Two Factors Affect The Garment Industry Rate Pattern.

2011/4/21 9:25:00 53

A business enterprise has the mission of increasing profit margin, and the actual profit = the value accepted by the customer (the price of the bag, the value of the bag for security, that is, the original price minus the discount price), the total cost (all the direct product cost and the specific cost for the customer / customer service).

There are two main factors affecting this.

industry

Profit margin pattern.

First, cost driven inflation.

Various cost elements (such as raw material cost, land price, labor cost, property cost, pportation cost, online and offline)

The cost, etc., is rising, squeezing the profit space of each garment enterprise; the other is that the brand business is getting closer to the consumer, its design value or

brand

The value begins to appear. With the increase of consumers' consumption level and the enhancement of brand awareness, consumers gradually recognize and accept these design values or brand values, so that brands get premium or brand premium and increase the profitability of enterprises.

At the same time, the role of pure wholesale in circulation is getting lower and lower. Its front-end value has been cut down by the rigid cost rise of manufacturers, and the value of backend has been gradually segmented by brands or retailers, and the profit margin of enterprises has been getting lower and lower. Therefore, it has begun to develop towards retail terminals and control shop resources to improve profit margins.