Undoubtedly, IT is the most hard 10 years for garment industry in the past 10 years, the first original traditional retail electricity business leather life, until in recent years, only a few scattered throughout the garment industry companies sales growth, 90% of the companies are in decline, but the proportion of the quotient is changed in the garment industry has more than 40%, compared with other industries, traditional clothing retail Internet hit very bitter.

As a result, many physical stores have started to go the e-commerce route, but due to the lack of relevant technology, a store often needs to have two sets of personnel, a management entity, a pipe network shop, double investment of manpower and material resources, the result is overwhelmed.

It is worth, if the net shop make money , but the online business is really well to do in infact? All of us know that 90% of e-commerce businesses on  are not profitable nowadays,such  as Alibaba. When you have an ecosystem where 90% of the people are not making money, that’s when everyone has to flee, and that ecosystem is not the future of clothing retailing.

 

First, let the thought change and life category  will be mature gradually

What does the future look like? In the future, the traditional clothing retail brick-and-mortar stores will lose another 50%, who will be the disappearing 50% and who will be the remaining brilliant 50%, depending on who can save themselves.

Women’s wear, men’s wear, sports, fashion men’s wear, outdoor, popular logo, all categories began to mature and competition intensified. Category leading brands account for 40% or more of each category’s quota. The rise of popular logo in the past two years, there is no absolute leadership brand.

Apparel retail industry low barriers to entry. However, the overall level of operators and practitioners in this industry is uneven, and most of them have been working for several years. They are so-called managers who know some concepts but have high vision but low skill. Clothing retail, can master this industry, can be engaged in any retail industry.

At present, clothing retail is mainly divided into traditional and fast-selling types, and the development of the basic stage is slowing down. In 2010, international FMCG brands entered the Chinese market on a large scale. In the golden period in the following years, the shop speed was very fast, which had a great impact on the domestic traditional clothing retail. In addition, the development of e-commerce on the impact of traditional domestic brands is also a long story. However, since 2015, these international fast-selling brands have also begun to slow down, and even many of them have begun to close stores and expand their sub-lines.

But in recent years the fast pin brands are trying to get through online channels, but it is also hard to get a chance relying on this big growth point.

 

Second, want to change a few idea practitioner current situation

Companies that can survive and do well in the future must have four things: hardware, software, the Internet and content. And these four items should be integrated, complement each other.

Future clothing retailers, not all stores will disappear, entity shop will exist, but it’s there and no longer online store split independence, but the mutual fusion Shared a whole OTO, entity shop is a diversion of the entrance, is the depth of the service access point, is to give consumers more experience and cognitive window, is to guide consumers to online increasing frequency is an important part of consumption.

Assessment of the future of retail stores, a KPI is no longer a sales clerk, but if you built a strong relationship and consumers, consumers’ trust in you, whether under your guidance and services online, more order, this is the key to the future of the business, must be around the consumer, trying to gather the consumers a new business model.

The retail model of the future must be point-to-point, person-to-person, decentralized and disintermediated, a kind of flat, multi-dimensional model down to three or even two dimensions. That is to say, it is no longer like in the past, there are layers of dealers, there are level one level of agents, manufacturers are directly sellers, directly with the consumer to establish a strong relationship.

A. Direct operation of the brand company may give very professional guidance, and the market control is better.

B. Some agents with regional scale have already transformed or are transforming into specialized companies.

C. Most operators are still in the mode of herding sheep, without the ability of data analysis, management of terminal stores, training and display. More importantly, they rely on their own experience and feelings, so it is always difficult to achieve breakthrough promotion and development.

 

Third,What kind of capital investment and turnover did the stores make after the revolution

What exactly will the store be like in the future and how to implement the transformation so as to seize the opportunity to share the cake in this multi-billion market.

Simplely in the future, all the goods in shops  have their own qr code, the code shows the various details of the goods, the shop has a variety of experiences and display, can be directly buy, can also be home to buy online, online and offline all the commodity information, customer information through a set of IT technology to realize synchronous sharing, all of which have the mobile Internet.

Everyone in the place is very interested in this new brick-and-mortar store model. However, some enterprises soon ask whether the clothes they produce now are mainly for the mass consumers, rather than very high-end and high-quality clothes. Such a store in the future is not suitable for them.

In fact, the store of the future should have three models: one in office buildings, one in neighborhoods, and one in the suburbs.

