Domestic Garment Manufacturers Unanimously Deny Raising Prices

Under the pressure of rising costs, the price of goods in some parts of the capital market has increased, so that rumors that the domestic clothing brands will collectively raise prices this year are becoming more and more intense.

But yesterday, Bosideng, Dr. frog and SUSIE participated in the China International Clothing Fair.

Yesterday, a large number of local fashion dealers attending the China International Clothing and Accessories Fair in Beijing said they would not adjust prices temporarily because of increased production costs.

Bosideng, head of the largest down garment manufacturer in China, said that because of the large number of retail outlets and large sales volume, the price of raw materials supplied by suppliers to suppliers is more reasonable.

At the same time, because of high output and relatively low fixed costs such as production lines, commodity prices will not rise in the near future.

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SUSIE, who operates 9 stores in the shopping mall of Xizhimen, Beijing and Dongzhimen MALL Ginza, said the brand is fast fashion, with a large annual sales volume and will not pass the pressure of rising costs to consumers.

In the face of the same increase in production costs with foreign enterprises, large domestic garment manufacturers collectively choose to "stay put".

In this regard, the industry analysis, in the field of domestic clothing, most of the market share is divided by foreign brands.

Especially in the first tier cities such as Beijing, because the styles are more fashionable and famous, the consumers in these areas are more willing to buy famous brands abroad.

Once domestic clothing brands follow the price of foreign capital brands, it will not only be difficult to alleviate the cost pressure, but also likely to lose their original positions.

A person who does not want to be named thinks that the profit of the domestic garment industry is very high. Even if the production grows, the brand can accept the compressed retail profits.

Moreover, the styles of clothing are diverse, and the subtle changes such as necklines can lead to price fluctuations.

It is easier for consumers to accept price adjustment by changing styles than simply raising prices.

Nevertheless, labor shortage and oil prices continue to rise, resulting in increased production costs.

In the same channel chain, the upstream manufacturers deny the raise, while the retail terminal shows price fluctuation.

According to industry sources, this indicates that manufacturers' production chain is not the decisive factor of commodity pricing, and the real control of pricing power is actually the intermediate agent.

Business experts say that since the mode of joint deduction has always been the mainstream of domestic commerce, agents have built a bridge between manufacturers and retail channels.

After completing the production, the manufacturer sells the goods to the agent to recover the investment in advance, and at the same time pfers the business risk to the agent.

Due to the need to bear inventory pressure and enter the mall's buckles and various miscellaneous fees, many agents have entered the retail terminal after raising the price by nearly two times.

It is reported that under normal circumstances, consumers can get 45% and 35% profit for each purchase of a commodity respectively, and the remaining 20% will be acquired by the retail terminal.