Chinese clothing: How to survive the recession?

Chinese clothing: How to survive the recession?

This time the “butterfly effect” has developed too quickly. The almost instantaneous changes have made people full of doubts about the future. When confidence is low, there are usually two reactions: one is panic; the other is retreat. These two reactions are people’s conditioned reflexes based on their own safety considerations, but these adverse reactions are easy to make mistakes and miss opportunities.

In fact, economic prosperity is bound to lead to depression, and overheating will inevitably lead to rapid cooling. Some people have called this period the “Quick Freeze Era.” We see that the textile and apparel industry ranks among the industries with serious injuries. Under multiple pressures such as the appreciation of the RMB, adjustments to the export tax rebate rate, and rising prices of production factors, the profit margins of the garment industry have plummeted. Without any warning, this “cold winter” has arrived. Should we hide in a small building to become one, or should we do more “outdoor sports” to keep fit? Are you ready for this too cold “winter”?

Buffett has a classic saying: Be fearful when others are greedy; be greedy when others are fearful. Maybe it can be applied to current clothing companies.

So how can clothing companies be “greedy”?

It is easier to integrate brands during recessions

In a depressed economy, where do people prefer to buy clothes?

Nowadays, discount stores in the United States are extremely popular. There is a special shopping mall on the East Fourth Ring Road in Beijing – “Yansha Outlets (OUTLETS)”, which sells off-the-shelf or out-of-season brands. Clothing, outlets take “famous brands + affordable” as their business philosophy, meet the needs of consumers who like famous brands with famous products and low prices, and have a group of loyal fans.

In fact, since 2005, the processing quantity and export quantity of China’s garment industry have stopped increasing, and the industry has entered a stage of comprehensive brand competition. In 2007, 70% of the profits of the national clothing and textile industry came from the domestic market; the growth rate of domestic sales of China’s clothing exceeded that of foreign trade for the first time in 15 years, and the growth of foreign trade was lower than the previous year. Domestic sales has become the main battlefield of China’s clothing; in 2007, China’s clothing industry One-third of the companies are making a profit, and two-thirds are close to losing money. Profits are concentrated in large companies.

The depression period is also a period of integration for clothing brands. People reduce the number of purchases, but at the same time, consumer purchases are also highly concentrated on brands. For clothing brands, it is a golden period to strengthen brand building.

Improve products to catch up with competitors

The essence of clothing is fashion. When Pierre Cardin appeared on the streets of Beijing wearing a long trench coat, he followed a group of Chinese people wearing blue and green uniforms, and for the first time he got close to the Chinese people in fashion. The change in clothing started with style. The most representative one was the bell-bottom pants of the 1980s. This controversial clothing was eventually accepted by people and became a popular mainstream pants type. Until later, bat shirts, carrot pants, and bodybuilding pants appeared… taking off the uniforms that restricted individuality, people gradually began to pursue a personalized dressing experience. The styles of clothing are becoming more and more diversified, and the frequency of style updates is getting faster and faster. This change is facing an increasingly segmented market. Consumers who pursue unique individual expression need matching clothing to reflect their personality. Make your own difference. Therefore, the speed of style update also determines the speed of clothing brands being eliminated.

Take ZARA as an example. ZARA puts more than 12,000 styles of clothing on the shelves every year, and these are selected from nearly 40,000 designs. In 2008, ZARA finally surpassed its old competitor GAP for the first time with its quick response of “many styles and small quantities” and took the top spot in fast fashion.

It can be seen that there is still a lot of room to occupy the market by improving products, and domestic service companies may wish to work more in this area.

Cleverly capture the “hearts” of consumers

Neiman Marcus is one of the high-end clothing chain stores favored by American clothing consumers. Neiman Marcus’s point of view is that the difference between a successful business and a bad business is this: if you sell something that exceeds the customer’s purchasing power, then you have made a bad business; if you do not sell him something commensurate with his If it’s a good enough thing, then you’ve also made a bad deal. For example, selling a diamond worth $7,500 to a customer who can pay $22,500 is a bad deal.

Once, the chairman of Neiman Marcus personally received a female customer who was interested in buying a mink coat. “Since there are no salespeople present, why don’t you give me the sales commission you gave them as a discount?” the female customer asked. “You have already received a discount, because the store’s highly paid ‘salesperson’ is dedicated to serving you. This person knows more about fur than anyone else in the area, so you will not waste an extra penny on this item.” On clothing. Neither you nor anyone else can buy this piece of clothing at a price lower than its price.” Starting from words and details, this retail giant “captures” the trust and favor of consumers bit by bit. They also successfully “captured” their US dollars.

There is no product that cannot be sold, it’s just that we didn’t make it rightRecommend suitable products to customers, but fail to grasp and impress customers. In addition to thoroughly understanding the products and mastering the knowledge of clothing matching, a professional sales consultant must also study the shopping psychology of different consumers and study the correct sales techniques for different customers and different sales stages. Speaking is a skill that must be studied in clothing sales. While paying attention to the buyer, don’t ignore the people around the buyer, because they also play a vital role in the buyer’s purchase.

A brand is formed by the accumulation of all consumers’ impressions of the brand, including the style of the product, the appeal of the advertisement, the atmosphere of the store and the tone of the shopping guide, etc. The depression period is a golden period for clothing brands to lay a solid foundation for practice, and it is also a good period for brands to catch up with competitors. The core of competition in the development of modern society is the speed of action. In your hesitation, thousands of sails may have passed. Therefore, to maintain the proper “greed”, spring only belongs to practitioners who continue to act.

Disclaimer:

Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.

AA