Branded apparel slows down and expands seven wolves to shop cautiously

In the absence of optimism in the domestic market for clothing, the large-scale expansion of branded apparel has had to slow down. Yesterday, seven wolves issued an announcement saying that from this year, they are prepared to collect franchise fees from dealers and at the same time lower the wholesale price of products.

Seven wolves from the January 1, 2009 on the dealer's flagship store and franchise stores charge 1 to 20,000 yuan franchise fees, in order to encourage the operation of large stores, free living museum franchise fees.

Wang Qiang, general editor of a textile website pointed out that the seven wolves this move, means that the era of relying on high-speed expansion to obtain profits has ended, and then will enter the stage of solid branding.

In the plan to add new stores this year, seven wolves are very cautious and are expected to add about 300. In the first half of last year, seven wolves added 392 stores.

"The more distributors, the greater the expenses such as propaganda fees, the net profit will also decline." Informed sources pointed out that in the spring and summer of the seven wolves in the spring and summer of 2009, the situation of tight dealer funds has become apparent. To this end, seven wolves had made plans to adjust their business focus and slow the pace of store expansion. Even proposed "to increase the dealer's credit limit, with the dealer to tide over difficulties."

Analysts pointed out that the seven wolves relying on the company's stores and high revenue growth era will end in 2008, this year's performance will gradually return to a stable.

Another brand clothing chain company, ITAT, which had created a myth of high-speed expansion, has fallen from the altar in the past year because of supplier conflicts and layoffs. According to the analysis, under the financial crisis, the difficulties brought by insufficient funds to local apparel companies have been unprecedentedly amplified.

“First-tier cities have huge competitive pressures. Brand clothing companies are entering these cities, mainly to establish a brand image and to lose money. Really making money is actually in second-tier cities.” A clothing brand regional director told reporters that the second-tier cities to make money often Due to the impact of sluggish consumption, it has not been optimistic about many apparel brands. "At present, cash is king, and it is not a wise move for small and medium-sized apparel brands to spread capital to stores that cannot be profitable in a short period of time."