Uncovering the "Hidden Rules" of Vicious Competition in Spanish Chinese Garment Industry

The core competitiveness of overseas Chinese apparel companies needs to be improved. According to “Ouhua”, recently, in one of Madrid’s most prosperous streets, Calle Toledo, a Chinese opened a new clothing store. Looking at the store, I thought it was a ZARA, but at a glance it wasn't a great match. The original name was not ZARA, but ZAIRA. The little “I” was crowded in the middle, and I couldn’t really see it without seriously looking at it. In addition, the store's interior decoration, interior decoration and clothes style are very similar to ZARA, but the price is cheaper.

This incident reflects the fact that at present, among the Chinese businessmen in Spain, due to the lack of an overall view, many businesses are not looking to establish a healthy competitive environment and improve their core competitiveness, but are happy to adopt the most primitive competitive means. Price wars, decks, and malicious payments defaulted to "seek development."

Use other people's money to do their own business to let others say go. It is well-known that businesses do business, in order to maintain the normal operation of the business, need the necessary amount of funds for turnover. Today, on the surface, Chinese businessmen engaged in the apparel industry in Spain seem to be in a good situation, whether it is retail or wholesale. However, in reality most of them have the problem of cash flow difficulties, and they are objectively affected by the economic crisis. Another factor that should not be overlooked is that businesses have long defaulted on each other's business transactions, and each uses the timing of arrears to realize capital turnover.

Ms. Zhang has a very eye-catching clothing store in Sevilla, which has been operating for nearly three years since it opened. When the clothing store is in good business, it is basically less than a week before coming to Madrid for a shipment, or directly calling Madrid's wholesaler to order clothing according to the model number of the garment. Ms. Zhang’s clothing, Madrid’s business will Served on schedule. However, it was not a long time. Today, Ms. Zhang has not received the goods in Madrid's Fuenlabrada. It is not that Ms. Zhang does not purchase, but Fuenlabrada's apparel wholesalers directly rejected Ms. Zhang’s request.

According to the rules of the apparel industry, the first time the merchants have to pay the purchase price, after establishing a certain credit, they can pick up the goods and pay later. However, when ordering new goods, it is usually necessary to settle the last payment. Ms. Zhang, however, is not only billed for purchase but also owes the owner to the West, making many businesses unwilling to cooperate with them. From January to July of the year 2009, Ms. Zhang only owed Mr. Chen a payment of 17,000 euros. Mr. Chen called Miss Zhang to recover the money owed. Ms. Zhang either borrowed money or he did not work well. He asked Mr. Chen. A few days of grace; either simply not answer the phone. Later, Mr. Chen later learned that Ms. Zhang had opened another hundred-dollar shop with the outstanding payment.

The author asked Mr. Chen why he did not personally go to Sevilla to recover the money owed to Ms. Zhang. Mr. Chen showed a lot of difficulties. These are the unwritten rules in the Chinese apparel industry. Even if they go in person, it is difficult to chase the money owed. Come back. In fact, everyone's situation is almost identical, and Mr. Chen himself once had a time when his cash flow was not working well. At that time, he was also being paid by debt every day. In contrast, Mr. Chen is still a credit-worthy businessman. Most of his partners are clothing wholesalers in France, Italy, Romania, and other countries. He has many years of experience in cooperation and is basically ordering goods and then staging. Gradually pay the purchase price.

However, clothing is not better than other products, especially fashion, and misses the best sales period. Profits will drop sharply. Once the business’s vision is inaccurate, creating a backlog of inventories will directly affect the flow of funds. However, as Ms. Zhang obviously has the ability to repay her debts, she will not only fail to repay her debts, but also use other people’s money to expand her business. Unfortunately, this kind of thing is not a case in the Spanish Chinese business district.

We have money to make the market indiscriminate in the Chinese business community, there is already a consensus that everyone has acquiescence: as long as the business of a certain place in a certain industry is good to do, then there will inevitably be some other businesses quickly come one after another, these businesses basically Irrespective of the actual consumption and affordability of the local market, one can only go all in one go and bloom all over the place and divide a bowl of rice into several portions. The situation created is to make everybody not eat enough. What's more, once this businessman is no longer satisfied with copying the world famous brand, it is a direct deck.

