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What'S Wrong With Clothing Stores Closing A Lot?

2015/7/30 11:17:00 63

Clothing StoreElectricity SupplierDaphne

Store stores close to store online brand landing is facing compatibility difficulties.

In recent years, the clothing industry has been stagnant.

Clothing store

When troubles are being repeatedly blocked by electric providers, some Internet clothing companies are opposed to expanding their businesses under the line.

What's wrong with it?

In July 27th, the reporter learned from the latest report of the first half of 2015 of Daphne, a clothing company, that as of June 30, 2015, the growth rate of Daphne's same store sales fell 16.9%, closing 181 stores.

Meanwhile, Guangdong's Internet apparel brand recently announced that it will expand its offline expansion plan for 1000 new stores within two years.

Industry experts point out that the biggest challenge for Internet companies to switch from online to offline is whether the supply chain can be successfully realized and healthy operation remains to be seen.

Clothing stores shop a lot

In July 27th, reporters from

Daphne

It was learned that in the first half of 2015, the growth rate of Daphne group's core brand and same store sales decreased by 16.9%. In the first half of the year, there were 181 outlets, including 14 stores in the first quarter, and 167 stores in the two quarter, and 6221 of the core brand sales outlets.

It is reported that the main sports shoes and sportswear are also facing the difficulties of poor stores and closing stores.

According to its earnings report, the clothing revenue of the company in 2014 was 860 million yuan, down 460 million yuan from last year, down 34.7% from the same period last year.

Meanwhile, in 2014, the company planned to close 100 stores to 150 stores, but the number of stores actually closed to 534.

When offline stores are closing, some of the Internet clothing brands are going to shop under the line to grab market share.

Recently, Guangdong local Internet clothing brand Yin man, after losing the line three years ago, came back again and started the expansion plan under the line again.

"Women's clothing online share accounted for more than 22%, but there are still 78% of the market share under the line."

According to Fang Jianhua, founder of the brand, "future clothing companies should combine online and offline to take traditional business."

Online retailers

Three modes of micro business.

These stores will be opened to fans through the "0 franchise fee 0 inventory 0 soft pack" way to complete, the main task of line shop is to provide services and operation for fans group.

Industry analysis, Yin man expansion of physical stores, but also for its parent company, the United States group of the future listing of the performance of the purpose of laying the groundwork.

Supply chain is compatible with risk.

For the Internet clothing brand from the line to the line, insiders believe that the prospect remains to be seen.

It has been learned that the clothing brands including Marceau, Han dresses and rink have tried the layout line, but the final result is not satisfactory.

Lai Sheng, a senior apparel industry observer, pointed out that when the Internet market started to go to line, the following problems must be solved: first, whether the supply chain will drop off, and the biggest challenge from the line to the line is actually the supply chain. The new business mode needs the integration of the chain system, the commodity system, the price system, the membership system, the profit and service system.

Secondly,

Internet brand

The online market has strong supply chain management and experienced promotion and information system team, but it costs more when it is converted to offline.

In addition, how to turn fans into partners is the core issue.

"For Internet Co, the number of users is an important indicator of company valuation. Internet Co users are sticky and will lose money." Hui Mei Group has the gene of Internet Co, the body of traditional clothing companies, but precisely because its products are clothing, so the stickiness of users is very difficult to guarantee.

Mr. Li Jinliang, a partner in consulting with fashion department, told the media that the supply chain under the line and offline is two ways of organization, and it is very difficult to be compatible.

"From the clothing line to the line, it will lead to low pricing because of the simple value chain online, and many links such as offline agents will eventually lead to conflicts of interest."


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