Looking For "New Normal", The United States Suffered "Transition Pains"

In recent years, the Chinese tradition Clothing enterprise For example, the era of huge net profits and huge expansion has become the past tense. All the traditional enterprises are looking for their own development space in the "new normal". Some have been found, such as Semir, others are still in the throes of transformation.

The transformation road of American bond

The transformation of American Apparel began in the second half of 2013. In those days, the company announced that it would embark on the upgrading of products, upgrading of shops, and the transformation of offline interaction through O2O mode. But for a year, Smith Barney The transformation effect has not yet appeared.

In recent years, the annual report released by the United States and apparel shows that in 2014, the company's operating income was 6 billion 621 million yuan, down 16% from last year. Operating profit of 178 million yuan, down 60% over the previous year, to 66%. Net profit attributable to shareholders of listed companies was 146 million yuan, a significant decrease of 64% over last year.

As mentioned in the annual report, the apparel industry has entered the new normal of transformation and upgrading, and its performance decline has also become a "new normal".

The change in the consumer market has become a shield against the decline in the performance of the US state. In the financial statement, the United States and costumes stated that "in 2014, due to the fact that the demand for clothing terminal consumption is not strong and the consumption patterns of consumers are changing, the management mode of the company has not completely adapted to the new market environment, and its performance has declined."

However, the reason behind it is not so simple.

Ma Gang, a garment industry expert, told an interview with the China Daily News that the increase in the number of competitors has led to intensified competition in the industry and the emergence of external environment such as the rise of e-commerce. This is the problem that every brand is facing now. From the industry perspective, American Apparel This year's performance has gone down badly, with its own reasons, which has much to do with the sharp reduction in its stores.

This is indeed the case. Following the reduction of 340 stores in 2013, Smith Barney's clothing sales increased further last year. Reporters combed the financial report found that in 2013, the number of stores in the United States has 4880 stores, of which 1000 are direct stores, and the number of stores in 2014 has shrunk to more than 4000, of which more than 900 are direct stores. This means that in 2014, the number of closed stores in the United States was about 800 and the number of outlets was about 100.

The decline in the number of stores, especially those with relatively high net profit, has resulted in a heavy blow to the performance of Smith Barney apparel. According to the financial report, in 2014, the United States direct clothing revenue was 3 billion 160 million yuan, down 17.83% from the same period last year. Affiliate revenue was 3 billion 400 million yuan, down 14.63% from the same period last year. In terms of net profit, they also showed a decrease of 17.28% and 12.79% respectively.

"The expansion of clothing stores in the past is too fierce." Yang Jinchun, Secretary General of the China clothing association, told the China Commercial Daily reporter that the increase or decrease of the number of enterprises is fluctuating along with the economic laws. Now the domestic market is shrinking, especially in Direct stores, so many companies have to shrink.

As Yang Jinchun said in an interview with the China Commercial Daily reporter, the extensive development road adopted by the development of Chinese garment enterprises in the past has become the past. Now consumers value the connotation of the brand itself.

In the new consumer market, "transformation and upgrading" is a widely used vocabulary, which is a common problem faced by the apparel industry. It is also a process that every enterprise will go through. Yang Jinchun said that it is not important for enterprises to change and adopt what way to develop. The key is to have their own ideas. The practice of selling managers to replace a professional manager is outdated. He believes that the key to transformation and upgrading is "to see who caters to the new consumption pattern".

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