According to Jiemian News, on February 16, market research company Lectra recently released a report stating that due to cost issues such as supply chain disruptions caused by the epidemic, fast fashion giants ZARA and H&M respectively raised prices by 23% from August to December 2021. % and 13%.
Among them, the average price of ZARA increased from 31 euros to 38 euros (approximately RMB 223 to 273 yuan); the average price of H&M increased from 24 euros to 27 euros (approximately RMB 173 to 194 yuan).
The rising prices of raw materials such as cotton, wool, and recyclable fabrics have increased the costs of fast fashion brands, leading to higher prices.
Fast-moving consumer clothing has always been a relatively popular market. Due to its relatively low prices, high cost performance, and relatively fashionable gameplay, it has always attracted the attention of a large number of young people. However, these are the more famous ones. Fast-moving consumer clothing giants suddenly announced that they would collectively raise prices. How should we view the price increases of these giants?
First of all, what we see is the collective price increase of ZARA and H&M. The core logic should be the pressure of the entire industry chain system. With the development of the entire industry chain, these two giants have gradually discovered the huge impact brought by the market. If the price is not raised at this time, the cost pressure will be too great and the company will be unable to support it. Therefore, for these giants, in order to improve their profit levels and cost control capabilities, price increases have become A forced choice. After all, after this period of time, the price increase of the entire supply chain system has gradually begun to be transmitted to the terminal industry. In the gameplay of this terminal industry, although these companies are not willing to just use This is a trick to raise prices, but in the end they have no choice but to choose the path of raising prices.
Secondly, what we see is that although these companies have made the choice to increase prices, their price increases are also strategic. They do not simply raise prices directly, but start to launch more products. More high-end products, through high-end products, make consumers willing to pay more in the high-end market. This may be the core logic of the current price increase. This is different from the direct price increase of pure original goods for FMCG. Similarly, these apparel companies still understand that if they directly increase prices in the apparel market, they will undoubtedly lose many consumers. By increasing the prices of product categories, especially high-end product categories, they can It effectively increases its profit level without losing consumers’ recognition of the product. This kind of price increase is much more strategic than Starbucks’ direct price increase.
Third, what we see is that the two major clothing giants have announced price increases, which will most likely lead to a trend of price increases for clothing companies. Clothing companies may start to increase prices. After all, everyone has done it before. We are waiting and watching. No one dares to raise prices rashly without someone taking the lead. But now that the two giants have joined forces to raise prices, other companies will start to have reasons to raise prices. But with the same price increase, can consumers really benefit from it? Agree that this will be the biggest problem.
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