Clothing brand value shaping effect is huge

Essentially speaking, clothes, like home appliances and automobiles, are all made of indiscriminate basic materials, and they have been given improved value after combination and processing. The brand is an important reference factor because consumers are willing to pay different purchase prices.

For example, two garments with similar work styles and similar styles, but due to different brands, the final market sales price is very different. For the premium part, some people think that it is to save money for businesses to advertise, and some people understand it as the need for grades and positioning.

Securities Times reporter learned during the survey that a mid-range garment priced at RMB 1,000 will cost only about 15% to 20% of the cost of production, including raw materials and labor. The circulation costs, including shopping malls and advertising, will account for 50%. About 60% to 60%, the remaining company gross profit.

With the increase in the sales price of goods, the proportion of production costs will further decrease. Before the media reported that the selling price of an international big-name garment was frequently tens of thousands, the production cost was only a few hundred dollars, and the rest of the cost was used for image promotion and maintenance.

The brand's role in shaping the value of a commodity is obviously enormous, and sometimes even exceeds the production of the commodity itself.

If the brand's significance is further amplified to the entire apparel industry in the country, in the face of *** appreciation and rigid rise in labor costs, companies can no longer adapt to simple OEM OEMs, and more and more companies begin to “fight costs and scale”. The low-end competition gradually entered the new stage of the strategy of “creating brand and tree image” in the era of domestic demand.

In particular, the rapid development of domestic e-commerce has provided a historical opportunity for second-generation entrepreneurs who are brand-oriented garment companies. In recent years, a large number of online brands have emerged.

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