Germination: the era of "sitting in business"
After the reform and opening-up, the decision-makers who have mastered the fate of China have been solving ideological problems, revolving around "whether to take a market economy or a planned economy". Due to institutional reasons, enterprises don't know what the market is like, and people who have just jumped out of "gray, black, blue, green and white" don't know what kind of clothes they need.
From 65438 to 0979, Hanzheng Street began to try market economy in the midst of controversy. In the past, clothing supply was completely planned, and manufacturers did not need to know the final flow of products. 1The 12th National Congress of the Communist Party of China (CPC) held in September 1982 put forward the policy of "giving priority to planned economy, supplemented by market regulation", paving the way for building socialism with China characteristics. 1984, 30 years of ticket matching became history, and the clothing industry began to make great strides. At this time, the supply of goods is mainly concentrated in state-owned garment factories in big cities such as Beijing and Shanghai, while these "brand-name garments" are concentrated in department stores in large and medium-sized cities. Township residents need to "enter the city" to buy famous brands.
A new business model was born. In the 1980s, there appeared a group of clothing dealers-"profiteers", who sold fashionable clothes from Guangzhou and other cities to other parts of the country, and many large and medium-sized cities appeared "stall" clothing distribution centers based on such clothes. On July 1986 and 12, the relevant media published a manuscript about Beijing's early clothing market, entitled "Popular Yellow Skirts in Beijing". The article wrote: "Individual clothing stalls that are sensitive to the market quickly launched yellow skirts. In Xidan night market, rows of yellow skirts are like clusters of blooming yellow roses ... An individual vendor named Cheng said that he sold more than 65,438,000 yellow skirts in one night at most. He bought gray-yellow washed cloth from Guangzhou and processed it himself. Each skirt costs 8- 18 yuan. "
It can be seen that the embryonic form of clothing wholesale market was formed at that time, and the main sales forms were door-to-door shopping, stall-type promotion and front shop and back factory. For example, Li, director of the clothing market management Committee, said that the establishment of the clothing market originated from a farmer named Ding Qishan. 1979, Ding Qishan happened to find that his trousers were cheaper than those of state-owned stores, and the profit was high. Driven by Ding Qishan, the villagers followed suit one after another, and every household began to manufacture and sell pants and sold them to all parts of Northeast China, thus a road market spontaneously formed.
It can be said that after the reform and opening up, strong market demand gave birth to a seller's market-led commercial times. However, before 10, the garment industry was very single in structure, economic system, market and products. At that time, the prominent state-owned enterprises were addicted to the model of sale and used to the "product-centered" thinking of the shortage economy, which was also an important reason for the disappearance of state-owned enterprises later.
Growth: collective breakthrough
In 1990s, China's economy entered a period of rapid growth, and the clothing industry was very active. Many garment enterprises have sprung up in coastal areas such as Guangdong, Zhejiang, Jiangsu and Shandong, and the whole industry is becoming more and more mature. 1992 after Deng Xiaoping's southern tour speech in the spring, many entrepreneurs were reassured, the first batch of leading enterprises were born, and the clothing industry clearly put forward the famous brand strategy.
During this period, clothing business was dominated by two forms: one was the wholesale market and the other was the retail market, which complemented each other. Although the circulation pattern seems to have not changed much, it is actually undercurrent.
On the one hand, clothing wholesale markets are blooming everywhere. In the middle and late 1990s, the wholesale market became the main channel of clothing circulation, and some markets became large-scale, standardized and branded. At the same time, the reform of large-scale retail business has also been carried out in big cities such as Beijing and Shanghai. Commercial companies, commercial groups and commercial buildings have stepped onto the stage, and shopping malls have become the main places for urban residents to consume clothes and the first choice for powerful brand enterprises.
On the other hand, after the mid-1990s, especially after the 1998 Southeast Asian financial turmoil, China's clothing market has gradually entered the buyer's market from the seller's market, and some sharp-minded entrepreneurs have realized this and should act accordingly. With the help of processing outsourcing and franchisees, Shanshan got rid of the sales and production links and only focused on the "most core value" of the clothing industry, which was a successful attempt, and Metersbonwe Bang Wei Bang Wei was best at "virtual management".
1994, when Metersbonwe Bang Wei was founded, President Zhou had only 4 million yuan of original capital. Due to limited funds, he decided to adopt a unique business model-production and market are outside, and concentrate on brand management. At that time, this virtual business model was not accepted by the industry, and it was also called "karate". Zhou is even called "Mr Xu". However, only a few years later, the growth rate of Metersbonwe, Bang Wei and Bang Wei showed the garment industry the power of light asset strategy.
At this time, there are two modes for garment enterprises to intervene in channels: one is from manufacturing industries, such as Youngor, Shanshan, Hongdu, Tiger and Leopard, all of which started with garment manufacturing in1980s and started to build or operate channels in 1990s; The other is brand marketing that started in the mid-1990s, such as Metersbonwe, Bang Wei, Bang Wei and Pure. Outsourcing manufacturing and selling in the form of franchising.
