Journalist Observation: The Strength Of Clothing Brand

The word "brand" is not unknown to many people. However, ordinary people's cognition of brand may still come from the intuition of goods.

In essence, clothing, like household appliances and automobiles, is made of undifferentiated basic materials and is given after combined processing.

Securities Times reporter learned in the survey, a mid priced clothing priced at 1000 yuan, production costs, including raw materials, labor costs accounted for only about 15%~20%, circulation, including shopping centers and advertising costs accounted for about 50%~60%, the remaining gross profit for the company.

With the increase of the selling price of goods, the proportion of production cost will be further reduced. Before that, the media reported that the price of an internationally famous garment was tens of thousands of thousands of times, the cost of production was only a few hundred yuan, and the rest of the cost was used for image promotion and maintenance.

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

Similarly, the brand also helps to promote the subdivision and differentiation of garment industry.

For example, "Semir" is targeted at the young generation of 16~25, who is young and energetic. According to the characteristics of the group, its products are divided into two series: "vitality" and "fashion". The Barbara children's clothing is aimed at accurately locating children and fills the gap of domestic brand children's clothing.

The target group of "US state" has a larger span, extending from children to middle-aged people, and the product series also shows strong differentiation characteristics, from leisure, urban to classic, and trend.

If the significance of the brand is further enlarged to the entire garment industry in China, facing the appreciation of the renminbi and the rigid rise of labor costs, the simple OEM OEM has been unable to adapt, and more and more enterprises are beginning to enter the new stage of "brand building and tree image" strategy in the era of domestic demand from the competition of "low cost and scale".

In particular, the rapid development of e-commerce in China has provided historical opportunities for the two undertaking of garment enterprises dominated by brand. In recent years, a large number of online brands have sprang up.

In the capital market, simply opening the K-line diagram of the seven wolves, we can see a brand's growth path over the years, and gradually develop from the small town in the border town to China's leading casual menswear brand clothing operator.

In 2010, seven wolves were close to 2 billion 200 million yuan sales and earnings per share were 1 yuan, up 10.6% and 38.9% respectively from the same period last year. Operating indicators and growth indicators maintained two digit high growth for 4 consecutive years, thus proving the strength of the brand.

I believe that with the upgrading of domestic consumption, the value of the brand will be further excavated and pursued.