Analysis Of The Influence Of Electronic Commerce In Textile And Garment Industry On Production And Direct Selling

In the context of the past global financial crisis,

This can be achieved because UNIQLO has no middleman and no advertising fees.

Another reason is that the sales of UNIQLO belong to the production and direct sale, and the products designed by the company will be brought to China for production, and then they will be directly pported to Japan.

A fleece jacket and UNIQLO can sell 380 yen for 1900 yen.

But if you sell it to the mall, even if the price is 4000 yen, UNIQLO can only earn 80 yen.

Some brands of clothes may sometimes be cheaper than UNIQLO, but that is only the "demolition of the east wall and the west wall", and the profits earned elsewhere are added to the hole. In fact, most of the cases are "dummy eating Coptis chinensis".

Therefore, other businesses can not compete with UNIQLO in terms of business models.

Obviously, production direct selling is a good sales mode. Especially with the increasing development of e-commerce today, production and direct selling is even more powerful. It expands rapidly in various fields and becomes a phenomenon that can not be ignored. At the same time, production direct selling is also given new connotation in the process of development.

Advantages and problems of direct selling

The traditional mode of clothing retailing, spinning from textile factories to textiles and fabrics, is then sewn into garments, and finally circulated through wholesalers to retail stores. At every stage, trade companies or retailers are involved.

All stages are undertaken by different enterprises, giving full play to their professionalism and at the same time dispersing the risk of inventory.

However, there is no uniform adjustment and control in the whole process, and there is no real exchange of information between enterprises.

These enterprises fully develop and produce commodities in accordance with their respective information. The result is not excessive inventory, but also the loss of business opportunities.

Unlike traditional clothing circulation system, there is no intermediate link in production and marketing, so there is no need to pay commission in the intermediate links, which can greatly reduce the cost of sales and reduce the retail price of goods.

Secondly, production direct sale can grasp the right of channel control.

For example, UNIQLO controls product quality and delivery time by controlling retail chain stores, because UNIQLO directly manages retail outlets and generates large orders. From the perspective of channel authority theory, a large number of orders will make factories dependent on UNIQLO.

In other words, UNIQLO can make better use of its channel rights and make it possible to control production processes so that the delivery time can be shortened and the orders can be flexibly dealt with.

Finally, production direct marketing can control market information in time, because all retail outlets are directly managed by direct selling enterprises, which can get store sales information in time, adjust product structure and improve service quality, and avoid the problem of low sales ability of commissioned sales outlets in traditional ways.

Although the traditional mode is weak in controlling the channel, the risk is shared by different enterprises.

Production direct selling enterprises have the right to control the channel, but the cost is also to be carried by themselves.

In order to reduce risks, enterprises usually sacrifice the diversity of products, because the more categories of products, the harder it is to control, which means the greater the risk.

UNIQLO's practice is that the product is positioned as a basic casual wear, and its varieties are only 1/3-1/4 of ordinary leisure shops.

Compared with those with strong fashion, this kind of clothing has a smaller turnover in terms of turnover, making production arrangement and inventory more balanced, thereby reducing risk.

But the risk is small, but because the product style is small and basic, and lack of fashion sense, easy to make consumers feel tired.

In view of this situation, UNIQLO adopts the color change to make them look diversified on the basis of constant product styles.

At the same time, UNIQLO also positioned its products as "accessories for clothing", which fully embodied the product role of "silent, quality oriented producers" of clothing components.

Based on this "concept of parts", UNIQLO usually stores its stores next to the top brands.

However, the above practices have achieved good results in a short time. But over time, the "surface" diversity achieved by color change seems to have little effect on consumers.

Finally, we must take the route of truly diversified products, and in order to achieve the diversity of product styles, it means that every product needs to be produced in large quantities on a single production line.

The result is easy to generate excess inventory, which is bound to reflect the price of shop heads, forcing commodity prices to rise.

Once the price rises, the advantage of producing direct selling will be lost.

In this way, how to find a balance between increasing the diversity of products and controlling the cost and inventory effectively can really test the wisdom of operators.