Clothing Industry: Price Increase Is Not A Good Solution To Rising Costs.

Yang Xun, chairman of JEANSWEST International (Hongkong) Co., Ltd., unexpectedly, when he opened the first JEANSWEST (JEANSWEST) store in Shanghai in 1993, many people in the mainland still couldn't understand the concept of casual wear. But in the past 20 years, he has been fighting with nearly 2000 kinds of leisure brands.

At present,

Whether foreign or local leisure brands are affected by rising labor costs, raw material price fluctuations and market management environment changes.

Since last year, the inventory problem has plagued the rapidly expanding American Apparel. In 2011, a quarterly report showed that the amount of apparel in the United States was 3 billion 160 million yuan.

This casual wear enterprise has to adjust its strategy and deal with inventory through different channels such as discount stores and state purchase network.

In addition, the United States has another misery of costumes - the investment of new brand Me&City, the loss of profit, Zhou Chengjian, chairman of the United States and apparel last year, admitted to the media, Me&City took a detour, the root is "no fear, not enough risk awareness."

At this time, fan is not easy.

Low price, huge advertising, unique e-commerce positioning, so that all fans grew rapidly in the past few years.

The general clothing brand will take the cost price 6~10 times as the final selling price. The brand with a certain reputation will set the price about 20 times the cost price, and the selling price of the customer is only 1.5 times the cost. The price of the customer is 1/6 or even 1/10 of the ordinary brand under the same goods.

Although the price advantage has created the customer service product, but the profit also becomes one big confusion.

In January this year, the number of garment retailers was not satisfactory, and hundreds of large retail enterprises nationwide.

Yang Xun recently admitted in the first financial daily interview that it is difficult to expand this year. However, there is still room for improvement in China's casual wear market in the next 10~20 years. The company can go ahead with its original plan this year.

The company's total sales volume was 3 billion 180 million yuan, up 13.47% from the 6 months after the end of June 2011 in JEANSWEST clothing brand.

JEANSWEST plans to maintain annual sales growth of 15% to 20% in mainland China, and hopes to break through 10 billion yuan in 2014.

At present, JEANSWEST has opened more than 2800 stores in more than 300 cities in the mainland.

"Our shop speed is not fast, steady is very important, although the form of affiliate can quickly occupy the market, but the pace is too fast, it is not conducive to grasp orders and control risks, more than 60% of our stores are direct outlets."

Yang Xun said.

In the face of rising costs, Yang said that raising the price of products is not the main solution, but mainly by strengthening sales and management.

In addition to the three or four line cities, the network sales are also increasing. Last year, JEANSWEST's online sales doubled.

In addition, controlling the return rate is also an important factor to reduce the cost. The return rate of JEANSWEST is controlled at 2/1000, while the return rate of the whole garment industry is about 1%.

Despite the increasing competition for casual wear, the upward trend of costs makes it difficult for the industry to fight for price war. Many casual wear enterprises are not adjusting to their strategic stability.

According to Shenyang Wanguo Securities Limited by Share Ltd report analysis,