Industry Insiders Reveal: High Shoe Prices Are Caused By Channels.

The price difference between the same pair of shoes sold in different places can be as high as 6 times. Why?

Recently, a person in charge of a fairly famous shoe store in Beijing unveiled the mystery.

The official, who did not want to be named, said that even the brand shoes priced at seven hundred or eight hundred yuan in the mall had a factory price of only around 100 yuan.

"The reason for this is that the distribution of footwear is too much, and the cost of the channel is 2/3 of the price of a pair of shoes."

According to this person, footwear channels are usually made up of brand dealers, manufacturers, agents and distributors.

This means that there are at least four links between a pair of shoes to move from design drawings to consumers.

"Most of the brand shoes sold in domestic shopping centers adopt OEM production mode.

For example, the new autumn shoes that are listed now are all orders made by all brands according to their agents at the end of spring and early summer, and then they are made by OEM factories.

He pointed out that although the factory price of these shoes is usually around 100 yuan, the price of the brand newspaper to the agent is generally about 30% higher.

Because the regulations are "cash orders", agents who bear huge unsalable risks often sell at least twice as much as they sell to stores.

"In addition, the shopping mall also needs to be divided into profits. Generally speaking, its deduction point is around 30%.

In this way, the price of shoe products placed in the mall has at least doubled by two times.

According to his years of experience, he believes that the reason why domestic footwear prices are too high is the "agency's independent commitment to the risk of unsalable sales".

"Last year was warm winter. Quite a number of footwear dealers had pressed a lot of goods. Some of the total sales of unsalable goods even amounted to tens of millions of yuan.

Therefore, it is easy to understand the phenomenon of thousands of Yuan's winter boots in the shopping mall last year.

He said.

In his view, in order to reduce the price of shoes, he has to take two measures: first, the seller should directly purchase goods from the manufacturer, and control the total cost by means of reducing circulation. The two is to let the specialized export footwear manufacturers return to the domestic market, so as to lower the retail price of the whole domestic shoe market.

"In fact, it is a good way to find a new way for domestic shoe companies that have been trade barriers for several years."

According to experts, the above strategy is the most popular shoe store's business.

"The brand of 1/3 in our shoe store is familiar to consumers, the price is only slightly lower than other domestic stores, and nearly 2/3 is sold from foreign trade to domestic market, which has never appeared in the domestic market."

The person in charge of this cheap shoe store in Beijing said that more than 40 of its more than 100 manufacturers had never sold their products in China before.

The owner of a shoe factory in Wenzhou told reporters that the price of shoes sold to Europe, plus freight and customs duties, was no more than two hundred or three hundred yuan, but in the country, the same quality shoes cost at least four hundred or five hundred yuan.

"We should have a big price advantage to re kill the domestic market."

But in the eyes of Professor Li in the marketing department of Beijing Technology and Business University, channel is not the only factor that leads to the high price of shoes.

"If consumers want to buy brand shoes, their brand awareness will not be reduced every day, and the price of footwear will be hard to shake a day."

She said that it is precisely to see the current mentality of domestic consumers, some big brands will not hesitate to use heavy advertising to establish brand image.

"This cost is bound to be included in the business."

Her bigger worry is that once the foreign trade shoes return to the domestic market, will they recover the brand shoes in order to open up the situation quickly?

"If that happens, even if all the foreign shoe factories are turned back to the domestic market, it will be difficult to change the status quo.

Unless one day, when consumers buy shoes, they have the same mentality to buy socks.