Clothing inventory can be sold for three years

Editor's Note: Most of the domestic apparel companies have fallen into the "inventory bog." Garment companies that suffered a significant increase in inventory last year have achieved three times the annual sales.

Every year in March and April is the traditional outing season. It is also a good time for outdoor functional clothing to introduce new models this year. However, the shop owner Lu Wen is still engaged in special sales of functional clothing, because last year, his company backlog more than 16 million yuan in off-season inventory clothing, is three times the inventory of the previous year. It is Lv Wen’s top priority this year to sell these stocks piled up in warehouses.

It is not just Lu Wen that is caught in the "inventory". Many garment companies in China have suffered from a significant increase in inventory last year. Take Metersbonwe as an example. Last year, the total profit was 1.46 billion yuan, but the inventory amounted to 2.56 billion yuan, of which more than 1.5 billion yuan was for goods. Seasonal goods.

New spring clothing is discounted as soon as it is listed. In addition to being affected by bad weather, there is also a high inventory problem that is prevalent in the apparel industry. If you do not quickly sell this spring, these clothes may become new inventory.

The clothing store has encountered inventory problems for five or six years, and such a large inventory pressure is never met by Lu Wen.

This online shop, which specializes in selling outdoor functional clothing and supporting equipment, has been developing quickly because of its good reputation and good product quality. Last year's sales exceeded 40 million yuan, an increase of more than 20% year-on-year.

Such an exhilarating number makes it difficult for Lv Wen to be happy. Last year, there were over $16 million worth of quarterly clothing that was not sold and she was lying in the company's warehouse in Binjiang. He said that according to the net profit rate of 17% of online stores, the net profit of sales of more than 40 million yuan is 6.8 million yuan, while the inventory cost of more than 16 million yuan has more than 8 million yuan, and the money earned is not enough to subsidize. Going to inventory.

Lu Wen said that in 2010, sales were about 34 million yuan, and inventory was less than 6 million yuan at the time. Inventory costs accounted for only about half of net profits. This is a very safe figure, and the inventory of last year would be unexpectedly large. .

Large companies are also caught in the “inventory”

Small businesses may be overstocked due to misjudgments. Will the same problem be encountered last year for stormy big companies? Yesterday, when the reporter contacted Meibang Apparel (002269, stocks), the giant of the Chinese apparel industry was planning to hold a press conference in the near future to explain to the general public and the community their current inventory problems.

According to a company study report provided by Smithsdale, in 2011, the revenue generated by Smith Barney was 9.9 billion yuan, an increase of 33% over the previous year; operating profit was 1.46 billion yuan, an increase of 51% over the previous year; inventory pressure was relatively improved in the fourth quarter. It was 2.56 billion yuan (inventory scale reached 2.98 billion yuan in the third quarter of 2011). According to a report released by Shenyin Wanguo Securities, although the stock of Smith Barney at the end of 2011 had fallen to 2.56 billion yuan, more than 1.5 billion yuan of goods were seasonal products, which surpassed the operating profits of Meibang Garments during the year.

There are also many well-known sportswear brands in the country that are also subject to large inventory pressure. According to industry sources, the inventory of a sportswear company in Fujian can be sold for one year. The industry has such a “chat”: Even if all Chinese garment companies are currently out of production, the warehouse stock can only be used for domestic apparel sales. The company sells for three years.

The unusually high price of climate caused the high inventory of the staff of the Hangzhou China Textile Center, said Zhang Xie, a number of menswear and women's business operators of the China Textile Center also suffered from a significant increase in inventory, which was caused by price problems due to fabric prices and The increase in labor costs, the general increase in apparel prices last year, mostly increased by 10% -20%.

The price increase has improved the sales performance of the company to a certain extent, but the price increase is a double-edged sword. While pulling the performance of the garment enterprises, it also inhibits a certain degree of consumer desire. Faced with high prices, some consumers have tightened their money bags.

