Clothing high inventory**: prevent inflation or sell it

After the disclosure of the total inventory of 1.445 billion yuan in the listing documents of Vanke Eslite, the “high inventory” of apparel brands such as Metersbonwe and Hailan Home began to attract attention and concerns. In this regard, there are electricity business insiders believe that for the low gross margin apparel brands, part of the inventory is actually only the company's initiative to respond to rising fabrics. This point of view also triggered heated discussions between the apparel industry and the electricity business community.

Where is the customer inventory to prevent rising costs?

"Where the customer warehouse warehouse explosion, now basically can give money to go, a warehouse of hundreds of thousands of clothes are not only out, all-inclusive warehouse rush to deal with ... ..." For this is where the customer has a huge inventory of microblogging, An insider yesterday expressed doubts in an interview with reporters.

The person revealed: "In the net of all customer stocks that are uploaded, including the winter products that are currently still being sold, the products in the spring and summer seasons have also been designed and manufactured as part of it, so it should not be the so-called backlog stocks." He further said that “Actually, in order to cope with rising clothing costs, Vanke also prepared some semi-finished products for direct secondary processing in the future. For example, Whiteboard T, etc. In addition, it may also stock up some basic items for daily sales to increase the brand of the Internet. Supply chain rapid response mechanism. These are the foundations of the overall customer inventory."

However, the above-mentioned sources also revealed that Vanke's "dead inventory" does exist. “The fall inventory in 2011 is bound to exist. It doesn't have to be avoided. Every company that sells products will have dead inventory. I think for the online brand, the situation of the customer is not as terrible as the internet rumors.”

There is no need for garment companies to fight against inflation. Although electricians believe that there is a reasonable amount of “high inventory”, it seems to the clothing industry that even if there are some “pre-stocking” goods, the quantity should be controlled.

“Basic funds and regular funds are indeed the best choice for garment companies to stock up in advance, but the resulting inventory accounts for up to about 10% of the total inventory.” "One said does not fully explain the high inventory of customers. The industry generally believes that the continuous rise in fabric prices is a problem that every garment company must face, but it is obviously not a wise choice to use pressure on goods to ease the rise of fabrics. "After all, fabric costs account for a relatively low proportion of clothing costs," said Kang Lanxin.

In the field of traditional clothing, the ratio between fabrics and sales price in apparel prices is at least about 1:7, and the fabric cost of most new garments only accounts for 10% of the selling price.

Kang Lanxin believes that the cause of high inventory of customers does not rule out the issue of their procurement. Where a customer's clothing, there will be a few or a dozen colors. However, in the eyes of people in the industry, some color styles are not suitable for everyday wear and will certainly not be sold. This is one of the causes of dead inventory.

According to data released by the China National Business Information Center, retail sales have started to decline, and retail sales of clothing dropped by 5.53% last month. People in the industry believe that the overall “sluggishness” of the economic market has also led to an increase in the inventory of apparel companies.

The network brand situation is better than the entity's view in the electric business, online brand and traditional clothing companies can not yet be compared horizontally. "Although clothing brand inventory is a problem of coexistence, in terms of statements, online brands are bound to be even more 'ugly', but under the same data, the actual situation of online brands will be better than the entity." A clothing-type electricity supplier believes that Physical clothing brands, such as Metersbonwe, etc., generally press the goods to the distributors and cause false sales. However, online brands do not have channel providers and there is no problem of pressing goods.

Kang Lanxin also stated that traditional clothing enterprises need a warehouse for a sales store, while online clothing companies may only need one large warehouse in the country. Network clothing enterprises are much lower in inventory cost than traditional clothing companies, which may also be the reason why customers are not afraid of high inventory. The lower gross profit of traditional industries also makes network operators more sensitive to prices. According to statistics, the pure production cost of Vanke Espin accounted for more than 40% of its sales, much higher than that of traditional clothing brands. "Therefore, the increase in fabric prices will have a greater impact on Volkswagen and other low-cost online brands."

In addition, the above-mentioned sources believe that the focus of e-commerce will also amplify the problem. “The Metersbonwe inventory of 2.9 billion last year, Li Ning’s inventory of 992 million for the first half of last year, and the inventory value of Haishu’s home at the end of last year were booked at 3.863 billion yuan. These data are also very newsworthy, but e-commerce companies generally attract more attention. ."