It's time for the apparel season. Many emerging apparel companies choose to launch their own branded products every 2-3 months. However, someone is always asking, is China's garment industry really good? Because, as we all can see, the apparel industry is a better industry for the primitive accumulation of capital, and some enterprises do have staggering performance of 10-fold in 12 months. However, the insiders know that apparel industry seemingly easy money, in fact, there are too many hidden feelings.
Simply put, clothing enterprises rely on product value added to reflect the profit point. So, how to avoid the unprofitable loss in the value-added process and the loss of uncertainty, has become the brand business most concerned about.
To a general brand retailer to calculate the cost of a short coat is so structured, fabric: 60 × 1.3 m = 78 yuan; paving (plastic, lining, buckle, etc.): 20 yuan; artificial: 18 yuan; Tax-included direct costs: 78 + 20 + 18 = 116 yuan. This does not include: business management and operating expenses are equally spread, low-value consumables spread, loss of inventory losses and interest. The general brand company pricing model is the direct cost average price increase rate. For example, the above product is priced at a rate increase of 550%, resulting in 116 × 5.5 = 638 yuan. Most retail brands in China are priced according to this method, the change is only based on personal feelings of price increases. Finally, the formation of the general rule of China's garment retail industry prices.
At retail, the part of the value-added that the company expects to realize is 638-116 = 522 yuan. So, to make this part of the added value can be achieved, companies need to do the following:
Try to reduce the turnover ratio of the mall
In general, the more stringent shopping malls, the deduction rate will be 5% -15% of the float, and this part of the float is opened before the sign, smart businessmen will use various methods to reduce the contract discount rate. For example: a Beijing high-grade market average rebate rate is 30%, if we reduce the rate to 28%, if the annual flow of 200 million yuan, the annual net profit of 40,000 yuan, accounting for the overall increase of 3.9 %, 11% of direct costs.
Shorten the counter sales cycle
In many industries, prices have a very big relationship with time. According to the survey, the daily depreciation rate of computer products is about 0.1%, while the apparel industry is even higher, reaching 0.7%. In other words, every 10 days in advance to sell the product, the value of the product less depreciated by 7% less, while the gross profit margin increased up to about 13%.
Improve the effective product inventory rate
The term, for everyone is still relatively unfamiliar. But all the people who run apparel know the fact that the clothing business wants to make money. The most important thing is that the products that sell well should be able to keep up. The products with poor sales should be disposed of quickly. The former is the key to success, the latter is the cause of failure. According to our many years of apparel business analysis, only the effective inventory rate of more than 30% of enterprises, to obtain the retail success.
Counter, the clerk favorite selling best-selling style, therefore, the best selling models each year, often must be worn on the model body. However, this style is also the fastest symbol. When many customers come to buy excitedly, but found no number, the company has lost the opportunity to make a profit. Therefore, modern marketing is more emphasis on not the absolute value of each counter inventory, but more emphasis on the effectiveness of inventory.
Funding cycle smoothly
Retail business cash flow is generally slower, many operators are accustomed to calculate once every 3 months a large capital cycle. In fact, doing a similar place to do the clothing and doing the bank. Smart brand, in a large capital recycling, the separation of many small funds cycle. For example: the fast-selling style of the fast track, some temporary collocation of the spot purchases of products, have led to increased efficiency of the use of funds. That is, one penny as two cents or even five cents to "turn." Of course, unit benefits will also increase. Generally speaking, the value of money lies in its liquidity. If the currency does not flow smoothly, the profit of value can not be generated.
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