Quanzhou Clothing Shows "Ups And Down Record Of Price Rise"

There are two main reasons: H&M,

Therefore, for most brands which are not strong, there is no room for price increase.

At least, this kind of price increase will lead to performance improvement. In the long run, there is no continuity.

And it is not very practical because market share has not been improved accordingly.

Mr. Zhang, director of domestic brand marketing, is now worrying about the industry's rise in price.

I think such a price increase is more like a drug addiction. Once addiction is lost, the injury to the enterprise will be fatal.

In fact, this price increase is not the first wave, but this year's amplitude is particularly large. In the past two or three years, several first-line brands have already quietly increased their prices.

For several years, the acceptance of domestic men's clothing prices has approached the boundary.

The increase in performance caused by rising prices is far less than the increase in performance brought about by the increase in volume.

Core tip: with the end of April, Quanzhou

Rising prices will accelerate the industry reshuffle, so the price rise of clothing is actually a sad and happy record.

Because not all enterprises can "raise the price of safety", in today's booming market of the whole industry, we see that SMEs are "highly priced" at high risk, and they also see the love and hate of franchisees in raising prices.

Even for those companies that have successfully increased their prices, we have to worry about whether the performance improvement brought by price increases will continue.

The price increase should not be just a dose of analgesic, only to cope with the rising cost, but should be a tonic to create better conditions for the future leap.

Passive or active

Rising prices in the whole industry

In the context of the overall rebound in garment industry and the high cost of manufacturing, the price rise of brand clothing seems reasonable.

At the beginning of the year, Zhou Shaoxiong, chairman of the seven wolves, said publicly that the price of the garment industry will increase by more than 10% this year.

In fact, this is just a very conservative statement of listed companies.

According to most industry analysts, the average increase of brand clothing this year is at least 20%, and at least two insiders of the first line brand clothing privately revealed that its brand sales price rose by more than 30%, or even some brands that were just in the rise of the brand rose by 35%.

With the increase of the price of products, many enterprises will have a good harvest this autumn and winter, and the amount of orders has soared.

The number of enterprises surveyed by reporters has almost increased by more than 30%.

At this moment, which seems to have ushered in the heyday of the industry, we find that the increase in the volume of enterprise orders is almost the magnitude of the increase in the price of products, which means that the actual volume of orders has not increased substantially.

Although some brands have reached the level of volume and price increase in the period of rising brands, more enterprises are "passive price rises", and even some enterprises take risks in order to increase profits quickly.

"With the increase in prices of large enterprises, on the one hand, from the pressure of cost, and on the other hand, the whole industry is going up. If you do not go up, consumers will think your brand is relatively poor and can not rise!" the boss of an enterprise confided in this voice.

Although he also understands the high risk of this, he knows that once dealers and terminals do not buy it, whether it is a compromise to dealers or a discount at the terminal, it is an irreparable injury to the brand, but it still chooses to follow the overall trend of the industry and increase its price.

"Some enterprises take advantage of the situation and take the opportunity to make a profit."

Hu Jiuming, Gaulp's marketing manager, points out that this state of affairs is more dangerous, because the attraction of brands to consumers is not enough to support this part of the premium.

Embarrassment of "agent not buying"

In fact, Shishi has already seen such a "rashly" enterprise.

H enterprise is a men's clothing enterprise that has been doing wholesale for more than ten years. Its operation is very vivid, and the annual revenue has reached three hundred million or four hundred million.

However, in today's situation of high manufacturing costs, its wholesale profits have been squeezed again.

For this reason, he sprouted the idea of improving the value of products by running the brand.

As a result, the boss of the enterprise has prepared a lot of goods. These men's clothes, which are positioned as "business casual", are rich in variety, far exceeding the previous men's clothing in the wholesale market.

Correspondingly, he hopes that the agents can open large stores, so that they can enhance the price of products more effectively and get higher profits by increasing prices, not just to enhance the "illusory" brand image.

