Behind The Elegant Clothes: Rise Or Fall?

Prices will not rise or fall, supply and demand will be difficult to be controlled. Cotton prices will go up, labor costs will increase suddenly and sales channels will be raised. There are signs that the rise in clothing prices is "in the firing line".

However, according to recent data from the National Bureau of statistics, the clothing prices of clothing products increased by 2% in July compared with the same period last year, but consumer prices fell by 0. 8% year-on-year.

The price mist behind elegant clothes

Price rises or falls?

"One rise and one fall" is not surprising.

Chen Guoqiang, deputy director of the Institute of industrial economics of China Garment Association, told reporters that this "one rise and one drop" is not surprising: "the cost of production factor has been raised in a large area, and enterprises will inevitably have an impulse to increase prices. But at the same time, we should also clearly realize that in view of the fact that our clothing market in China is still in excess of demand, the production of garment enterprises is still in full swing, and a steady stream of products is pouring into the market. Another point is worth noting that in the past two years, due to the impact of external demand, part of the original "productivity" of foreign trade has shifted to the domestic market, so how to digest these products is still a problem.

At the same time, the reporter also contacted Yuan Gangming, director of the Macroeconomic Research Office of the Chinese Academy of social sciences. In the interview, Yuan Gangming also mentioned the problem of oversupply: "when the market is in excess of supply, manufacturers often compete for customers through competition. Without enough market purchasing power, it is difficult to ignite the price of a fuse. This is why most of the clothing brands are still in wait-and-see condition, dare not blindly increase prices. It is understood that some owners also said: they are afraid of first price increases, but "die" faster.

　　 Consumer Do not buy it

Since supply exceeds demand, it can be said that the clothing industry is still a buyer's market. Consumers' "buy or not buy" becomes a delicate lever to regulate the market price.

Yuan Gangming pointed out: "unlike other consumer goods, the price of clothing consumer goods is limited by cost. Clothing is an enjoyable commodity rather than a necessity for food and houses. Under the current economic situation, consumers have not increased their incomes on the one hand. On the other hand, they have to face the pressure of rising prices of other necessities, and only reduce some of their expenditure. No matter whether the price of oil rises or the price of cotton rises, it is of little significance. After all, setting the price higher is not enough for consumers to buy it. "

Indeed, as an ordinary consumer, we tend to be very flexible in terms of clothing consumption. Today, if you have money, you can buy more expensive ones. If you don't have money tomorrow, you will not have too much influence on your life if you don't add new clothes.

"Although the country has been emphasizing the expansion of domestic demand, this" domestic demand "covers more of the demand for safeguards, and the purchasing power of clothing is also hard to expand in the next few days. Chen Guoqiang said.

To sum up the above reasons, when asked about the trend of clothing prices in the second half of the year, Yuan Gangming, the authority of macroeconomic research and Chen Guoqiang, a senior personage in the industry, gave a similar answer: in a short time, the price of clothing is still mainly bearish. {page_break}

Clothing is in urgent need of price rise.

How can an enterprise increase its price?

Prices will not rise and fall, and supply and demand can not be left and right. Should enterprises wait to die?

Chen Guoqiang said: "the minority in the market. High-end products The price will go up. In the long run, clothing prices may not necessarily fall. To see that many of our brands are upgrading, part of our product quality is changing and value-added is improving. "

In the final analysis, it is still a stubborn disease in China's manufacturing industry, which is too dependent on the cost of raw materials and labor costs. Upstream market As soon as there was wind and grass, the downstream market was in turmoil. In addition to being constrained by raw materials and labor, a truly mature enterprise will still have some cost space which can be relatively free to operate, that is, management cost and process cost. We can make an issue in this way, so as to ease the contradiction between production factors and product prices.

Therefore, Chen Guoqiang pointed out: "the key is that our garment industry must do a good job of specialization, so that we can fundamentally guarantee the healthy development of the industry and the ability to resist risks. There is no need to mention industrial upgrading and run to do their own "brand" in a single wind. A real brand needs high investment and time to precipitate. In a short time, the overall upgrading of an industry is unrealistic. For now, the most practical way is to optimize horizontal industry division and cooperation. Large enterprises have the strength to make brands. Small businesses have no strength and can make international OEM very specialized, so that we can sort out the internal pattern of the industry. It is not difficult for enterprises to develop their strengths, integrate their resources and achieve effective control of the industrial chain.