Why Are Chinese Costumes So Expensive?

In 2008, Beijing, Shanghai and other cities shopping malls in autumn and winter clothing prices in the middle and high level between 1000~2000 yuan.

Beijing Bureau of statistics data show that in 2007, Beijing's per capita monthly income was 1832 yuan, and Shanghai was 1969 yuan.

The price of a high-end garment is equivalent to that of the majority of the residents. The abnormal ratio shows the irrational consumption of Chinese clothing.

2006, Beijing, Shanghai, Guangzhou and other shopping malls in autumn and winter, the price of high-end clothing in between 500~1000 yuan, in 2008 rose to 1000~2000 yuan, part of the high-end clothing price rise to 4000 yuan.

In 2007, the average monthly income of Beijing was 1832 yuan, and that of Shanghai was 1969 yuan. In China's first tier cities, the price of a high-end garment was equivalent to that of most residents for one month.

The price of clothing of the same brand in the second tier cities is 20% lower than that of the first tier cities. However, the per capita income of the second tier cities is 20 to 50% lower than that of the first tier cities such as Beijing and Shanghai.

More international clothing brands are processed in China. However, their retail prices in the Chinese market are flat, and some are even higher than those in foreign markets. For example, the international brand jeans are priced at an average price of around 800 yuan in China, while the average price of jeans in the United States is around 50 dollars.

The average per capita income of China's first tier cities is about 1/10 of the average income of the developed countries in Europe and the United States, but they pay the same or even higher price for the same brand made in China.

The Chinese government has given preferential policies to the export of textiles for many years. Before 2004, the export tax rebate rate of textile and garment was higher than 15%. After 2004, the export rebate rate of textile and clothing decreased slightly, and fluctuated between 11 and 15%.

In recent years, the Chinese government once again raised the tax rebate to support exports in response to the crisis encountered in clothing exports. Since November 1, 2008, the export tax rebate rate of some textiles, clothing and toys has increased to 14%.

The proportion of logistics in the pportation cost of China's industrial products is much higher than that of developed countries.

In 2007, the total cost of logistics in China accounted for 18.4% of GDP.

In 2007, the three parts of logistics cost: the increase of pportation cost, storage charge and management fee all exceeded the growth rate of GDP nationwide. The pport cost was the largest, reaching 24708 billion yuan, an increase of 17.6% over the same period last year, an increase of 4.9 percentage points over 2006, and 54.4% of the total logistics cost of the society, while the cash flow of garment export was faster than that of the domestic market, and the manufacturers preferred preferential export.

The number of shopping malls is very scarce relative to the urban population. In 2007, there were 46 department stores in yellow pages in Beijing. However, the population of Beijing was 17 million 430 thousand, and the average per capita shopping resources were very limited.

The clothing brand in the shopping mall is very limited. In Beijing, the total sales volume of the 22 hundred million shopping malls in all seven categories is less than 500, with an average of not more than 25 brands per store. Limited clothing brands make many consumers lack of choice, and the brands that have entered the market have relative monopoly power.

The scarcity of shopping malls leads to more shopping malls targeting the target customers to high-end consumers, and the high income group ensures the basic sales volume of shopping malls.

Grey income supports the high-end consumption of shopping malls. In recent years, store prepaid value cards have been supporting the sales volume of shopping malls, while middle and low consumers only become the target users of shopping malls only when they are promoted.

Social identity theory (Social Identity Theory) points out that people are seeking to become a member of high status and good image in social groups.

The gap between the rich and the poor in the last thirty years of Chinese society is increasing, and there is a general anxiety of identity among consumers.

Urban middle and high income groups have strong need for identity, so they can invest more in commodities that show their social status.

2007 the International Herald Tribune pointed out that "in today's China, dressing represents your taste".

RMB appreciation has led to rising export costs, and good export enterprises have begun to consider domestic sales. The implementation of the new labor law and the rising cost of raw materials have led to a rise of nearly 1/3 of the cost of many garment production and processing enterprises, and weaker enterprises have gradually withdrawn from the market.

Most export enterprises have low profit margins for raw materials, initial processing or OEM garments, rather than high profit brand lines, relative to script src=>