because of the obvious effect of discount promotion, manufacturers often use this as a means to respond to market emergencies, in order to fight against the promotion of adversary products, deal with expired products or products that are out of season, and accelerate the withdrawal of funds.
“As a result of holiday promotions, the clothing sales of key monitored shopping malls during the Spring Festival have increased significantly year-on-year,†said Changjiang Securities Lei Yu in a research report.
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Internet economy has big impact
At present, the use of discounts to stimulate consumers to purchase their own products has become one of the common means of competition among brands. Discount promotions can attract traffic to retail terminals, and promoters can also complete business volumes quickly by discounting prices.
However, there are industry insiders said: "High-magnitude, high-frequency discount promotions will lead to mutual vicious price competition between brands, is not conducive to maintaining the product's price image and reasonable profit margins."
In the eyes of people in the industry, although discounts can stimulate consumption, the discount is not suitable for long-term use.
“The most discounted items are online shopping, and the low-cost sales of the Internet has drastically lowered the clothing sales price of physical stores.†A related person in charge of a well-known clothing brand company told the “Securities Daily†reporter: “The low cost of online shopping The price has greatly affected the price of clothing in physical stores. At the same time, the prices of major branded apparel have also been affected and even led to a decline in performance.â€
"Securities Daily" reporter's statistics on flushing data found that out of 58 listed textile and apparel companies that issued 2016 performance forecasts, 24 companies' net profits were expected to decline year-on-year. Among them, Modern Avenue expects 2016 net profit to decrease by 2155.38% to 2938.38%. Newsio expects 2016 net profit to drop 399.95% from the same period of the previous year to 489.93%. Veken Elite expects 2016 net profit to decrease 222.08% year-on-year.
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According to the announcement, Baoxi Bird expects its net profit for the year of 2016 to be -3.9 billion to -300 million yuan, compared with a net profit of 10,017,100 yuan in the same period last year. The company explained that the reason for the loss was as follows: “The retail market of the terminal continued to deteriorate, and the orders of franchisees, the main brand with the largest share, fell sharply. The rice brand was still in the stage of investment, and San Gerald and Francois took a quick contraction. Larger losses caused by falling sales and brand contractions led to a backlog of inventory, was forced to increase inventory intensification, a one-time loss was greater because of rigid labor spending, increased marketing support, and some branding period for brand marketing, resulting in overall The increase in the amount of the provision for provision for impairment of various assets."
In fact, as early as 2016, Zhongxin Bird explained that the cause of the loss was “macro-economic downturn, increasing consumer insights, changes in consumer attitudes, and the impact of the Internet economy and other adverse impacts on the company’s retail terminal, resulting in tremendous pressure on the company’s revenue and decline in revenueâ€. According to public statistics, the total number of shops in the first half of 2016 was 1,332, down 88 from the beginning of the year.
When the garment industry transitions
According to a survey conducted by Securities Daily, a number of clothing brands listed companies have found that after Internet shopping has become the main choice for consumers, most clothing brands have to accept the fact that they are seeking a way out on the Internet.
Relevant person in charge of the clothing brand company told the "Securities Daily" reporter that most of the consumers are now accustomed to online shopping. Under the situation where online shopping apparel is heavily discounted, the company has to adopt different online and offline prices or discounted inventory. The way.
According to statistics from Tonghuashun, the inventory of textile and apparel products has gradually increased in recent years. Since the first half of 2012, the inventory of textile and clothing industry has increased from more than 60 billion yuan to more than 80 billion yuan in the first half of 2016.
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The reporter found that in the case of online shopping clothing discounted significantly, there are a number of brand companies to take the online way to increase the intensity of discounts to inventory, and these products are often based on the old models.
A branded apparel store sales person told the Securities Daily reporter: “The company generally sells discounted goods on the Internet for 2 to 3 years old, and the physical stores sell new ones, so the discounted efforts should be less than Network channels."
The reporter found that the brands that are discounted and delisted on the Internet are often traditional brands, but there are also some emerging online brands that have won consumers' favor with low prices and high quality.
“I have to admit that the impact of online shopping on traditional clothing brands is still very large. In order to seek a way out, the current clothing companies will either acquire internationally-renowned brands, develop into high-end brands and luxury brands, or they will take the low-end and fast-fashion development. "The road." A person in charge of a clothing brand listed company told the "Securities Daily" reporter that the general enterprises to develop high-end brands is not easy, and most companies can only go fast fashion development. However, under the impact of fast fashion brands such as ZARA, market competition pressure is still relatively large.
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Through the investigation, the "Securities Daily" reporter found that in the industry's long-term downturn, mergers and acquisitions and transformation of the textile and clothing industry are one after another. For example, Shandong Ruyi Group spent 1.3 billion euros to bring the light luxury fashion brands Sandro, Maje and Claudie Pietro under the SMCP Group in France.
Another example is Langzi Group's involvement in the medical-medicine market and the announcement of the "Pan Fashion Industry Interconnected Ecosphere" strategy in the four industry sectors of "Ladieswear + Baby + Cosmetics + Medical Aesthetics." In addition, on Saturday, it also began to transition to fashion IP. The company said that it will gradually create fashion IP ecosystems through acquisitions.
Some people in the industry told the "Securities Daily" reporter that although the textile and garment industry is no longer in the past, but in the case of continuous transformation of the company, some companies have begun to improve performance.
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