“Under the new crown epidemic, our company has more than 2 million meters of inventory, which cannot be eliminated. It just so happens that raw materials are cheap recently and dyeing costs are also cheap. , the company invested more than 1 million to establish the spot supermarket that it had long wanted to establish, which is much less than the 3 million previously expected.”
——Mr. Wang, the person in charge of a fabric spot supermarket, said
In recent years, there have been more and more fabric spot supermarkets on the market, and it has become A trend. In 2020, the outbreak of the COVID-19 epidemic created a large amount of spare capacity in the market and accelerated this process. According to traditional experience, fabric supermarkets sell more conventional products such as pongee, polyester taffeta, and imitation silk that are relatively low-cost but have very broad applicability. However, new products that will appear in 2020 Some fabric supermarkets have some other characteristics.
“Small but beautiful” fabric supermarket
A hundred flowers bloom in products
Different from some conventional products sold in fabric supermarkets before, some new fabric supermarkets added this year include Some of them sell elastic fabrics, ultra-high-density pongee, T8 and other fabrics with certain technical content.
The editor also interviewed the person in charge of a newly established fabric company this year. He said that the market conditions were not very good last year. This year, affected by the new crown epidemic, orders Become more scarce, which leads to overstocking in warehouses. Establishing a fabric supermarket requires investing a lot of money in inventory, but this year due to its own market conditions and cheap raw material prices, the sunk costs of this investment have been greatly reduced.
So in terms of products, companies often launch their own best-selling and most mature products in the past, so there are some relatively high-end ones. product.
The scale is generally not large
Some of the newly established spot supermarkets this year often rely on their own factories with limited production capacity. The main purpose of their establishment is to digest their own inventory. There are also some newly established supermarkets. The reason is that in short, the scale is often not particularly large and the number of products is not large.
From what the editor has learned, bosses in this area still have a mentality of “crossing the river by feeling for the stones”, so they don’t know how to do it. The company invested too much capital mainly to digest the production capacity of its own factories.
Also limited by scale, the varieties produced by this type of fabric supermarket will be relatively simple.
Excellent quality
Since they have given up on “big but comprehensive” and chosen the “small but beautiful” path, companies will naturally put a lot of effort into product quality. In fact, quality is the least of the issues for such companies.
Even if a fabric supermarket removes most of the inventory costs, the investment required will basically exceed one million. If it can still spend the remaining money during the epidemic, When money is invested, it is basically what we think of as high-quality companies in the traditional sense, and these textile companies often have “two brushes.”
Now that the fabric supermarket has just opened, it is the time to gain reputation. Naturally, quality is the top priority for textile companies and they will not relax in this regard. If you really think about it, the quality of these ready-made supermarket fabrics is basically the same as the quality of previous orders.
How to balance marketing and profitability
However, since we gave up “big and comprehensive” and chose “small and beautiful”, we must also accept its shortcomings. Limited by funds and scale, such fabric supermarkets often can only choose to “specialize” and only target some specific customers.
Fabric supermarkets ultimately have to rely on “travel volume” if they want to make a profit. The previous word-of-mouth method was slower to achieve results and required time and cost investment. Larger, the market is changing rapidly, and there may be risks. Under such circumstances, marketing costs have become an unavoidable topic.
The publicity is strong, and customers are aware of the brand, but the cost is high. Due to the limited sales of a single variety, it is not cost-effective in the final calculation; but If the marketing cost invested is not enough, the wine will be fragrant and the customer’s cognitive cost is limited. As a newly established brand, it is difficult for customers to think of the right company immediately when they have needs, and this is often not the case. It means missing out on this business.
Therefore, how toLetting more people know about a newly established brand while the cost is controllable is a problem that needs to be solved by textile people.
Further reading:
The advantages of fabric supermarkets
“Small batches and multiple batches” are the two The major trend in the textile industry in 2017, and “fast fashion” also requires fabric manufacturers to respond quickly to orders. Because of diminishing marginal benefits, the traditional order model does not have a cost advantage when producing small batches of fabrics, and some orders with very close delivery dates often require fabric manufacturers to pay more additional costs because they are urgently needed. At this time, the advantages of fabric spot supermarkets are reflected.
In addition, because fabric supermarkets accept goods in cash, compared with the increasingly longer delivery times of orders, they can effectively improve the company’s own financial operations.
The “reservoir” of the textile industry ”
For textile companies, building fabric supermarkets can cater to industry trends and improve capital operations. But for the entire market, the fabric spot supermarket means more than that.
Since the transformation of water-jet looms in 2017, the production capacity of gray fabrics on the market has been increasing year by year. According to data from the National Bureau of Statistics, market demand (sales) But it is shrinking year by year. At this time, how to digest the excess production capacity in the market has become a big problem. If all these inventories are placed on weaving companies, weaving companies will be under huge financial pressure. At this time, the fabric supermarket played a very good role as a “reservoir”, digesting a large part of the excess production capacity of weaving companies and ensuring the normal operation of the industry.
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