SHAOXING OCEAN CO., LTD , https://www.sxgarments.com
In today's highly competitive market, the retail terminal has evolved into a crucial node for marketing execution. As a platform that bridges goods and consumers, it functions as a one-stop solution for sales and brand promotion. With the increasing competition and the need for more profitable strategies, terminals have become central to effective marketing. However, in practice, many "winning" terminals remain stuck in conceptual slogans or basic image management, lacking a deep understanding of the operational systems that drive profitability. This is especially evident among domestic underwear businesses, where dealers often overlook the real challenges behind achieving success at the retail level.
The Chinese underwear market includes a wide range of products—bras, regular undergarments, loungewear, thermal wear, body-shaping garments, and more. These are distributed through various channels, such as self-manufacturers, regional agents, and franchise models. The main types of retail terminals can be categorized into three groups: first-tier brands operating in mall counters, second-tier brands focusing on exclusive retail and franchising, and third-tier brands relying on wholesale distribution.
With shifting market dynamics, first-tier brands are expanding their presence by maintaining stable channels, while second-tier brands are aggressively targeting local markets. Third-tier brands, on the other hand, are making breakthroughs through retail distribution networks. A new competitive landscape is emerging, with brand performance now heavily dependent on terminal-level sales and profitability. Yet, from field research and visits, it’s clear that many companies and distributors still neglect the fundamentals of terminal operations, focusing instead on product concepts and promotional activities without addressing the real needs of the end consumer.
**Understanding the Terminal Profit Source**
A successful terminal must clearly identify the needs of its target consumers. Currently, women dominate the underwear market, accounting for about 60% of sales, with the majority aged between 15 and 45. Bras make up half of this segment, and over 60% of consumers prefer purchasing in physical stores, particularly in malls and supermarkets. While comfort, fit, and brand value are key drivers, personalization and fashion trends are becoming increasingly important.
However, the current operation of underwear terminals faces challenges in aligning product offerings with consumer demand. This mismatch creates opportunities for new terminal formats and category combinations. Therefore, terminals should strategically position themselves based on the consumption patterns of their local customers, adjusting product mix and brand selection accordingly. This requires not just market research, but also real-time adjustments based on sales performance.
**Defining the Terminal Profit Model**
To succeed, terminals must align with industry trends and build sustainable models. Many second- and third-tier consumers seek affordable yet high-quality brands, and long-term operation is essential. The rapid rise of retailers has changed transaction patterns, increasing costs and thresholds. This calls for integrated value chains and new retail models, with chain operations becoming a future direction.
**Single Category vs. Brand Store Profitability**
While some categories like bras and conventional undergarments have well-established brands, others like thermal wear and body shapers lack strong market presence. Many small brands focus on quality but struggle with terminal visibility and profitability. Single-brand stores often suffer from limited product variety and weak profit margins, making them vulnerable in a competitive environment.
**Terminal Marketing and Regional Development**
Effective terminal marketing goes beyond visual appeal; it involves data analysis, inventory management, and customer insights. Many terminals still rely on traditional selling methods without leveraging digital tools. In contrast, successful terminals use data-driven strategies to optimize product placement, pricing, and promotions, ensuring consistent profitability.
**Building a Core Profit System**
For a terminal to thrive, it needs a solid foundation: brand portfolio, display strategy, sales techniques, and follow-up promotions. A well-structured product mix, combined with strategic pricing and targeted promotions, can maximize profits. Data analysis is also critical, helping operators make informed decisions and avoid stockpiling unsold inventory.
Ultimately, the future of the underwear terminal lies in combining data analytics with smart operations. Companies and regional agents must invest in supporting systems that enhance terminal efficiency and profitability, ensuring long-term growth in an evolving market.