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How profitable is the clothing business?
The boss of a clothing manufacturer revealed to me, "Clothing is really profiteering. However, this huge profit is not reflected in the fabric, but is completely reflected in the circulation. " The boss said, "It is not a problem to sell a small vest for less than 5 yuan for 25 yuan in the small commodity market. I once sold clothes with a cost of 10 yuan at a price of 100 yuan, and the result was very hot. " Another general manager who runs the fabric business told me that in the current clothing price, the ratio of fabric to sales price is at least about 1 7. If other expenses such as processing fees are added, the average profit of clothing is at least 400%, and if it is new clothing, the profit can be as high as 1000%.

According to insiders, the reason why the profit of clothing sales is set so high by manufacturers is that in the sales process, various expenses required by shopping malls are very high. For example, the average proportion of running water according to turnover is 27%-35%, and the proportion of some brands that do not sell well is as high as 50% or more. In addition, the high entrance fee, coupled with the sharing of various promotional expenses, also allows dealers to increase the clothing sales price by at least 3 times, leaving room for off-season discounts.

For those fashionable new clothes, increasing sales profit is an excellent goal for manufacturers and businesses. And these high-profit clothing will eventually pass on huge profits to consumers. A dealer told reporters, "Good brands, good selling points and fashionable styles are the' three elements' of profiteering, and they are all inseparable from the admiration of young ladies who love to follow the fashion."

A statement from the owner of a shopping mall said: "The dealer has set the clothing price before entering the shopping mall. Shopping malls don't care how much clothes cost. What the mall wants is the real profit of running water. " The dealer said: "In the past, manufacturers with gross profit of 20% could make money, but now they are below 60%, and manufacturers will definitely lose money."