The Promotion Of Clothing Brand Is Intended To Get Rid Of The Low Level Development Strategy Of Simple Price Advantage.

Although the government is confident in curbing inflation, it is still strong. brand A new round of collective price rises and a follow up of domestic brands means that inflation expectations have not yet been substantially alleviated.

Behind the CPI's 35 month high of 6.4% in June, it is a constant price increase, involving all aspects of "food, clothing and shelter".

Since the beginning of this year, the frequent "interviews" of the NDRC did not seem to achieve good results. After a brief delay in the price hike, foreign-funded enterprises once again started to rise. Price increase Coca-Cola and Pepsi Cola have increased their prices in disguised form through the "downsizing" of products. Estee Lauder China has announced that it will raise the retail price of some of its products, and foreign brands such as Unilever, Procter & Gamble, L'OREAL and Amway have all implemented price hikes in the near future.

Domestic brands are naturally unwilling to show their weakness. In addition to the obvious display of food companies, the implementation of price increases or disguised price increases, the trend of price rises has spread all consuming fields. For example, a Li Ning Co recently announced that the price of footwear products will rise by 7.8 in the fourth quarter, and the price of clothing will rise by 17.9, plus the news of Anta, XTEP, PEAK and 31st degree at the order meeting. The 5 famous sports brand sports shoes and clothing will be raised again to 20%. It is reported that since the beginning of the year, the five major sports brands in China have risen by 10% to 20% in price.

Despite the government's confidence in curbing inflation, a new round of "rising tide" of foreign brands has been coming back, and domestic brands are competing to follow. This means that inflation expectations have not yet been substantially alleviated. They will also have an adverse effect on the short-term CPI rise and add some uncertainty to whether CPI has been the peak in June.

The official explanation of price increases is usually the cost of raw materials. Rise And the increase in R & D investment, labor costs and logistics costs. But in fact, for many foreign brands, price increases are not aimed at fully hedging the decline in corporate profits caused by inflation, but because of their pricing strategy in China. Because foreign brands have higher pricing power and some consumers' trust crisis in domestic brands, they have more rigid consumer demand and can get a higher brand premium. Of course, if we do not consider the negative impact on inflation, the price increase of domestic brands means that the price gap between domestic brands and foreign brands is shrinking. It also shows that some brands are trying to get rid of the low-level development strategy that relies solely on price advantage to occupy the market.