Huge Inventory Pressure Forcing Foreign High Street Brands To Lower Prices

New products in autumn and winter have been listed.

The retail price dropped by 34% compared with the previous quarter.

To this end, I went to the High Street high street brand in the weekend.

Although there is no precise data calculation, it does feel more cost-effective.

For example, I tried two sheepskin jackets, one for 1999, and one for 1699.

This price is really tempting. To go to leather city in Haining, you can pay for this leather coat.

After coming back, I specifically asked Zara about the price reduction.

The official response is as follows: Zara's price policy in China, like brands in other countries' policies, is aimed at maintaining price stability.

Zara every season new products always include brand new series and goods, so it is very difficult to have a direct price comparison.

However, as we mentioned before, the price of each product line tends to be stable, though the impact of exchange rate is inevitable.

After reading, is it a bit confused? Actually, the key point is in the last sentence: exchange rate.

Zara came from Spain, and parent company Inditex finally received euros.

Over the past year, the euro has been basically downward, so it has sold 9 yuan for 1 euros, and now 8 yuan is almost the same.

Of course, the price reduction of Zara is also a strategy to deal with the market downturn. Cheap will certainly be attractive.

By the end of the September, H&M shops and websites were not pushing new products, but still holding red slogans with "big sale".

Online shopping, it is said that the sales volume of all customers is lower than that of the same period last year, which is undoubtedly a pressure mountain for the listed e-commerce brand.

I wrote about two years ago.

The price increase article, for example, is three pairs of trousers bought at the same time in the past two years. The previous year was made in China, and in the following year it was produced in Vietnam, Laos and Kampuchea.

The rise in domestic labor costs has allowed the industry to move rapidly to other developing countries.

Now, the price of UNIQLO is still maintained at the price after the price rises, and this season has not felt down.

However, the main flannel in autumn and winter has encountered competition from all customers. This season, fans pushed nearly 1000 flannel shirts, and the promotional price on the market was as low as 39 yuan.

UNIQLO seems to have been affected. Now the sales price of some flannel is 99 yuan. This time in the past few years, there will be no such price as low as the final price.

Back to Zara, those two fur coats were made in India.

According to a previous case analysis of Zara, Zara put the production base in Spain or the countries around Europe to meet the demand for the rapid response of the supply chain.

Now, if we can put more production in Asia and maintain the supply chain capability, our competitiveness will be greatly improved.

Compared with the domestic high street brand, if the production can not follow the trend of global procurement, the cost advantage will gradually lose.

Van guest has begun to test the water to place orders overseas, but the domestic large-scale

Although some enterprises try to build factories overseas, clothing production is really a hard job, and returns are slow and few.

Lack of motivation will not produce large cross regional garment foundries, such as Hongkong, Taiwan and Korea three.

If you can't go to the business of your own country, you will not be able to communicate well.

This is really worrying.