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From H&M To Defend The Popularity Of "Parity" To See Why Its Performance Continues To "Fever"

2011/6/29 14:14:00 50

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The reason why H&M can sweep the European market is due to the three in one philosophy that they have been pursuing "popularity, quality and price" and the policy of actively expanding.

When H&M opened its flagship store in New York, because customers were too crowded, the company could even meet the needs and purchase every hour.

The US business week recently commented that H&M redefined the "parity price" and confirmed the possibility that the price, popularity and quality could exist at the same time.

Although the price of international cotton continued to surge and fluctuate sharply, H&M's "parity" was challenged. However, the company maintained its "parity popularity" with its special strategy in this era of high cotton prices.

At the 2011 China International Cotton Conference held in Dalian not long ago, Xu Yiqing, the representative of H&M group, attended the conference.

Xu Yiqing shared with everyone as a terminal of the industrial chain, in the era of high cotton price and cotton price fluctuations, how to reduce the impact of the fluctuation of raw material market on retail prices and ensure that their brands are competitive in the market by adjusting their own purchasing behavior.

Xu Yiqing said: "H&M is a fast moving consumer goods retailer, the main product is clothing, cotton is the most important textile raw material in all products, and the fluctuation of cotton prices has a direct impact on the overall purchasing cost of the company.

When cotton prices rose last year, all the former cotton mills and cotton growers counted the money, which was the most difficult and stressful time for us. At this time, the price of the fabrics we bought routinely rose rapidly.

"In the whole market, the purchasing price of H&M is on the rise, but it is provided for H&M.

raw material

The price of our factory is much lower than that of the market, so the increase in the purchasing cost of the company is not as large as that shown in the price curve.

On the other hand, the cost of raw materials is only part of the price of garments, and there are many other components. If the raw material rises by 20%, the price of garments will not be very obvious. "

Xu Yiqing said, "

H&M

We are also seeking to cooperate with large textile enterprises, and we should further cooperate with China's large and medium-sized cotton mills and large fabric suppliers with professional vertical industrial chains to support each other for stable quality and price.

Because the choice of well managed large factories, on the one hand, quality assurance, on the other hand, its relatively strong financial background, in the turbulent market has a certain ability to resist risks, when the market is unstable, it can give us a relatively stable price.

When the price of cotton rose last year, some relatively small factories would give us a relatively low price when they received the plan, and the price would go up when the order was placed, and the price would change in two or three days, and it would be only a week before and after.

Xu Yiqing said that H&M is gradually trying to buy collectives. Besides China, there are also production bases in other parts of Asia.

In order to get a lower purchase price, H&M will form an alliance with the production base outside China and China.

In addition, H&M will adjust the proportion of raw materials in time.

According to the relevant research, cotton price rise has made part of the share of the cotton market give way to other chemical fibers. This is a very effective way to control the cost. H&M will reduce the proportion of low cotton in the condition of maintaining the quality of products and offset the influence of cotton prices.

For example, there is a product, its raw material is 80% cotton, 20% polyester, H&M began last year to adjust it to 70% cotton, 30% polyester, so that, while maintaining the cost, also made the product quality and appearance without major changes.

Low Season

Purchase

It's a good way to deal with high cotton prices.

Last year, with the high and rising trend of cotton prices, H&M did a lot of off-season purchases for the company's basic style and basic fabric.

The end of the year and the beginning of the year are usually the off-season of garment manufacturers.

On the one hand, purchasing in off-season can control purchase cost and avoid the risk of rising cotton price in later stage.

At the same time, H&M also adjusted its procurement channels and began to directly purchase pre production products, such as textile raw materials, yarns, to a certain extent, shorten the intermediate links.

In this way, Xu Yiqing talked about the secrets of H&M defending the "price epidemic".