Fashion Partners Must Choose The Right Way To Do Business.

In all industries, the clothing industry is an eternal sunrise industry.

Whether it's a personalized clothing store that spreads all over the streets, or a high-end brand clothing of the major shopping malls, from tens of dollars of low-grade stalls to imported clothing that reaches tens of thousands of yuan or even tens of thousands of dollars, people are willing to pay for it if they are in line with the trend and consumers' tastes.

Many cities "moonlight clan" consumption list, at least 1/3 is for the pursuit of beautiful and blood clothing expenses.

So, how big is the profit of clothing business? What is the difference between the profits and risks of specialized stores, franchisees and boutiques? The following are some suggestions for readers.

According to industry sources, the gross profit margin of brand clothing can reach 200% or even higher in large shopping malls, and winter clothing is higher than summer clothing, and men's clothing is higher than women's clothing.

For example, a brand of men's clothing.

The price is more than 100 yuan, but it can be sold for more than 400 yuan, even if it hits 50 percent off, it will still be profitable.

As for those clothes that are particularly discounted, most of them have been in storage for several years and are basically processed at cost.

From the point of view of digital analysis, the profit margin of brand stores is indeed hot and heartbeat, but this kind of algorithm that simply uses the price minus the purchase price does not seriously calculate and deduct all kinds of expenses in the operation. Therefore, simple addition and subtraction analysis does not seem convincing.

The existence of profiteering of brand clothing is mainly in circulation.

The intermediate links of clothing sales include dealers, brand agents and retail stores.

In terms of clothing, dealers usually have to increase their price by 30% at the ex factory price, and the retail store will increase the price by 30%.

Therefore, a 100 yuan clothing to the mall, the price may climb to more than 170 yuan, or even higher.

Some people in the industry say that the price of new clothes is so high because the various expenses from shopping malls are higher during the sales process. Besides the high cost of entering stores and the apportionment of various promotional expenses, it is also necessary to deduct a certain number of points according to the turnover.

If the price is not marked higher, it will be difficult to cope with the frequent discount and coupon activities in the shopping mall.

The brand clothing in the mall has a high profit, but the entry threshold is also high.

As a result, many smart investors find it more profitable to set up brand franchises in downtown areas.

Franchised stores are the most popular brand clothing in recent years.

As long as investors take money to join, investors from headquarters selection, store decoration and layout, training to shop assistants and promotion methods are all provided by headquarters and do not have to spend too much energy in operation.

According to insiders,

The gross profit margin of a franchised store is generally over 50%, and the cost of opening a brand clothing store is between 100 thousand and 200 thousand yuan. The cost mainly includes store pfer fee, annual rent, first payment, decoration cost, and brand joining fee, mobile fund and clerk's wages.

If the annual turnover can reach about 200 thousand yuan, according to the gross profit margin of 50%, the actual profit can be up to around 40 thousand yuan if the expenses are calculated.

According to the insiders, it seems that there is no need for professional technology to open a clothing store, so long as there is capital, it can be involved. However, it is not so easy to make big money from it. Brand affiliate also has a certain investment risk.

With the increase of rents in urban areas, the cost of opening shops is increasing.

At the same time, clothing stores are increasingly fierce competition, turnover is limited; on the other hand, shopping malls at 50 percent off or even greater promotional activities, small and medium-sized brand stores also have greater pressure, especially in the golden holiday of clothing consumption, a large part of the consumer sentiment will be attracted by the mall.

Thus, clothing brand franchisee's profit margin is not very large.

For example, if we take the goods at 60 percent off of the retail price and deduct the rent of 30% or so, then the sale of 30 percent off will be the bottom line. What we see is that the present shopping mall is always "forty percent off new products", so that only the suppliers can afford it.

Therefore, many franchisees often rely on a number of stores to operate with small profits and quick turnover strategies to win volume, and demand profits from suppliers with high turnover.