How To Make Clothing Leader Brand?

Because the threshold of clothing industry is low, it is usually regarded as an industry difficult to produce large enterprises.

But after undergoing the pformation from the foundry factory to the brand operation, some enterprises with strong comprehensive strength are beginning to take the lead.

We need to select two representative enterprises in the industry, YOUNGOR and Metersbonwe, to try to restore their growth path from small to large.

YOUNGOR: the integration of big industry chain

From the beginning of twenty-first Century to the present, almost all the clothing leader brands in every subdivision have done one thing, that is, the integration of industrial chains, so that the reaction of enterprises is more rapid and the core competitiveness is stronger.

From upstream fabric to retail terminal, it is a tight rope for garment enterprises with insufficient strength and limited resources.

But with the enhancement of the strength of enterprises, this is the last choice in the process of scale expansion.

YOUNGOR is such a practitioner.

Through the integration of resources in the middle and lower reaches, YOUNGOR has a large number of raw materials production base, printing and dyeing, cotton spinning, garment manufacturing, logistics center and sales entity shop. By controlling the industrial chain, it has obtained the absolute competitive advantage in the two clothing categories of shirts and Western-style clothes.

In the view of Li Rucheng, the big boss of YOUNGOR, the competition of the world economy is not the competition between products, nor the competition among enterprises, but the competition among industrial chains. YOUNGOR must develop its own industrial system and sales system in a coordinated way.

YOUNGOR's positioning has also changed from a production enterprise to an industrial chain integrator in the upper, middle and lower reaches.

In the upstream, fabric production was once a weak link for YOUNGOR, and YOUNGOR needed many of them.

With the power of foreign technology and capital, YOUNGOR gradually controls the upstream. The advantages of procurement are highlighted, not only to control quality, but also to respond immediately to the middle and lower reaches of the market, and to reduce costs.

In the middle reaches, YOUNGOR spent $100 million in 1999 to build designs, textiles, and

And the downstream sales channels in the hands of enterprises, become a circulation enterprise, is an important part of YOUNGOR's continued integration of the industrial chain.

Although Chinese clothing enterprises have their own marketing system, most of them are small in scale, low in level and not strong in terminal control.

YOUNGOR started building sales channels in 1995, taking self marketing, franchising and joint marketing with large shopping malls to market terminals.

However, when most of the domestic counterparts were franchising, YOUNGOR bought a large number of stores to expand its own channels after 1997, and sold the marketing channels firmly in its own hands. 1 billion 100 million

This led directly to YOUNGOR's sales. Data show that YOUNGOR's sales of more than 35% benefited from self operated channels.

However, self built channels mean the increase in channel construction and maintenance costs, as well as the pressure on actual inventory.

In 2002, YOUNGOR invested 10 million yuan to cooperate with axon consulting to restructure its marketing network system.

Finally, we choose different marketing mix to directly sell to the market.

In key cities, self built channels are the main channel, franchising and shopping malls are subsidiary.

Close some profitable stores and franchise stores, and turn into 1000-2000 square meters of large stores.

In the two or three tier market, it is appropriate to find some distributors to cooperate.

In the terminal system, through information pformation, YOUNGOR can understand the product sales, inventory and other information every day in the market, and then make statistics by the head office to the latest system data, and analyze the report forms, so as to adjust the corresponding links.

In this way, the most accurate prediction and coordination can be carried out to maximize the flexibility and speed of the supply chain, so as to achieve the greatest degree of convergence between production and market changes.

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Metersbonwe: pformation from "light" to "heavy"

What is the competitive weapon of clothing enterprises? Some experts point out that this requires enterprises to take advantage of the situation and summarize the competitive mode that is in line with the present and future development of enterprises. This is the innovation of business mode and the most competitive sword of the future.

However, the innovation of business models is often effective only in a specific environment, so what is needed is constant innovation.

In 1995, Zhou Chengjian founded Metersbonwe with 500 thousand yuan. He did not choose the fashionable suit he was wearing at that time, but chose the casual clothes that he had just started.

