Hailan House calls UNIQLO clothing store Which business model is the most reliable
Haicang House really became a “men's wardrobe†last year! As we all know, the growth of the consumer market last year was weak, but Haicang House has opened 1,500 new stores, which actually occupy a certain market share in the Chinese men’s market. . Last year, the company’s revenue increased by more than 7% year-on-year.
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Taking a look at the history of the development of Haicang House, in recent years, the company has continuously seized high-quality business resources, and actively penetrated into the first and second-tier cities, and has intensified efforts to open up shopping mall stores to optimize the online marketing layout of the stores. Today, it basically covers more than 80% of the counties and cities in the country.
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However, as far as the domestic apparel industry is concerned, there are few companies that have opened up their borders like Home House. In the first half of 2016, there were 29 Langze shares closed, Lilang closed stores 50, and Carbun closed 47, and Smith Barney had also closed many inefficient stores. In such a big environment, the Haishu family vowed to compete with the international fast fashion brand Uniqlo. What kind of gap does this company have in comparison with other companies that have risen against the trend?
At present, the business models of China's apparel companies mainly include the direct operation model (represented by Longzi shares and Kanudi Road) and the joining mode (represented by Smith Barney, Septwolves and Senma).
Those clothing companies that have encountered business difficulties are mostly adopting the "joint mode." Although the franchise model does not require the brand owners to find stores to open their own stores, and can also use franchisees channels to achieve sales growth, the accumulation of funds and branding can be described as immediate, so it is used by many brand companies.
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However, since franchise ownership is owned by franchisees, franchisees and brand owners are not unified in terms of interests. At the same time, brand owners can't control the terminal stores, especially for the physical channels of sales data, product management, channel image and other aspects difficult to control, not to mention grasp the terminal sales, make rapid adjustments to consumer demand.
This model has made the apparel industry "unlocked" as the norm. With the declining business climate, the disadvantages of this model have become more prominent: the phenomenon of overstocking of franchise stores is particularly serious.
In contrast, international apparel brands such as ZARA, Uniqlo, etc., why these foreign-funded enterprises dare to enter the Chinese market at the time when the industry is down, because they use the SPA (Specialty Store Retailer of Private Label Apparel) model. These foreign apparel companies deeply understand the importance of terminal operations, and have a higher degree of refinement in the supply chain, especially inventory management, and can also make the most direct adjustments to changes in market demand. As a result, "all people are drunk and I wake up alone" situation has formed.
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The Hailan House is using the retail-oriented buying model to promote the company's low-cost expansion. At the same time, in order to ensure the quality of products, Haicang Home also signed agreements with suppliers such as "Returnable goods can be returned" to ensure that their in-store products are hot new.
In the recession of the garment industry, these companies can make such outstanding achievements and indeed worth the entire industry to learn from.
According to the Analysis of Prospective Industry Research Institute's "China's garment industry production and sales demand forecast and development forecast analysis report," compared with developed countries, China's current per capita clothing consumption expenditure is still at a relatively low level, the industry still has great room for development.
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