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Experts Analyze The "Dim Price" Of Clothing

2010/9/4 15:58:00 257

Cotton Price Sales Channel Data

   Cotton price The labor cost increased sharply, distribution channel Promotion...... All kinds of signs indicate that the rise of clothing prices is "imminent". However, according to the National Bureau of Statistics data It shows that in July, the ex factory price of clothing products increased by 2.0% year on year, but the consumer price decreased by 0.8% year on year.


Is the price going up or down? It's confusing.


To this end, the reporter interviewed relevant experts.


"One rise and one fall" is not surprising


Chen Guoqiang, Executive Deputy Director of the Institute of Industrial Economics of the China National Garment Association, analyzed the reporter that it is not surprising that this "one rise and one fall": "With the large-scale increase in the cost of production factors, enterprises will inevitably have the impulse to raise prices. But at the same time, we should also be soberly aware that, looking at our entire Chinese clothing market, the supply is still more than the demand, the production of clothing enterprises is still in full swing, and a steady stream of products are pouring into the market. It is also worth noting that in the past two years, due to the impact of foreign demand, some of the 'productive forces' originally engaged in foreign trade have shifted to the domestic market. How to digest these products is still a problem. "


At the same time, the reporter also contacted Yuan Gangming, director of the Macroeconomic Research Office of the Institute of Economics of the Chinese Academy of Social Sciences. In the interview, Yuan Gangming also mentioned the problem of supply exceeding demand: "When the market is in a situation of supply exceeding demand, manufacturers often compete with each other to compete for customers. Without sufficient market purchasing power, it is difficult to ignite the fuse of price increase." This is why many clothing brands are still in a wait-and-see state and dare not raise prices blindly.


Consumers don't buy it


Since supply exceeds demand, it can be said that the current clothing industry is still a buyer's market, and consumers' "buy or not buy" has become a subtle lever to adjust market prices.


Yuan Gangming pointed out: "Unlike other consumer goods, the price of clothing consumer goods is limited by the cost. Clothing is an enjoyable commodity, not a necessity. Due to the current economic situation, on the one hand, consumers' income has not increased, on the other hand, they have to face the pressure of rising prices of other necessities. They can only reduce part of their spending, and clothing consumption naturally bears the brunt. Whether the price of oil rises or the price of cotton rises, it is of little significance. After all, it is useless for consumers not to buy the price no matter how high it is set. "


Indeed, as an ordinary consumer, we tend to have great flexibility in the consumption of clothing. If you have money today, you can buy something more expensive. If you don't have money tomorrow, even if you don't buy new clothes, your life will not be affected too much.


"Although the country has been emphasizing the expansion of domestic demand, this' domestic demand 'covers more security needs, and the purchasing power of clothing is also difficult to expand significantly in the future." Chen Guoqiang said.


To sum up the above reasons, when asked about the trend of clothing prices in the second half of the year, Yuan Gangming and Chen Guoqiang gave a similar answer: in a short time, clothing prices are mainly bearish.


How can enterprises increase prices


If prices do not rise but fall, the relationship between supply and demand cannot be controlled, will enterprises sit still and wait to die?


Chen Guoqiang said: "The price of a few high-end products in the market will still go up. In the long run, the price of clothing may not be down. We should see that many of our brands are improving, some of our product quality is changing, and the added value is increasing."


In the final analysis, China's manufacturing industry is still plagued by excessive dependence on raw material costs and labor costs. As soon as the upstream market is disturbed, the downstream market will immediately become disorderly. A truly mature enterprise will have some cost space that can be operated relatively freely, that is, management cost and process cost. We can do something about it.


Therefore, Chen Guoqiang pointed out: "The key is that our clothing industry should do a good job in professional division of labor, which can fundamentally ensure the healthy development of the industry and the ability to resist risks. It is unnecessary to mention industrial upgrading, just go to do their own" brand "in a wind. In a short time, the overall upgrading of an industry is unrealistic. At present, the most practical way is to optimize horizontal industrial division and cooperation. Large enterprises can make brands if they have strength, and small enterprises can also make international OEM (OEM) very professional if they have no strength. It is not difficult for enterprises to exert their strengths, integrate resource allocation and achieve effective control over the industrial chain. "

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