Slowly wind and rain Road (2): a rising star – low-priced fashion brand
1, those flowers
Keywords: the clothing brand set out the key elements of the operation of a “channel”, “product”, and “marketing” a combination of three elements, then, the moment, the trend of change are only these three elements in the “fine” and ” Short-ping “and” mutually beneficial “in combination. The key elements of the portfolio and continue to try, leading to a variety of apparel business model of “surging” … …
Economics, there are professional vocabulary, called “hidden champions”, meaning somewhere in the market, has some unknown company or brand, creating a surprising performance, access to the huge profits and returns on assets, as well as occupied there is a strong market share. Stealth champion, in fact, embodied the law of market segmentation and specialization, becoming more and more sophisticated mapping.
Apparel industry has not hidden champions? Domestic apparel brands and retail markets, the existence of the Invisible Man is elated? The answer is yes.
First of all, let us recall the domestic apparel under the brand development of the classic course. Speaking Topics range from the onset of reform and opening, Valentino, Ferre and other foreign brands and designers began ice-breaking trip to the Chinese market in terms of material shortages in those days, these foreign brands dominate the Chinese consumer market and the purchase of a high aesthetic standard to; decade, a dimension, in the subsequent middle nineties, the Chinese state-owned or collectively owned a large number of older clothing brands have quickly experienced the “being vitality” stage, Shanshan, seven wolves, open to shape a generation of open-brands Legend of the market; on the threshold of the 21st century ago, the reason the economic strength of the premise of change and differentiation, the Chinese consumer market has become increasingly diverse and complicated, but also at that time, the LLC form of retail brands, such as JeansWest, Jordan Giordano operation in a standardized chain booster, the forges a brilliant time, that time, can have a branded chain of clothing, on behalf of the trends and avant-garde; entered after 2005, Chinese apparel retail market has been the beginning of with various foreign business mode, high-end consumption is reflected in the high-end shopping malls, for foreign brands account for 12 lines, such as Gucci, Chanel and so on, mid-market is a long tradition of hard work has been owned by the competitiveness of the brand, such as the Only, OTT, when the force of the EU, while the low-end market was the civilian-oriented brand positioning owned, at the same time, locate the narrow and focused personality of the designer brands and brands in the market have grown rapidly and become a dolphin slowly rising star.
Into the 21st century, the apparel brand in the channel model and product development of mutual turnover under the influence of the birth of many new models, such as PPG net purchase model, it would certainly be short-channel flat-based and product development with the procurement of the “fruit” , while the ITAT is a channel of joint and joint product development, “results.” If, the clothing brand set out the key elements of the operation of a “channel”, “product”, and “marketing” a combination of three elements, then, the moment, the trend of change are only these three elements in the “fine” and “short – ping “and” mutually beneficial “in combination. The key elements of the constant portfolio and attempt to lead to a variety of apparel business model of “surging.”
In the Chinese clothing market model endless moment, the overall situation of precarious macroeconomic uncertainty in many traditional and foreign-based brands, is experiencing a bumpy process. Meanwhile, the second and third line the lower end of the market chain of inexpensive fashion brand who are being vigorously staged the “Story of Spring”, such as Fujian, Sanford department stores, Zhejiang E library, Anhui, mortal, Shanghai, Susie and hot air . Their road is a brand with the traditional commercial or design completely different path, but in this Different Ways, the blooming beauty of a silent spring. They, just as Fashion Avenue “those flowers,” … …
2, has been forgotten “Diamond”
Keywords: People see that he insisted on a noble dream to see him picked up the pace for the real goal of the effort to see him sweat behind a solid. Napoleon said, What are leaders? Leader is an agent of hope, A Leader Is A Dealer Of Hope. They are born with such a charismatic group of entrepreneurs.
People in high-end market, the analysis of the success of the brand has been familiar with. For those unknown parity chain of low-end fashion brand attention and analysis, as if the general negligence or forgotten. However, it is clear that they are very low key, and their business model which has a causal relationship. Them, the birth quietly, quietly open, but also quietly harvest.
November 19, 1992, Fujian San Fu Department Store was born. On this day, the stock purchase combinations brand chain operations in China’s vast territory, blooming in the low-end-oriented customer base, at the same time with “low-cost, fashion, fast-track” Fast Fashion brand that has core strengths in China Features fashion business model. Subsequently, a similar pattern file out of enterprises, such as Shanghai, Hotwind (added gradually after revision orders, production orders, design under a single development model), Hangzhou, E library, mortal Anhui, Fujian, it is dazzling: elegant soft, Eastern + red, no less than a dozen or so single braid. There have been reports, the three-fu Stores 100 million in annual sales reached more than a decade.
This is a group with the Metersbonwe to pure franchise brands such as walking routes over the same period the city’s brand. When the Metersbonwe have experienced a “large-scale channel occupation, star brand endorsements, product design and development-type” high opening line of business to go after the high end into the “Ebb Tide” outcome: either gone against the tide out (for example, Humen Mori domain), or else to enter the capital operation and multi-brand operations (such as Metersbonwe). Others such as the three-fu, single braid that second and third line the market’s “invisible champions”, is strategizing to conduct the “encircling the cities from rural areas” road.
How can they exist? How can we develop?
“Short, flat, and fast” the operation of the second and third line to meet the market demand for low-end fashion, it is their existence and development of core competencies. Once, there was a functioning human capital consulting the author of such brand’s core competitive edge, I make above Answer. It also explains why they are great victories, but the reasons for such a low-key.
