chrispeng [ad_1]
It is understood that at the shareholders meeting of Hailan Home at the beginning of this year, a shareholder questioned the existence of problems with its inventory and business model. Until the end of the year, there was still deep in the whirlpool of public opinion with high inventories and high liabilities, and stock prices were hovering at low prices as a result.
Is the inventory of Hailan House really “severely overstocked” as the outside world has said?
Why is there a phenomenon of high inventory? Literally speaking, inventory is the calculation rule of product flow: inventory = cumulative supply-cumulative demand. If 35%-45% of the goods are unsalable, it will meet the industry’s high inventory standard, which will directly lead to a decline in profit margins, bring heavy financial burdens, and affect normal operations and long-term development. The key point is that the rules for defining the scope of inventory are not uniform, and the main difference lies in whether franchise stores are included in the scope of inventory.
After investigation, it is found that the special inventory model of Hailan House is hitting this definition rule. The franchise stores of its clothing chain brand adopt a direct sales model. The company has the ownership and management rights of the goods, and the franchisee does not need to bear any slow sales. risk. Generally, clothing companies use a distribution model. Once the goods are handed over to the franchise store, the finance will include this in the company’s income, not as inventory. Therefore, from this level, Hailan House needs to bear the additional inventory cycle of the goods from the franchise store display to the completion of the sale, plus the number of more than 5,000 stores and the brand new speed, only from simple inventory and turnover It is impossible to accurately assess the operational efficiency and inventory data of Hailan House. This led to the underestimation of the operating capacity of Hailan House. Therefore, the inventory of Hailan House is not as serious as external rumors.
Another news: After President Zhou Lichen took over in 2017, he carried out a series of reforms, the key is to use RFID chip management technology. Use technology to build a big data center for warehousing and logistics and optimize the supply chain system. Each piece of clothing will be equipped with an RFID chip, and the brand itself fully controls the real-time sales data of the product, so that it can be dispatched in time, and the management advantage is very obvious. It also reduces the risk of untimely market response due to lack of understanding of real-time sales data. From a long-term perspective, the decompression of inventory has a very good predictability. Reasonable control and timely understanding of the dynamic sales rate is far more strategic than how to digest inventory. Inventory issues “must be prepared instead of worrying about planning.”
[ad_2]