In the process of doing business, Iowa, who is in charge of wholesale clothing, is in line with the style, fabric, and quality of his clothing, and often collects information about clothing counters or stores, large or small, through his own shopping. Or you can browse the seasonal and trendy fashions online, understand and master the clothing in a certain period of time as much as possible, and then inform some clothing factories to mass produce and hang shelves for sale at the fastest speed. Therefore, Iowa's clothing wholesale stores attracted many clothing retailers. An aunt at Carabanchel, who is a clothing retailer, is a frequent visitor to the Iowa wholesale store. As long as he spends some time, he will go to Iowa's store to get goods, and he will be able to get a standard and put it in his store to sell. Will be slow-moving.

It is Ahwa's ability to grasp the market and popular styles of the current season. Her wholesale store business has always been good, so that the surrounding businesses are very envious, so some people began to imitate. Instead of imitating Iowa's view of the market, it is directly mimicking her brand. Once the new arrivals arrive at the Iowa store, there will always be people who come to her shop to borrow clothes to pick up the right ones in order to get a clear understanding of the clothing styles, fabrics, colors, and prices. At first, Iowa didn't care much about it. Later, it was discovered that even if the store's Stock had just arrived in two or three days, another clothing wholesale store had the same clothing as its own store. Some merchants only imitate her purchase channels. Some, on the other hand, directly seek out cheap processing plants, process the same styles, and apply the same brand. This kind of "branding" is, in the end, a deck, which is counterfeiting. Some retailers who come to purchase only consider the price. As a result, the already good market has also been abused. This approach, which ignores long-term considerations, has now become a hidden rule in the Spanish Chinese apparel industry, which is undesirable for long-term development.

Digging wells, digging pits and traps Ms. Qingtian, a clothing store owner who opened a clothing store in a suburb of Madrid, said that his well-meaning result was misunderstood by his hometown owner, who had worked for nearly four years. Not only was the business impossible, but even now Friends can't do it.

According to Ms. Ye’s story, she had to come to Tirso De Molina and Fuenlabrada in Madrid every week. Because she is familiar with many wholesalers, every time he enters a store, the boss will introduce a relatively easy sale to Ms. Ye. At the same time, I would also like to ask Ms. Ye what kind of goods she's selling, or how to sell those styles. For this, Ms. Ye is basically outspoken and honest.

Unexpectedly, according to Ms. Ye’s statement, Liu’s owner of a clothing wholesale shop did not investigate and did not collect evidence. He took the sample provided by Ms. Ye to rush to a garment processing factory in Guangzhou, China. After processing production, it was flown to Spain by air. Let Liu boss lose everything, so far that batch of goods still piled up in the warehouse sleep.

Afterwards, Ms. Ye only knew what was going on. It turned out that Mr. Li and Mr. Liu had had business resentment. Because Mr. Li’s goods have been selling very well, Mr. Liu, who is a similar business, simply enjoys the benefits of Mr. Li’s purchase style, which of course makes Li very uncomfortable. Therefore, Mr. Li heard that both Ms. Ye and Mr. Liu were fellow villagers. The information provided to Ms. Yeh would surely be told by Mr. Liu, and it is highly probable that Mr. Liu would believe Ms. Ye’s words, and that is to give him a long-term visit to Mr. Li. A lesson from Mr. Liu in the quotes of Mr. Liu, who was surprised to find that Mr. Liu was really taken in. Later, no matter how Ms. Ye explained to Mr. Liu, Mr. Liu did not take into account the friendship of many years, and even if the goods are sold again, they no longer have business dealings with Ms. Ye.

Similar things are common in the Chinese apparel industry in Spain. Whether it is French, Italian goods or Chinese goods, as long as it is a Chinese competitor, the confidentiality work will not be slack. Some new and old customers in the store are strictly guarded against it. Unlike the previous cases, as long as there are new good goods, one pot comes out for customers to choose, but no longer specify which one is better for sale. At most, let the customer bring it back and try to sell it. If you are good, you will continue to follow the goods. If you want to take a car along the road, you will accidentally fall into the trap of competitors.

As can be seen from the idiom “No trespassing”, Chinese people have long-standing prejudice against businessmen. In the history of China, the status of businessmen has always been low, and the mainstream society led by farming civilization has always believed that business is dispensable and that businessmen make money, they all rely on fraud. Unfortunately, at least for the moment, this view still applies to a large extent. In Chinese society, there has been no healthy and complete commercial culture. In this sense, we have fallen behind an era.