Is "Closing Shop" A Precursor Of The Failure Of Service Enterprises?

　　 Closing shop tide Highlight again

In recent reports about clothing enterprises, there is the most unwanted sight - closing stores, discounting, clearing inventory and closing.

Recently, the 18 year old clothing leading enterprise in Shaxi, Zhongshan, has been shut down by "Bai Xian Dage", which is located in Beijing, Nanjing, Shanghai and other places, and about 400 brand stores are closed. According to the information of the notice of dismissal, last December, some processes in the production workshop of the park were in a semi shutdown state. By April 1st this year, all the production processes in the production workshop had been shut down for work, and officially completed in May 4th.

Almost at the same time, Xiamen's famous clothing brand, Santa Fe's store was caught up in the shops, and huge debts also surfaced. The clothing brand, which is well-known in Xiamen and won many honors, is facing an unprecedented crisis in the fifteenth years of its founding.

It is understood that Stdawee In the past two years, a large number of private lending was carried out. In February 8th this year, the company was listed in the list of dishonest executors because of disputes over private lending.

In less than a month of March 6th, San Wei Wei was again included in the list of dishonest executors because of labor disputes. In recent days, Santa Fe has been caught up in the tide of closing shop. Many creditors come home to collect debts. Their capital and business problems are gradually emerging.

Reporters learned that in April 4th this year, Santa Fe was required to enforce the payment of principal amount of 10 million 300 thousand yuan and provisional interest 607 thousand and 499 yuan, principal and interest temporarily total 10 million 907 thousand and 499 yuan. At the end of May, St. David was asked to return three loans by the people's Court of Shunchang, Nanping. The principal loans were 2 million yuan, 2 million yuan and 1 million 790 thousand yuan respectively.

Coincidentally, Baleno's parent company, Germany Yongjia, released the results announcement for the fiscal year ended March 31, 2014. The announcement shows that during the reporting period, the sales volume of the company's net sales decreased by 16.5% to HK $4 billion 816 million, accounting for 48.8% of the total turnover, which accounted for a decrease of 51.3% compared with that in 2013.

According to brand, Baleno achieved a net sales of HK $2 billion 754 million, down 9.3% compared to the same period last year. In view of the decline in overall net sales, the company said consumer demand in the mainland continued to slack. Many local retailers continue to slash prices to control excessive inventories.

In addition, the continuous adjustment of retail stores has become an important means for companies to improve their efficiency. During the reporting period, the number of shops in the mainland, Hongkong and Macao and Taiwan decreased to varying degrees, with 388 more shops in the mainland being fiercely closed.

　　 Traditional mode Pain point

When the excess capacity and operation mode have not changed, the extensive expansion mode of garment industry has been seriously challenged in the face of rapidly changing market and consumer demand in recent years. The malpractice of expansion seems to erupt overnight, with the stock crisis extending from 2012 to 2014. Many famous brands are facing severe inventory problems.

According to the parties, mallet was closed in late November 2012 and early December. Although not a first-line brand, Malet was once a well-known brand in Fujian men's Menswear, so its closure caused many people's concern and emotion.

"Under the pressure of high inventory in the industry and various internal problems, mallet is unfortunately out of the new round of big shuffle of Chinese apparel industry." After its collapse, not only the debt problem of up to seventy million yuan has been left behind, but also caused great waves in the market.

Some local insiders pointed out that since the wholesale mode was transferred to the monopoly system 10 years ago, the huge investment and return imbalance in the traditional licensing mode of Fujian men's menswear has led to the malpractice's operating situation has been unable to enter a virtuous circle, and has gone from bad to worse. In recent years, it has been on the day of borrowing and supporting.

Paci Doug, who is similar to the mallet case, according to the information provided by creditors, the amount owed to suppliers is now 230 million yuan. Owing to the huge debt default, 195 suppliers from all over the world have repeatedly come home to recover. The bigger crisis is that many of the 195 suppliers have been involved in serial bonds.

