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    This Winter, The Price Of New Winter Clothing Is Soaring. 20% Raw Material Cost Is Not The Main Reason.

    2013/10/21 10:43:00 43

    New Winter ClothingClothing MarketClothing Prices

    < p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201310/21/20131021104848_sj.JPG "/" < < > >


    < p > recently, chill came and busy buying autumn winter clothes, did you find that the price of newly listed < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > has gone up?


    < p > CPI increased by 3.1% in September compared with the year-on-year data of non food prices. Clothing prices rose by 2.3% over the same period last year.

    Among them, clothing prices rose 2.5%, an increase of 1.2%.

    Data released by the Changchun investigation team of the National Bureau of statistics also showed that clothing prices rose the highest in eight categories of consumer goods and service prices in September, and became the main reason for promoting CPI, reaching 5.9%.

    Among them, men's clothing, women's clothing and children's clothing prices rose by 5.2%, 4.4% and 8% respectively.

    < /p >


    < p > is the cost of new clothing rising, or is it a cost pull? Or reserve space for inventory products and future discount promotions? < /p >


    < p > how will the pricing strategy of clothing change and adjust under the pressure of the poor overall prosperity of the apparel industry? < /p >


    < p > How can consumers polish their eyes to make the best choice in the face of a variety of clothing prices on the market? < /p >


    < p > < strong > market phenomenon < /strong > < /p >


    < p > < strong > the price of the new winter clothing has increased by about 20%, < /strong > /p >


    < p > in the past week, the lowest temperature in Changchun has reached zero degrees Celsius. Warm autumn and winter clothing has attracted much attention.

    Before the "eleven" sale, the autumn and winter clothing products such as cotton clothes, down garments and so on, which appeared in the discount sales area in the anti season status, have begun to occupy the main locations of the major shopping malls.

    Recently, the reporter visited several major business circles in Changchun to understand that not only the winter clothes that just appeared on the market, but the price of new clothing products coming up this season is generally higher than that of last year.

    < /p >


    < p > "the average price of the new down jacket this year is about 20% higher than that of last year."

    On the 16 day, Ms. Xu, who had been engaged in clothing wholesale business for many years near the black water road in Changchun, pointed to a new long hair and feather collar down jacket on the shelf.

    Take this section as an example, the manufacturer's price is 1380 yuan, and the down coats of last year's style and filling amount are only 1280 yuan, compared with 100 yuan this year.

    According to Ms Xu, the price increase is not an individual style, but a general inflation. Taking the brand down garment of her agency as an example, the price of the manufacturers generally increased by 10% to 15% over last year.

    < /p >


    < p > it is not just wholesalers such as Ms Xu who feel that the price of clothing is rising.

    Zhao boss, who has opened many stores in Guilin Road, has been engaged in clothing retail business for more than 10 years.

    His feeling is that whether the shirts or cotton clothes are new products this season, the price of his purchase will go up.

    "In my store, about 70% of the clothing is co operated with a fixed brand dealer, usually 2~3 months ahead of schedule."

    Zhao boss said that a group of winter clothes that had been ordered just a few days ago, the brand dealer clearly told him that the factory cost increased with the price of raw materials, and the order price was 15% to 20% higher than that of last year.

    {page_break} < /p >


    < p > < strong > high price of goods, merchants do not dare to stock up < /strong > /p >


    < p > recently, Miss Li, who had traveled to the south for a long vacation, had just returned to Changchun and was caught unawares by the sudden cooling.

    These two days, anxious to buy winter clothes, she found a strange phenomenon -- some new a target= "_blank" href= "http://www.91se91.com/" > clothes < /a > early broken code missing number, really people don't understand.

    < /p >


    In the interview with P, some women's clothing operators also confirmed Ms. Li's findings.

    "No matter whether the bulk or fixed brands are getting the goods, the price of the goods has gone up. For me, the cost has increased a lot. If the quantity is too large, too much pressure is too high, and too much inventory pressure is not good enough to sell, so I take the strategy of" taking frequent purchases and taking less. "

    Clothing retailer Zhao boss told reporters.

    Take the shop he runs as an example. In the past, when the budget for bulk cargo was 30 thousand yuan, now the same budget, because of the rise in unit price, the volume of cargo will be reduced accordingly. He has reduced the single loading budget to 20 thousand yuan, and the quantity of cargo on a single trip has been even less. This is called "less take". In the past, the monthly purchase frequency was 2~3 times, and now it has increased to 4 times. This is called "diligence".

    In this way, we can reduce the pressure of purchasing cost brought by the rise of clothing price, and at the same time, we should take into account the sufficient supply of goods and avoid as much inventory risk as possible.

    < /p >


    < p > < strong > price rise < /strong > < /p >


    < p > < strong > Why do we need to increase the price of new clothes? < /strong > < /p >


    < p > under the condition of serious clothing inventory, why should the price of new products not rise? Is it related to stock products because of cost pull? Under the pressure of the overall prosperity of the garment industry, what changes and adjustments will be made in the pricing strategy of clothing? The following three aspects will reveal the price of clothing new products this year.

