C&A T-Shirt 59 Yuan Fast Fashion Supplier Reluctantly Accept Low Price Rules

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What is the secret of "fast fashion" brand to maintain parity and fashion? "If we use poor quality materials, it is not producing clothes, but producing rag."

This is a "fast fashion".

The word "making cloth" is a banter, but it tells the secret of "fast fashion" brand. It relies on its brand and scale to form bargaining advantage, and is highly sensitive to the upstream price. Once it changes, it will turn to other suppliers immediately.

Low price strategy of "fast fashion" brand

After the spring clothes were put on the shelves, the price of many clothing brands rose slightly, and the shopkeeper at the roadside shop did not forget to complain to the customers. "Long sleeved T-shirt last year took 20 yuan, and at least 30 yuan to 40 yuan this year."

For C&A store, 59 yuan to buy two cotton t-shirts, Xiao Xiao said, "a 200 grams of cotton T-shirt, our factory should achieve at least 30 yuan.

Our factory also OEM many international brands at the same time, but such a low price is bound to be out of stock.

If we sell the factory according to the factory price, C&A is not to be sold at a loss?

Obviously, no clothing retailer is selling clothing at a low price to lose money. "Any enterprise that is aiming for long-term development is unlikely to do so."

The head of C&A marketing department said it was reluctant to disclose the reasons for its low price.

Journalists will also conduct price comparisons as H&M, ZARA, UNIQLO and C&A as "fast fashion" brands.

Among them, the price of ZARA is the highest, H&M price is slightly lower than ZARA, but the product is basically above 100 yuan, while UNIQLO also sells less than 100 yuan products, but less than 50 yuan a piece of clothing is not too much; and C&A many clothes price less than 100 yuan.

"Among all the fast fashion brands, C&A always has the lowest price."

CEO, Lu Qiang, a Shanghai based Oteri J, who runs many luxury goods in China, is the first to operate in China.

Xiao Xiao said, "before planning to cooperate with C&A, but to see the price of its products in the store, it gave up.

If we calculate it according to the price in the shop, we simply can't take it. Of course, this does not mean that all suppliers will not accept the price. "

"Low price strategy makes these fast fashion brands popular among European markets in the international financial crisis, but this involves pricing strategies, and some low-priced products make brands more competitive."

Lu Qiang said that from the C&A store in China, the choice of multiple stores is cheaper than other brands, which allows C&A to have financial support at a low price.

"Put the cost into the bone".

H&M from Sweden, ZARA from Spain, UNIQLO in Japan, or C&A from Holland.

At present, many international brands pour into the domestic second tier cities.

"Fast fashion" gives a sense of low price to low price fashion.

Cui Hongbo, chief executive officer of Lian Zhi Da brand management, believes that these "fast fashion" brands control the price of upstream suppliers.

Because of the fast consumption business mode, it is very sensitive to the upstream price.

"Fast fashion" brand buyers are very sensitive to smell, and prices change slightly, so they can easily turn to other factories.

"We don't want to lose such a big client like H&M, but the pressure on raw materials is increasing," said Zhu Wenjun, a manager of new Zhejiang Sanda Holdings Limited.

However, if we use poor quality materials, we are not producing clothes, but producing rags. "

Professor Zhang Xiaoji of the State Council Development Research Center believes that since the textile industry entered the post quota era, large international buyers have been controlling retail sales on the one hand. On the other hand, they have put pressure on the upstream production and reduced the purchasing price by using suppliers as weights.

Cui Hongbo said, "these international" fast fashion "brands mature business mode to shorten the supply chain of clothing, they are guided by the market mode, forcing products to low price.

They require suppliers to guarantee prices with a large number of orders, which, on the other hand, is pushing the risk of operation and production to OEM enterprises.

For local suppliers, the only way to choose OEM is to accept the rules of other people's game.

These "fast fashion" brands are the cost to the bones, the cost of each supplier is clearly calculated, this is their rule.