Bosideng expects 10% price increase

On September 7, the 13th Jiangsu International Fashion Festival was opened at the Nanjing International Expo Center. Bosideng, Yalu, Red Bean and other well-known Jiangsu clothing brands all exhibited. At the exhibition, Bosideng and other companies indicated that they were affected by rising costs of raw materials and labor. New clothing prices launched in the second half of this year will increase from the previous year, with an increase ranging from 10% to 20%.

Gao Dekang, chairman of Bosideng Group, said that Bosideng Down prices will increase by 10% this year due to factors such as rising raw material costs and labor costs. Yalu marketing director Ma Yan revealed that the price of Yalu Yu Rong this year will also rise 15% to 20%. The reason is that the cost of down fabrics, fabrics, and labor has risen by 30%, of which only one item has been doubled. Taking a stuffed skilled worker as an example, the average wage level last year was 2,400 yuan/month to 2,500 yuan/month, and this year it has risen to 3,000 yuan/month to 5,000 yuan/month. Ma Yu said: "This year's national textile and clothing prices are showing an upward trend."

In order to cope with the pressure of rising costs, companies have adopted product innovation, technology, equipment upgrades, and marketing model conversions to save costs and expand sales.

Gao Dekang said: "The company has adopted cost-rising factors through the adoption of new processes and equipment, research and development of new fabrics, and cooperation with long-term suppliers to minimize price increases."

Yalu and Red Beans responded to rising costs by changing marketing models. Ma Yong said that this year, Yalu has opened 200 to 300 directly-operated stores across the country. Suzhou, Nantong, Shanghai, and Zhejiang all use the direct-operated store model. The speed of fund recovery has been accelerated by the change from store sales to direct sales. According to Pang Jin, manager of the Red Bean Planning Department, Red Beans will learn from the one-stop brand chain marketing model of foreign brands and increase the sales volume to control the cost increase factors.

Jiangsu garment enterprises are actively developing overseas, while basing on national brands. Currently, Bosideng has opened 84 branches in the United Kingdom, the United States, and other places, and sales have reached 6% to 7% of the group's total sales. On July 26 this year, Bosideng spent a total of £20 million to buy a six-story building next to Oxford Street in London as Bosideng's first European flagship store to better establish the brand's international image.