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However, after all, the boss is only willing to represent the side of the enterprise. Such a plan has encountered a "cold spot" in the agent, and the agents can not accept the sudden sharp increase in price, and even can not accept more cost to open up shop to support this price increase, even if the price rises this time, it is dressed in the "coat" of brand pformation and upgrading.

Finally, it became an embarrassing order meeting.

Finally, enterprises will bear enormous capital and inventory pressure.

The reason why agents do not want to follow the strategy of enterprises is that they see the hidden high risks. In their view, rising prices are more bubbles and moisture.

"The brand upgrade" like H enterprise's main performance in the market is to raise prices. Many brands are raising prices like this, instead of directly raising the price of the original product line, but upgrading in disguised form.

An agent familiar with the operation of the brand has expressed concern that "the price of the brand has gone up, and the profit of the single product has been greatly improved, but the market volume has not increased significantly.

On the contrary, consumers may be able to reduce the number of clothes purchased because of the rise in prices. Do we have to take these risks?

In fact, the agent calculated such an account.

Even if the cost of raw materials and labor costs rise, the pressure of higher manufacturing costs will not be enough to raise the retail price by 30%.

Even with the expectation of the CPI index rising, it is still not enough to go up so much.

"There is such a rule in the clothing industry that manufacturing costs increase by 25 yuan to 100 yuan at the retail terminal, which is generally 4 times higher.

That is to say, in the 100 yuan, in addition to the cost of manufacturing costs of 25 yuan, and then deduct rent, management costs and inflation expectations, at least there are about 50 yuan, is the brand business into the bag.

Insiders revealed Mr. Lin.

It can be seen that clothing brands are more likely to take advantage of the situation.

And the agents in the middle are relatively passive. If they get up, they will be happy to get a share. If they can't go up, their purchase discount is fixed, and when the tag price rises, their purchase price will be raised accordingly, which means they will pay more and the capital chain will be more intense.

Therefore, agents will inevitably have their own concerns.

From the hesitation of the agents, as well as the market reflection, the industry has concluded that this round of price rise will promote the industry to accelerate the shuffling.

The flourishing of the surface has covered the surging waves of industry reshuffle, and soon there will be more winners and losses.

How to enter the "security price increase"?

On the whole, price increase is still a good thing for clothing enterprises.

The rise of prices should enable enterprises to enter a virtuous circle, with more capital invested in brand operation, instead of falling into a vicious circle and carrying heavy burden.

Therefore, how to use the proceeds after price increase and how to do it will become a problem that enterprises have to think about.

Among them, it is a common practice to raise prices according to different ranges of target groups.

For example, the wolf family has two product lines of urban fashion and leisure fashion, aiming at two consumer groups of urban white-collar workers and school students. In this round of rising prices, Shi Hairong, general manager of the enterprise, said that the price increase of urban fashion will be greater than that of leisure fashion, because the income of urban white collar is relatively high, and it is not sensitive to price.

In addition to targeted price increases in strategy, direct channel based enterprises can also increase prices more smoothly in channel mode.

JIM 'S's deputy chief Xiao Bing said frankly, JIM' S can support this round of price rise, one of the reasons is that its direct shopping malls account for a large proportion. "The operation system of direct shopping arcade is relatively benign, because it will not pay arrears, and the terminal image is better, which can enhance the added value of the brand".

Although some are able to "raise" prices safely, the benefits of price increases can further enhance the brand and consider the boss's vision.

Zhang Zhang, director of the above front-line businesses, said that the reason why their enterprises could continue to rise in price in the two or three years before the tide of price rise is not only because the brand is in the ascend period of the brand, but also because each price rises corresponds to a certain brand upgrade, the upgrading of the terminal store image and the pformation of the product style.

Shi Hairong also believes that the return of price earnings to the market is not a "gamble" but a necessary "feedback".

Shi Hairong refers to "feedback", including upgrading in quality and design to give back to consumers, but also to support agents and distributors. "We have invested a lot of manpower and material resources to enhance the terminal operation capabilities of agents and distributors this year, including supporting the provincial and retail flagship stores on goods and shelves."

Shi Hairong revealed that its advertising investment doubled this year.

In autumn and winter, clothing companies have increased their prices.