The overall capital investment amount into the rising trend, for the new into the clothing retail industry operators, shop decoration, the first batch of goods and other investment is now more and more large, depending on the different operating brands, investment in a shop generally from 200,000-300,000 starting line, not capped. For department stores operated by joint venture, monthly statement’s cycle is generally 60 days. In case of shopping malls with unsatisfactory borrowing, the borrowing cycle may be 3 to 5 months. This is a near-fatal blow to illiquid operators.

At present, domestic brand apparel orders are mainly based on futures, which are generally placed in two quarters a year. Some relatively mature brands are placed four times, and more often, there are six order meetings. Futures orders require a certain percentage of the deposit, which increases the pressure on the working capital.

 

Fourth, inventory and profit of the future suburban model of stores

In the case of mass-consumer businesses, suburban shops of the future might suit him. Rent a cheap warehouse in a remote suburb with a lot of space and turn it into a futuristic store for clothing retailers, where everything can be tried on and all the clothes are cheaper than online.

At the same time, all staff are engaged in the clothing design professionals, when consumers shopping here, c is the close-fitting clothing designer, with architect and architect of choose and buy, every consumer can do a 5-10 minutes of demand research, and then by the designers with professional advice to give them a set of buying clothing solution for them to choose and match, finally can try it on in the shop experience, choose the suitable clothes, the way of all sorts of online can pay, and then clothes can be achieved in a few days later to send home.

In the future, the factory will be the retail store. As long as the former multi-level agents are removed and the high profits are returned to the consumers, at the same time, the consumers will be willing to spend some time and cost to go to remote places to shop.

Store daily (rent, deduction, other expenses) in the mall every year, only a small number of strong brands can have a certain bargaining power.

Inventory has always been the biggest problem of clothing business. At present, different brands have different strategies for the digestion of out-of-season goods due to the brand positioning problem. But many operators are being dragged down by inventory.

The overall trend of sales discounts has been increasing year by year. On the one hand, it is the intensification of brand competition; on the other hand, it is the drying up and fishing of mall operators for the annual operating indicators. The industry’s profit margins are usually around 10%, and many operators have margins below 10%.

For enterprises, they can not only save costs, but also have a direct understanding of consumers’ needs, preferences and information, so as to establish a deep and strong relationship, achieve high-frequency consumption habits, and bring another revolution to the whole industry.

 

Fifth. Community model of future stores

What about the community model store of the future? Service and trust are at the heart of the community’s future store.

Such as open a community shop, in a neighborhood in a nearby residents will have a variety of consumer, may have the knowledge of women, there may be a housewife, etc., each person’s demand is different, community shops have to do is to understand the needs of different consumers, do a tailored for them, the custom here is not to say that to make clothes, but for their duties, act as a buyer from their requirements, selection of products for them, to be small and exquisite, save costs, they choose the clerk can send different reminding information according to different people, what kind of clothes might be good for you, have chosen for you, Online shoppers can browse and place orders directly, or make an appointment to try them on in a physical store.

When consumers fully trust the shop assistants in the community stores and establish a good relationship, they can give the shop assistants more choices, such as the clothes of other members of the family, which can gradually extend to the needs of other items in the home.

The measure of a retailer’s success in the future must be its ability to gather users.

First consideration in the design of the company’s value chain, the first layer is always users, clothing enterprises should also such, those who always deal with users, selling clothes also don’t know who sell time has passed, changing ideas and with positive posture right embrace the Internet and mobile Internet is the clothing retail enterprise to avoid being revolution, the inevitable way out through the cold winter.

 

2019-2020 shuffle pattern changes

Big brands with strong strength will gradually adjust the enterprise promotion mode, introduce a new brand and retailer risk binding mode, and make intensive efforts…

Brands with foresight, similar to those enterprises that have been in demand reform and have been basically adjusted in earlier years, as well as new hot group goods brands, continue to rise out of the blue, and continue to expand their market share by relying on the ability to quickly turn over orders and track orders in small plates, as well as the hot spot with good single store performance…

When will retail clothing stores become unmanned? Let alone impossible, in the past when there were no cars, horses ran on the road, no containers, and porters worked on the docks, artificial intelligence can do so many things now that basic practitioners in the future can only be replaced if they do not improve themselves.

 

 


Post time: Dec-25-2020