Why Does The Production Enterprise Not Make Money In The Sales Year Of The Down Jacket?

By 2022, China's down garment market is expected to grow to 160 billion.

The continuous cold air coming this winter has made the down clothing market more concerned and sales are rising all the way.

Many businessmen said that since the winter, frequent cold air has come, and the sales of down garments category have increased to varying degrees compared with the same period in previous years.

Baidu search index also showed that the peak value of search for "down jacket" in the past month was closely followed by the search words such as "cold wave" and "cold air".

In Hangzhou, Zhejiang, the second snowy shopping mall is filled with customers who choose to buy down clothes.

Liu Qiangfeng, director of the Hangzhou direct camp District of Jiangnan Buyi, said that the sales of down garments accounted for about 30% of the stores, and accounted for more than half of the sales in actual sales.

In Beijing, birds and new wine Beijing Chaoyang Joy City store shopping guide Wang Xing said, now the consumer psychological cost of down clothing is about 2000 yuan, like a down jacket two thousand or three thousand yuan, customers feel okay.

Prior to this, Bosideng released the first half of the fiscal year's earnings report also showed that with the high-end product promotion, Bosideng price increased substantially in 2018, the average price of down clothing increased by 20% to 30%, and the proportion of high-end products will continue to improve.

It is understood that it is precisely the characteristics of the high price of down clothing products, many clothing brands plus down jacket products, the number of clothing in winter clothing accounted for half or even higher.

In addition, a number of famous down garment brand manufacturers have adopted online and offline linkage promotion methods, and even used social interaction platform to promote new products, which has led many young people to try them on.

Online store, according to Tmall big data, down clothing category usher in the "sales year", during the "double 12" Shopping Festival, nearly 100 million people in the week, click and look at the down jacket, men and women's clothing down clothing increased 48%, an increase of nearly 2 million, 1500 yuan price belt feather clothing to become a new consumption blue ocean.

In Jingdong, from November 20, 2018 to December 10th, the frequency of consumer search down clothing increased by nearly 30% compared with October 2018, and sales grew by more than 30% over the same period.

Vip.com data show that in December 2018, the sales of vip.com's down jacket increased by 24.85% compared with the same period last year, and the sales of down garments in Hangzhou area increased by 61.6% over the same period last year.

With the sales of down garments rising all the way, prices are rising.

The sale price of some famous brand down coats in 2018 generally increased by three hundred and five hundred yuan compared to 2017. It is almost impossible to find a few more thick ones than 2000 yuan in 2017. Fashionable fashion brand down clothing is even more obvious. Like the fashionable CK down jacket, there is a five thousand or six thousand yuan quotation, which is much higher than the previous price.

Overall, the price increase of this winter down jacket is almost 10%.

Looking back on the price of down garments since 2010, it is easy to find that "three years of one rise" is almost a rule.

Statistics show that in recent years, the overall growth of China's down garment market has been growing up: in 2017, the market size was less than 100 billion. In 2018, the market of Chinese down garment market has reached 106 billion 800 million, an increase of nearly 11% over the same period last year, and it is expected to grow to 160 billion in 2022.

With the increase of sales and prices, will the profits of the downstream down processing industry increase?

According to CCTV financial report, although this winter is the peak season for feather production, the price of raw materials is also rising significantly.

Fu Miaokui, chairman of the Liu Qiao group, said that from 2016 to now, feather down material is like 50% white eiderdown, and 100 yuan per kilogram in 2016, and now it is 250 yuan per kilogram.

It is understood that in the mainstream of the white cashmere with 90% cashmere content, for example, the market price in December 2018 basically maintained at around 450 thousand yuan per ton, more than doubled in early 2018, at a historical high.

Insiders said that the market of feather and down products was getting warmer. In 2018, the overall decline of meat and waterfowl breeding production and the continuous rising of the price of substitute cotton, together with multiple factors, led to the rising price of feather and down materials.

Many enterprises said that the current hot market situation did not bring more profits to them.

Fu Miaokui disclosed that 70% of the order in 2019 was basically fixed, but if the price of raw materials continues to rise, enterprises will face great risks and pressure, and profit margins will also shrink, or even lose money.

Du Dasheng, executive deputy general manager of Zhejiang Samsung down Limited by Share Ltd, also said that at present, the purchase cost of raw materials should be increased by about 30% of capital investment.

He believes that at present, the main right to speak down raw materials is still in these enterprises.

It is understood that as the traditional light industry, the overall profit margin of the down processing now fluctuated between 3% and 5%.

In order to reduce the risks brought about by the fluctuation of raw material prices and increase profit margins, many down processing enterprises have chosen to extend the upstream and downstream industries, such as joint ventures with breeding enterprises, or the establishment of self run downstream products factories.

Some enterprises have also increased investment in production equipment to produce higher value added feather products.