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China'S Underwear Industry Wholesale Sink, Retail Rise

2011/8/4 15:33:00 48

Underwear Industry Development And Wholesale Rise

There are two main factors affecting the profit margin of the industry.

First, cost driven.

currency

Expansion.

Various cost elements (such as raw material costs, land prices, labor costs, property costs, pportation costs, online and offline advertising costs) are all rising, squeezing the profit margins of garment enterprises; the other is that brand dealers are getting closer to consumers, and their design value or brand value is beginning to show. With the increase of consumer consumption level and brand awareness, consumers gradually recognize and accept these design values or brand values, so that brand owners get premium or brand premium, which improves the profitability of enterprises.

Business enterprises have improved

profit

Rate of mission, and actual profit =

customer

The value of accepted (bag price, bag for security), that is, the original price minus all kinds of discount and discount, etc. the total cost (all direct product cost and the specific cost for customer / customer service).

At the same time, the role of pure wholesale in circulation is getting lower and lower. Its front-end value has been cut down by the rigid cost rise of manufacturers, and the value of backend has been gradually segmented by brands or retailers, and the profit margin of enterprises has been getting lower and lower. Therefore, it has begun to develop towards retail terminals and control shop resources to improve profit margins.

What is the promotion of retail brand profits?

The answer is brand.

When a retailer achieves 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 wholesale market and retailer.

brand

The influence is expanding, and consumers' brand awareness is constantly increasing.

From the perspective of brand, its influence is expanding.

LV package costs hundreds of dollars, why sell tens of thousands, tens of thousands of price, consumers still buy it?

This is the influence of the LV brand. People buy not only the package itself, but the LV brand.

In addition, a good brand means quality assurance, good reputation, perfect after-sales service, and even shopping environment. A higher level of understanding is to lead the trend, highlight the personal image, status and so on.

People pay more and more attention to brand packaging, which is a blank point in the market, and also an opportunity for businessmen.