Clothing Brands Fall Into "Vicious Circle Of High Price Increase And High Inventory"

Less than P this year, not only sports brands, including leisure and fashion brands, seem to be worried about inventory.

On the one hand, enterprises continue to discount sales and clean up inventory. On the one hand, consumers think that < a href= "//www.sjfzxm.com/" target= "_blank" > clothing < /a > prices are still high.

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< p > to this strange phenomenon, it is pointed out that this has nothing to do with the intermediate links of clothing distribution.

"Stock movements of related companies < /p >

< p > clothing came out of the factory after dealers, agents, distributors and other links to circulate to the market. In addition to considering the cost factors, the clothing price also needs to consider the process of raising prices in the sales channel, and the intermediate links of clothing sales have gained larger profits.

Xiong Xiaokun, a light industry researcher at CIC, pointed out.

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< p > statistics show that the domestic brand channel increases by 4 to 8 times, while the international second-line brand is 6 to 7 times, and the leisure and fast fashion brands are 2.5 to 4 times.

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< p > "this is absolutely conservative data."

Chen Changsong, an analyst of a href= "//www.sjfzxm.com/" target= "_blank" > textile < /a > industry branch, said that the increase rate of domestic second tier brands can reach 6 to 7 times.

With the sharp rise in clothing prices over the past two years, the corresponding rate of increase has also risen.

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< p > insiders say that the driving factors of clothing price include labor cost, terminal cost and production cost.

In recent years, the cost of raw materials, rents and labor costs of clothing has been greatly improved. Brand operators can only increase the rate of profits in pursuit of profits, resulting in the rising prices of products.

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< p > Xiong Xiaokun explained that the low cost of Chinese clothing provided a larger space for the increase rate.

"The cost of international second-line brand is higher than itself. If the price increase rate is higher, it will weaken its competitiveness in the clothing market.

The cost of domestic clothing is lower, so that channel manufacturers can maximize profits and raise the price of domestic clothing to the market average.

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< p > for the rise of clothing prices, enterprises in the annual report in the cost of rising as an excuse.

However, a person who declined to be named said that the cost increase was only a partial factor, the fundamental reason was that the price of the domestic clothing industry was still too "empty", and the price rise of the terminal was always greater than that of the cost increase.

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< p > above insiders who do not want to be named pointed out that under the current strong pursuit of e-commerce, it is precisely because of the higher pricing that the major brands have to sell high-profile promotion to inventory growth.

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< p > China Merchants Securities Research Report predicts that Lining, Anta, China Trends and XTEP, including the four largest sporting goods companies in 2012, has more than 10 billion yuan of inventory.

But on the other hand, the price of "a href=" //www.sjfzxm.com/ "target=" _blank "brand clothing" /a "can not go down again.

"The rising clothing prices will further worsen the clothing market and increase the stock of enterprises."

Xiong Xiaokun said.

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< p > Chen Changsong pointed out that the high price of clothing not only increased the stock, but also the advantage of the traditional brand when competing with the electricity supplier.

The pricing model of a healthy clothing brand should consider the brand positioning.

"The first tier brand has a high price tag, but the two or three line is not high enough, after all, mass consumption is here."

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Relatively speaking, the domestic garment industry is still in the stage of joining the development stage. Compared with the direct battalion, there are more intermediate links in this mode, and the rate of natural increase is higher than that of the direct ones. "P"

However, the future industry does not necessarily have to go direct to allow the rate to return to normal.

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< p > Chen Changsong added, "now there are basically many a href=" //www.sjfzxm.com/news/index_c.asp "> branding < /a > there are mall cities. The correct approach should be to integrate online and offline, make daily online style, and pay attention to higher level products under the line.

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