Analysis Of The Root Cause Of The Unsatisfactory Performance Of China's Apparel Market Share

Recently, an announcement by a person close to the situation " CK underwear "Price composition", with its unexpected data, triggered a heated debate on brand value for a while. The specific price composition of CK underwear is: in a sale of CK underwear with a price of 290 yuan, the tax revenue is 58 yuan, accounting for 20% of the price; the sales and advertising expenses are 121.8 yuan, accounting for 42% of the price; the operating and administrative expenses of the company are 5.8 yuan, accounting for 2% of the price; the net profit is 75.4 yuan, accounting for 26% of the price; the production cost (including raw materials) is 29 yuan, accounting for 10% of the price. The most shocking thing in the analysis is that advertising expenses for brand promotion have accounted for more than 4 of the commodity price, while the actual cost is only 10% of the price of the single product. Many consumers who know this detail not only sigh, but the high cost of advertising is really amazing.

However, looking back at our Chinese Underwear brand By comparison, the price structure of China's underpants products is fundamentally different from that of CK. With the experience of producing and selling underwear for many years, Mr. Huang, director of a underwear enterprise in Xiaolan Town, Zhongshan, said that, in the light of the price structure of the underwear brands in the first and second lines, a price tag of 100 yuan was taken as an example. The raw material cost plus labor cost accounted for 30% of the selling price, and the actual cost was flat with CK. The average sales charge of the store accounted for about 30% of the selling price, while the underwear company's average investment in advertising only accounted for 1% of the product price. Advertising alone has a difference of 40 times compared with that of well-known brands, and the gap is astonishing.

The CK briefs, which advocate the minimalist style, were sold in supermarkets at low and medium end products abroad, but when CK entered China market After that, great changes have taken place. Part of the reason comes from the domestic consumers' blind pursuit of foreign culture, and CK has become a high-end brand in the field of men's underwear in China. But in fact, when CK first entered China, the first tier shopping center was used as the target market for terminal sales, and the brand was tagging with the high-end positioning. It was the real reason why it was higher than the price of similar products. Coupled with CK's original brand culture, it also left an impression of high-end taste in the minds of consumers.

As a matter of fact, China's underwear brand has many advantages in terms of product quality and fashion level. Why the market performance is not ideal in the actual sales process? "Cake" is a big piece of cake. In addition to the brand value and sense of brand that we generally agree, the promotion of the brand is very little. In the actual contact, many underwear enterprises also generally recognize the lack of brand awareness, for the value of the brand is weak, but in the actual promotion process, there is no specific solution. From another perspective, the traditional concept of "Confucian businessman" does not seem to be able to adapt well to the market competition of "osseous". The underwear brand is going through the process of small to big scale. Compared with the famous international brands, the strength is really insufficient. Enterprises are looking at this opportunity and hope that at this stage, they can concentrate more on their brands, make the scale stronger and make the product line more complete. But more hope that when the time is ripe, we can really get out of a number of domestic underwear brands with high brand value and high recognition.