The Tragedy Of Local Brand Clothing: Blind Price Increase And Constant Price Performance Ratio

A large number of inventory items are selling at a super low discount in a famous brand discount store in Guangzhou.

One is standing.

The customer who weighed the brand for a few minutes finally turned around and picked up a Nike T-shirt that he had seen before.

The reason is straightforward and simple: the same style, the same price T-shirt, Nike "more cost-effective".

This can not help Chinese enterprises to reflect on one question: what is "more cost-effective"?

Take a look at this example: a man in a department store looked at a domestic brand of casual wear casual pants, but even after 50 percent off, the selling price is above 500 oceans, and he finally bought a pair of trousers of the same style and homogeneity in the online foreign trade store, the price is less than 250 yuan.

Not long ago, Luo's boss, who came back from Europe, bought a double skin of Prada in otles.

With only 200 euros, a number of well-known local brands in China, the price of a pair of men's shoes has been at least over 1000 yuan.

There is almost no suspense choice, so that "more cost-effective" clearly visible: that is, with the least possible money, buy as good a product as possible.

In jargon, it is a product with high cost performance.

This is the natural instinct of most customers.

But unfortunately, China's

Footwear enterprises in recent years collectively "go mad" and want to carry the banner of "high-end" and "internationalization".

Under the clamor of "high end" and "internationalization", the local brand has been "self rising" so that the price of the factory's tag has gone from Crazy 3 times higher than the cost to 7-10 times of the cost.

Maybe it shouldn't be too harsh.

In the past few years, the "mental disorder" of cotton yarn prices has greatly increased the cost of raw materials for garment enterprises, and the cost of retail channels such as general stores has been climbing.

The last straw has forced the Chinese clothing and footwear enterprises to the corner, and the pformation has become a hot topic.

As we see now, in the direction of pformation, many local brands have chosen to move to the upper end of consumption in Pyramid. In order to cope with this "great move", they have consumed a lot of energy in product design, channel innovation and so on.

However, the gold content of product design and channel innovation is not enough to match the soaring prices.

Compared with the blind "elevation" of China's local brands, let's see how international brands can absorb high costs and achieve "cost-effective" positioning.

UNIQLO is the fastest growing market in recent years.

One of the brands is that it has previously worked with fiber manufacturers to develop new fabrics, creating a series of ultra lightweight down garments with only 206 grams.

This series of Down Vest costs only 299 yuan, but Bosideng's old feather down vest store has a price tag of more than 300 yuan.

UNIQLO, who is taking the technical route, is obsessed with quality innovation. At the same time, the price stays at the middle and low end, and digs the cost through market expansion, small profits and quick turnover.

ZARA is going to cut the cost of supply chain.

The top ranked clothing brand is made in China. In order to reduce the supply chain time, it even produces clothing for the Spanish market in Turkey. This kind of near procurement makes its products from design to pportation to the shelves, as long as 17 days, and the clothing styles are many, each quantity is small, the basic zero inventory.

Comparatively speaking, China's clothing shoes enterprises are rather lazy. By raising prices, it is a shortcut that they think they can digest the fastest cost.

But the ultimate direction of this shortcut may be abyss.

At present, in China's clothing consumer market, the bottom of Pyramid is that many shoe and clothing outlets and foreign trade stores occupy the main market.

Up to now, after the fast fashion giants attacked the city, due to the style and price advantage, they swept the field in the field of casual wear. But the price reduction brought by the appreciation of Nike and Adidas due to the appreciation of the Renminbi left no chance of the price of the brand such as Lining.

On the other hand, the continuous price increase of local brands has led them to overlap the price of the "luxury goods" series launched by the international luxury goods brands. The strong brand advantage of the latter, as well as the decoration subsidies and the discount points offered by local channel providers, are beyond the expectations of local businesses.

It is not hard to see that in the current market structure, China's local brands have been surrounded by numerous networks.