Lu Wen said that the company’s sales plan is based on the sales situation of the previous year. In 2010, it sold well and there was little pressure on inventory. Therefore, the order size also expanded accordingly, and sales increased by 20%. However, after the increase in prices, sales have dropped significantly. There was a 400 yuan outdoor functional clothing sold in 2010. At that time, it sold dozens of pieces. Last year, the style was slightly modified. The price was raised to around 600 yuan, and it immediately became unsaleable.

In addition to price factors, the abnormal climate last year was also one of the reasons. "When it's hot, it's not hot, but when it's cold, it's not cold." Zhang Hao said that the impact on down jackets is particularly serious. "The garment companies are all ordering and producing in advance. When the climate is abnormal, it's too late to change." , The failure of agents to sell causes the return rate to be too high, which also directly increases the production company's inventory."

The explanation of Meibang's clothing also confirms Zhang Jian's statement. Yesterday, a report from the Public Relations Department of the US State Department of Fashion pointed out that the company’s inventory growth at the end of 2010 was faster, mainly because the operating income increased by 43.76%. The rapid increase in the sales scale objectively required an increasingly rich design model and an increase in the volume of stocks. Inventories continued to grow in size; secondly, late winter in 2010, winter sales cycle was postponed, and as of the end of the period, there was more inventory in winter; in addition, in order to cope with the impact that the labor shortage at the beginning of the year may bring to the supply chain, the company arranged in advance. The storage of goods in 2011 also increased inventory.

In the first half of the year, you can buy a lot of discounted clothes. According to Zhang Jian, in accordance with the tradition of garment companies, the cost of inventory must not exceed the net profit of the year. This is also the critical line for whether or not the company's inventory has an impact on operations. For the moment, general clothing The company's inventory cannot exceed 30% of the production or purchase of the current year.

“If a clothing company makes money as an inventory, it is equivalent to not making a profit. The most valueless item is the inventory.” The person in charge of a children’s clothing company in Hangzhou said that a large backlog of products in the previous year not only occupied the company’s operating funds, but also consumed human resources. Material resources also increase the company's management costs, lengthen the product turnover cycle, and reduce the company's overall profit. And if simply selling at a low price damages the brand, it will also undermine the confidence of the channel business.

Lu Wen said that his most important task this year is to sell out the inventory of more than 16 million yuan in the warehouse. If it is not sold this year, the quality of these garments will be affected next year. It can only be treated as a tail cargo. Pieces of money are pulled away. However, it is very difficult to sell stocks. “If you do not discount old clothing, you will not be able to sell it. If you do not directly discount your products, you will have an impact on the old customers and damage the brand image.” He plans to participate in several activities this year on Tmall.com. , In the form of seasonal changes, discount promotions.

Meibang Apparel stated that the company will sell through the outlets at a lower discount. At the same time, more articles were made on the storefront display, and historical inventory with a certain degree of fashion was sold together with new goods to digest inventory. Currently, Smith Barney's sales channels are under planned and controlled construction.

February Consumer Weakness China Federation of Logistics and Purchasing (CFLP) and the National Bureau of Statistics Service Survey Center jointly announced last Saturday that in February this year, the non-manufacturing business activity index (PMI) fell for three consecutive months, compared with the previous month. A fall of 4.5 percentage points fell to 48.4%.

Since non-manufacturing industries do not have a comprehensive index, they usually use the business activity index to reflect the overall change in the non-manufacturing economy. In general, the index reaches more than 50%, reflecting the general rise or growth of the non-manufacturing economy; it is lower than 50%, reflecting non-manufacturing economy The manufacturing economy has declined or declined.

According to the analysis, in February, the non-manufacturing PMI dropped month-on-month, mainly due to the impact of the consumption correction after the Spring Festival. After the holiday season, the consumer industries dominated by retail and catering have seen a clear correction, which has become the main reason for the decline in overall economic activity.

In February, the business activity index and the new orders index of the consumer spending industry ended the upward trend for two consecutive months, falling back below 50%, and the decline was more pronounced.