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possible situations for the relationship between the three, but you will find that in either situation, it is difficult to achieve the ideal state, and it is always "two highs and one low". Situation 1: Large-scale production, high sell-out rate, inevitably low rate of increase Zara and Uniqlo's regular-price sell-through rates are above 80%, while the mark-up rate is only 2.5 times. Zara relies on its powerful back-end system to master the sales data of terminal stores, and feed it back to the company headquarters in real time to cooperate with self-operated factories and external cooperative
suppliers in timely production and replenishment. Uniqlo relies on its extremely cost-effective, minimalist SKU to bring mass production. Situation 2: Large-scale production and high mark-up rate, resulting in a low sell-through rate For most Chinese clothing brands, the markup rate is more than 6 times, the brand shipment efficiency is low, and the full-price sell-out rate is less than 40%. La Chapelle, once known as the Chinese version of Zara, blindly expanded its product line and had more sms marketing service than 20 sub-brands at its peak, resulting in a large inventory accumulation and low capital turnover. Scenario 3: High sell-out rate and high mark-up rate, which will bring inefficient production capacity