Brand Profit And Scale Effect Determine The Profitability Of Home Textile Enterprises

Shanghai this year

It can be seen that corporate brand effect and scale effect determine the profitability of enterprises, and its role is very obvious.

It should be said that the R & D design, technology and talents of Shanghai home textiles are still in the leading position in the whole country, but in general, Shanghai has created the products.

According to statistics from relevant departments, Shanghai accounted for 3 seats in the top ten ranking of home textile enterprises nationwide.

Independent creation of brand is related to the survival of the fittest of home textile enterprises, and is conducive to the Scientific Outlook on Development textile industry to follow the road of sustainable development and harmonious development.

The awareness of business operators to promote brand building is gradually increasing.

By the end of 2010, the Shanghai Textile Association owned 2 famous brands in China, 2 famous trademarks in China, 11 famous brands in Shanghai, and 14 famous trademarks in Shanghai.

There are 3 Chinese time-honored brands.

But compared with the provinces and cities, the number of brands is not as good as those in Shandong, Zhejiang and Jiangsu provinces.

Home textile industry is a labor intensive industry, and there is a common mismatch between more investment and lower return.

However, the profitability of first-line brands, famous brands and enterprises with a certain scale of operation is obviously better than that of the two or three line non famous brands and those with no scale effect. The gross profit margin of the former can reach 45% or even higher, and the latter's gross profit rate is higher.

In order to create more large-scale home textile brands and make the creation work orderly, the brand environment needs to be further improved.

At present, there are the following problems in the process of creation.

First, the setting of thresholds for trial reporting is unfair.

Two, the standard of reward is not uniform. The reward amount of enterprises in different districts of Shanghai is different from those of Shanghai famous brands and famous trademarks.

The three is the lack of necessary guidance and training for enterprises with brand building.