The Way Of Running American Apparel

After several years of continuous trial and exploration, the United States

With the management of negative negation, the core competitiveness of enterprises is also improving.

First, move against the market and create a self operated terminal retail channel.

As the earliest franchising mode in China

One of the brand enterprises, Mei Bang dress has a deep affection for the mode of franchising. Since its establishment in 1995, Metersbonwe has achieved rapid development. However, after entering 2000, when the various brand franchises in the market were vigorously promoted, Metersbonwe resolutely took an important step in making a strategic decision to build a self operated terminal retail channel. Establishing a direct channel was a move against the market at that time. At the time, it was no doubt that it was a painful and arduous journey to take advantage of the low volume of wholesale money and make it self financing.

Why did Metersbonwe choose to establish a direct channel instead of the market? "We also know that the money to join is profitable, but from the long-term development of the brand, the terminal image and management level are the foundation of brand sustainable development. Only with a perfect direct retail channel and management capability can we guarantee the long-term development of the brand."

In this regard, there are senior insiders explain this.

From home and abroad

The experience of brand development and operation shows that ZARA, H&M and UNIQLO all have the dual identities of brand and retailer. The control of clothing brand to retail terminal is very high. The stable terminal retail channel avoids the fluctuation of channel. Secondly, the most important thing is the ultimate embodiment of brand comprehensive competitiveness, controlling the retail terminal to establish a supply chain management system different from the traditional wholesale mode, realizing the fast turnover of goods, improving the fashion reaction speed of terminal products, establishing a terminal management system of international brand standard in a second tier city, and completing the process of brand image building in the core link of commodity management, brand image, terminal service and so on.

It is not difficult to find that the pformation from the original franchise to the establishment of a perfect self-management and affiliate mode is in line with the current development of the Chinese market. In the long run, the continuous improvement of brand image and the strengthening of competitiveness will help to expand the market space of joining the market. Metersbonwe discovered this very early and acted on it.

Two, follow the trend and improve the quality of enterprise assets in an all-round way.

However, proprietary retailing

The operation is not easy. Besides direct management is more complex and cost more than franchising, there is also the most direct and important point: direct battalion occupies a larger share of inventory, and display goods and turnover goods needed for shop sales will be a small stock.

In the year of 2010-2011, the American apparel inventory remained at over 2 billion, which was once understood by the market as a huge risk caused by the unsalable product and the backlog of inventory. The main reason is that the difference between the American Apparel and other garment companies is the main reason. A higher proportion of self retailing has also played a part in the enlargement of the stock occupied by self owned channels. "Compared with other clothing brands in the country, there are more channels of inventory in the apparel market report, because the inventory of other brands in the channel is not included in the reports of the listed companies", a division familiar with the industry believes.

According to the data disclosed this year, Smith Barney has done well in the integration and sale of old products and new products through the existing self operated retail terminal system. At the same time, the allocation and allotment of goods have been strengthened, and the development and production capacity of short and fast products have been strengthened in the background supply chain, and the efficiency of inventory cycle has been improved.

Although inventories are still above 2 billion at the end of 2011, a detailed comparison shows that the size and structure of American barrack apparel has been decreasing and optimizing since the beginning of 2011, and the structure of storage and sale has been balanced. According to industry analysts, inventories may have dropped to about 1 billion 800 million yuan by the end of six months.

If we consider the volume and turnover of goods in the company's direct operation system, its inventory control is at a fairly reasonable level. At the same time, joining the flat management mode of the market can avoid the systematic risks that can not be avoided under the multi-level agency system. Inventory and other issues can disperse the risk through a large number of small and medium-sized franchisees. It can be seen that compared with the same industry companies, it appears to be more secure.

At the same time,

A series of measures to prevent and control asset risks and improve operational quality, including inventory digestion, production management, cash flow management, debt scale control, etc., are expected to be smoothly reduced to a reasonable level in 2012, with net operating cash flow of up to about one billion, while asset liability ratio will decline steadily, so as to achieve overall improvement in asset quality.

With the improvement of the market environment and the recovery of the consumption growth trend, we believe that a company with downstream management capabilities, strong brand influence, and industry-leading terminal management capabilities will continue to have strong development and performance growth.