How Expensive Is Chinese Clothing?

"Clothing, made in China" has been around the globe for more than ten years because of China. clothing Manufacturing has a strong cost advantage, "cheap and cheap" has become the best interpretation of Chinese clothing. However, in today's Chinese market, the price of clothing is prohibitive.

Is the brand, agent or retailer profiteering, or is the Chinese consumer ability already strong? The answer is obviously negative. So, what causes the high price of clothing in the Chinese market? It has always been widely accepted that "excessive distribution level and profit for every link" is the main reason for the high price of Chinese clothing. However, the reality is that the distribution level of Chinese clothing has become less and less, but China market The price of clothing is more and more expensive, which clearly shows that there is a deeper reason behind the high price of clothing.

Through in-depth analysis of the pricing system and operation mode of Chinese clothing, we find that multilevel distribution is not the essential factor that causes Chinese clothing to be expensive. In the Chinese market, the reasons why domestic brands are expensive are: "high operating costs (discount points or rent to sales ratio higher than 15%), low turnover efficiency and re circulation tax"; international brand clothing is expensive, and its root lies in import tariff and high price strategy.

Although the factors leading to the high price of clothing can not be eliminated in the short term, the price of Chinese clothing will remain high for a period of time. But from 2012, a sharp fall in raw material prices will lead to the price of clothing. Rise Slowing down is expected to increase by less than 10%. As China's clothing consumption is at a high growth stage, the rigidity of consumption is strong, and the price increase will slow down, which will lead to a rise in sales volume. From the past five years, the price increase is less than 10%, and the sales volume can reach more than 10%. Judging from this, clothing consumption growth in 2012 will remain stable. In the long run, the improvement of operational efficiency and the accumulation of brand culture or brand value will help to alleviate the heavy load of clothing prices.