The Growth Of Downstream Department Stores Has Directly Affected The Upstream Brands.

29, "super 50% listed department stores net profit decline" report, caused the industry's high attention.

Downstream of channel chain

The growth slowdown also directly affects the upstream brands.

29 days ago, reporters found that many brands of different formats indicated that they would deal with the sluggish sales of goods by reducing production.

While reducing production, these enterprises will also reduce the price of new products to maintain market share.

Under normal circumstances, the fourth quarter is the time for brands and retailers to compete.

Especially for clothing brands, its sales in the four quarter account for half of annual sales.

But 29 days of reporters found that, from the performance of October, the sales of clothing brands did not increase significantly, companies have shown that their performance has not reached its expectations.

According to this rule, according to this rule, the sales situation from the end of this year to next year may be even worse.

This statement has also been recognized by peers.

An underwear brand executive who did not want to be named said that the industry had generally lowered the number of future orders, and the total orders at home and abroad had been cut, but he did not disclose the proportion of production cuts.

During the interview, although some brands did not want to mention the reduction in production, they did not explicitly deny this.

An international leisure brand

District officials revealed that because of fierce competition in the industry, coupled with the slowdown in the domestic market, the number of new funds may be reduced.

"But this is not positive information after all, and businesses generally do not want to disclose it."

The source said.

In addition to the well-known brands, some famous brands in the international arena have begun to think about countermeasures.

According to the head of a large shopping mall in Beijing, due to the high cost of tariffs and other factors, the price of foreign brand goods in China is higher than that of foreign countries, which has caused the outflow of Chinese consumers.

In order to maintain market share, some famous international brands pay no attention to "reverse", so that the price of the brand is basically the same as the foreign price.

At the same time, fast fashion brands including ZARA, C&A and UNIQLO have joined the price cutting ranks. They plan to rely on price advantage to maintain market share in the reality of slower sales growth.

Previously, the Japanese fast fashion brand UNIQLO, which had fought the price war with shirts of all fans, once again adopted a price cut to defend the position.

Reporters learned that UNIQLO main push "light down clothing" at a price of 499 yuan after listing, not only repeatedly launched a 399 yuan time limit panic buying, but also recently, the price dropped to 299 yuan.

This price is not only lower than Bosideng, Giordano and other brands, but also with the price of fan's products.

Some people in the industry believe that this unconventional way of lowering prices is to cope with the pressure from domestic brands, especially the Internet retail brands, and on the other hand, to ease the overall shrinkage of the consumer market.

"Under the premise of tight consumption environment, some consumers' loyalty to the brand has declined, and the price advantage has become more and more important."

This has also made UNIQLO's main competitors take the initiative again.

29 days, the price of the same down clothing has been reduced from 299 yuan to 199 yuan.

This is also in nearly a month, the second times "fan Kai Cheng" called "UNIQLO".

According to fan's products, its light down clothing and UNIQLO's senior light down clothing sold in China are from the same manufacturer in China.

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The head of the Department believes that due to the advantages of stocking quantity and so on, it is dared to reduce the down jacket price to 199 yuan.