The Cost Of "Trial And Error" -- The Small And Medium Enterprises In Coastal Areas Stop And Call The Market Benign Mechanism.

In the view of philosopher Popper, scientific theory can not be proved by experience, so long as experience is infinite, the conclusion is always doubtful.

His trial and error method advocates a thinking process of constantly falsification and continuous restriction of knowledge, so as to improve its correctness. That is to say, the formation of scientific cognition must go through four stages: asking questions, trying to solve problems, eliminating errors and understanding correctly.

take the reverse into consideration

A series of fresh data seems to show that the clothing industry is again full of vitality.

From the first quarter of 2011 data, the "demand" is changing: the growth rate of domestic demand is very high, but the growth rate of domestic sales is far below the growth rate of domestic sales. The export volume shows a two digit growth, but the export volume growth is only 2.33%.

The growth of "price increments" does not make price contradictions more acute.

At the same time, "supply" is also changing: changes in the cost and supply of various factors such as people, raw materials, energy and policies have made the supply of clothing products more and more wasteful. The small and medium-sized enterprises in the coastal areas along the Yangtze River Delta and the Pearl River Delta have been shutting down more and more tightly. The tightening of investment in fixed assets along the Haiti area has made "supply" more and more rational. But in the two or three and three or four line markets in China, new demand drives the industry to have irrational growth risks of "supply".

Whether supply or demand is closely related to price.

The brunt of luxury price chaos has attracted the attention of government departments concerned.

The clothing CPI released by the National Bureau of statistics has finally risen, and the actual price rise in the market is more ferocious.

Is this the "terminal discourse power" and "added value promotion" of the clothing industry, or is the industry and brand "anti risk and low energy"? Can the price rise effectively balance the rising cost and play a long-term role?

The formation of clothing price is influenced by many factors. Firstly, the huge scale of industry and uneven industrial status make the garment industry lack of relatively pparent and widely recognized pricing mechanism.

Most brands come out of the "factory" processing business and adopt cost pricing. Therefore, the fluctuation of cost will directly lead to the rise and fall of terminal prices. The composition of clothing cost involves a long industrial chain. Any price increase in any link will become a strong reason for raising the terminal price of clothing.

When people talk about the cost of labor and raw materials, the "cost of processing", such as commercial rents and logistics black holes, also surfaced.

As the basic balance mechanism of supply and demand, why is terminal price so fragile? To form a so-called price benign mechanism, how can every link of industrial chain break through the existing mode of absorbing and pmitting costs? In this process of trial and error falsification, it seems that it is not difficult to understand the necessary sacrifices of those untimely small and medium-sized enterprises.