2006 underwear brand victory: differentiation or differentiation!

What is the most dynamic and fastest growing category in the apparel industry? Undoubtedly the underwear industry.

According to an authoritative body, it is estimated that in the next 10 years, the annual growth rate of underwear should be around 20%, and there is a lot of room for development in the lingerie consumer market. However, since 2002, the underwear industry has been plunged into a fierce battle, with various brands such as thermal underwear leading seamlessly, colored cotton, and conventional underwear clamoring for battle. Price wars, advertising campaigns, and star battles are very lively. .

All brands rose up and down in a melee battle and lost their position. The war was further upgraded in 2005, and many big brands are hard to support. What will be the market outlook in 2006? Which big brands will not be beautiful, which brands will rise suddenly? What breakthrough opportunities will underwear brands have?

The answer is: In 2006, individual brand and marketing model innovation is the breakthrough of underwear brand!

I. Looking back on 2005, there is no way for those who have not differentiated

In 2005, the thermal underwear industry experienced a qualitative change caused by years of quantitative changes, and many market conditions have undergone major changes. The so-called "big brands" that rely on speculation began to shrink, leaving a large area of ​​attack for differentiated brands.

1, only the well-known brand has lost its advantage.

The market competition situation of last year shows that when consumers choose products, the power of popularity has not been enough to impress consumers, and prices and promotional methods have become unavoidable choices for these brands. Low prices have washed away the visibility that companies have accumulated over the years. The aura created by advertisements and stars has lost power before this status quo, and the market share has further shrunk, leaving a large market space for innovative brands.

2, shopping malls difficult to become the main battlefield of autumn and winter underwear.

In 2005, thermal underwear or thermal underwear, which is one of the contents of conventional underwear, is no longer a cash cow. The decline in profit margins in thermal underwear makes shopping malls less important. The area and location have fallen significantly compared with previous years; the conditions for application of end-positions, sale applications, discounts for points, etc. are harsh. This year's negotiations are particularly difficult; many shopping malls have reduced the brand of thermal underwear on a large scale and are expected to shrink even more in 2006. Some shopping malls even claim that they will no longer allow thermal underwear to enter the market next year.

Under such circumstances, if traditional methods are used, the location of the mall will be used to burn money, and natural sales will be brought about by the flow of people in the shopping mall. This has made it impossible to form a hot scene in previous years.

3. Loss of traditional hierarchical network advantages.

The underwear brand originally relied on high profit margins to establish a three-tiered channel model of “provincial-city-generation-county”. This model is the most labor-saving channel model for manufacturers.

However, due to the end of the era of profiteering in thermal underwear, it is no longer enough for “one clothing third-tier agent to share money” and the channel model is impacted. This year, many brands still use traditional investment promotion models. However, the situation of investment promotion is grim. There are large blank markets and false markets. These sites are innovative ways for innovative brands to exploit the golden sites that they need to occupy.

4. Products that are not differentiated will suffer from market downturns.

Underwear brands have always re-marketing hype, light product research and development of common problems, will taste bad results in 2006. The original practice of relying on "one concept and four styles" has failed to meet the needs of consumers. Design style, innovative style, color matching and other aspects will become the essential factors for the 2006 market hot products.

Second, the market forecast in 2006

Based on the above analysis, combined with the market information mastered by the Shanghai Warring States policy marketing consulting agency, the following market forecasts can be made:

1. The market share of traditional homogenization brands has declined, and innovative companies with vision have started to segment the market.

2. The sales share of first-line malls began to decline, and some brands using innovative terminal models began to rise.

3. R ​​& D and costs have become the subject matter of competition. Enterprises that have an advantage in production and R&D have gained more market share.

4. The situation of several speculative brands occupying the national market was broken. Innovative and personalized brands began to play a leading role in the regional markets and became the mainstream of the market.

Three, three big victory: difference! Differentiation! Still different!

Someone asked Li Ka-shing, what is the secret of real estate sales?

Li Ka-shing said: Three tips, lots! Lot! Still a lot!

If you want to sum up the three secrets of the underwear industry in 2006, the answer is: differentiation! Differentiation, or differentiation!

1, product differentiation:

In traditional autumn and winter underwear, a warm card is sufficient. However, with the escalation of market competition, only warmth is far from enough and it should return to the essence of clothing.

What is the nature of clothing? Aesthetic, sentimental, and personal. Therefore, in 2006, the brand will work hard in the design process, printing, color strips, jacquard, color and other underwear products will be popular, the main color will also be out of the black and white gray imprisonment, red, orange, yellow, Green, pink and other colors will meet the needs of people wearing underwear, outfits, and home wear, and will play a leading role among consumers under the age of 45. The purchasing power of this group of consumers is the strongest. According to this standard, dancing with wolves, Milan Spring, relying on product design and personality this year, will become the masterpiece of differentiated products.

At the same time, soybean fiber, far-infrared, magnetic therapy and other functional products or new fibers, if they avoid overdraft speculation, prices, promotion is not eager for quick success, no exaggeration of commitment, will still achieve good performance in the market.

2. Differentiation of brand image:

The traditional hype-type underwear brand only pays attention to the popularity and does not pay attention to the brand image. In 2006, this defect will be strongly reflected in the market performance.

A number of brands that uphold the brand image maintenance will go to the front desk in 2006 to become a spokesperson for Fashion and youthfulness. The terminal design that focuses on display effects and display effects will also form a strong contrast with the image weaknesses of the speculative brand. Long-term sales. The fashion brands represented by catmen, dancing with wolf, and Palando will truly exert their accumulated brand power.

3, marketing model differentiation:

In other words, selling underwear, find the birthplace of profits. Due to the increasing operating costs of shopping mall channels such as entry, deduction points, and promotions, the traditional operating model has overwhelmed many manufacturers and distributors. Many brands need to rationally search for new outlets and the operating model needs to be changed. Who walks in front, who will be favored by dealers.

The living standards and pace of life are increasingly affecting and changing people's consumption habits and concepts, ranging from sporadic purchases to all-round purchasing, from self-shopping to satisfying family members' cluster consumption, and from simple shopping to the pursuit of shopping convenience. Professionalism and one-stop shopping have become the new consumer trends advocated by the young, especially the main apparel consumers.

Based on the development and reforms in the industry, sales model, and consumption habits, a business model integrating business models, terminal formats, and brand models is needed to meet this trend and change.

In the innovation of marketing model, the international advanced CBB concept has also entered the country, and has begun to have a pioneer. The CBB "Fun My Family" compound brand franchise chain launched by Zhejiang Shenli is one of the best.

The essence of CBB "Fun My Home" compound brand is a multi-brand modular sales under a terminal brand, which breaks through the limitations and disadvantages of shopping malls and traditional single-brand stores. As "Qi My Family" owns such strong brands as "Dancing with Wolves", "Milan Spring" and "Barbie Bibi", it does not rely on the mainstream business district (this will greatly reduce operating costs), but through a rich product mix. In-depth communication with customers to ensure the store rate and increase customer loyalty, and comprehensively improve the product sales rate and profitability per unit area.

According to an investigation by an authoritative organization, the CBB “Fun My Family” terminal win rates are nearly 20 percentage points higher than those of the traditional stores in the same area by comparing the customer entry rate, return rate, commodity turnover, inventory rate, and other indicators. Profitability is not negligible. It is reported that the “Fun My Family” composite brand shop will form 400-500 homes this year.

Everyone in the market will do different skills. In 2006, it will be a year for underwear products to really return to clothing, and it will also be a year in which differentiation actually takes off. After all, pursuing differentiation is the basic requirement for clothing management. "To cooperate with each other and to win" is the same law.