Dilemma: Where can customers get rid of inventory?

In old age, Vanke really finds a sustainable profitable path.

In his old age, the CEO of an e-commerce company who was born as a literary man, under the command of his guests, has experienced a period of ups and downs in the past few years. During this period, he has both passion for idealism and compromise for reality.

In 2011, Vanke, with a loss of up to 600 million yuan, was once questioned about the impending bankruptcy. At the end of 2012, Vanke miraculously revived and announced: “The basic earnings in the fourth quarter.” In addition, in the aging plan, “Where the 2013 annual performance of the guest increased by 50%, and strive for full-year profit.”

According to the data released by iResearch, in 2012, the sales scale of Vanke was RMB 6.54 billion. Based on this calculation, all customers will achieve a sales scale of RMB 9.81 billion in 2013. Although, this is two years later than Vanke's sales amount of 10 billion yuan set in early 2011. However, if we can truly achieve our goals, our customers will walk steadily and more solidly.

All of this may come from the determination and courage of the "strong warrior". In 2012, when Chen Nian chose to return, he abandoned "attractive" high-margin industries such as home appliances, digital and department stores, and returned to his own starting point - the clothing industry.

In addition, more importantly, in the face of China's entire apparel industry and even the apparel e-commerce "Achilles heel" - inventory, in 2012, where the customer through constant price cuts to clear inventory. At present, where the customer stock is almost reduced to "zero", the sold-out rate reaches 90%-95%. In 2011, when the customer inventory was as high as 1.445 billion yuan, the high amount of bad debts directly led to a serious loss of the company.

However, at the beginning of the new year, it is still necessary to wait and see if the guest can avoid the same mistakes and maintain the “light-loaded” posture. Among them, whether customers can maintain "zero inventory" is an important factor in determining whether their future long-term development.

It is reported that in the first half of last year, the total inventory of 42 domestic listed apparel and textile companies, including Anta, 361 Degrees, Xtep, etc., was as high as 48.3 billion yuan. Although this group of data cannot be accurately verified for the time being, inventory is a major factor restricting the rapid development of the garment industry and has become a recognized phenomenon.

Returning to the "brand" where passengers, making the immediate problems facing the elderly, not only the long-term solution to traditional e-commerce has been a serious long-term "heavy scale, light profits," dysentery, but also the current need to overcome the clothing industry's common "inventory" problem To maintain a steady increase in profits.

On February 27, Wang Chunhuan, Senior Vice President of Vanke Espin, told reporters: “In 2013, Vanke will walk on two legs.” These two legs are the latest two supply chains: one is basic clothing production. The main low-cost, large-scale supply chain; the other is a variety of small, fast-fashion style apparel-based fast supply chain.

At present, where the customer's position is: Uniqlo + H&M or ZARA mode. This is the two different sales models for the apparel industry. However, Wang Chunhuan believes that there is no contradiction and conflict between “mass” and “fashion”.

More than five years have been created where the customer, the user data has been more complete accumulation, casual pants, stockings and other brand sales can do accurate forecasting and analysis. Purchasing under “large-scale supply chain” can effectively reduce costs, ensure quality, and ensure gross profit. Vanke's insistence on this supply chain can help maintain high gross profit. It is reported that the gross profit of such products is about 40%-50%.

Purchasing under the “fast fashion” supply chain is fully adhering to the “order by sales” model. “Where customers will no longer purchase thousands of fashion brand clothing at any time, the number of tens of thousands, may be reduced to a dozen or dozens.” Wang Chunhua said.

This has benefited from the increase in the supply of the clothing industry and the acceleration of the process. It is reported that the fastest time from a single order to a single order for clothing is only ten days to fifteen days. Users like it and can speed up secondary purchases; when users abandon it, the clothing naturally suffers from cold weather and no longer purchases.

According to Wang Chunhuan, the cost of “ordering by sales” is usually higher than the “buy out” model. However, if you consider the "inventory" and other factors, the "fast fashion" apparel industry's gross profit will also be able to reach 40% -50%.

“Adversity must be overstated.” At present, every guest wants to give the impression that the user is a real clothing “brand”, and is even deviating from its most distinctive “ecommerce” label.

However, Wang Chunhuan believes that regardless of how the costumes of the passengers develop and change, it will always be a clothing company with the Internet gene. It is this inherent “advantage” that Vanke will have a larger and wider geographical user base than H&M and ZARA, as well as more accurate data mining.

2013 is a crucial year for all customers. However, in 2013, it was also a matter of life and death in the apparel industry. The main reason for this is that the apparel industry is facing a high inventory problem. It is said that even if China’s clothing industry no longer produces clothing, it is enough for the Chinese to wear new clothes for three years.

Those who are free from the constraints of high inventory must be cautious. Of course, in 2013, if Vanke can successfully achieve full-year profitability, it will renew itself and be revalued by the outside world.

Fortunately, the age of today is no longer the literary commentator of the year, nor is it the radical entrepreneur who is ambitious at the beginning of his career, but is an entrepreneur who truly sinks into reality.