Shenyang garment company stocks sold for up to 3 years

High inventory is plaguing garment companies in the last year or two.

Recently, due to inventory problems, five apparel companies were blocked outside the IPO. Huang Jianmin, owner of a clothing company in Shenyang, told reporters: “Now the pressure on garment companies' inventory has increased by 20%. In the normal operation of a company, consumption of inventory is expected to be 1-2 years or even 3 years.”

Constantly discounted brand apparel In the negative tier of a shopping mall in Taiyuan, most brands have discounts.

Ms. Zhang tried to pick out a few worthy clothes "to pick a bargain." But she did not have any gains when she walked down the entire circle. "The styles are too old. This dress is definitely a style two or three years ago."

In the past two years, the discounts on branded clothing in shopping malls have become more and more significant, and the discount area has also expanded. Mr. Lu, a floor manager of a shopping mall, introduced that the mall would regularly launch some regions to allow brand owners to carry out product promotion. On the one hand, it would increase sales, and on the other hand, it would also handle inventory of these branded apparel.

Relaxation with the discount activities in the shopping mall is consistent with the “Zero code discount store”. Zhang Zhongjie, Taiyuan Street, and the northbound business district can all see its presence. Zero-discount store staff of a certain brand of clothing said that this type of direct store model is also eliminating the backlog of inventory.

Stock pressure increased 20% year-on-year

Why is the pressure on clothing companies so much? After interviewing the bosses of a number of apparel companies, the reporters got the answer that the clothing market is in a weak state.

Huang Jianmin, owner of a clothing company in Shenyang, said that before the 2008 Olympics, most companies “beted” casual wear, but the plan did not change quickly. After the 2008 Olympic Games, sports brands gradually cooled in the boom.

Huang Jianmin said that in the past few years, garments have paid more attention to processes, dyes, and environmental protection, but they have to increase their prices for each additional link. In the past few years, the ex-factory price of a casual wear was 70-80 yuan, and it has risen to 130-150 yuan in these two years. After an increase in prices to terminal malls, it is somewhat difficult for consumers to accept them.

On the one hand, the output has increased. On the one hand, it is difficult to sell. “Now the pressure on the inventory of a number of local garment companies is 20% higher than last year. This is a very large number. If the normal operation of the company, it will consume 1 to 2 years of inventory, and some even 3 years.” Huang Jianmin Say.

Finding ways to break through inventory pressure How to solve this problem, many companies are also looking for ways to break through difficulties.

According to relevant personnel of the Liaoning Garment Industry Association, discounting is a traditional approach to the promotion and destocking of apparel companies. Another approach is to expand e-commerce. This is also a price war, but companies use near-zero profits in exchange for quick pushes. It is just a last resort for "breaking alive," and there are also several brand stores that have adopted a direct model.

In fact, the fundamental solution is to control the source of production and manufacturing, to reduce the homogenization of products, and not to make sales channels in the same area too intensive.

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