    < /p >


    < p > < strong > secret is not driven by the cost of raw materials, but the price rises < /strong > /p >


    < p > the reasons for the rise in the price of new clothing products, Jilin province < a target= "_blank" href= "http://www.91se91.com/" > textile < /a > Secretary of the clothing industry chamber of Commerce, Liu Lau said in an interview with the newspaper that the main reason is the cost pull, not only the cost of raw materials, including labor costs, style fabric upgrades, and design concepts will increase the cost of production enterprises.

    For example, at present, the wages of garment workers in the province are generally around 2000 yuan, compared with last year, this part of labor costs rose by about 10% to 20%.

    Enterprises are generally faced with the problem of "raising salaries and retaining people", and some enterprises use layoffs and reduce production volume to reduce costs.

    < /p >


    < p > Sun Liwu, an analyst of Zhuo Chuang information cotton industry, said that as one of the main materials of textile and clothing, from the trend of cotton price fluctuation in recent two years, the scope is relatively narrow.

    Therefore, it can be judged that the cost of raw materials plays a lesser role in the rise of clothing prices.

    The development cost of the marketing channel is increased, including the rental fee of the shopping mall and the agency fee of the terminal clothing store. In addition, the profit of the high inventory is compensated by raising the price of the new product.

    < /p >


    < p > < strong > revealing two. The cost is reduced by reducing production and raising price < /strong > < /p >


    < p > the factors that affect the overall price of clothing this year are also the factors that raise the price of manufacturers to reduce production.

    According to Zhao bosses, a clothing retailer, for bulk garments, the cost of producing 1000 pieces and 800 pieces of raw materials is almost the same as that of raw materials. If the original 1000 products were sold for 50 yuan, the cost would be closed, and now the production is reduced to 800. If each item is still sold for 50 yuan, it will not be able to compensate for the extra cost.

    < /p >


    < p > < strong > > Secret three. Go to stock to force "foil pricing" < /strong > /p >


    < p > "the clothing industry has its particularity, and the market needs to rely on" new product driven ". Therefore, even if the industry is faced with high storage pressure, new products must be launched every year.

    Gao Jianfeng, general manager of Shanghai bogai Consulting Co., Ltd., in an interview with this newspaper, said that under the current inventory crisis of the entire garment industry, new products and inventory formed irreconcilable contradictions: the better the new product, the worse the stock will be, and the new product will be formed if the new product is not sold well.

    Under the dilemma, garment enterprises will inevitably face trade-offs.

    < /p >


    < p > Gao Jianfeng said that the decisive factor is the pricing strategy in this round of rising clothing prices.

    Through the high priced new product's "foil pricing" method, no doubt we can get a better result in removing inventory. On the other hand, when the new products are new stocks, the current higher pricing will also allow enough space for future dealer discounts.

    < /p >


    < p > Zhu Qinghua, a researcher at CIC light industry, thinks that discount sale of clothing brands has become a normal market in recent years. No matter what the price is, consumers are more inclined to buy discount products. After mastering such psychology, consumers will raise their pricing and safeguard their own interests.

    {page_break} < /p >


    < p > < strong > pricing strategy < /strong > < /p >


    < p > < strong > is also a shirt price difference so big? < /strong > < /p >


    < p > is also a shirt, cotton texture, why some of the price tag tens of dollars, while others can sell more than 1000 yuan? In the clothing pricing, high cost, many super high "increase rate" come from? How does clothing pricing combine with sales strategy? < /p >


    < p > < strong > Where does the clothing premium rate come from? < /strong > < /p >


    < p > according to Wang Jian, a researcher at Zhejiang Merchants Securities clothing industry, in terms of pricing, clothing can be roughly divided into two categories.

    One is ordinary clothing, which can be regarded as "manufactured goods" and "daily necessities". For consumers, when choosing this kind of clothing, they need to compare their performance to price ratio.

    In terms of pricing for such ordinary garments, manufacturers generally need to guarantee gross margin of 20% to 40%.

    < /p >


    < p > in addition, considering the factors such as dealer level and reserved discount space, the average clothing price is 2~4 times the cost.

    For example, the cost is 1 yuan, the price is 4 yuan, and the terminal sells 50 percent off to 2 yuan, which is also profitable.

    The other is the high grade < a target= "_blank" href= "http://www.91se91.com/" > brand clothing < /a >, the rate of increase will be even higher. For some high-end luxury goods, the proportion of the cost factors that affect the pricing factor is even very small.

    Because consumers' recognition of prices is a very complex psychological process. A psychological pricing strategy is called "prestige pricing". In order to cater for the customers' naming psychology, showing off their psychology and pursuing brand names, the pricing of such products tends to be a "high price route".

    < /p >


    < p > "the clothing agency system and the circulation links have increased the circulation cost.

    Conversely, the production enterprises did not earn much money, and more profits were eaten by the circulation link.

    Sun Liwu thinks.

    In Gao Jianfeng's view, the factors that influence the price of clothing are not very large in most garments unless special techniques and special materials are used.

    The reason why ordinary daily clothing will have such a big price gap is the brand positioning and channel structure.

    < /p >


    < p > generally speaking, the higher the channel level is, the higher the price is, and the more flat the channel is, the lower the price will be.