It is worth noting that after the mid-1990s, the joining mode became popular in the clothing industry and gradually became the mainstream mode. Many enterprises, especially men's wear brands, are willing to use franchising to expand the terminal market. "If an industrial brand cannot be successfully transformed into a commercial brand, the development of the market will eventually have great limitations." Chen Zhigao, deputy general manager of Youngor Clothing, said this.
Argument: mode is king
"Can we get our biggest profit, that is, the lost part-business and brand things back first? Innovate the management model and take the operating profit in your own hands? " "Can we get back 40% of the profits in the next five years?" Du Yuzhou, President of China Textile Industry Association and President of China Garment Association, made such an appeal to the whole industry.
Generally speaking, the international textile and clothing industry accounts for 40%-60% of the commercial contribution rate in the industrial value chain, which is the core driving force to promote industrial structure adjustment, change the growth mode and realize brand value. With the adjustment of global textile and garment industry layout and the integration of global commercial economy, commercial innovation has become an insurmountable key link in the process of China's transformation from a textile and garment producing country to a textile and garment brand power.
Advocating commercial innovation of independent brands and carrying out commercial innovation projects have been included in the key work plan of China Garment Association during the Eleventh Five-Year Plan period. Jiang Hengjie, executive vice president of China Garment Association, pointed out that China can't become a commercial power, and it can't become a brand power. Commercial reform is one of the last areas of reform in China. The potential value of industry, technology and brand needs and can only be transformed with the market through business, otherwise it can only be a zero-value or negative-value cost.
In the new century, a vigorous wave of enterprise reform has begun. Clothing circulation developed as an industry for the first time. The marketing model of enterprises has also undergone fundamental changes. The once widely used agency system has been replaced by more efficient franchise system and order system, and brand stores, franchise stores and clothing franchise stores have blossomed everywhere. The wide application of network not only improves the supply and marketing efficiency of enterprises, but also becomes a fashionable sales channel.
The voice of "mode is king, channel wins" resounds throughout the clothing industry. Not only have a number of typical innovation channels emerged for garment enterprises, but also leading garment enterprises have begun to practice enterprise innovation. International brands have also landed on the battlefield of clothing business in China in combination with the mode of China market, and the majority of small and medium-sized enterprises urgently need business innovation to bring growth breakthroughs.
Especially in 2007, with the all-round compound competition of domestic and foreign clothing enterprises in the China market, industry and commerce further realized innovative interaction, showing many unprecedented new highlights and hot spots: brand enterprises such as Shanshan entered the retail industry and tried to integrate the business chain; ITAT and PPG have become new business leaders with two advantages: capital and mode. Seven wolves, good news birds and other enterprises speed up the upgrade of terminal stores through listing financing; ZARA, H&M, GAP and other overseas retail brands compete with domestic brands for channels. ...
The dispute over the business model derived from the new economy has intensified. On the whole, after 30 years of commercial innovation, the clothing industry has basically come out of a situation in which the world is somewhat different, diversified channels coexist and various commercial development models are prosperous. In 2007, it was regarded as a turning point of China clothing business innovation by the industry, which indicated that the industry was gestating greater changes. Of course, it remains to be seen how the future business structure will perform in the next link.
At present, the mainstream clothing business models of clothing enterprises and brands in China are as follows:
Self-management: Clothing brands choose the right place to invest and operate stores, which can better reflect the brand image, easily achieve vertical management and refined marketing, and have strong execution of market plans, which can best grasp the market information. Disadvantages are large investment and high requirements for human resources. In recent years, clothing brands often adopt the business model of direct selling and joining.
Franchise: Franchise chain is a mode in which companies join the headquarters to directly develop terminal franchisees, or franchised regional sellers develop terminal franchisees. Nowadays, leisure clothing brands mostly adopt franchising. The advantage of this model is that the brand management follows the standardized operation and the system is updated in time, but it requires higher coordination between the two operators. The State Council's Regulations on the Administration of Commercial Franchise has raised the threshold of franchising.
Wholesale: The wholesale market radiates widely, and many large wholesalers have sales outlets covering the whole country, which can quickly spread their products in the market and quickly realize the withdrawal of funds. This is a common sales model of some middle and low-grade products in China. The disadvantage of this model is that it is not conducive to establishing a brand image.
Agent: This model generally divides the national market into several regions and sets up agents in each region. The enterprise authorizes the agent to be fully responsible for the product sales in this area, and the agent develops and manages the subordinate terminal manufacturers. This mode is the main mode of clothing product distribution at present, which can save the cost of channel expansion and management and give play to the initiative and enthusiasm of agents, but it is not easy to control in brand operation and commodity management.
Network sales: In addition to reducing intermediate links and saving actual sales costs, network sales also have many advantages such as timely information collection and fast logistics management. However, because clothing itself is a special product based on the traditional consumption pattern, and at the same time, China's Internet-related laws are improving, there are security risks in online currency transactions, and the development of its pattern in the clothing retail business field is gradually accelerating.