Mall clothes are expensive and lack guarantees.

by mttasoo88 on 2009-12-06 01:33:32

In recent days, the clothing in major shopping malls in Wenzhou, Hangzhou and other places has frequently appeared with "quality issues", but consumers' enthusiasm for purchasing remains undiminished. The colorfastness and pH value of clothing products are indicators that directly affect human health. Formaldehyde can cause strong irritation to the respiratory tract and skin, easily leading to respiratory inflammation and dermatitis. These invisible "hidden killers" once target consumers, who should be held responsible? Looking at the scene in the mall where people are scrambling to buy well-known brands, it is really shocking. And when you look at these big-name brands that failed quality inspections, their prices per piece are close to 1000 yuan, some even reaching 10,000 yuan. What are the reasons behind why clothes in shopping malls lack guarantees yet have skyrocketing prices?

Is it due to raw material procurement? Labor costs? Finished product pricing? Or the process of entering the mall? Yesterday, a person in charge of a well-known local clothing enterprise revealed the reasons behind this phenomenon -

Costs have risen by more than 40%: This person in charge introduced that in the past two or three years, the labor costs and raw material costs of clothing enterprises have increased by more than 40% in total. Firstly, since the implementation of the new Labor Law, the insurance and wages of workers in production workshops and salespeople arranged in shopping malls have been rising. Just in terms of insurance, the enterprise has to bear around 200 yuan for each employee. In addition, factory steam supply, ironing, delivery transportation fees, etc., have also been rising in the past two years. Moreover, with the increasing demand for consumption upgrades, the prices of some higher-grade fabrics have also risen, such as wool flannel and cashmere, which have increased by about 20% compared to two years ago.

Pricing is generally 3-4 times the cost: After the products are made, they are priced by the clothing enterprises themselves. This person in charge said that for enterprises like theirs, the price is generally 3-4 times the cost, while large brands are at 4-5 times.

Why set such high prices? He said that each season's styles include both best-sellers and slow-moving items, and pricing strategies must be able to deal with "profit upfront and loss later". Later on, slow-moving items can only be sold at 1-3 discounts, requiring earlier high prices to "cover losses".

Selling for hundreds of yuan, producers only get 65 yuan: If the price is 3-4 times the cost, then clothing enterprises should be able to make quite a bit of profit, right?

This person gave the reporter a detailed account of another calculation: First, shopping malls take 25 percentage points for clothing categories, meaning suppliers get 75 yuan out of every 100 yuan sold in the mall, with the remaining 25 yuan going towards rent. Secondly, malls deduct 2 percentage points for advertising fees. Also, malls and suppliers sign a minimum sales contract, and any shortfall will require the supplier to pay the mall's rent at 25 percentage points from their own pocket. Additionally, during major holidays, malls launch large-scale promotional activities, which ultimately get passed on to the suppliers.

This person said that after deducting rent, evaluation fees, taxes, etc., getting 65 yuan out of every 100 yuan sold in the mall is already considered good.

Why do clothes in department stores also have quality problems? Before clothing brands enter the mall, the mall requires them to provide a quality inspection report. This report is usually issued by the quality inspection department of the manufacturer’s location after random inspections. Before new styles are put on shelves, they are inspected in proportion rather than 100%. Moreover, non-compliant clothing is labeled as qualified products during sales, misleading consumers' understanding of product quality.

Many times, consumers are like innocent children; they always believe that "well-known malls are honest and reliable" and believe that "high prices will ensure high quality", so they "bite the bullet and buy even if they know it's expensive." Even if they know there are quality issues, they may still ignore them.

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