Since this year, a strange phenomenon has appeared in the textile market. End demand has been shrinking due to foreign trade factors, but people have been buying the cloth produced by weaving companies.
Who bought so much cloth? What did they buy so much cloth for? I believe many textile people are thinking about this issue.
New outlet? No, it’s the new “infrastructure”
The previous model was for garment factories to predict production and stocking in advance based on past experience, and were inevitably troubled by inventory, which would eventually be added to the price of clothing as a cost. Therefore, in the past, the prices of slightly famous clothing brands were at least five or six times the production cost. Even so, we often see that a certain well-known clothing brand is almost overwhelmed by inventory worth tens of millions or even hundreds of millions. Breaking news.
With the advancement of digitalization in the textile industry, the connection between consumers and producers has been strengthened as never before, and consumers’ preferences and needs can be fed back to the production side in a very short time. As long as products can be produced in a timely manner, inventory can be effectively controlled, which can not only reduce costs, but also benefit consumers and promote consumption.
But to achieve quick response and quick shipment, sufficient “infrastructure” is needed. In terms of fabrics, it is difficult for a single fabric merchant to complete this model. At this time, a fabric spot supermarket is needed. And the wider the range of fabric spot stores, the more clothing categories can be shipped quickly.
Therefore, in the past two years, fabric spot supermarkets have become a new trend in the clothing industry. Former traders have transformed into spot supermarkets, and weaving companies have also transformed into spot supermarkets when they have more inventory. Everyone is flocking to this track.
If compared with the things we are familiar with, spot supermarkets are a bit similar to Meituan and Didi. They are just a new thing at the beginning, but after they develop to a certain extent, they will occupy a large market share and make considerable profits. .
To build this platform, the first thing to do is to enrich the product library. To enrich the product library, you need to purchase a large amount of gray fabrics. Going back to the question at the beginning of the article, where did all the cloth produced go? These fabrics are building blocks for the new “infrastructure” of the textile industry.
The idea is beautiful, the reality is very skinny
From the previous “Thousand Regiments War” to various money-burning subsidies for taxi-hailing software, these platforms were not aimed at making profits at the beginning. The main purpose was to occupy the market, and what supported their losses was the support of various institutions. invest. In the end, the big fish eats the small fish, and the one who remains is the king. It is difficult for fabric spot supermarkets to do this. Many of them have transitioned from the physical industry. Although they have some capital on hand, they cannot support continuous losses.
But platform construction is like this. When setting up a framework to attract customers in the early stage, it is rare to avoid losing money. Therefore, until now, whether it is a new or old fabric supermarket, due to the large initial investment, it has really recovered its capital. The profit is minimal.
And unlike Internet platforms, although physical spot supermarkets also have consumption inertia, it is difficult to obtain excess profits after occupying the market because customers have choices. Once the price is set high, it is easy for peers to compete.
Therefore, in the short term, although spot supermarkets have appeared in the market with great fanfare, there is still a long way to go to truly make a profit from this.
The gameplay has changed, and the ideas must also change
In the past, the textile industry relied on poor information to earn excess profits. But now the information gap is very small, and the information gap has wiped out excess profits. Weaving companies now make hard money, or even make no money, and machine fees are getting lower day by day. The underlying logic of the textile market has changed. If you want to rely on simple The cycle of making cloth to repay the cost is greatly extended.
At this time, we need to change the angle and think about the problem from the perspective of capital. The spot supermarket can be regarded as an asset, and the inventory can be regarded as the capital adequacy ratio in a sense. After the spot supermarket develops to a certain extent, it needs to be calculated It is not the income per meter of cloth, but the return on assets. If according to this algorithm, what companies consider is to expand promotion channels, attract more customers, and find a balance between profits and shipments.�A balanced shipping frequency.
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