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Rising Costs, Upstream Enterprises Are Still "No Action" In The Near Future.

2011/3/30 9:36:00 86

Rising CostsUpstream Enterprises Do Not Move

Forced to Rising cost pressure The price of some commodities in the capital market has increased, so that the domestic clothing brands will be ready this year. Collective price increase Rumors intensified. However, yesterday, Bosideng, Dr. frog and SUSIE participated in the China International Clothing and apparel fair's local clothing brands. They said that due to large sales volume and stable relationship with suppliers, the recent price adjustment is unlikely.


Yesterday, a large number of local fashion dealers attending the China International Clothing and Accessories Fair in Beijing said they would not adjust prices temporarily because of increased production costs.


The largest down garment manufacturer in China Bosideng The person in charge said that because of the large number of retail outlets and large sales volume, the prices of raw materials supplied by suppliers to the enterprises were reasonable. At the same time, because of high output and relatively low fixed costs such as production lines, commodity prices will not rise in the near future.


The head of the biggest children's clothing brand doctor frog also said that in the previous procurement, the enterprise has already prepared for the possible rise of raw materials in the future. At present, the textile stocks of enterprises are abundant, and the prices of commodities will remain stable.


SUSIE, who operates 9 stores in the shopping mall of Xizhimen, Beijing and Dongzhimen MALL Ginza, said the brand is fast fashion, with a large annual sales volume and will not pass the pressure of rising costs to consumers.


In the face of the same increase in production costs with foreign enterprises, large domestic garment manufacturers collectively choose to "stay put". In this regard, the industry analysis, in the field of domestic clothing, most of the market share is divided by foreign brands. Especially in the first tier cities such as Beijing, because the styles are more fashionable and famous, the consumers in these areas are more willing to buy famous brands abroad. Once domestic clothing brands follow the price of foreign capital brands, it will not only be difficult to alleviate the cost pressure, but also likely to lose their original positions.


A person who does not want to be named thinks that the profit of the domestic garment industry is very high. Even if the production grows, the brand can accept the compressed retail profits. Moreover, the styles of clothing are diverse, and the subtle changes such as necklines can lead to price fluctuations. It is easier for consumers to accept price adjustment by changing styles than simply raising prices.


 

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