"Apparel into the shopping mall is seven times higher than the ex-factory price." Follow-up report: Consumers do not discount or buy, merchants do not allow discounts to enter the market, business cycle rotation is difficult to stop, the industry said that the shopping mall clothing prices will continue to push up apparel manufacturers Entering the mall will raise the bid price again and again, some up to 7-8 times the ex-factory price. The news of the "Yangcheng Evening News" last Friday caused a lot of consumers and industry insiders to resonate. A number of apparel company executives said that their hardships are trapped in a business cycle that is difficult to extricate. On the one hand, consumers do not discount or buy, on the other hand, shopping discounts are increasing, and clothing suppliers must not survive in order to survive. Without increasing the price and then discounting, the business environment has repeatedly deteriorated. The industry believes that the formation of such a strange cycle, it should reflect on the shopping center charges are too high, and the discount model itself is also a problem, but at present the suppliers and shopping malls have no other means to increase profits, clothing crazy increase price discount and then short-term fears change.
Cause: Consumers are too eager to discount?
Consumers have gradually developed a habit of not making purchases without discounts. “It is difficult to maintain sales at a substantial price.†The heads of several shopping malls told reporters that the cause of the current turmoil is still to cater to consumers.
"Price is the killer of product sales. This is the game rules of the market. Many consumers have bought discounts because of blind obedience and irrational shopping habits," said Huang Huajun, president of the First Commercial Network.
Peng Yan, a senior researcher at the Guangzhou Academy of Social Sciences, also stated that Chinese people like discounts and bargaining. This has led to many shopping malls that often carry out discounted promotions, but at the same time, they also reduce business profits and increase the cost of manufacturers. Therefore, garment manufacturers have to raise the price, which reflects the problem of discount mode in marketing.
Behind the business appetite to open charges?
Yesterday, a well-known clothing business owner revealed to the reporter of the Yangcheng Evening News: “Now this kind of strange circle has become a common phenomenon in the industry. Naturally, there are still hidden deeper factors.†The person said, “In fact, shopping malls are often Discounts are the worst among manufacturers, but there are many problems in the market. Because shopping malls charge suppliers for various entry fees, manufacturers have to raise their prices.â€
How much can a department store charge for clothing suppliers? A number of apparel suppliers revealed to reporters that there are only two types of high-end textile and apparel brand terminal sales channels, one is to open stores, and the other is to enter shopping malls.
The cost of opening a store with high rents and decoration costs at least RMB 600,000 up to RMB 1 million. Therefore, many clothing companies will not give up entering department stores. The majority of department stores are currently priced at around 40% of the sales according to the mode of joint deduction. However, there are still many public relations costs, which must be given to key individuals.
“This part of the cost may account for a total of one or two percent of the annual net profit of apparel companies in the mall.â€
"This circumstance reflects that marketing costs are too high." Peng Yu believes that in the long run, bad business models will be formed. Shopping malls, manufacturers, and consumers will lack mutual trust and will harm normal business culture.
The crux of the problem is that the level of market operation is too low and the damage to the three parties is gradually expanding.
On the one hand, consumers are complaining that clothing prices are getting more and more expensive. They feel that buying discount clothing in department stores is suspicion. At the same time, department stores are increasingly worried about sales. Clothing suppliers are also scowling. They raise the list price and then discount them. A lie requires more lies to round, and a nightmare cannot see the end moments.
“At present, suppliers and shopping malls have no other means to increase profits.†Hua Tao, president of the Shenzhen Retail Commerce Industry Association, believes that the fundamental reason is that the entire market is not operating at a sufficient level. It may be difficult to change.
“Now shopping malls require manufacturers to be discounted, but manufacturers are suffering from no other cures and can only get deeper and deeper.
It can be predicted that this crazy increase in the list price will be even more severe this year. "A person in charge of a well-known clothing company told reporters.
Prescription: Practical branding road “Good products shape their brands through creativity and innovation. Some people buy these products even if they are not discounted, such as some luxury brands, or some brands that only offer members a discount.†Huang Huajun asks, isn’t this? An inspiration?
Yunjian, the general manager of the brand clothing company, told reporters: "The manufacturers only try to open up stores, carry out economic transformation and upgrading to cope with this turmoil. And the government should crack down on various commercial wrongdoings."
