Clothes Can'T Be Sold, It Depends On "Cutting The Label"?

In recent years, with the rise of e-commerce, the clothing industry has also begun to embark on the road of differentiated development, which not only plays a key role in economic construction and development, but also becomes an important force to ease employment pressure and release industrial kinetic energy. However, due to the late understanding of the trade barriers and regulations of clothing industry, some of the laws and regulations related to the clothing industry are not fully developed due to the lack of understanding of the relevant laws and regulations of the clothing industry.

one

"Discount" sales

Recently, through interviews and surveys, we found that Hailan home has been controversial because of the "cut label discount" sales, and actually touched the development barriers of the clothing industry. As a main body of online shopping, Alibaba has ignored the online discount of men's clothing, and has ignored the online discount of many men's clothing stores.

As we all know, clothing tag and permanent label is one of the components of clothing, which not only represents the brand characteristics, but also the effective carrier of brand identification, and is also the promise given by the brand to consumers. In the face of the increasingly complex clothing sales environment at home and abroad and the substantial increase in uncertainty, the market value of many enterprises has shrunk to varying degrees. Enterprises like Hailan home, which are two-way online and offline, are bound to face a large backlog of inventory, which will directly lead to the decline of profit space, and bring heavy financial burden, affecting the normal operation and long-term development.

In the interview, we interviewed a staff member of Hailan family who was selling in the store. For the problem of cutting label sales, the staff said that because it is one of the processing plants of Hailan home, now it is selling out of season clothes and some tail goods, which is no different from the counter in quality. In addition, I heard about the online communication with the customer service.

two

It's a matter of necessity

What is "cut mark"? Why is the "cut mark" of Hailan house? In fact, label cutting is a way for brand companies to destroy and remove the original packaging of some products that are not sold in special stores in order to protect copyright. The biggest seller of cut label clothes is Hailan's home. According to the analysis of industry insiders, Hailan home cut label is to protect their own stores, some clothing would rather be cheap cut label processing, also can not affect the current price of goods. "The cut label clothing is generally produced by the out of season products of brand clothing or the delayed delivery of the factory, so the price is much cheaper than the original price, and there is no difference between the fabric, handcraft and texture of the clothing and the real brand clothing." "GXG, mark Huafei and many other brands, as well as a lot of first and second-line women's wear, are the same after cutting the label and selling them at a discount," he said

It is understood that in order to ensure that the sales price of the products in the current season will not be affected, the general manufacturers will take out the trademark after the trademark has been completely removed. Therefore, if the "cut standard goods" are really forced to be destroyed, they will never be lenient. Either cut a crescent shape and cut out all the words on the trademark; or "uproot" the trademark, leaving only two trademark stitches vaguely visible, and try not to let customers recognize it. However, this is not a long-term solution.

It is noted that due to the impact of the warm winter in 2019 and the epidemic situation in early 2020, Hailan home has made asset impairment losses (mainly inventory falling price losses) of 240 million yuan and 170 million yuan respectively in the fourth quarter of last year and the first quarter of this year. Based on the principle of prudence, the company will still increase the provision of inventory falling price loss in 2020. At the same time, Hailan home plans to reduce the main brand down clothing buyout purchase proportion to 30% in 2020, so as to further reduce the risk of inventory backlog.

three

Encounter industry development barriers

According to the analysis of the industry, the operation mode of Hailan home is a "asset light operation mode", that is, outsourcing the production process, and the stores are mainly franchised. Hailan home mainly through the way of franchise to achieve rapid expansion in the country, but with other franchise brand operation mode is very different, its franchisees only need to pay the relevant operating costs, do not participate in the specific operation of franchise stores. This means that the head office, stores and franchisees are separated from each other, and the market demand, goods management and sales data can not be unified, which will lead to the phenomenon of inventory accumulation over time.

"If the market is occupied, it depends on the management and control ability of the supply chain." Industry insiders said that Hailan home to the supply chain this is the Commission mode. Hailan home orders at least 30000 pieces of each garment, and many of them are on commission. If they can't sell them, they will be returned to OEM manufacturers. In order to avoid infringement, we can only deal with the whole part.

Inventory cycle accumulation, will cause a round of "cut mark discount" sales.

On the contrary, in the context of the loss of customers and retailers' inventory, the retailer will not only lose the reputation of customers, but also deal with the problem of inventory loss of customers It's an irreparable loss.