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The Clothing Electricity Supplier Market Crisis Appears &Nbsp; Dangdang Involves The Clothing Market Risk Is High.

2012/4/10 21:46:00 16

ClothingElectricity SupplierHigh Risk

Dangdang's coming back to create its own clothing brand may not bring spring breath into the "cold winter" clothing business.

Recently, a person familiar with the matter told our correspondent that Beijing copper cattle Group Co., Ltd. has undertaken the design and production of Dangdang's own brand clothing. Dangdang's own brand clothing will be officially launched in April this year.

Moreover, at present, in the garment processing factory in Tongzhou, Beijing, we can already see the fabric of Dangdang's own brand.

At the same time, the industry has rumors that the first batch of Dangdang own brand clothing will have more than 70-80 styles.

Among them, the first batch of Dangdang own brand clothing besides children's clothing, also has the adult basic clothing.

Dangdang CEO Li Guoqing earlier said in public that Dangdang will develop clothing brands, home textiles and home brands this year. Clothing will involve different kinds of underwear, shirts, T-shirts and so on.

Li Guoqing also revealed that Dangdang clothing brand "will be slightly higher than its customers".

Dangdang, a Book founded, is now available.

Develop into

For multi class comprehensive platform, it can save the promotion cost by importing traffic into the independent clothing brand from the existing mature platform.

But in the case of the clothing business group's winter, the Dangdang network, which failed in 2007 in the field of clothing, wanted to sprint again where it once fell.

Stage a comeback

In October 2007, Li Guoqing began to play the idea of men's clothing.

At that time, Dangdang cooperated with the British traditional shirt brand Bond Street to supply directly from each other, remove middlemen and reduce costs.

Although Dangdang tried to use the clothing brand as an important shot to start the department store business, the Bond Street brand was soon put offline, and then ended.

In May last year, Dangdang high profile online clothing mall, hundreds of well-known clothing brands settled in, but Li Guoqing was not satisfied with just being a brand platform business, so Dangdang launched its own exclusive brand.

Dangdang's big hand has the most direct causal relationship with the rapid development of e-commerce in the apparel industry.

The e-commerce of clothing products has been developing rapidly since 2010.


The scale was 105 billion 240 million yuan in 2010, an increase of 111.2% compared with the previous year; in 2011, it reached 204 billion 900 million yuan, an increase of 94.7%.

According to the relevant forecast data, by 2014, the overall scale of China's clothing e-commerce market will reach 519 billion 500 million yuan, and the proportion will reach 27% in the overall e-commerce market.

With the rapid development of the scale of e-commerce market in the whole industry, the scale of garment B2C paction is also rising. It is estimated that the turnover of clothing B2C market in 2012 is expected to exceed 18 billion yuan.

Although the pattern of garment B2C industry is developing rapidly, it is still in a state of separation.

In addition, domestic garment enterprises are not deeply involved in the field of e-commerce, and have not placed them in an important position.

"Hegemony" is "unresolved". Dangdang's attempt to kill and eat cake is not surprising.

However, some analysts say that Dangdang's "thief" will not fail to create another clothing brand. It may also stem from Dangdang's own unsatisfactory performance.

According to the results of the report, the gross profit margin of Dangdang net fell from 13.8% in 2010 to 13.8% in 2011. The net loss of the company last year reached US $36 million 300 thousand, which is in line with the net profit of 30 million 800 thousand US dollars in 2010.

The gross profit margin of the garment industry can reach 80%.

Different expectations

As for Dangdang's news of pushing its own brand, the industry has expressed a clear attitude.

Li Delin, a well-known financial commentator, expressed a good expectation of Dangdang's creation of its own clothing brand. "With the increase of this purchase volume, the value of these providers will be reflected, of course, if they invest a lot of money to cultivate the market."

Li Delin believes that thanks to the opening up and popularity of all customers in the field of clothing e-commerce in the past two years, the business mode of selling clothing by electric power providers has been relatively mature. Dangdang can take a ride, and Dangdang itself has enough customers. Under such circumstances, brand service can develop rapidly if it can guarantee quality.

Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, thinks that


It also helps to raise the gross profit margin of Dangdang, especially in the case of serious losses, which is of great significance for the purpose of ending losses.

Wang Xianqing analysis pointed out: channel is a valuable resource, so the development of its own brand, in its own channel sales, can get greater returns.

He believes that the sale of Lining's clothing, profit margins can be one percent or two, but the independent brand, profits can reach 15%, 20%.

This can dilute the operating cost and raise the profit level.

Whether from the big environment or Dangdang's own traffic advantages, Li Guoqing's promotion of independent brands has a lot of positive factors, but the potential danger has long been separated by the industry.

There are people in the industry who are engaged in clothing business to take the pulse of Dangdang from the perspective of the industrial chain. He pointed out to the IT Time: "unlike traditional enterprises, the Dangdang who started their business is facing the problem of integrated supply chain. At the same time, the recruitment of professional clothing industry buyers also needs a lot of energy."

As an integrated platform for electric business, Dangdang once owns its own brand clothing, and owns another brand, clothing brand.

In this regard, shoes and clothing e-commerce platform excellent purchase network CEO Zhang Xuejun cautiously said, "the electronic business platform and clothing brand business is completely two concepts, the profit way is totally different."

He also said that although the platform will continue to open up, the excellent purchase network will not develop in the direction of brand players.

After the change of identity, Dangdang's own development strategy has also become blurred.

Dangdang's current strategy, including its cooperation with Gome, is aimed at creating a more open platform, taking advantage of Dangdang's overall operation, including brand and traffic, to access more distributors and suppliers so as to compete with Jingdong and Taobao.

But now Dangdang has launched its own brand, which is not particularly consistent with its own platform strategy.

Warning taken from the overturned cart in front

No matter how insiders express their expectations, Dangdang has already been on the road to develop its own clothing brand.

However, before Dangdang tries to own its own brand, the first crab eating PPG in the clothing business has already quietly called the curtain, and the hot and unusual customer has faded away from the aura after several rounds of burning money.

In 2005, PPG broke the traditional store distribution mode and tested the men's clothing e-commerce mode.

By February 2008, PPG had become a "dark horse" in the field of clothing sales, with 10 thousand shirts sold.

Unfortunately, because of the huge cost of advertising investment, poor supply chain management and bad quality of its own products, once known as "DELL of clothing industry" and "model of light company", PPG finally collapsed in late 2009, and founder Li Liang fled the United States to avoid debt.

Although the scenery is short, the popularity of PPG at the beginning still gave birth to many imitators. In 2007, fan Kai pin was the leader of the trial operation.

The sales revenue of the customers in 2008-2011 years was 120 million yuan, 300 million yuan, 1 billion 200 million yuan and 3 billion 200 million yuan respectively. The growth rate in 2010 had reached 400%, and the growth rate in 2011 was also close to 300%.

Although sales have achieved rapid growth by leaps and bounds, the net loss has also been staggering. The loss in the 2011 fiscal year is as high as 486 million yuan.

At the same time, all the negative news such as the departure of the company, the layoffs and the breakup of the capital chain are coming. The founder and CEO IPO, who has been planning for many years, has been on the run. This has also raised concerns about the future.

"This year will be very cautious," Chen said.

In the industry view, the apparel industry's electricity supplier's operating costs continue to rise, resulting in clothing industry investment in electricity providers into the "cold winter", this is an indisputable fact.

And some large domestic clothing B2C companies, such as Mcglaughlin, Yintai net, Martha Maso, Xiu Xiu net, Le cool sky, and so on, all reported a decline in earnings.

The old saying "hold on, mean everything" reveals the chill of the whole industry.

Wing business network CEO min Jie's standpoint is quite representative. He pointed out: "the current situation is that the electricity supplier has overheated before, and has burned too much money. As a result, the money has been burned almost now, and there is no other way out, so we can only wait and freeze to death.

He who really has firewood wants to save. "

Nowadays, in front of Dangdang, there are not only the lessons of PPG, but also the pformation of their identity roles and the difficulties of e-commerce in the apparel industry.

In 2012, when e-commerce was on the brink of winter, Dangdang's "hard to get up" private brand development could be "accomplished".

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