Brand ITAT reputation sweeping staff selling stocks to pay wages

Since its debut, ITAT has been regarded as an innovative star in China's garment industry and retail industry. Since August of this year, ITAT's capital chain has encountered difficulties and has experienced management problems. It has started to default on suppliers’ payment and some employees’ salaries have not been properly paid. Many stores have been closed or transferred across the country, and this star has become a meteor.

On the afternoon of November 5, before the Jinan World Shopping Garment Wholesale Plaza, more than a dozen ITAT employees were promoting their clothing to the passing citizens. An ITT employee surnamed Liu said that they all worked in the ITAT member store on the first floor of the World Shopping Mall. Because they had not paid wages for two months, they sold the stock of goods and sold them to pay salaries. Moreover, “This is the headquarters of the company. decision". The employee said that selling stocks to pay wages is also a frustrating move. "Now, the head of Jinan can't be found. We are all in direct contact with Shenzhen's headquarters."

It is understood that the inventory of garments sold by employees was originally detained at World Plaza, in order to cover the rent owed by ITAT. In terms of squares, ITAT employees are no longer allowed to continue outward shipments of sealed goods. "ITAT arrears our rent and the two parties are still negotiating," said a world purchasing chief executive who claims to be surnamed Wang.

According to ITAT staff, ITAT has two member stores in Jinan, and in addition to the World Plaza store, it also has a branch in Qiaokou, which is currently operating normally.

The ITAT "fast" mode

ITAT quickly became popular with a new and extremely light business model. However, carefully thinking, ITAT has several fatal weaknesses:

Brand culture: The more than 100 Chinese consumers who have been branded by ITAT have known English and Pinyin brands. However, there are no famous fashion brands, such as YSL, CHANEL, etc., and they have no cultural and historical connotations. They are just registered trademarks, but ITAT claims it is a long-established international brand.

The quality of the product: An unknown brand, if it is well-run, may also produce another ZARA, but because ITAT stalls are spread too quickly, he only urge suppliers to distribute goods, no longer concerned about quality control.

Location of shop location: As the core of the ITAT model is to use idle commercial real estate resources, it can only find shopping outlets on the edge of some of the less popular areas, non-commercial circle center, resulting in a light business. Some professionals believe that the suppliers convinced by Ou Tongguo to hang clothes on the shelves, but can not promote the property side to sell the products. Some people even summed up ITAT’s business model in a ridiculous way: Selling unqualified products where no one else went.

The ITAT model is feasible, otherwise it will not attract Blue Mountain Capital and Morgan Stanley's investment, but due to ITAT's rapid expansion and capital speculation, this business model has died in the cradle. Facts have proven that Li Peng, the PPG donation, and ITAT Ou Tongguo, which quickly transfers wealth, are not the most talented and innovative, but rather the duty to be honest and honest. Therefore, our enterprises need to be down-to-earth.