China's underwear industry development wholesale sink retail rise

Business News Agency August 3 There are currently two major factors affecting the industry's profitability pattern. The first is cost-driven inflation. Various cost factors (such as raw material costs, land prices, labor costs, property costs, transportation costs, online and offline advertising costs, etc.) are rising, squeezing the profit margins of various apparel companies; the other is the brand business from the consumer The closer it is, the higher its design value or brand value becomes. As consumers' consumption levels increase and their brand awareness increases, consumers gradually recognize and accept these design values ​​or brand values. As a result, brand owners receive design premiums or brand premiums. Corporate profitability.

Commercial companies have a mission to increase profitability, while paid-in profits = values ​​accepted by customers (baggage prices, the price of baggage, ie the price after deducting various discount discounts, etc.) - total cost (all direct Product costs and the specific costs incurred in providing services to customers/customers).

At the same time, the role of pure wholesale in circulation is getting lower and lower. Its front-end value is slashed by manufacturers' rigid costs, the back-end value is gradually divided by the brand or retailer, and the profit rate of the company is getting lower and lower, so it begins to retail terminals. Develop and control store resources to increase profitability.

What is the promotion of retail brand profit? The answer is - brand. When the retailer does a certain scale, he will start thinking about playing his own brand, so as to create greater value and gain more profits.

There are two reasons for the fierce competition between the wholesale market and retailers: First, brand influence is expanding, and consumers’ brand awareness continues to increase. From a brand perspective, its influence is constantly expanding. The cost of LV bags is a few hundred dollars. Why are consumers still buying when they sell tens of thousands or more than 100,000? This is the influence of the LV brand, people buy is not only the package itself, but the LV brand. In addition, a good brand means quality assurance, good product reputation, perfect after-sale services, and even a shopping environment. The understanding of a higher level is to lead the trend, highlight personal images, and status. People pay more and more attention to brand packaging. This is a market gap and a point of opportunity for businesses.