Foreign Clothing: Price Reduction Of Brand Name And Its Reasons

Foreign trade brand clothing is to use the relative low price to draw consumers, or the collective adjustment of brand strategy? This "foreign capital price reduction wind" which is out of line with the soaring prices is a bit confused.

[phenomenon] pricing has fallen by three or four compared with previous years.

As the brand clothing in Changsha's major shopping malls has been put on shelves, a new round of autumn and winter market competition has begun. In the capital market of Changsha, the prices of foreign brands such as Zara, Vero Moda and Only fall down compared with last year.

In a shopping mall Zara counters in Changsha, the reporter saw that leather goods that last year were more than 2000 yuan, and this year launched a relatively low price of about 1799 yuan. At the counter of Vero Moda, the same is the seven point sleeve suit. In its Taobao flagship store, the price of the similar style last year was 599 yuan, and this year's price is 549 yuan.

The fact that the price is reduced has also been confirmed in the Zara brand related staff. "This autumn has different levels of price declines. Last year, 699 yuan of women's coats went down to 499 yuan this year, while men's suits dropped from 899 yuan to 699 yuan." It is reported that this is the first decline in the Zara brand since its entry into the Chinese market six years ago, with the largest decrease of around 40%.

In addition, in these foreign brand stores or counters, the reporters also saw a lot of promotional clothing, and some even last autumn and winter style. It is impossible to see such a phenomenon in previous years.

[company] brand positioning Adjustment

When foreign brands that have consistently maintained a high profile have suddenly lowered their heads, are they willing to "close to the people" or seize the market and have to cut prices?

A brand clothing company's stakeholders explained that the fall of new products this autumn was mainly influenced by exchange rate, brand strategy and economic environment. "We are a European brand, and the change in the exchange rate between the RMB and the euro is one of the factors that affect its pricing in China. More importantly, by the impact of the global economic downturn this year, the company's brand marketing strategy has also been adjusted accordingly. This price adjustment is also intended to lower the difference between competitors and competitors.

Economic environment is the driver of price cuts.

The "price cutting wind" of foreign clothing brands has led to an unlimited market speculation. Professor Yin Yuanyuan, director of marketing department of Hunan University of Commerce, believes that the consumer goods market has been depressed this year.

In the third quarter of this year, the growth rate of social retail commodity index in our province was 14%, lower than the original growth target, indicating that the consumer goods market in our province was not prosperous. In order to maintain market share under the background of a depressed market environment, foreign brands have to reduce market prices by means of price reduction.

　　 clothing The falling price of raw materials is another objective reason for price reduction. Miss Deng, who is engaged in foreign trade clothing production in Guangzhou, told reporters that cotton prices have been rising for the first two years, and the highest price has reached 30 thousand yuan per ton.

This year, cotton prices have gradually declined, and by June, the decline has reached about 40%. The low price of raw materials has reduced the factory price of autumn clothing this year.

"To make an analogy, I spent 10 yuan to make things, and if you let me sell 200 yuan, I will not feel at ease." Miss Deng said so.

However, Professor Yin Yuanyuan believes that foreign brands may be compressed in production costs, and the reduction of commodity prices does not necessarily affect the final income of the brand.

Consumption attitude

No price cuts, no price cuts.

Do foreign brands buy autumn clothes and consumers buy them?

"Many discount prices on the Internet are much cheaper than the franchised stores." Luo Xiaojiang, a Real Estate Company engaged in forensic work in Hexi, said. She usually likes to visit the famous brand discount websites, and basically does not buy new products in the new season. She said that even if foreign brands' autumn clothes were down, their desire to buy was not strong.

Of course, like this year's Junior English major, Liu Hui, who advocates brand consumers, is very happy about the price reduction. However, the style she likes is "buy at a price, but do not drop it."

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The moon in foreign countries is not round.

"Foreign countries are better than domestic ones." This idea seems to have been deeply rooted in the minds of domestic consumers. Even if the quality of products is similar to that of similar designs, many domestic consumers are willing to "spend money on a safe and upscale".

What is the real situation and foreign investment? Clothing brand Always proud of the domestic brand price is very inconsistent, they will always appear product quality problems. Common sense says that cheap goods are not good, but when they arrive here, it seems that expensive products are not necessarily good products.

In the sampling inspection of industry and commerce departments in the country and provinces and cities, foreign brands can be said to be secondary shots, of which Zara is a frequent visitor. According to media statistics, the Zara brand has been blacklisted in 7 years in 2 years, but the company has never answered the relevant questions, nor has it handled the procedures for the customer to return the goods.

This year, the world economy is in a downward trend in the turmoil. Under such circumstances, the big cake of the Chinese market has become an important domain for any foreign brand.

As a result, they began to worry, and began to adjust prices downward, presumably hoping to keep consumers' eyes and footsteps. However, whether the Chinese consumers who have been belittled are buying now, and whether the price reduction method of foreign brands is effective, at the end of this year, the major brands will eventually speak in real time sales volume.

In fact, they are all a moon, and the foreign ones are no more than the domestic ones.