Exploring The Secret Behind The Boom In Clothing Prices

"The clothing prices of mainland brands have gone up very hard and are catching up with the international brand."

In the past half of the National Day holiday, shopping malls have been making all kinds of sales promotion, but customers complain a lot about the high price of clothing.

What has pushed up the clothing prices of domestic brands?

Many salespeople will tell you: "raw materials and labor costs are rising."

But this is only a superficial phenomenon. The head of a department store revealed that costumes cost up to only 30% of the price tag.

There are other reasons why domestic brand clothing prices go up too bad.

Phenomenon scanning

Clothing prices are rising every year

This autumn is two or three more expensive.

Yesterday, the autumn and winter clothes of many shopping malls in Guangzhou.

Laments to reporters that the price of clothing is too high for consumers.

Zhang Jin, a citizen of the Republic of China, said that a famous Korean brand this year was priced at 3980 yuan for a long coat, compared with 3000 yuan last year.

"I want to buy a pair of autumn shoes, but when I look at the price tag, most of them are priced at more than 1000 yuan.

I remember buying a pair of single shoes 700 yuan the year before. I have to wait until half off.

Miss Li complained, "if I go up so much, I will not give up without hitting half off."

According to the press survey, the clothing of the general brand in the shopping mall is still mainly based on three figures. Now it is not uncommon to pick up an unremarkable thin wool sweater. The price tag is over 1000 yuan.

Insiders told reporters that the average autumn and winter clothing increased by about 20% over the same period last year.

"In recent years, the price of footwear, men's wear and children's clothing has almost doubled.

Mr. Chen, who often shops in Hongkong, is surprised. He said that the clothing of mainland brands has risen fiercely, which is close to the price of international high-end brands in Europe and the United States.

"In Guangzhou, men's shirts priced at 1000 yuan can be found everywhere, but the shirts of the international first-line brand BURBERRY (Burberry) are almost the same price in Hongkong.

Cause analysis

Put on "foreign coat"

Instantly doubled in value.

What are the reasons for boosting the price of clothing and footwear?

Procurement of raw materials?

Labor cost?

Product pricing?

Reporters interviewed many people in the industry, they agreed that in recent years, the cost of clothing has indeed risen sharply.

A well-known clothing factory owner, who did not want to be named, told reporters that over the past two or three years, the cost of labor and raw materials has risen by more than 40%.

However, the general manager of a famous department store told reporters that costumes cost 30% of the price tag.

Huang Wenjie, executive director of Guangdong provincial Circulation Industry Association, dissected the price composition of the costumes for journalists. A clothing price tag 1/3 belongs to the manufacturer, and the profit of the manufacturer can reach half. That is to say, a dress, only the price tag 1/5 ~ 1/6 is the cost price.

"After entering the stage of brand agents, prices began to soar.

The rest of 1/3 belongs to wholesalers or agents, but manufacturers of direct businesses also own this part, and retail channel costs occupy the final 1/3.

In order to open up the market, many clothing brands will try their best to enter department stores.

Most of the department stores in China carry out joint point deduction, that is, deducting a certain number of points from the sale price to department stores.

Reporters learned that the current domestic department store's deduction point is 15%~35%, and the specific points depend on the strength of the department store and the strength of the brand.

Huang Huajun, President of the first commercial network, pointed out that one of the reasons why the price of clothing had risen in recent years was directed at the discount promotions frequently held in the market.

"In the past, there were at most two depth promotions in one quarter, but now, once a month, it is normal to promote sales in depth, and the discount can be as low as 77% off.

All these require brand suppliers to make profits, but the wool can only be raised in sheep, and suppliers can only raise the original price.

The more important reason is the pricing strategy of clothing brand.

"There is another reason for the sharp rise in domestic clothing prices. In recent years, domestic clothing brands are competing for high-end routes, and prices are beginning to be in line with international standards."

Huang Wenjie said that many domestic producers have been buying or registering foreign brands abroad, in order to raise their value, and package themselves into foreign brands.

According to conservative estimates, about 30% of the clothing brands in department stores are "fake foreign brands".

Insiders also revealed that in recent years, clothing brands have taken the high-end line, which is closely related to the guidance of department stores.

In pursuit of higher profits, shopping malls are more interested in high priced high-end brands.

Worth pondering

The gap between price and international standards is not small.

Price is in line with international standards. Is quality and design synchronous?

Reporter survey found that many garment enterprises do not have enough effort in quality, which also makes consumers concerned about cost-effective consumers very disgusted.

Huang told reporters: "ten years ago, 100 yuan can buy good quality clothes, but now I bought a thousand yuan of clothes, wear a pocket on the split."

Mr Wu said that in the past few years, it would also spend a high price on buying fake foreign brands, but later came into contact with many famous international brands, and found that the prices of these fake foreign brands were almost the same as those of the international brands, but the quality and style were not as good as those of others.

Now, if you have the chance to travel to Hongkong, you will buy many first-line brand clothes, and you will not buy more fake foreign brands than in the mainland.

"If we do not work on the quality and style, but only to pursue high, I believe that, with the improvement of Chinese people's recognition of foreign brands, there will be more and more people realize that the fake ocean brand is not worth the price."

Mr. Wu thinks.

Huang Wenjie, executive director of Guangdong provincial Circulation Industry Association, also said that the quality and design of domestic clothing brands need to be improved.

"The domestic garment industry should create a pition from China to China, and rely on design and quality to gain wide market and higher profit margins."