Most Of China'S Clothing Brand Crisis Is Caused By Extensive Production Mode.

The concerns raised by a Qing research center about the high inventory of Chinese clothing enterprises recently attracted the attention of journalists.

In this research report, the phenomenon of high inventory in China's garment enterprises has been highlighted in many enterprises. This phenomenon implies that a large amount of capital is occupied by enterprises, which affects the cash flow of enterprises, and even more makes enterprises.

Strand breaks.

For garment enterprises, the discount of merchandise brought by inventory backlog is also affecting their normal operation.

In the view of Qing Ke research center, the phenomenon of high inventory has been revealed in different clothing fields. The high inventory of Lining, Metersbonwe and Hai Lan home is particularly prominent.

According to the financial data provided by enterprises in 2011, Lining's inventory amounted to 1 billion 130 million yuan, accounting for 15.5% of the total assets. Metersbonwe's inventory was about 2 billion 550 million yuan, accounting for 29.8% of total assets. The total inventory of Hai Lan's household was about 3 billion 860 million yuan, accounting for 56.82% of the total assets.

Not only that, the number of stocks of seven wolves, nine bru kings, Semir and other brands is also high.

Although there have been many

Enterprises began to take measures, such as controlling the accuracy of demand. In 2012, Lining released the fourth quarter order meeting data showed that the order amount and order volume had a 20% decline, the company planned to control the total amount of the order, hope that the stock will return to normal level by the end of the year, and, if multiple channels deal with the remaining stock, Metersbonwe began to start the discount shop and the promotion of network sales from 2011, and by the end of the year, nearly 300 discount stores have been expanded.

The center for the study of the Department of science and technology believes that, on the surface, these measures can solve the urgent needs of the enterprise, but it is not a long-term development policy.

Ching Ke research center believes that although the origin of high inventory of different enterprises is partly from within the enterprise, but from the whole

In view of this, the main reasons for the high inventory of Chinese clothing enterprises are the following two points:

First of all, the lack of consumer demand, extensive production mode caused the expansion of demand.

For a long time, the production of Chinese garment enterprises has won by quantity, and the surplus production has met the needs of the downstream links of the supply chain.

Clothing enterprises generally use the distribution mode of "brand agents - retailers" in the sales channels, and the middle links are communicated through two orders of a year (spring, summer, autumn and winter). The agents decide the order quantity through the local sales estimate. This inaccurate judgment has great errors with the actual demand of consumers. Agents often order more goods for goods to be broken, and brand dealers store more commodities for replenishment. The "illusion" of the two sides' demand has caused unnecessary pressure on inventory.

Secondly, supply chain links lack of information construction.

From the perspective of operation mode, Chinese garment enterprises are basically not responsible for the production process and sales terminals. In order to effectively control the partners and promote resource sharing and reaction speed in the supply chain, building a strong information system is the top priority.

At present, information technology has been gradually launched in garment enterprises, for example, RMI and VMI have been widely applied.

However, the informatization construction of Chinese garment enterprises is still lagging behind. It is necessary to build advanced supply chain information supply. For example, EPR enterprise resource planning can help enterprises integrate information systems and achieve effective management of the entire supply chain.

At the same time, after the enterprise has developed to a certain scale, it can consider improving the informatization process by building its own software R & D department.