Revealing The Real Profit Of Garment Industry

From the analysis of numbers,

The profit margin is really hot, but this algorithm simply uses the price minus the purchase price, and does not seriously calculate and deduct the expenses in the operation. Therefore, the profit margin calculated by simple addition and subtraction is not convincing.

China is the largest in the world.

Because of the close integration with fashion trends, the frequency of clothing renewal has been increasing.

Compared with other industries, the investment threshold of the clothing industry is low, and there is no need for too much expertise. 30 thousand yuan can open a good small storefront, and the market risk is relatively small.

In the one billion people's nine hundred million business today, opening a clothing store is the first choice for many people to start their own business.

In the 80s of last century, in the poorer materials, the most profitable business among many self-employed individuals is clothing self-employed.

Many of the rich and expensive people we have seen have already done clothing business. For example, Wu Lisheng, the founder of the famous Jianye group, started from selling cloth and clothing, from cloth, clothing vendors to wholesalers, contractors, and then entered the real estate industry, founded Jianye group, and eventually became a billionaire.

In the era of relative shortage of goods and relatively simple products, people have little choice in clothing. They only need to aim at one or two styles and mass production to make their money, and the risk of investment is almost impossible. Now, with the great abundance of commodities, consumers and agents including clothing have great choice.

In order to provide better and more brand efficient products, suppliers can only increase the cost of products, while the terminal retail price is reduced as much as possible, so the profit margins of garment investors are much worse than before.

Though doing

This is not the same as before, but the clothing industry is still attracting a large number of small and medium-sized investors, especially those who have no business experience.

Therefore, we see that in the fierce market competition, almost every day there are some clothing stores in the pfer, closing, and there are many new clothing stores opened.

Brand monopoly profits attract big expenses.

Some people listed the clothing industry as the ten largest profiteering industry in 2004, and even cited the head of a garment production enterprise as a collateral witness: "clothing is indeed a huge profit.

But this profiteering is not reflected in the fabric, but in the circulation.

A small vest with a cost of only 5 yuan is not a problem to sell 25 yuan in the small commodity market.

I once sold the clothing price tag of 10 yuan for 100 yuan, and the result was very popular.

This may seem astonishing, but it does exist in some brand stores.

A shopping malls salesman told Science investment that a price tag of three hundred or four hundred yuan was worth thirty or forty yuan, and the price of seven hundred or eight hundred yuan clothing was only 100 yuan.

A general clothing store employs one or two salesmen. If the goods get in the right way, one day they sell one, and the wages, rents and taxes are all there.

It is revealed that the profits of some garments can reach 3-5 times, and more than 10 times.

The price tag of some brand clothing is mainly affected by discount activities. If the price is not marked higher, it will be difficult to cope with frequent discount and coupon activities in the shopping mall.

An industry insider told reporters that the gross profit margin of the brand clothing in the big market can reach 200% or even higher, and the winter clothing is higher than the summer clothing, and the men's clothing is higher than the female clothing.

One of his friends was selling a brand of men's clothing in a shopping mall. In summer, a T-shirt costs more than 100 yuan and sells for more than 400 yuan, so that even if it hits 50 percent off, it will still be profitable.

As for those clothes that are particularly discounted, most of them have been in storage for several years and are basically processed at cost.

In a discount activity at a shopping mall in Beijing, a pair of trousers marked 288 yuan can be bought at 80 yuan.

The salesperson's explanation is that it was last year's stock and is now being processed at the end of the season.

There is no doubt that dealing with inventory has become the primary reason for discount. The discount of this product is also very large, ranging from 90 percent off to 50 percent off.

A brand agent told reporters that there was no time to deal with inventory at ordinary times. Now that autumn clothes have not been listed, this time is used to deal with the inventory that has been accumulated for several years.

From the point of view of digital analysis, the profit margin of brand stores is indeed hot and heartbeat, but this kind of algorithm that simply uses the price minus the purchase price does not seriously calculate and deduct all kinds of expenses in the operation. Therefore, simple addition and subtraction analysis does not seem convincing.

The existence of profiteering of brand clothing is mainly in circulation.

The price of some brand clothing approved by wholesalers is quite different from that in the retail market, and there is no difference in their purchase channels.

The intermediate links of clothing sales include dealers, brand agents and retail stores.

In terms of clothing, dealers usually have to increase their price by 30% at the ex factory price, and the retail store will increase the price by 30%.

As a result, a 100 yuan garment may rise to more than 170 yuan at the mall.

A first class agent in a clothing industry in Guangzhou said that the price of new clothes was so high because in the sales process, the expenses demanded by the shopping malls were relatively high. Besides the high cost of entering the shop and the apportionment of all kinds of promotional expenses, the proportion of the reverse flow of the sales volume was 27-35% at the same time. For some of the bad brands, the proportion of the brands being downloaded by the bottom was as high as 50%, which led to the high price of the clothing sales.

Brand investment is risky.

The brand clothing profits in the market are high, but the entry threshold is too high. Many smart investors find it more profitable to set up brand stores in downtown areas.

It seems that the clothing store does not need any professional skills, so long as there is capital, it can intervene, so people who apply to join various kinds of clothing monopoly are always in flux.

Franchised store is the most popular brand clothing sales mode in recent years. Investors only need to pay money to join, from headquarters selection, store decoration and layout, to shop staff training and promotion means, all have headquarters to help, do not have to spend too much energy in operation.