High margin drive line down T-shirt war

Cotton prices down, clothing brands to enjoy the cost dividend:

A 10-dollar cost, high margin drive line under the T-shirt war

Another summer comes, Chi t-shirts on sale. Recently, there are Pearl River Delta Garment Manufacturing enterprises in charge of the South have been revealed that the recent cotton price down, a T-shirt material costs to 10 yuan. Calculate all kinds of channel cost, even if only sell 29 yuan, still have big profit space.

Indeed, the recent visitors to the "VT", Uniqlo "UT" to the United States and Granville "MTEE", sen horse "what T EE", T-shirt this most simple but also changeful clothing in this summer line under the sales promotion are particularly dazzling. Brand business, this year's small T-shirt will set off a war.

T-shirt b2c,19 cost 10 yuan

Cotton prices down, the garment processing enterprises are not good news. Reporter found that processing enterprises on the one hand burdened with the cost of growth, on the other hand, because of cotton prices down, clothing brand manufacturers are the price of the order is too tight.

Previously, it was said that the Ministry of State has spent two months on Guangdong, Zhejiang, Jiangsu and other 16 provinces to carry out systematic research. It was found that SMEs, especially small and micro-enterprises, could be more difficult than the global financial crisis of 2008.

In contrast, has been advertised as light assets, do not set up production enterprises clothing brands can at this time enjoy the cost of low cotton prices dividend. At present, Guangzhou up and down nine pedestrian street, everywhere is "all T-shirts are xx yuan" poster. Compared with the old marketing method of "the new 50 percent listed in 11" and "the rent is due for sale at a loss at the end of the season", the moves of the garment companies appear to be much more vivid. Coupled with the growing rental costs, from 19 yuan to 29 yuan, to Dream Bazaar, Fank as an example of E-commerce enterprises will T-shirt price brush out the floor price.

It is noteworthy that, as early as the summer of 2010, where the goods will be 29 yuan to the unified price of 500 of the balance of the shirt released. A year later, experienced the human cost and raw materials, especially cotton prices continue to climb, a large number of domestic clothing brands have to raise the price of the banner, where the customer sincere product T-shirt prices remain at 29 yuan. Although in the public opinion of every guest insider, 29 Yuan is a "tipping point" that hardly makes money, not to the level of loss.

"If really lose money to make a yell, then T-shirts sell 19 yuan a dream bazaar how to live?" A local clothing manufacturer has disclosed the secret to south reporters. According to his introduction, with a front-end offset-type T-shirt For example, the raw material plus printing and washing and other costs, 13 yuan of the finished product is already very decent. "This is tens of thousands of pieces to do the price, if the scale arrives millions, cost control at 10 yuan or so is not the problem." ”

Brand Business Exclusive Feast

13 Yuan, this is not necessarily a staggering price. Even if only a little understanding of business knowledge of consumers, but also know that every customer prudential products such as E-commerce enterprises to hit a lot of money in the channel. "channel cost includes two parts of marketing and logistics." "According to the public information, where the customer prudential products about 100 million yuan per year of marketing costs, apparel industry analyst Rio Jiejong Simple calculate ——— by T shirt can be sold for 5 months, for example, amortization to sales time period of marketing costs about more than 40 million yuan. Take into account the T-shirt for the main product, investment accounted for the bulk of the overall product line, about 25 million yuan. According to the growth of apparel domestic demand market, sales by the basis of last year (4 million pieces) increased by 30%, about 5.2 million pieces, the distribution to each T-shirt marketing cost less than 5 yuan.

As for the other cost "big head" logistics costs, each package is about $5. And where the current market strategy is "full 59 yuan Free shipping", amortized to each T-shirt cost less than 2.5 yuan. "In the design, packaging, management and other costs, the overall cost of 20 yuan in the early is the ' peak '." "Rio Jiejong specifically mentions the tricky part of" design cost "for customers," there is no special designer and high pattern copyright fees, because the designers themselves need to advertise their work through the visitors, so that the design costs will not be very high. " ”

Although this is not the most accurate and scientific algorithm, but also largely reflects the cost of T-shirt to the composition. Like all customers, the United States is also the latest "T-shirt war," one of the major players, but its T-shirt "start price" is already twice times the customer-prudential goods, some prices more than 100 yuan. Rio Jiejong said that from the overall cost, the United States and Granville store rental and personnel costs far higher than the logistics cost of e-commerce. In addition, with Shadow, DreamWorks, Sony PSP Cooperation, as well as Transformers, Saints and H Ellok Itty and other images to pay the copyright fees are also significant "international brand excellent Uniqlo also need to pay these costs, and because of the brand differences, their T-shirts can be from 79 yuan to sell." Rio Jiejong said.

A lively and extraordinary T-shirt market feast, it seems that all kinds of brand and sales situation can find suitable for their own way of living. But the head of the clothing manufacturer told the South reporters that only the brand can enjoy the "feast." "There is no technical threshold for manufacturing, which is to prevent wrinkles and to add some Lycra fabrics to the fabric, a little bit more elegant." "In this case, the sales of branded companies with light assets operating are booming, and manufacturers are taking more and more pressure," he said. In particular, the recent decline in cotton prices, brand-name business, their bargaining power is high, the situation is everywhere. ”

South Fangnan Reporter