Women'S Clothing Suppliers Are Leaving.

Behind the sharp increase in sales caused by large-scale discounts in the new year's department stores, the suppliers are losing their profits.

"In order to cope with the price war, profits have fallen by half, and annual agency fees are high."

A brand regional agent that owns brand counters at five stores in Shanghai yesterday told the daily economic news that the company's meeting passed through a department store last week because of a decline in profits from discounts.

A domestic high-end women's clothing brand introduction, before the mall did not carry out large-scale promotion, the brand can maintain about 15% profit per month, "all brands are involved in the discount, we can only follow suit, so the consequence is that sales have gone up, but the overall profit has been reduced."

In the best business year, more and more suppliers are leaving because of various reasons. They are faced with alternative channels or pfer operations.

"Department stores adopt the last knock-out system, and the brands that sell after the sale will be cleared."

New world department store, a manager said.

Insiders revealed that in Shanghai, Beijing and other famous shopping malls, because of the location change of shopping malls and other reasons, the brands that were eliminated each year accounted for about 20%~30%, sometimes even reached 50%.

It is understood that, in order to ease the pressure of cash flow, individual shopping malls told suppliers that the payment at the end of last year will be paid until March, and the risk will be pferred. In the agreement signed between some suppliers and retailers, the reporter can see that, after a large discount, suppliers need to reduce gross margins.

In addition to being forced to leave the field due to poor performance, the phenomenon of supplier disintegration caused by retailer's dilemma is occurring every day.

Yang Jing: editor in charge