Analysis on the Development Situation of Garment Brand Enterprises in 2010 (I)

Once upon a time, Beijing, Shanghai and other prosperous places were the dream sites of many clothing brand entrepreneurs. Here, you can find any domestic first-line brand store, can find the world's largest brand of clothing and the world's most popular clothing styles. In order to find accommodation in these first-tier cities, many people have done their best.

Facts have proved that for most domestic enterprises with "low-level qualifications", such a sense of "existence" is almost equivalent to vanity. The market here is almost saturated, and the competition here is so fierce. It is not wise to force entry.

In fact, most domestic garment companies have started by relying on the consumer markets of second- and third-tier cities. For example, the store of Seven Wolf was built long ago when there may not be many stores in the second and third tier cities. “Everybody used to do a store in the era of wholesale. It was probably started in 1995. The real national promotion was after 1998.” Zhou Shaoxiong, chairman of Fujian Septwolves Industrial Co., Ltd., has now made the company a domestic men's clothing company. Top brand.

As a result, some domestic first-line brands, like Seven Wolfs and Metersbonwe, have increasingly focused their attention on the second and third tier cities. The second-tier cities may be a good choice as an entry point for their development and expansion.

such as. From the 2008-2009 interim report, the number of stores in the East China Region decreased from 2,685 to 1,289, a decrease of nearly half, and 449 retail outlets in the North China Area also contracted. Correspondingly, the West China Area increased. 524 retail outlets. It is clear that such an important message is conveyed: the construction of terminals in second- and third-tier cities has been increased, and the retail network in first-tier cities has been gradually shut down.

According to Huang Gui, vice president of Bosideng, “From the perspective of strategic layout, the expansion to the second-tier market is to further strengthen the sales network, which is also a relatively direct way to boost performance. In addition, with the return of labor in coastal cities, this part of the workers Can drive the sales of the entire rural market."

It can be seen that despite the decline in sales revenue, the decrease in distribution expenses caused by channel adjustments has kept Bosideng's gross profit margin almost unchanged. After the financial crisis erupted, Bosideng became more determined to expand into second and third-tier cities.

Brand's vacuum zone

Obviously, in the clothing industry, the second and third tier cities have formed a brand vacuum zone. As a result, a large number of visionary domestic brands have quickly occupied the market. For example, seven wolves, Summa, cards, and so on, the success of these companies is very commendable.

In today's clothing apparel industry, comprehensive large-scale department stores are no longer the mainstream form of business. Many domestic brands have opened specialty stores in many cities. For local companies whose power is not yet very strong, the cost of opening stores in hot spots in first-tier cities is still too high, but they can choose the most popular shopping district and the best location in a blank second-tier city.

Stores can not only expand sales and increase brand. Another advantage is that companies can better conduct marketing activities and highlight their own brand personality.

In brand marketing, local brands have completely learned the operation of foreign big names. For example, Semir, etc., have all become the same light companies. Outsourcing production and logistics, the company itself focuses on design and marketing.

In the past two or three years, the concept of advertising alone has been quietly given up by companies, instead shifting the focus of marketing to brand positioning and design. For example, in terms of leisure, some brands focus on young people, while some brands focus on casual business. Instead of dislocating brands in various companies, the market has grown bigger.

One can imagine that the biggest advantage of local apparel brands lies in their understanding of the local market and Chinese culture. The well-known “red bean” has taken the lead in the fashion industry to propose advocates for creating a mainstream lifestyle in China, raising high-profile and not extravagant new thrifty flags. Thrift itself is part of the Chinese tradition. Through research and positioning, Red Bean has taken “harmonious morality, optimism, enterprising and enterprising, and thrifty” as a summary of the mainstream lifestyle in China. It has not only achieved a balance between frugality and luxury, but also embeds Chinese elements well.