Against the background of the global financial crisis in the past, Japanese retail companies suffered heavy losses. Fast Retailing’s “Uniquku†performed well and achieved impressive sales results. It is said that Uniqlo could make a net profit of 70 billion yen with sales of 500 billion yen. Even if sales were about 25% lower than the year before last year, its profit was still as high as 50 billion yen. If it were replaced by a general company, if sales fell by 20-30%, I am afraid there will be no profit at all.
This can be done because UNIQLO’s sales have no middlemen and no advertising fees. Another reason is that Uniqlo's sales methods are direct sales. They will take products designed by their own companies to China, and then they will be shipped directly to Japan. A fleece jacket, UNIQLO can sell 1900 yen to make a net profit of 380 yen. However, if you get the mall to sell, even if the price is 4000 yen, Uniqlo can only earn 80 yen. Some brands of clothes may sometimes be cheaper than Uniqlo, but it is only that the merchant “removes the Western Wall to fill the Western Wallâ€. Profits earned elsewhere are filled in this hole. Actually, most of the cases are “ Dumb to eat berberine." Therefore, other businesses cannot compete with UNIQLO in the business model.
Obviously, the production of direct sales is a good sales model. In particular, with the increasing development of e-commerce, production direct sales are even more powerful. They are rapidly expanding in various fields and become phenomena that cannot be ignored. At the same time, direct sales during the development process are also Give new meaning.
Advantages and problems of production direct sales
The traditional clothing retail model, from the textile factory spinning line, to the textile into fabrics, and then sewn into garments, and finally through wholesalers to retail stores, all stages of trading companies or retailers involved. The various stages are mostly undertaken by different companies, and they can play their professionalism while also dispersing the risk of inventory. However, it is impossible to carry out unified adjustments and controls throughout the entire process, and companies cannot exchange information with each other. These companies develop and produce goods in full accordance with their own information. As a result, they do not result in excessive inventory, which results in the loss of business opportunities.
Unlike the traditional circulation system of the clothing industry, there is no intermediate link in the production of direct sales, so there is no need to pay commissions for intermediate links, which can greatly reduce the cost of sales and reduce the retail price of goods. Second, production direct sales can control channel control. For example, Uniqlo controls product quality and delivery time by controlling retail chain stores because Uniqlo manages retail stores directly and can generate large orders. From the theoretical perspective of channel rights, a large number of orders will make factories dependent on Uniqlo. Or that UNIQLO can better play its channel rights and make it possible to control its own production processes, so that it can shorten delivery times and flexibly cope with additional orders. Finally, production direct sales can control market information in a timely manner, because all retail stores are directly managed by direct sales companies. They can obtain store sales information in a timely manner, adjust product structure and improve service quality, and avoid consigned shops in traditional ways. Problems with poor sales.
Although the traditional model has weak control over the channels, the risks are shared by different companies. Producing direct-selling enterprises has mastered the control of the channels, but the cost is that the risks also have to be paralyzed by themselves. In order to reduce risk, companies generally sacrifice product diversity because the more product categories, the harder it is to control, which means the greater the risk. Uniqlo’s approach is that the product is positioned as a basic casual wear, and its variety is only one-third to one-fourth that of ordinary casual shops. This kind of clothing has a smaller change in turnover than those with more fashionable products, making production arrangements and stocks tend to balance, thereby reducing risks.
However, although this risk is small, it is easy for consumers to feel tired because of the lack of style and basic style, and lack of fashion sense. In response to this situation, UNIQLO adopted the same style of products and made them appear to have diversity through the changes in color. At the same time, Uniqlo also positioned its own products as "fittings for garments", fully embodying the product role of "silent, quality-oriented producers" in apparel parts. Based on this "part concept," UNIQLO usually puts its storefront next to the big one.
However, this approach has worked well for a short period of time, but as time goes on, this “surface†diversity that is achieved by color changes seems to have little effect on consumers. In the end, it is still necessary to take a truly diversified product line. To achieve the diversity of product models, it means that every product needs to be mass-produced on a single production line. As a result, it is easy to produce excess stocks, which will inevitably be reflected in the storefront prices, forcing commodity prices to climb. Once the price rises, the advantage of producing direct sales will be lost.
Viscose is a kind of silk cellulose, which is made of cellulose, which is an organic compound that makes up the majority of plants. Good air permeability, dyeing, moisture absorption and vertical.
Poly Viscose,Viscose Fabric,Viscose Rayon,Cotton Viscose
SHAOXING SHUKE IMPORT AND EXPORT CO.,LTD , https://www.shuketex.com