Clothing Sales Slump Franchisees Dump Goods Online

international brand clothing It is not surprising that when we go abroad to purchase more than 2000 yuan, Guangzhou stores sell more than 6000 yuan. Because the price abroad is cheap. However, some consumers reported that some domestic consumers Brand clothing It sells for more than 2000 yuan in Guangzhou shopping malls, without a penny discount, but it is less than 50% off when purchasing online.

Some insiders pointed out that due to weak consumption and sluggish sales in physical stores, many franchisees or agents secretly sold goods online in violation of regulations. However, under market pressure and the reverse force of e-commerce, clothing prices in physical stores that have been rising for several years have finally stopped, and some brands even cut prices across the board.

Case:

50% off online mail package for new autumn clothes

Miss Wu recently took a fancy to a domestic brand in a department store in Guangzhou clothes The price is 2198 yuan, without a penny discount. After Miss Wu wrote down the code of the clothes, she searched the Internet and found that online stores that bought the same clothes at a 50% discount were everywhere. Miss Wu placed an order in one of the online stores. The total price was only 1080 yuan, less than 50% off, and free postage, saving 1118 yuan.

"I knew it was cheap, but I didn't expect it to be so cheap." After receiving the clothes, Miss Wu asked a friend who was making clothes to inspect them and found that they were genuine. The friend who is making clothes also felt very strange: "The internal subscription price of this brand is 70% off, how can you buy it at 50% off?"

The reporter found that in recent years, the prices of domestic brands are getting lower and lower, often new products that have not been discounted by department stores. Online stores can already purchase at a 50% or 60% discount, or even less than 50% discount.

"This is because franchisees or agents secretly sell goods online," a senior clothing industry person told reporters, "There is almost no national agent for clothing brand sales. Generally, it is a sub regional agent, while online sales face customers from all over the country and even the world. Although each piece of clothing earns less, franchisees or agents are still happy with small profits and quick turnover." The industry insiders told reporters that the purchase price of general clothing agents and franchisees will be 50% lower than the original price, such as 3.5% 3.8% off, 4.2% off, etc.

According to the insider, brand dealers are very strict in managing agents and franchisees. They can only open stores in designated areas, and each store must be reported to the company for approval. Sales through other channels are against the rules, including online stores. Moreover, it is not allowed to mix goods, such as selling Guangdong goods to Guangxi, because it will affect the interests of other agents. Once found in breach of contract, the brand will be fined and the agency or franchise rights will be cancelled.

Background:

Clothing sales slump Franchisees dump goods online

However, the reason why agents or franchisees risk losing their agency rights and fines to dump goods online is related to the recession of clothing retail caused by weak consumption in the past two years and the increasing pressure on capital withdrawal. Some department stores said that since this year, except for the sports and leisure category, sales of most other clothing categories have slowed down or even negative growth. A person in charge of Guangzhou's medium and high-end clothing brands who did not want to be named told reporters that the performance in the first half of this year was 30% lower than that in the same period last year. According to the data of the National Bureau of Statistics, in the first half of 2013, the retail sales of clothing products of enterprises above designated size increased by 11.7% year on year, 4.7 percentage points lower than the same period in 2012.

Against this background, this year, in addition to participating in various promotions more actively, clothing prices in physical stores that have risen for several years have finally stopped. The reporter learned from many department stores that the retail price of autumn and winter clothing this year was the same as last year, and some brands even cut prices across the board. The sales staff of Oushili told the reporter that the price of autumn and winter clothing was reduced by nearly 10%.

Countermeasures of merchants:

Misalignment between online goods and physical stores

On the other hand, in order to mitigate the impact of online goods fleeing and low price purchasing on physical stores, brand owners are also taking action to investigate this behavior of franchisees. At the same time, brand owners are also exploring new sales models to balance the relationship between online and offline, and avoid this illegal sales behavior confusing the market.

According to the senior management of a department store, a brand has reached 100 million yuan online, but offline physical store sales have declined significantly. The department stores implement the last place elimination system, and will be driven out of the department stores once the performance is poor. The brand finally decided to cancel online channels.

A well-known clothing brand told the reporter: "We have been maintaining a normal price system and trying to reduce the price difference between online and offline. Online sales are products of special power suppliers, or inventory, and new products will not compete with physical stores online, unless we want to give up the physical store channel."

The reporter saw in Tmall that many well-known clothing brands have set up flagship stores in Tmall, and the goods are really different from the physical stores.

Prevent fake goods when purchasing on behalf

"The shop counter sells more than 400 yuan of clothes, which can be bought in an online shop for less than 100 yuan. From the photo, it is basically the same as the shop counter." Recently, Miss Luo purchased more than 600 yuan of goods through the online shop, but she received some fake goods with rough workmanship.

Industry insiders remind that there are many manufacturers that specialize in copying popular clothing, but they will not copy all the styles of a brand in a quarter. Therefore, if you visit the agency store, you should see whether the supply is complete. In addition, some purchasing agents also claim to provide shopping receipts, which may be forged.