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International Luxury Clothing Pricing Process Mysterious Mystery 2

2010/6/30 14:27:00 40

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Luxury Clothing

from

Fabric

The beginning of the fare increase path

Jia Jia pairs

Luxury brand apparel

The cost is analyzed and calculated.

At the retail price of clothing, 20% of the price is spent on the early stage of the garment, and the payment to the designer and some handmade details almost cost all the previous costs.

Next, the whole production cost will be 20%, which includes not only the cost to the OEM manufacturer, but also the cost of accessories such as accessories after returning to the head office.

These high-end clothing brands still need about 10% of the marketing expenses, while the annual fashion show of two times takes the lead. What is left behind by customs duties and channel costs?

"Don't think that the profits of luxury goods are very high, not dozens of times."

A luxury goods practitioner, who does not want to be named, complained that "the majority of luxury goods, to be exact, the profit margins of high-end brands at a more reasonable level.

Clothing is usually in dozens of percent, of course, some specific categories except.

"But not all brands spend 20% of their initial cost on design."

Jia Jia said.

According to reliable statistics, only about 30% of high-end clothing will be designed for work, while nearly 70% of high-end clothing is only "basic +LOGO".

So who will account for 20% of the design cost? This is the brand value and the intangible assets are the most influential.

Are all the luxury goods entering China full of money? "Not so. At present, there are not many luxury brands that are really profitable in China. What we all value is the potential of the future market."

One industry insider said.

The newly rich Chinese really let these luxury brands see the future, especially a report from Ernst & young, which has strengthened the confidence of LV.

According to the report, "in 2015, China will replace the United States as the second largest consumer of luxury goods in the world."

Look at more specific cost calculations.

Take the clothing with a market price of 1000 dollars as an example, Mr. Zou has given a "value-added" process to a luxury garment.

First of all, the total production agent buys the processed garments from the foundry factories at about 3% (about 30 US dollars).

The general production agent plus the market price of 10-15% (about $100-150) will sell garments to luxury enterprises.

On this basis,

Luxury enterprise

Plus the market price tag of 30% (about 300 US dollars), at that price, these high-end garments will be sent to the distributors in various countries or regions. Taking into account the tariff factors, the distributor will add 50% of the market price (about 500 US dollars) to the final market price of 1000 US dollars, and distribute them to the distributors at the same price.

These distributors are usually subordinate agencies of the general agency.

Such pricing can basically guarantee the profit of the general agent after excluding tariffs.

The relative price difference between the general agent and the luxury enterprise is not large. He mainly reaches the target of luxury enterprises after sales and sales volume, and then pays a labor cost from the latter.

In addition to the listed LV, almost all the luxury business owners are asked "the sales and growth rates of the Chinese market" will reply that "the market is not bad, we are not listed companies, so there is no need to disclose financial data. What we value more is the potential of the future market."

Another example may prove that luxury days in China are not always well served.

Nanjing West Road, Shanghai, which has always been known as a luxury distribution center, has several stores selling luxury clothes all the year round. The salesperson also reveals that sometimes the turnover is only a few thousand dollars a day, while in the Nanjing West Road of the small size, the daily rental of luxury stores is even in dollars, and it may range from dozens to hundreds of square meters.