Clothing Costs Are "Urged" Price Increases Frequent Promotions Lead To Brand Price Increases.

< p > < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > price rise, whether it is industry experts, senior research institutes or leaders, the level of interpretation is relatively macro, far from the real experience of brands on the front-line battlefield. However, many brands are also keeping tabs on the rise in clothing prices, because price increases are not simply caused by a single cause, but because of the combined effects of many reasons, which involve upstream and downstream business cooperation, shopping malls, layers of exploitation and more problems. < /p >
Based on this, the reporter conducted a deep dialogue with a senior brand woman who had been engaged in high-end women's clothing brand for more than ten years. He was unwilling to reveal his name, but he would like to share with you all his experience in the first half of the year to explore the problems behind the price increase of clothing. P < /p >
< p > < strong > all costs are in the "supervision" price increase < /strong > /p >
< p > reporter: in the past two years, the clothing prices in the domestic market have significantly increased, especially in the shopping mall, < a target= "_blank" href= "//www.sjfzxm.com/" > brand clothing < /a > is most obvious. The factors that affect the development of enterprises in the near future are the increase of raw material cost, labor cost, production cost and channel cost. Which cost do you think has the greatest impact on the price of terminal clothing? < /p >
< p > senior clothing brand: in the past two years, the overall price of women's clothing is rising, especially the "little Shu", which has risen very fiercely. In fact, the cost increase mentioned above is affecting the price of clothing, but I think the biggest reason for the recent rise in clothing prices is that the enterprises have increased capital investment in product development, materials and workmanship while improving their quality. In order to improve the quality and choose better flour and production teams, the price of clothing will rise again and again. < /p >
< p > reporter: the cost of employment in the previous two years has been unable to get rid of the labor cost of the enterprises. I don't know the proportion of labor cost in the final price. < /p >
< p > senior clothing brand: in fact, the cost of labor in recent two years basically refers to the labor cost of front-line workers, which did not rise in 2012. It should be said that the situation is similar to that in 2011. But labor costs are not just labor costs. Wages of many brand store clerks, Brand Company's internal management, technology and staff are also rising. This is a great expense. < /p >
< p > reporter: is the increase in raw material cost more influential? < /p >
< p > senior clothing brand: Yes, raw materials directly affect the quality of fabrics. Now most high-end brands attach great importance to the use of fabrics. The price discrepancy is obvious. Whether the fabric chosen by the enterprise is purely natural, whether imported or homemade, will affect the final price. < /p >
"P > cotton prices are going up and down. We will not say that chemical fiber is now in line with international oil prices. The price of oil will rise and the price of chemical fiber will also rise. Besides, there are many natural raw materials such as wool, mulberry silk and hemp, which are rising with the changing market demand. Now consumers buy a target= "_blank" href= "//www.sjfzxm.com/" > clothes < /a > are all looking at the quality, where to look at the quality, the first is to look at the fabric, so the brand has to work hard on the fabric. < /p >
< p > > strong > frequent promotions in stores result in brand price increase < /strong > < /p >
< p > reporter: the bazaar of the mall has been dividing the profits of the brand, has the store rent been rising? Does the channel cost affect the price increase? < /p >
< p > senior clothing brands: shopping malls have always been the point of deduction, but also slightly increased in 2012, but the increase is not big, and the price does not cause much impact. Now the Beijing shopping center is basically 25%~30%'s buckle point, the second tier city in the 18%~25% buckle point. < /p >
< p > in fact, the discount point has little effect on the brand. Another reason for the increase in clothing prices is more and more promotional activities in the mall. For example, if the price of a pair of trousers is one thousand yuan, according to the sales promotion activities of the mall, 20 percent off will be finished, and then the brand will get only about 600 yuan, and then the cost will be removed. So in order to deal with all kinds of promotional activities that the market has to compete with, the brand operators are also raising their prices accordingly, so that they can leave room for profit and ensure that their interests are not violated. < /p >
< p > reporter: there are more and more promotional activities in shopping malls, and many consumers have formed a habit of selling clothes to catch up with promotions. But when there are no promotions in the mall, the price of clothing brand is so high, does it not affect sales volume? < /p >
< p > senior clothing brand: in fact, we all do not like to do promotional activities. Do you think the store likes to do it? But there is no way. The competition in the domestic market is too intense. The shopping mall looks at the water (Sales). In order to run the water, it can only make profits in a large scale. There have been brand events that have changed the brand in order to cope with the discount sale in the shopping mall. So now the branding business is learning from the very beginning, so it is helpless to protect their interests first. < /p >
< p > in fact, the overall sales of clothing in the market in 2012 are declining. As far as I know, there are 8 sales of 10 brands in the shopping mall are declining, the range is different from 20%~30%. Last year, the overall macroeconomic situation was not very good, and many consumers did not value the clothes too much. This has led to frequent discount sales to attract consumers, forming a vicious circle. < /p >
< p > reporter: do you anticipate that the price of clothing will go up in 2013? < /p >
< p > senior clothing brand: I don't think it will go up. Most brands will maintain a steady price. Of course, raising 3%~5% is normal. You should also consider a lot of subtle cost changes. Now many brands of spring and summer have been produced, the price is also set according to the price of 2012, so there should be no big change. < /p >