1.5 billion pieces of Weihuo changed business model

There is such a group of data: From January to September 2010, the output of garment enterprises above the designated size was 20.26 billion pieces. From January to August 2010, China exported 19.27 billion pieces of clothing and clothing accessories, and produced a ratio of 5% of the total stocks. According to the calculation, in the first nine months of 2010, China’s garment processing industry generated a total of over 1.5 billion inventories. Although the concept of Weihuo has been proposed for a short time, the fact that the Weihuo produced in the entire production and circulation links coexists with the development of the garment industry. In addition, China, as a huge world-class processing market, has a large share of foreign trade orders. It is these end-of-stock prices that are as low as a few dollars each, but growing in quantity, and have changed and created a brand-new commercial model for groceries.

Weifang Business Model won the "Fame"

“Weihuo” refers to “inventory backlog products that are produced in the production and distribution process and meet the relevant national standards in terms of functions, safety, etc., include products produced outside the company’s orders, and products that cancel corporate orders due to certain reasons. Sale of surplus goods during circulation, etc.".

Recently, the "Marketing Research Institute of the State Council Development Research Center as the research support unit" seminar on "Innovation in Business Models and Tianlan Weihuo Development Countermeasures" was held in the Great Hall of the People in Beijing. As a subject, the Institute of Market Economy of the State Council Development Research Center has established a project. In a sense, it is a "fame" for commercials that have been living in the private and apparel industry. The commercial outsourcing industry has entered a stage of scale and commercialization from the natural and unorderly natural stage of survival. Corresponding "planned" plays a role in fueling this. The commercial real estate planner Liang Jiliang and general manager Wu Tiantai of Tianlan Weihu are prophets among them. They have seen a greater business opportunity related to this 1.5 billion Weihuo, that is, a range from clothing to business. Real estate and even the media's Weihuo commercial. Professor Hong Tao of the China Business Technology University stated that China is a big manufacturing country, and the volume of stocks produced each year is very large. This shows that the emergence of the domestic cargo industry is inevitable. China's manufacturing industry and circulation industry need to digest large quantities of stockpiles each year. Expanding domestic demand, stimulating consumption, and optimizing resources require weft goods. This shows that the emergence of the domestic cargo industry is necessary.

The new business opportunities for Weihuo in the eyes of Wu Dafan In 2006, Wu Daju, general manager of Beijing Baidu Company, encountered hundreds of cheap shoe stores and clothing stores. The backlog of inventory items took up most of the liquidity. At the same time, Wu Daju saw it. Dealing with huge business opportunities in stocks. In 2007, Wu Daju absorbed Liang Jiliang's proposal and established the first store of Tianlan Weihuo, the Lizaoqiao Tianlan Tail Shoes City. It combines the manufacturers and the general agents to sell at a lower price than the wholesale price and cost, and has a considerable profit.

After the manufacturers saw the good sales momentum of Tianlan, they all requested to set up direct sales in Tianlan and Tianlan quickly developed into 8 stores.

In 2007, the first store of Tianlan Weihuo opened. Afterwards, Muxiyuan Tianlan Tiecheng City, Dazhongsi Temple Tianlan Weihuo Outlet, Tianlan Weihuo Gucheng Store, Apple Orchard Store, Liuliqiao Tianlan Weihuo Flagship Store, Tianlan Weihuo Zhengzhou Jianwen Store Seven Tianlan souvenir physical stores such as Zhengzhou Erqi Store have opened one after another with a total business area of ​​more than 100,000 square meters. In 2010, the sales amounted to nearly RMB 200 million, which directly and indirectly led to the employment of tens of thousands of people. Tianlan became the forerunner of China's handling of inventory inventories.

In addition to the standardization of traditional business models such as unified store image, unified cash register, unified after-sales service, unified communication, unified management, and the unified management system for the uniforms of employees in the management, today's Tianlan has determined that the main business is branded Weihuo. In the next two or three years, Tailan's own large-scale tail goods distribution center will be established in East China and South China, that is, Shanghai, Jiangsu, Guangzhou, and Fujian, to create a Tianlan Weihuo e-commerce platform. This move uses the Tianlan physical store as a display platform for goods, services, and value. With the help of the commercial reputation of the Tianlan physical store, in the critical period of the current poor e-commerce credit climate, it creates a trust for consumers and reassures consumers. Integrity e-commerce platform to satisfy consumers.

The developing tail market needs to consider a rapidly developing business model. Coexisting issues cannot be ignored. The domestic cargo industry has experienced rapid development and blind expansion. At that time, signs of overheating in the industry have already appeared. In fact, this is also a new phenomenon. The way the industry has to go, how to regulate the tail industry to return to the rational development track, so that the tail market operators are no longer keen to expand the number of stores, but focus on the internal management of the domestic market and the shaping of internal competitive advantages. And refining, which takes time to precipitate.

In addition, Liang Jiliang mentioned that the cargo supply information in the domestic cargo industry is very asymmetrical, and the short-term cargo operators who are in the supply demand side lack one of the most convenient routes. The Weimaro Alliance may play a guiding role in balancing industry demand.

The industry reshuffle will certainly change the pattern of the clothing market. The high inventory of manufacturers will gradually decline due to survival of the fittest and rising management standards. It cannot be overlooked that the current contradiction between the domestic market and the genuine market still exists. It takes more than 10 years or even longer for shoe and clothing companies to successfully operate a brand. Low-cost sales of branded clothing will cause consumers to question the brand. Most brand-name clothing companies are more concerned about the damage to the brand.

China, as the world’s largest producer of clothing and footwear, is currently faced with not only product outlet issues, but also how to solve the problem of huge stocks due to economic contraction at a price below the “cost price”.

For model innovation, e-commerce and large-scale inventory transaction centers are expected to promote new circulation changes in the domestic cargo industry. E-commerce needs a small inventory, and distribution channels are more flattened, enabling direct connection between manufacturers and consumers. Because the Weihuo is a manufacturer's inventory, traditional distribution channels cannot be used. The conventional distribution channels of the Weihuo industry still have the problem of narrow access and poor circulation. It can be said that the domestic cargo industry needs e-commerce and distribution centers more than any other industry, and many features of e-commerce and distribution centers are more in line with the mid-development mid-tail cargo industry.

To solve the channel problem, the most important thing is to carry out the most effective supervision of the Weifang market, such as whether the source of the goods and products have a legal “identity card” and at the same time have a sound and effective consumer complaints mechanism. Regardless of whether the prosperity of the domestic market is a temporary rise or a good business in an adverse market, the upsurge of purchases and the city of tail stores in large and medium-sized cities across the country have begun to stir. More investors came to this market with a keen sense of smell, and the source of good and bad sources of goods also directly affected the supply of goods in the domestic market. Large companies are reluctant to let go when they hold the pricing power, and they will certainly bring certain risks to the balance of the market in the future.

The existence of the domestic market and the rapid development of the commercial model of domestic cargoes can meet the needs of manufacturers for timely working capital and low-income people.

However, standardization, legalization, and large-scale development are still issues that need attention in development. In particular, management must be based on the principles of security, integrity, and non-infringement. If these principles are lost, any cheap market will lose its significance.