Research On The Fast-Fashion Business Model Optimization For LC Clothing Company Of Shanghai

Chinese clothing industry is about to enter the golden decade.According to the data of China Statistical Bureau, the total volume of clothing and textile retail sales of 2014 was 1256.29 billion Yuan in China, more than 10% growth every year from 2011 to 2014. In general, it is very advantageous to development environment of Chinese clothing enterprises.Nevertheless, demand of clothing market has been expanding with mo re fierce competition. In the past ten years, many foreign-owned clothing corporation enter to Chinese market, and seized the 30% clothing markets in top-tier and second-tier cities rapidly, internal traditional clothing enterprises had a shock by these corporations, especially for their up-to date business model-fast fashion model.Internal clothing enterprises have gradually recognized and accepted this model, and have been studying and following the example of fast fashion model, it has been effective on growth of sales revenue. However, it also caused various of problems such as inventory growth, low surface efficiency and so on.This paper choose LC Clothing Company of Shanghai as the check sample, sort out and generalize the effective elements for busi ness model of fast fashion to obtain a completed core value system, and produce reasonable and practical proposals for internal clothing enterprises.This paper give a brief summary of elements of fast fashion 、external and internal clothing enterprises’ trends in Chinese market base on predecessor ’s research achievement. And choose the 3 key elements to make a study : brand marketing strategy、production development and process、channel of distribution.Through making a comparative study between LC Clothing Company of Shanghai and Japanese clothing company-Uniqlo, found the weakness of LC Clothing Company of Shanghai as following: For brand marketing strategy, positioning overlap and deviation on segment brand; growth of sales revenue did not catch up with the growth of stores. For channel of distribution and operation, store set up of segment brand was isolated; online distribution was not the key channel of distribution; operation cost was not balance according to the sales revenue of stores.Based on the above reference, the next past mainly uses the methods of data-analysis and quality analysis.In the last part, produce the proposals of Optimization according to the problems and reason analysis, as following: For brand marketing strategy, optimize the segment brand; push promotion as unit of area; plan of spreading money and production flow. For channel of distribution-O2 O model, adjust the stores; re-set up the inventory and operation; extend online channel of distribution. Multiple brand marketing strateg y and optimization for channel of distribution will have reference value for internal clothing enterprises.