“Foreign rules are very stringent and the market is not afraid to chaos. We should continue to learn from the foreign market business philosophy and methods.†Hua Tao further explained that for the mall, the market's environment has no effect on the discount The phenomenon of sales, the previous attempt to introduce a unique brand, but soon these brands are located in various shopping malls, so they create their own brands, the implementation of brand agents, planning out of this cycle, out of this cycle will be able to live, on the contrary can not go out It will fall. "As far as I know, many malls and manufacturers are now racking their brains to change. Consumers will also change. Now is the darkness of the commercial market before dawn."
Cause: Consumers are too eager to discount?
Consumers have gradually developed a habit of not making purchases without discounts. “It is difficult to maintain sales at a substantial price.†The heads of several shopping malls told reporters that the cause of the current turmoil is still to cater to consumers.
"Price is the killer of product sales. This is the game rules of the market. Many consumers have bought discounts because of blind obedience and irrational shopping habits," said Huang Huajun, president of the First Commercial Network.
Peng Yan, a senior researcher at the Guangzhou Academy of Social Sciences, also stated that Chinese people like discounts and bargaining. This has led to many shopping malls that often carry out discounted promotions, but at the same time, they also reduce business profits and increase the cost of manufacturers. Therefore, garment manufacturers have to raise the price, which reflects the problem of discount mode in marketing.
Behind the business appetite to open charges?
Yesterday, a well-known clothing business owner revealed to the reporter of the Yangcheng Evening News: “Now this kind of strange circle has become a common phenomenon in the industry. Naturally, there are still hidden deeper factors.†The person said, “In fact, shopping malls are often Discounts are the worst among manufacturers, but there are many problems in the market. Because shopping malls charge suppliers for various entry fees, manufacturers have to raise their prices.â€
How much can a department store charge for clothing suppliers? A number of apparel suppliers revealed to reporters that there are only two types of high-end textile and apparel brand terminal sales channels, one is to open stores, and the other is to enter shopping malls.
The cost of opening a store with high rents and decoration costs at least RMB 600,000 up to RMB 1 million. Therefore, many clothing companies will not give up entering department stores. The majority of department stores are currently priced at around 40% of the sales according to the mode of joint deduction. However, there are still many public relations costs, which must be given to key individuals.
“This part of the cost may account for a total of one or two percent of the annual net profit of apparel companies in the mall.â€
"This circumstance reflects that marketing costs are too high." Peng Yu believes that in the long run, bad business models will be formed. Shopping malls, manufacturers, and consumers will lack mutual trust and will harm normal business culture.
The crux of the problem is that the level of market operation is too low and the damage to the three parties is gradually expanding.
On the one hand, consumers are complaining that clothing prices are getting more and more expensive. They feel that buying discount clothing in department stores is suspicion. At the same time, department stores are increasingly worried about sales. Clothing suppliers are also scowling. They raise the list price and then discount them. A lie requires more lies to round, and a nightmare cannot see the end moments.
“At present, suppliers and shopping malls have no other means to increase profits.†Hua Tao, president of the Shenzhen Retail Commerce Industry Association, believes that the fundamental reason is that the entire market is not operating at a sufficient level. It may be difficult to change.
“Now shopping malls require manufacturers to be discounted, but manufacturers are suffering from no other cures and can only get deeper and deeper.
It can be predicted that this crazy increase in the list price will be even more severe this year. "A person in charge of a well-known clothing company told reporters.
Prescription: Practical branding road “Good products shape their brands through creativity and innovation. Some people buy these products even if they are not discounted, such as some luxury brands, or some brands that only offer members a discount.†Huang Huajun asks, isn’t this? An inspiration?
Yunjian, the general manager of the brand clothing company, told reporters: "The manufacturers only try to open up stores, carry out economic transformation and upgrading to cope with this turmoil. And the government should crack down on various commercial wrongdoings."
“Foreign rules are very stringent and the market is not afraid to chaos. We should continue to learn from the foreign market business philosophy and methods.†Hua Tao further explained that for the mall, the market's environment has no effect on the discount The phenomenon of sales, the previous attempt to introduce a unique brand, but soon these brands are located in various shopping malls, so they create their own brands, the implementation of brand agents, planning out of this cycle, out of this cycle will be able to live, on the contrary can not go out It will fall. "As far as I know, many malls and manufacturers are now racking their brains to change. Consumers will also change. Now is the darkness of the commercial market before dawn."
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