The Competitiveness Of Us Own Clothing Brands Is Becoming Weaker.

The Global Retail Research Institute released a report that in the past 10 years, Clothing industry It plays a very important role in the global retail market. The report points out that high priced brand clothing will attract more and more consumers, while the growth of the sales of cheap clothing brands is slowing down, especially those department stores with low price as the main selling point, and their competitiveness in the clothing market is becoming smaller and smaller. It is predicted that in 5 years, the profit margin of private brand will be reduced by 25%.

Causing us department stores to own Brand clothing There are three reasons for the decrease in sales volume. First, the price of raw materials is rising, but consumers can not accept the increase in retail prices. This leads to a decline in the profits of the entire industrial chain, which affects the balance of payments of retailers. Most importantly, selling private brand means that retailers can not share price pressures with suppliers, but can only digest them alone.

Secondly, such as ZARA, H&M and UNIQLO, etc. Fast fashion brand The development also contributed to the gradual decline of the low price advantage of the department store's own brand. At present, consumers are becoming more and more careful about the cost of clothing products. They like to mix and match brands, and the same pleasure can be brought to Hermes and ZARA shopping. Because ZARA and other fast fashion brands are closer to big brands and more fashionable.

Again, thanks to good product quality, discount stores such as TJ Maxx and Ross Stores are increasingly popular among consumers. Although the price is slightly higher than the store's own brand, the quality is better and the price ratio is higher.

Some department stores have realized that consumers' attitudes towards low price private brands have changed. They are more willing to buy a boutique instead of using the same money to consume a pile of cheap clothes. As a result, it is difficult to sell the department stores that sell private brand clothing. They must recall brands such as Nike (Nike) and Levi's (Levi 's) to maintain their competitiveness, otherwise they can only accept the reality that profit margins are getting lower and lower.

Take the Kohl 's as an example. Recently, the company has adjusted its strategy, and the return of some popular brands has improved the sales of the entire storefront. Although its own brand sales increased from 42% 4 years ago to 52% today, the Department of commerce thinks that the consumption concept of consumers has changed. Department stores need to adjust their strategies as soon as possible and make adequate preparations.

The survey shows that in Europe, this trend is not obvious, because the retail market of department stores in Europe is very small, such as Marks&Spencer and Martha's private brand are trying to face the high-end market in Debenhams.

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Private brand, or PB, also known as store brand, is a product controlled by retail enterprises from design, raw materials, production and distribution. It is produced by a supplier designated by a retail enterprise, with retail brand and selling in its own stores. In essence, it is the OEM product of retail industry. It is characterized by self produced and self marketing products, eliminating many intermediate links. The use of private brand goods can pay less advertising fees, and can be produced and sold in large quantities. It can achieve economies of scale and reduce the cost of goods sold.

Private brand has been abroad for decades, and now it is increasingly valued by commercial enterprises, especially the large retail enterprises. Almost all supermarkets, chain stores and department stores in Europe and the United States sell goods marked with their own brands.