First of all, their success lies in positioning accuracy, fit the customer demand. Low-cost, pay attention to is the low-cost, not H & M model demands “parity” in relation to parity is in terms of petty bourgeoisie class or middle class, while the low price is attributed to those who have hope and the pursuit of fashion, but with limited purchasing power, ” all mortal beings. ” From the price, they are generally lower than the H & M on average about 30-50%, 20-35% lower than the average of about Metersbonwe; from fashion point of view, they are a single product SKU are in 3000 / year or more ( Women), category structure and a more balanced coverage and specialization; they demand sense, the interpretation of a true “multi-section less lowest.”
Second, their success is to master the “short, flat, and fast” tips, reached the “Less is More” effect. General clothing brand’s overall operating process includes a “Creative – Concept – Product Definition – sampling – Series Development – Manufacturing – sale” This cycle is long and complex path. This model clearly requires strong brands, improve personnel structure and management in place, while braving a result of long-term investment needs encountered in the risk of market movements. And they are just firm to control the “product planning – Procurement Development – sale” This simple but critical component. Product planning to focus more on the needs of customers from the terminal and proceed to meet the demand for duty; procurement of development, places the procurement of funds and inventory control as the core, from Guangzhou, Hangzhou and other advantages of the fashion market, with stock acquisition of goods, which is obviously lower inventory, increased product gross margin return on inventory (GMROI); go on sale, even taking into account the stage and long-term return on sales, single-store and regional sales, forging of the nodes and the process of perfection.
Furthermore, in addition to the outside of their success, but also is equipped with complete entrepreneurship. They generally have more than one entrepreneur, the entrepreneur has the perfect “business leader” qualities: love of cause and adhere to dream, down to earth, a farewell goal, tirelessly. Can be a very poetic words to describe these “business leaders”: People can see he insisted on a noble dream to see him picked up the pace for the real goal of the effort to see him sweat behind a solid. Napoleon said, What are leaders? Leader is an agent of hope, A Leader Is A Dealer Of Hope. They are born with such a charismatic group of entrepreneurs. If you are interested, you can find, follow and study under the founder of these enterprises. Perhaps, in their sweep away years of ups and downs, you will find the core of the most precious things and make you touched. This is a fashion business should of available DNA.
3, Challenges, and vitality: Stroll the future path
Keywords: If to H & M’s affordable fashion model, compared to large-scale army, then the second and third line chain of low-end fashion brands is a flexible special forces order of battle. The former, to eliminate the well-matched “urban white-collar workers and small Papua Ochoa class” as the goal, while the latter, for the “China’s uneven across sectors of the civilian population”, which is more in line with China’s national conditions and local differences.
Compared to traditional design and development of the brand’s operating history and roads, second and third line chain of low-end fashion brands can be described as “rising star.” Silent when they bloom, but also continue to experience confusion and problems. “Cheap, fast fashion” of the core gene is facing major challenges due to changes in the market.
Challenge one: price. As the development model and channel convergence, causing homogenization. While the same channel, product homogeneity, low-cost purchase conditions, will inevitably lead to cost pressures, an important way to transfer the cost of price increases, but for the price sensitive customer base before the result of price increases in the consumer before losing their appeal. When their price, and only 10% of the difference Metersbonwe when a large number of customers from the loss of the day not far away.
Challenge: Fashion. The popular meaning of fashion is to allow consumers to shop more intense level, sense of belonging, rather than simply the price of ownership. This requires them to increase the style of product development, serial, theme-oriented, this is a brand closer to the design and development-type path. However, due to stock portfolio and a huge front SKU characteristics, through the ownership of goods to create a clear fashion, the difficulty is quite substantial.
Challenge 3: Working Capital. From the second and third line chain of low-end fashion brand, model of the financial profitability of view, “low-margin high-turnover” is a summary of their business model, profitability is the key “high turnover”, that is the amount of running. However, based on customer demand to price changes and fashion challenges, high turnover to face greater pressure, and this pressure comes from the changing needs of customers, more suppliers from this side of the pressure. Spot wholesale (or short-term orders) to suppliers, for working behind the elements also increased demand, such as “pay for longer (because of the retailer orders fewer and fewer single-paragraph, the manufacturer of the fabric store shorter) , the price increase, “which is really, really widened their lead time.
Challenge 4: Talent. Compared with the high-end brands, they naturally have a “fast track approach,” the advantage, but in the “refinement” of weakness. Enter a new consumer generation, brand operators need to be more sophisticated management and services to enhance value. The “fine” of ultimately depends on the accumulation of human resources. When the hip and beautiful fashion brand who are looking for a good buy for the hands, manager, merchandise troubled by the Commissioner, their needs and confusion, is obviously more intense. And the talents to solve the above bottlenecks are often the basis of these challenges and the necessary and sufficient condition.
Of course, these challenges are not they only. H & M compared to all parts of China gradually enter the market, second and third line chain of low-end fashion brands to their advantage, but also the vitality. If, the H & M’s affordable fashion model, compared to large-scale army, then the second and third line chain of low-end fashion brands is a flexible special forces order of battle. The former, to eliminate the well-matched “urban white-collar workers and small Papua Ochoa class” as the goal, while the latter, for the “China’s uneven across sectors of the civilian population”, which is more in line with China’s national conditions and local differences.
Do not believe it? Please go and Wuxi, Poly Plaza, where the C & A, H & M is more than Tong Cheng’s “Sanford” more power and market share? Possible explanation is that, H & M in Wuxi such a “2.5″ line market, facing a “lack of visitors,” the reality of the plight. This can also derive a strong H & M in the Chinese market to expand, there is no plan and imagination so quickly because, right?
Fashion people, often forgotten by some brilliant hold the tide. When the second and third line chain of low-end fashion brand, to become a forgotten “Diamond,” whether people are still at the same time some of the negligence of the wonderful events and characters in them? Yes, the Chinese designers and their outstanding character and spiritual values of goods, which is a object that has been overlooked. Please note next storm slowly Road (3): I hope and growth – Chinese designers to explore creative and brand.