Garment factory in the "small shopping mall" attracted "carribean"

Zhejiang Online reported on November 21st that a famous local clothing brand in Shaoxing was engaged in “low-priced sales” at the factory gate. Yesterday, the reporter walked into the company and found that there was a “small store” hidden in the garment factory. Although there was no salesperson, it attracted the “carrot group”. The reporter learned that there is more than one store in the apparel factory. Why does the company owner start the shop owner? What is the reason behind this?

Walking into the outlet store located in Guanyou Group's factory building in the Paojiang Industrial Zone, the appearance and interior decoration are the same as those of the urban clothing store. However, unlike the ordinary stores, there are no salespersons in the store, and only one employee and sales manager who is responsible for the cash register “sit”. Ms. Zhang, who specializes in buying clothes from the urban area, said, “There are few people who are disturbed by shopping. The environment is very good.”

Yesterday evening, the number of "blooded groups" that the three housewives started with was a few thousand. Four shirts, three trousers and three thick jackets were stuffed in their shopping bags. "We buy so much, so the discount given to us by the manager is quite low. If you don't discount these things, it will surely add up to tens of thousands." One of the housewives, Ms. Hu, said that since she was introduced to friends last year, she often came here to help her husband pick Clothes, she is going to look at the new next week. Ms. Hu’s husband also said, “The clothes here are more in line with my age and temperament, and the factory outlet stores are not only less expensive but also have more models than regular stores.”

Mr. Ding, the sales manager of Guanyou Group, said that this type of direct sales model started last year, and that companies using this model are also non-Guanyou ones in Shaoxing. Guanyou apparel has several stores in the urban area, and there are counters for supply and marketing and Parkson. “Usually, the minimum discount in our factory outlet stores can reach 2-3%, but in most non-direct stores, it is usually up to 45%. The price gap has led customers to slowly flow to the outlet stores.” said Ding, manager, ZTE Luna’s Guanyou flagship store had more than 10 million yuan monthly sales in October last year. In October this year, the total monthly sales dropped by nearly 30,000 yuan. The best sales day in the direct sales store was more than 16,000 yuan.

Why should we adopt this kind of sales model at the expense of store performance? Manager Ding said that opening counters and opening stores in commercial buildings is mainly to start the brand. Although non-direct stores have high sales prices, they also have high operating costs. In addition to the high cost of storefront rents, labor costs, and entrance fees, profits are also low. “Our factory direct sales are mainly for returning funds and fostering a stable customer base. Although discounts are low, there is still room for profit.”

Zhang Rong, a professor of economics at the Shaoxing University of Arts and Sciences, said that a well-known brand of apparel is willing to make a low-cost direct sale. The fundamental reason is that the entire apparel industry has a tight capital chain. This sales model is based on the direct sales form of Taobao, which saves the operating costs of warehousing, stores, and transportation.

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