The Truth Behind The Sharp Rise In Clothing Prices

The golden week of National Day is in every big country.

Why is the price of clothing soaring? The reason for it is very easy to recall the CPI that will rise every quarter in China. In the context of the general price rise and the increase of raw material costs, the garment industry is not unusual.

But if we investigate further, we will find that the problem is not so simple.

Because the cost of clothing industry is mainly cotton, and this year's domestic cotton market is a sharp decline.

Since March of this year, cotton prices have plummeted all the way, from 14 yuan per kilogram to 8 yuan per kilogram last year. They are almost cut off by the waist, and cotton is cheap to hurt farmers. In order to prevent the cotton prices from falling, the departments concerned started the temporary storage and purchase measures in September 8th, but there was almost no deal in two weeks.

In a word, the price of the domestic clothing market this year looks a bit strange. On the one hand, the pressure on the terminal consumers to bear the price increases. On the other hand, the cotton farmers in the upper reaches are under the pressure of selling at a low price. What's the difference between them?

Objectively speaking, with the entry of textile and clothing into a high cost era, clothing companies are also facing rising pressure on the cost of raw materials, labor, logistics and financing. However, the increase in costs alone is not enough to support such a high price increase in the domestic garment market this year, because according to industry sources, in the apparel industry chain, production costs are "holding up 30% of the bid price".

According to Huang Wenjie, executive director of Guangdong provincial Circulation Industry Association, a clothing price tag 1/3 belongs to the manufacturer, and the profit of the manufacturer can reach half. That is to say, a garment, only the price tag 1/5 ~ 1/6 is the cost price.

The rest is shared among wholesalers, agents and department stores.

You can also see from other figures the flow of money in the clothing industry.

In the past two years, the world economy has been sluggish, and the clothing companies in the world are generally in poor condition, such as the famous brand Esprit.

This year's net profit has dropped by about 98% compared with the same period last year. The profits of Brand Company, such as UNIQLO, ZARA, are also declining or increasing, but Chinese clothing companies are different. The public figures show that China's clothing sector listed companies achieved a sales income of 40 billion 627 million yuan in the first half of this year, an increase of 22.43% over the first half of this year. Net profit attributable to parent companies was 3 billion 629 million yuan, an increase of 49.12% over the same period last year, and profits were more than double the increase in sales.

According to common sense, the clothing industry is in a highly competitive market. There is no price monopoly. Consumers have very strong voting power. Why will the price of clothing industry skyrocket and succeed? This is probably related to the malformation of China's clothing consumption market.

Under the conspiracy of all aspects of the apparel industry chain, the "fake price" acts of counterfeit foreign brands, discount promotions and other "price fraud" are popular in China's clothing market. Consumer psychology is misled, and the market price monitoring mechanism is not perfect. These factors have contributed to the abnormal price in the Chinese clothing market.

It is said that the price is determined by the market, but the abnormal market must have a deformed price, while the abnormal price reflects the malformation of the market.

Recently, a price comparison micro-blog between China and the United States has been forwarded wildly. It is mentioned that Chinese income is much lower than that of Americans, but buying Levi's jeans in the United States costs only 20 dollars, but in China it costs 400 yuan.

This 400 yuan Levi's jeans can be said to be an example of the product of the abnormal market price.

Perhaps the deformity is not just the clothing market.

According to the report, a thief in Chengdu stole 6 jewellery and was sentenced to 12 years and 1 months. The thief actually cried out in court. The original 6 jewelry businesses had a total value of more than one million, so the case value could be sentenced to no time.

And ultimately by the Price Bureau appraisal, the court finds that the jewelry price is only 89 thousand yuan......

People should thank the thieves. She unwittingly opened the veil of this abnormal market, and let the world know the truth behind some prices in the market.