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The Truth Behind The Sharp Rise In Clothing Prices

2011/10/9 8:50:00 29

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During the golden week of the national day, in the hot and busy market of many shopping malls, with the background of discount sales promotion, consumers found that the price of autumn clothes collectively "shouting" rose this year. "The prices of clothing brands in the mainland have risen fiercely, and they are almost catching up with the international first-line brand."

In the past, the clothing of the general brand in the shopping mall was basically based on three figures. Now it is not uncommon to pick up a thin wool sweater with no price.

Insiders told the media that the average autumn and winter clothing this season increased by 20% over the same period last year.

"In recent years, the price of footwear, men's wear and children's clothing has almost doubled, and the increase of women's wear is around 60%."

Why is the price of clothing soaring?

The reason for it is easy to recall every country.

quarter

CPI, which is going to rise, is not unusual in the background of the general price rising and the cost of raw materials increasing.

But if we investigate further, we will find that the problem is not so simple.

Because the cost of clothing industry is mainly cotton, and this year's domestic cotton market is a sharp decline.

Since March of this year, cotton prices have plummeted all the way, from 14 yuan per kilogram to 8 yuan per kilogram last year. They are almost cut off by the waist, and cotton is cheap to hurt farmers. In order to prevent the cotton prices from falling, the departments concerned started the temporary storage and purchase measures in September 8th, but there was almost no deal in two weeks.

In a word, the price of the domestic clothing market this year looks a bit strange. On the one hand, the pressure on the terminal consumers to bear the price increases. On the other hand, the cotton farmers in the upper reaches are under the pressure of selling at a low price. What's the difference between them?

Objectively speaking, as textile and clothing enter the era of high cost, clothing enterprises are also facing raw materials.

The labor

However, the increase in cost alone is not enough to support such a high price increase in the domestic garment market this year, because according to industry sources, the production cost is "30% of the bid price" in the apparel industry chain.

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

The rest is shared among wholesalers, agents and department stores.

You can also see from other figures the flow of money in the clothing industry.

In the past two years, the world economy has been sluggish.

clothing

The company's operating conditions are generally not good, such as the famous brand Esprit.

This year's net profit has dropped by about 98% compared with the same period last year. The profits of Brand Company, such as UNIQLO, ZARA, are also declining or increasing, but Chinese clothing companies are different. The public figures show that China's clothing sector listed companies achieved a sales income of 40 billion 627 million yuan in the first half of this year, an increase of 22.43% over the first half of this year. Net profit attributable to parent companies was 3 billion 629 million yuan, an increase of 49.12% over the same period last year, and profits were more than double the increase in sales.

According to common sense, the clothing industry is in a highly competitive market. There is no price monopoly. Consumers have very strong voting skills. Why do the prices of clothing industry skyrocket and succeed?

This is probably related to the malformation of China's clothing consumption market.

Under the conspiracy of all aspects of the apparel industry chain, the "fake price" acts of counterfeit foreign brands, discount promotions and other "price fraud" are popular in China's clothing market. Consumer psychology is misled, and the market price monitoring mechanism is not perfect. These factors have contributed to the abnormal price in the Chinese clothing market.

It is said that the price is determined by the market, but the abnormal market must have a deformed price, while the abnormal price reflects the malformation of the market.

A recent micro-blog in China and the United States has been frantically forwarded. It has been mentioned that Chinese people have much lower income than Americans, but it costs only $20 to buy a Levi's jeans in the United States, and 400 yuan in China.

This 400 yuan Levi's jeans can be said to be an example of the product of the abnormal market price.

Perhaps the deformity is not just the clothing market.

According to the report, a thief in Chengdu stole 6 jewellery and was sentenced to 12 years and 1 months. The thief actually cried out in court. The original 6 jewelry businesses had a total value of more than one million, so the case value could be sentenced to no time.

And finally, by Price Bureau appraisal, the court finds that the price of these jewellery is only 89 thousand yuan... People should thank the thief. She unwittingly opened the veil of this abnormal market, and let the world know the truth behind some prices in the market.