Apparel Industry: Price Increases Cause The Supply Chain Is Not Smooth And Comprehensive.

With the sound of "rising",

Cotton prices continue to rise, and the environment of inflation, clothing prices rise early as many people expected.

The soldiers will stop the water and cover up. If you increase your price, I will buy mine.

In this era of diversification of consumer channels, clothing prices can not be difficult to beat smart consumers.

To the high end,

Further down the consumption axis, the e-commerce platform led by Taobao is making full efforts to build a "Carnival country" for consumers.

Contrary to the fact that no one is interested in shopping malls, Taobao's Singles Day sales volume of 900 million a day is a shocking situation.

A friend of mine, who never patronized Taobao before, trusted only the branded goods in the mall.

A few days ago, she repeatedly complained about the rise in prices and turned into Taobao.

The trend of the times is that although the price of clothing on Taobao has also risen, compared with the same period last year, Taobao's price is still very close to the people.

In this way, the rise in clothing prices results in a gathering of consumers at higher and lower ends, while the mid market stores are left behind.

The clothing market is different from other consumer goods markets. Unlike food prices, it is closely related to people's livelihood. This is a long-term oversupply, and there is no simple choice. Consumers have great maneuverability in the purchase process.

In such a rising price whirlpool, consumers seem to be the ultimate bearers of high prices, but in fact, because of the diversion and re integration of consumer groups, the interests of consumers are not great. In other words, consumers can choose to be "high priced" or choose not to be "expensive".

Price tags scare consumers away, so who will pay for the price increase?

The unsmooth supply chain caused by price increases has begun to highlight.

According to the latest report of Jiefang Daily, following the long time continuous sales growth, the weekly sales volume of 50 single department stores monitored by Shanghai has dropped for the first time, and one of the reasons is that the sharp rise in prices of commodities has restrained consumers' shopping desire to a certain extent.

Just think, for clothing, the price that rises up is very hard to fall down, the consumer does not buy, will cause the product massive backlog.

Although the reasons for the change in winter clothing prices are more complex, tracing back to the source will undoubtedly return to cotton prices.

We should clearly see that the irrational components of the cotton price rise and fall are first set at a record high level. In the past half a month, they have turned to a sharp decline.

Upstream spinning and weaving enterprises may be able to retire all over the body, but what about downstream garment enterprises?

They are likely to backlog a lot of cloth purchased at high price and the products made therefrom, so that the funds can not be refunded, and the liquidity is locked up, which directly affects the benign operation of the enterprises.

What does this mean for China's clothing industry?

As a big garment country, China lacks the clothing enterprises, and there is no shortage of clothing products in the market, but the lack of influential brands and high-quality clothing.

After the crisis, small and medium-sized garment enterprises have just taken the steps of original brand. They generally choose to try to enter the market, and the brand positioning is not high. Such a large price increase is no good news for new brands to open up the market.

There are also some mature domestic brands, which have taken a place in the middle end department stores in recent years, and have established a certain reputation among consumers. But in order to resist the strong offensive of many foreign brands, they are also in the difficult stage of climbing to the high-end market.

If we want to expand the brand advantage, we must maintain the good location of the middle end department store, which is conducive to brand promotion, and the mid end department store "cold spot" caused by the price rise will inevitably make them feel "cold".

Some people may say that wherever there is a consumer, there is a market. The clothing brand named NE. TIGER (northeast tiger), which Zhang Zhifeng has been trying to build, has already shown the clue of China's luxury brands. Taobao's folk brands, such as crack and silk, seven grid, are influential.

But only with a few aspiring brands or several Taobao brands, it is still difficult to support the banner of "Chinese clothing". Our mainstream clothing enterprises need more effective regulation and control ability of the market itself or macro, and a sound price mechanism, so that they do not become the ultimate victims of price fluctuations.