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    Higher Price Difference, Such As Shoes And Clothing At Home And Abroad, Increase In South Korea

    2014/11/28 20:15:00 12

    ShoesClothingEtc.The Price Difference Is LargeOverseas Direct Purchase

    South Korea's central bank recently released a report that according to Korean customs statistics, in the first half of this year, the number of overseas direct purchases purchased by Korean consumers online reached 7 million 276 thousand, an increase of 45.7% over the same period last year, and the overseas direct purchase amount was 753 billion 800 million won, an increase of 48.5% over the same period last year, accounting for 0.2% of the South Korean private consumption in the first half of this year.

      

    The Republic of Korea

    Overseas direct purchase is mainly made of footwear, clothing, health foods and other products which are quite different in prices between Korea and abroad.

    Although Korea's direct purchase abroad is now occupied by Korea.

    consumption

    The proportion is not large, but it is expected to continue to rise.

      

    Presentation

    At the same time, it is pointed out that overseas direct purchase has positive effects on pulling down domestic commodity prices in Korea, but it may also cause negative effects such as shrinking domestic production and reducing employment opportunities.

    In addition, the number of Korean consumers on the Internet purchased by foreign consumers during the same period reached 13 billion 400 million won, up 23.1% over the same period last year.

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    The innovation of garment production enables fashion companies to place manufacturing centers around target consumers to improve their reaction speed.

    Accordingly, the report recommends that "fashion companies must adopt new cost tracking frameworks to control costs and provide incentives for key production partners to improve productivity."

    The report pointed out that the choice of supply areas was to maintain low labor costs as the primary consideration so that product prices could remain competitive, and when a country's labor costs increased, fashion companies had to shift their production areas.

    "Perhaps this migration will soon be over.

    Cheap labor has become increasingly scarce and low cost countries are decreasing.

    To cope with this trend, fashion companies must make full use of existing equipment to improve production efficiency, speed up the expansion of the market and eliminate the pressure of labor cost management.

    BCG believes that the current challenge requires market companies to examine their production processes and production partners from three strategic perspectives.

    1. Innovation: Innovation in garment production allows fashion apparel companies to place production facilities closer to the market, increase their responsiveness to the market and better manage the demand for raw materials.

    Even if the cost advantage continues, such as power failure, telephone and Internet network breakdown, the report may cause additional costs and obstacles to the supply chain, the report said.

    In severe cases, harsh production conditions were fatal. The collapse of the building in Sarwar, Bangladesh in 2013, fully confirmed this.

    Political instability is also a potential threat in many areas. "

    The current fashion cycle is shortened, but in the emerging low-cost countries (such as Burma and Ethiopia), the production cycle is longer. This contradiction makes people start looking for new ways to obtain low-cost supply.

    "Their cost advantages are pient and may be eroded by the increase in non labor costs."

    2. cooperation: increase cost pparency.

    New technology and new technology, from digital design, 3D printing, to waterless dyeing and automatic tailoring, are cutting production costs and accelerating turnover.

    A new clothing pricing method beyond the standard labor cost model allows fashion companies to set up a new benchmark for apparel production in minutes, which helps them compare the suppliers in different regions to select the most efficient ones.

    The disadvantage of China's rising labor costs is offset by the advantages of higher productivity. In a comprehensive sense, competitiveness is not lost to Philippines and Kampuchea, which are cheaper in terms of labor costs.

    3. value added: raw material management.

    Fashion companies are also better managing raw materials through one or more of the four main methods.

    A) "material engineering management" helps companies and suppliers to optimize fabric selection and production processes.

    B) "combinatorial complexity simplification" refers to the integration of resources, using a simpler combination of yarn counts and weights to reduce the complexity of raw materials.

    C) "value chain adjustment" requires companies to better arrange production time so as to distribute production burden evenly rather than relying on unstable speculation as before.

    D) and supply chain integration can help fast fashion companies increase production or pform into new styles.

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