The hottest multi brand operation has become a new

2022-08-09
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Multi brand operation has become a new trend in the development of China's clothing industry. The "analysis report on the production and marketing demand and investment forecast of China's clothing industry in" released by the forward looking Industry Research Institute shows that in the first half of 2013, the clothing retail sales of 100 key large retail enterprises nationwide increased by 6.9% year-on-year, and the growth rate slowed down by 2.9 percentage points year-on-year; The cumulative retail volume increased by 4.3% year-on-year, 2.3 percentage points higher than the 2% in 2012. In June 2012, the year-on-year growth rate of retail sales of 100 key large retail enterprises nationwide reached the highest point in the first half of the year; At that time, major shopping malls took the holidays as an opportunity to continuously launch strong promotional activities, so that clothing sales rebounded significantly in the second quarter of 2012. According to the data of 2013, the characteristics of strong clothing promotion of 100 retail enterprises are still obvious, and the weakness of domestic demand is difficult to be said to be significantly improved

in this context, the clothing industry research group of forward-looking Industry Research Institute believes that based on the three advantages of multi brand operation, multi brand operation can still open up market growth space for China's clothing enterprises in difficulties

three advantages of multi brand operation

the market space of a single brand is limited, and multi brands tap more market segments. From the perspective of continuous improvement of consumption level and refinement of demand, multi brand operation can better grasp consumer demand, cover more consumer groups and improve market share. At the same time, the front power supply is three-phase and four wire system. The clothing industry research group of the Industry Research Institute believes that there is a ceiling in the operation of single brand, and if clothing enterprises want to continuously expand their territory, multi brand operation is the mainstream way

multi brand operation can occupy more store area of department stores. Especially for high-end brand clothing enterprises, department stores are an important consumption channel for clothing. Through calculation, the saturated number of stores of Chinese brands in municipalities directly under the central government, sub provincial cities, prefecture level cities and county-level cities is about 30, 20, 10 and 5 respectively, so the channel space of Chinese brand clothing is about 5000. Multi brand operation can occupy more area and increase sales probability

multi brand operation can disperse business risks. Multi brand operation can reduce the business risk brought by the change of single brand. Taking Belle International as an example, it can be clearly found that although the operation of a single brand fluctuates, the successful operation of multiple brands has led to continuous and rapid growth in recent years

the main reasons for the trend of multi brand operation

the analysis report on the production and marketing demand and investment forecast of China's garment industry in released by the forward looking Industry Research Institute believes that the main reasons for the trend of multi brand operation at present are: in terms of demand, the improvement of consumers' consumption ability, the diversification of clothing demand, the clothing demand for different clothes on different occasions, and the clothing demand for different positioning; From the perspective of capital capacity, the scale of garment enterprises has been expanding, the brand market share has increased, and gradually have the capital investment strength to operate multiple brands; From the perspective of operation experience, most listed enterprises have been operating for more than 20 years, and the level of operation and management has been gradually improved

key factors for the success or failure of multi brand operation

forward looking Industry Research Institute Service although the transfer of manufacturing industry to Southeast Asia has led to a sharp reduction in export orders, the industry research group believes that multi brand operation needs to have three core competencies: terminal retail, supply chain management, and brand operation

the sales ability of terminal retail is the foundation of an enterprise. Terminal retail capability is a fundamental factor in the operation of garment enterprises. Terminal retail capability directly affects the sales scale. Only enterprises with high-level terminal retail capability can make multi brand operation more meaningful. Take INDITEX gap as an example. Both of them have higher single store income and per unit area income than their peers. INDITEX's single store revenue reached 2.65 million euros in fiscal 2013, while gap's single store revenue was as high as 4.59 million dollars in fiscal 2013. At the same time, I mobile beam automatically stopped moving, and the operating revenue of nditex gap per square foot of retail stores in fiscal 2013 was as high as 5315 euros and 4241 dollars respectively

supply chain management affects terminal sales and reduces costs. The importance of supply chain management for retail enterprises is self-evident. On the one hand, high-level supply chain management enterprises can quickly understand the terminal situation and respond to promote sales; On the other hand, improving the level of supply chain management and shortening the supply cycle will effectively reduce the responsibility for the faults caused by the shortcomings of design, manufacturing, process or materials, and reduce the inventory cost. Taking INDITEX as an example, the supply chain cycle of most enterprises is as long as 3 months, while the supply chain cycle of INDITEX group is only 15 days

brand operation brand positioning, publicity and strategy to enhance competitiveness in all directions. From the development history of multi brand operation of INDITEX, gap and VFC, the timing of multi brand operation is usually after the company has been operating for more than 20 years, the operation of the second brand has been quite mature and the domestic layout tends to be improved, and the revenue has reached a certain scale and increased rapidly

from the perspective of strategic planning, INDITEX takes affordable fashion as the core concept, and its brand positioning is first-class fashion, second-rate quality, third-rate price. Its eight major brands, including Zara, are positioned in different segments of consumer groups around fast fashion and leisure. The business philosophy of H M is to provide fashion and quality at the best price. As one of the largest retail enterprises in Europe, the company has always adhered to the process of continuous improvement of its brand series, taking the fast fashion image of low price as the main line, and constantly improving and building brand series suitable for different ages and different occasions to meet the fashion needs of the public

from the perspective of the balance of resource allocation, multi brand operation will disperse the company's resources to a certain extent, and also put forward higher requirements for management and operation. In addition to the time point when the operation of the original main brand has reached a certain scale and stable development, the company's balance of the strength of new brand support in multi brand operation is also more important. Too much investment, once failed, may cause great harm to the company's development. From the perspective of INDITEX group's investment in the development of new brands, the proportion of capital expenditure to the company's revenue has been maintained at less than 5%, while in the long-term development strategy, Zara is still the focus of the company, the proportion of revenue has been maintained at around 65%, and its capital expenditure accounts for about 10% of revenue. The capital expenditure of gap's well-developed online sales business also accounted for about 5% of the revenue. In addition to the strong capital expenditure support for the development of this business, it does not constitute a huge burden on the company as a whole. In recent years, the income of offline business (stores) has stagnated, and the rapid development of online business has made up for the offline performance to a certain extent

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