Chinese version of ZARA stores are also hard to escape the test of fast fashion transformation?

category:Finance
 Chinese version of ZARA stores are also hard to escape the test of fast fashion transformation?


But this brutal growth has also brought disaster to Rachabel. With the rise of Internet business model, Rachabels business malpractice has become increasingly prominent under the impact of various e-commerce platforms.

Because of the excessive number of stores, Rachabel needs to ensure a certain quantity of supply, but once the product sales are not good, it is easy to lead to inventory accumulation.

According to Rachabels financial report in 2018, short-term borrowing amounted to 1.912 billion yuan, while on-account monetary funds amounted to only 605 million yuan, while inventory amounted to 2.534 billion yuan.

This means that La Sabels empty and full assets cant be used to pay off debts. By contrast, using the advantages of the Internet, after the sales of online stores have been achieved, they are all supplied by common warehouses, and there is no need to produce too many products in the same batch. This will greatly promote enterprise capital turnover and create good cash flow for enterprises. Moreover, consumers can quickly learn about new products online, which is conducive to the promotion of new products and the sale of products. With the advantages of online stores, the functions of physical stores will gradually be transformed into brand face symbols and experience end. From the action of the Rachabel store, we should not only see its fallen side. Because any industry is facing the challenge of the Internet, it is difficult to stand without breaking. Source: Netease Financial Responsibility Editor: Han Yukun_NBJ11142

This means that La Sabels empty and full assets cant be used to pay off debts.

Moreover, consumers can quickly learn about new products online, which is conducive to the promotion of new products and the sale of products. With the advantages of online stores, the functions of physical stores will gradually be transformed into brand face symbols and experience end.

From the action of the Rachabel store, we should not only see its fallen side. Because any industry is facing the challenge of the Internet, it is difficult to stand without breaking.