How Do International Brands Digest High Cost To Achieve "Cost-Effective" Positioning?

A certain Guangzhou

In stores, piles of stock are being sold at an ultra-low discount.

A customer who weighed for a few minutes before Lining's brand finally turned around and picked up a Nike T-shirt 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 took a look at a domestic brand ironing.

But even after 50 percent off, the selling price was over 500 oceans, and he bought a pair of trousers of the same style and homogeneity in the online foreign trade store at a price less than 250 yuan.

Not long ago, Luo's boss, who came back from Europe, bought a pair of Prada leather shoes from overseas outlets, which only cost 200 euros. At home, some well-known local brands, 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 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 brands quickly "raise their own value", so that the products are exported.

It has gone from Crazy 3 times higher than the cost to 7-10 times 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 again. The labor cost has been worsening after the introduction of the new labor law, and the last straw of high inventory has forced Chinese clothing shoes enterprises to the corner.

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.

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.

The consumer market, the bottom of the Pyramid market, is that many shoe and clothing outlets and foreign trade shops occupy the main market. Up to now, the international fast fashion giants have swept the whole field in the field of casual wear because of their style and price advantage. The price advantage of Nike and Adidas, which has brought about the appreciation of the renminbi after the appreciation of the renminbi, has disappeared. The price increase of the local brands has led them to overlap the price of the "luxury goods" series launched by the international luxury brands. The strong brand advantage of the latter, as well as the decoration subsidies and the discount points offered by the local channel providers, are beyond the reach of the local enterprises. "Lining" currently in Chinese clothing

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