In the absence of funds, how to make the company bigger? Zhou Chengjian carried out the business mode innovation, changing the traditional fashion enterprise's core mode of processing and manufacturing, and carrying out light assets operation.

From design, development, production to sales, the traditional clothing enterprises have to control the whole process, which requires higher strength and capital requirements for enterprises.

After all, the newly established Metersbonwe has limited resources to use and control, and Zhou Chengjian has chosen to seize the core business to foster the core competence of the enterprise and to outsource non core value-added services to other collaborative enterprises.

And the core of the industry's high profit brands and circulation links, enhance the control of the industrial chain, is Zhou Chengjian's light asset operation to take a key step.

In his view, the biggest added value of clothing is brand, and brand management and clothing design can make Metersbonwe become the core management enterprise in the industrial chain.

He hopes to seize the core competitiveness of the clothing industry brand to control the upstream and downstream.

So after the company was founded, Zhou Chengjian focused on three things: brand management, fashion design and supply chain management.

Production, logistics and sales integrate external resources and outsource them all.

It is understood that after the establishment of Metersbonwe, no production of a finished garment, all by more than 300 domestic garment factories OEM.

In the aspect of logistics and pportation, the suppliers of the accessories and garments from the factory to the delivery point are responsible for the production process. The sales link from the delivery point to the franchisee is responsible by the franchisee. If these two steps are chosen by Metersbonwe, they are entrusted to the third party logistics company.

The warehousing of the finished goods is responsible for the self built distribution centers (Shanghai, Wenzhou and Shenyang) and the national sales subsidiaries.

In the sales channel, Metersbonwe adopts the way of "direct operation and joining together". In the early stage, it takes the franchise as the main business, supplemented by direct operation, and opens up the market quickly with the help of external force when the company's financial strength is limited.

However, production, sales channels and logistics links are three, which puts forward higher requirements for Metersbonwe to control the entire industrial chain. This means that Metersbonwe must have strong supply chain integration and management capabilities, including upstream supplier management and control, and the control and management of the downstream terminal, and that means Metersbonwe must become the main chain of the whole industry chain, and must ensure that enterprises are always in the central position of the industrial chain.

To achieve this goal, Zhou Chengjian concentrates on resources to build the core competitiveness of the brand, concentrates on its own business priorities in brand building, product design, channels and supply chain management.

Through the powerful information management system, Metersbonwe can supervise, control and manage the entire supply chain in real time, and achieve rapid response to resource integration and response to changes in all aspects of the supply chain.

In Zhou Chengjian's view, the future competition of the garment industry will be the competition of the entire supply chain.

It is understood that the Metersbonwe industry chain integration information system consists of three parts: the ERP of the processing plant, the internal management system and the information system of the exclusive store. The three systems are independent and highly integrated, forming a complete, efficient and low-cost supply chain management platform.

After listing in August 2008, Metersbonwe upgraded the information system to adapt to the multi brand strategy, the in-depth layout of the market, the development of network marketing and the integration of higher level supply chain management.

Through the operation of light assets, Zhou Chengjian began to further control the industrial chain through the listing and financing, extending to some production and retail terminal links, and set up factories and direct stores to realize the "heavy" pformation from light to partial.

Such a pformation is not difficult to understand. In 2008, many light asset companies encountered Waterloo in this year, including ITAT and PPG, which are famous for their "light assets".

In addition, Zara, H&M, UNIQLO and other international competitive brands have conquered countless Chinese consumers through fast fashion.

There are risks in light asset growth mode.

Therefore, after the listing, Metersbonwe began to step up efforts to push the flagship store and image store in the first tier cities. These shops are mainly combined with purchase and long-term lease.

Zhou Chengjian's explanation is that we can get stable store resources by buying property rights.

If you want to be a centenary store of clothing retailing, it is indispensable to have a fixed business place, and buying a shop is more advantageous than leasing.