Deep Analysis Of Clothing Industry: Low Price Will Die Out, Medium High Is The Trend.

In real life, we can intuitively see many fresh cases, the products with high price are bigger and bigger, and the low price products are gradually dying out.

For example, BMW, Mercedes Benz, Land Rover and Porsche are very expensive, and more and more people are driving. Changhe, Xiali, Jetta, Santana are very cheap, fewer and fewer people are driving; the price of yebo, nunshan spring, hundred year old mountain drinking water is higher, and the sales volume of the market is getting better and better.

Looking at the above phenomenon, it is by no means accidental, but a necessity.

We can analyze and research from the perspective of economic development, marketing theory and consumption trend.

1. Analysis of the law of economic development:

China's per capita GDP from 2008 to 2013

When per capita GDP reaches US $3000, housing, tourism, cultural consumption and automobile are the hot spots of investment. From this point of view, it is not difficult to understand from the economic point of view why the housing price is soaring after 2008, but the real reason why the property market is still hot is why China's automobile production and sales volume has rapidly entered the world before 2008.

Because of the economic development to this stage, housing, tourism, automobile and other aspects have become the hot spots of people's consumption.

With GDP per capita reaching more than 4000 dollars, high-end fashion brand stores, luxury goods and art works are popular. Education will become the focus of attention. Therefore, China has become the second largest consumer of ornaments in the world in 2013.

When the per capita GDP reaches US $5000, health care and health will be the growth point of consumption.

Per capita GDP reached more than $6000, and entered the country in the leisure era.

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In 2013, China's per capita GDP exceeded 6700 US dollars, which means that the way of life of the people will gradually change towards a leisure lifestyle.

Leisure refers to a kind of amateur life that seeks to regulate and relax the body and mind in the form of "play" in the form of non work and non working hours, so as to achieve the purpose of life health care, physical recovery and physical and mental pleasure.

It's not hard to understand why Apple phones are expensive and still sell well. Scenic spots are very expensive. Why are holidays still bursting? Why are Land Rover cars still expensive and why they can't get the car now? Because they become people shopping and entertainment in their spare time and holidays.

A way of life.

We are very clear that the premise of this leisure lifestyle is: Clothing: from wearing warm to wearing, wearing fashionable, changing personality, eating: from eating enough to eating well, eating healthy changes, living: upgrading from ordinary housing to large apartment, villas and tourist houses.

These changes also mean that prices are no longer the primary consideration for people's shopping. This means that people's consumption is upgrading from basic demand to fashion, personality, entertainment, leisure and health needs, which means that products with slightly higher prices will be sold for sale.

This is determined by the law of economic development.

2, marketing theory and marketing practice analysis:

From sales to marketing at full speed.

Price and the series marketing activities carried out around supporting prices constitute a marketing system.

Low price or high price, in essence, is the difference between sales and marketing, that is, the difference between product promotion methods.

First, low product prices mean low channel driving force: low product prices determine the low profit margins of product channels. Today, with the increase of rents, labor costs, distribution costs and people's living costs, products with low profit margins are hard to satisfy the profit needs of channel operators. Therefore, they will be marginalized and abandoned by the channel operators, and then turn to products with higher profits. This is the core of business, because the purpose of business is to make profits.

The length of a product's life cycle is determined not by the price level, but by the product channel profit space, consumer's attention and product quality.

Among them, the lack of channel profit space is the main reason why the 1 yuan drinking water has been shrinking in the market.

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Second, the low price of products means that the pulling force of products will be gradually reduced and the market activity is low. The ultimate competition between enterprises and enterprises is the competition of brand power, or the competition of customers' minds.

The low price of the product determines the brand building and

The lack of cost investment determines that the brand and products are less active in the market, which is the fundamental difference between marketing and sales, because low prices lack of policy and promotion space, lack of favorable display positions and bright terminal performance, which means that these brands and products will gradually fade out of the consumer's perspective and gradually fade out of the market.

Third, high prices may have high quality, and quality determines the rate of repeat purchase.

As the saying goes, "a price is not enough, but porridge is not hungry."

It shows that only good price can bring good quality. Because of good price, it is possible to have a strong R & D input to purchase high quality raw materials and advanced production equipment, so that it is possible to produce high quality products, and quality is the decisive factor for consumers to buy and repeat purchases.

This is a truth that we all understand.

Our research has found that the best selling products in the market are products with better quality, and they are also the most expensive products in the same grade products.

Fourth, price recognition does not produce buying behavior, and value identification results in buying behavior.

Price determines consumer group, consumer group determines product positioning, that is, price determines product positioning.

The real decision of consumer buying behavior is product value, and product value is acquired through consumer experience and market promotion.

But consumer experience and marketing also need to be supported by promotional expenses, which are not achieved by low-priced products.

Apple phones, for example, are expensive, but people are still queuing up when new models are listed, because target consumers agree with their unique designs, such as fashionable appearance design, simple operation mode, powerful functions and speed. At the same time, Apple's marketing way is also promoted by consumer experience. Consumer experience is the main way for consumers to agree with Apple's mobile phone value.

3, consumption trend analysis:

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(1) analysis of per capita disposable income and consumption trend of urban residents

The per capita disposable income of urban residents marks the immediate consumption capacity of urban residents. The faster the growth of per capita disposable income of urban residents reflects the faster the people's living standard improves and the stronger their consumption ability. At the same time, in recent years, the rising price of this index is higher than that of the urban residents, indicating that the actual living standard of the urban residents is improved.

(2) analysis of residents' consumption habits

With the improvement of people's consumption level, the improvement of knowledge level and the enhancement of health awareness, consumers in recent years have seen an obvious trend.

It is "excessive consumption from perceptual consumption to rational consumption, from common consumption to individual consumption, from random consumption to brand consumption development".

This is because: first, the quality of brand products is better, trust is higher, traceability is stronger and more secure; second, brand products can meet people's psychological needs; third, in the fast-paced life era,

Products can shorten people's shopping time and improve their shopping efficiency.

At the same time, we must be clear about the fundamental purpose of enterprises to build brands, that is, enterprises should get more than the industry average added value return.

In other words, the selling price of brand products must be higher than that of non brand goods.

More importantly, sales of branded products are usually at least 4 times the sales volume of non brand products.

Therefore, the medium and high priced products are the development direction, the consumption trend and the future hope and treasure of enterprises and distributors.