    In contrast, channel flat has the cost advantage, and the channel level is more, and it can make full use of the local resources to maximize the brand effect.

    < /p >


    < p > < strong > most brands adopt "high price discount" < /strong > < /p >.


    < p > clothing pricing is often combined with sales strategy.

    According to Sun Liwu, the pricing principles fall into two categories.

    One is brand clothing, and the other is the "high price strategy".

    Because of the high added value of the brand, the price of the new product is higher, and some customers will be willing to buy it. Dealers will adopt the "first high and low" segmented sales method, and earn more profits in the short term as soon as possible, so as to recover the investment cost as soon as possible.

    Merchants who use this strategy do not expect all garments to be sold at a unified price. Instead, they sell at the price of discount or even lower than the cost of the commodity themselves after the early sales return, while the other is for the non brand clothing, the most important thing is to change the price by volume.

    More "low price strategy" or "compromise strategy" are adopted.

    Often new products will not be priced so high, the aim is to enable new products to be quickly accepted by consumers, to open and expand the market so as to avoid backlog.

    < /p >


    < p > "as long as discount sales have not dropped in the market, the price of autumn winter clothing will continue to rise.

    Apart from labor, raw materials, rents and other costs, discount sales is a key factor in pushing up the price of clothing.

    According to Zhu Qinghua, most brands and manufacturers currently adopt a "high price discount" and only a few brands adopt a low price strategy.

    {page_break} < /p >


    < p > < strong > observation < /strong > < /p >.


    < p > strong > high price strategy > high inventory > price discount > non discount no buy > high price strategy < /strong > < /p >


    < p > "not only the clothing industry, including building materials, home furnishing industry, there is such a situation, consumers generally enter a kind of non discount do not buy the strange circle."

    Gao Jianfeng believes that at present, the apparel industry is trying to digest inventory, and it is also a process of shuffling the industry. The market competition will become more and more brutal, and the final price will return to reason.

    The process is expected to take at least 5 years.

    In this process, consumers should also rationally view the pricing and discount of clothing products.

    < /p >


    < p > "at present, the price of clothing market is more chaotic. If the supply of general market is larger than demand, the price of commodities will decrease, but the clothing market will not rise or fall.

    Cost pressure and consumer psychology are the main causes of the current chaos in clothing.

    In order not only to maintain their own profit margins, but also to satisfy consumers' shopping preferences, clothing companies can only afford to empty prices and adopt high priced strategies to generate high inventories, and then discount prices.

    Zhu Qinghua said that the low price strategy helps the healthy development of the garment industry. At present, the supply of clothing market in China is seriously oversupplied, and only a low price strategy can further stimulate consumption.

    The price discount will aggravate the consumer's psychology of not discounting, and finally urge businessmen to adopt a high price strategy for new products.

    Consumers should not simply think that the high price of clothing is high quality, and need to carefully distinguish the quality of clothing.

    < /p >


    < p > < strong > ask economics < /strong > /p >


    < p > < strong > inventory accelerator theory < /strong > < /p >


    < p > there is a classical "beer game" in the field of economics, also known as beer effect.

    This effect refers to the asymmetry of information between enterprises in the chain, and the pursuit of maximization of their own interests, resulting in the distortion of the demand information in the internal pmission.

    This is also a phenomenon of universal significance in the field of marketing circulation: because the information pmission is out of control, retailers are optimistic about demand and then order additional orders; the demand for retailers has greatly stimulated producers, and the behavior of producers has stimulated the suppliers of raw materials more.

    < /p >


    < p > that is to say, the signal is constantly enlarged in the process of reverse pmission, and the consumer demand may only need 10 bottles, but the retailer's order makes producers blindly optimistic about demand, resulting in the impression that they need 100 bottles.

    A large number of orders from manufacturers to upstream suppliers also created 1000 bottles of impression for raw material traders.

    Conversely, the same is true when demand shrinks.

    < /p >


    In P > economics, there is a stock accelerator theory, which explains the business cycle theory that "demand rises slightly, but leads to excessive inventory increase, which leads to unsalable and sluggish" phenomenon.

    Without a comprehensive perspective, it is impossible to escape the individual behavior limited by this structure.

    After experiencing the rapid growth period of previous years, the clothing industry has been caught up in the high inventory crisis of industry. To a certain extent, it can be attributed to the asymmetry of information between the nodes in the industrial chain and the maximization of its own interests.

    < /p >


    < p > however, it is noteworthy that the clothing industry has taken action.

    For example, we use state feedback to minimize the total inventory, so as to avoid the occurrence of severe shocks in the market.

    According to Gao Jianfeng, for the most popular clothing market, which is suffering from the most serious stock crisis, it has actively made some shrinkage adjustment on the sales rhythm and scale. For example, some casual clothing brands will not exert too much pressure on the channel to store too much stock as they did in previous years. Instead, they will shrink their production capacity and even have some changes in the way of operation. They are more likely to make up orders according to the needs of the market and the feedback from the dealer stores, instead of ignoring the market demand in the past as the garment industry grows at a high speed.

    < /p >

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