Podcast note: 29. clothing in China

This blog is the note and review about the podcast for 卖不掉的衣服去哪了？ — in 疯投圈.

Podcast link

How long does it take for clothing industry

1. It takes 8 month from design to production (Zera only takes 2 weeks)

Zera advantage

1. Zera only takes 2 weeks -> fast
2. It is very flexible and the stock of clothing is small
3. their production line is in their related countries -> production, delivery cost high

Why do TJ Maxx, Ross bigger than Macy?

1. 2008 financial crisis
2. Amazon grow up -> cheaper => big brand clothing store does not want to sell in Amazon, because people will compare with their price
3. offline -> has information asymmetry

Outlet

1. real state own it since outlet attract the traffic
2. 10% of price which is lower than cost
3. why company want to sell their clothing to outlet? It wants cash flow and it cannot sell it for long time

In China, there are many Franchising for clothing

In USA, there are few Franchising for clothing

Franchising

1. They buy the clothing from company with 50% price, company earn 20% profit with 30% cost
2. Franchising store needs to sell them and cover renting

Pinduoduo

It is not good for women fashion clothing