China's Local Brand Blindly Rises, Causing Commodity Prices To Go Wild.

A lot of inventory goods are selling at a super low discount in a certain famous brand discount store.

A customer who weighed for a few minutes before Lining's brand finally turned around and picked up a Nike that he had seen before.

Buried bills.

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 a question: what is "more cost-effective"? Let's 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 pair of Prada leather shoes from abroad, which only cost 200 euros.

The price has been above at least 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 clothing and 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 merchandise has been climbing repeatedly.

"After the introduction of labor costs, and the last straw of high inventory, the Chinese clothing shoes enterprises have been pushed to the corner of the market, and the pformation and difficulty relief 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 one of the fastest growing fast fashion brands in recent years. It has previously developed new fabrics with fiber manufacturers to create 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.

ZAR A 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 consumption market, the bottom of Pyramid is that many shoe and clothing outlets and foreign trade shops occupy the main market. Up to now, the international fast fashion giants have been swept away by the fashion and the price advantage in the field of the original casual wear. However, the price advantage of Nike and Adidas, which has brought about the appreciation of the renminbi, has left the price advantage of the brand such as Lining, which is "internationalized".

The price overlap of the "light luxury" series launched by the big names, the strong brand advantage of the latter, and the decoration subsidies and the discount points offered by the local channel providers are far from enough for the local enterprises.

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