Baleno becomes mediocre from 2006, and the most brilliant period seems to be the 10 years of 1996 ~2005. Stores continue to open, sales are rising steadily, and these 10 years are also the golden period for the development of domestic casual wear brands. For example, Lining, Smith Barney, Tonlion and JEANSWEST are all the casual wear brands that have grown up in the same period. The target audience is different and the product styles are different. But with the entry of international brands, the domestic casual wear brands also seem to have lost their original scenery, and fewer and fewer patronage stores are coming.

Secondly, the company has branched out more brands. At present, Baleno clothing company has launched more than 10 brands, among which 6 are the most famous brands, including Baleno, life geometry, interactive zone, pure legend, water rainbow, clothing color and Y 'PAY MORE. Although these brands aim at different populations, the homogenization of products is inevitable.

Again, propaganda and marketing is not enough. In this era of rapid development of information, there is not enough marketing idea. It will soon be replaced by other brands. Especially in recent years, casual wear brands have mushroomed, so it is hard for consumers to remember only one brand. Since 2011, the replacement of Baleno's spokesperson has not yet brought more opportunities.

　　 Change thinking and reposition to be strengthened

Fortunately, despite many difficulties, Saint David is still looking for opportunities. "It's too big to go public." Speaking of these debts, Zhang Aimin, chairman of Santa Fe apparel, admitted that the company was having problems in the process of listing, there were problems arising from institutional divestment, and too much investment was put into the market. In addition, the environment is not good, listing roads are twists and turns. At first, he wanted to be listed first in China. After he failed to succeed, he wanted to turn to Hongkong. After failing, he wanted to go to the United States and Germany.

Zhang Aimin said that at present, there are more than a dozen stores inside and outside Xiamen, and most of them are friends. "The help of my friends has also given me a lot of motivation. I have done more than ten years of brand, and I do not want to give up, but I have to pay a little bit more for the debt I owe."

Zhang Aimin's motivation also stems partly from the capital injection agreement that has been reached. "We have reached an investment agreement of 20 million yuan." Zhang Aimin said that at present, several investment institutions in Beijing are still discussing the next investment, possibly in the form of equity investment.

Zhang Aimin said that after obtaining investment, it will reposition the enterprise and adjust its management. Still the main Chinese men's clothing, which is a few investment institutions agree very much, and then may be in the first tier cities to do some high-end market positioning.

In fact, Zhang Ai min began to investigate the clothing industry a few months ago. As the president of Xiamen textile and Garment Association, he has visited more than ten textile and garment enterprises in Xiamen this year. Although the industry is in recession, he has not failed him, and his support from the association has also made him confident of sticking to difficulties.

The brand of the seven wolves in Xiamen seems to be much luckier. The successful listing of the seven wolves in 2013 turned out to be a big drop in the performance decline. However, with the help of online opportunities, the channel of e-commerce was gradually opened.

The industry pointed out that in the clothing industry, from the initial production of raw materials, through the production of intermediate products, and finally to the whole process of clothing circulation and clothing consumption, constitute an industrial value chain. In a coherent and smooth industrial chain, how to optimize the design and logical connection effectively on the basis of the existing upstream and downstream resources integration, so that every node in the chain tends to maximize the efficiency and rationality, while ensuring the competitive edge of the strategic link, and thus forming an orderly and efficient value chain, will ultimately determine the core competitiveness of the enterprise.

Obviously, in recent years, China's apparel industry has been running poorly, and many domestic clothing brands have encountered high inventory problems. Under the impact of market changes, clothing inventory is hard to avoid, and goods that cannot be sold are stored in the hands of franchisees. In order to get rid of inventory, franchisees had to deal with discount, and the image of clothing brand was affected. Clothing brand manufacturers recycle inventory products, and then digest through electricity suppliers and limited time sale, profits will also decline. Some clothing brands choose to open shop on Taobao and other platforms. The price of goods has a impact on franchisees, and manufacturers are in a dilemma. If we can not change the business model and product structure in essence, it is difficult for the domestic first-line clothing brands to get out of the current predicament.