[Economic Observation] domestic down jackets are "expensive" on the hot search, what are the warnings for brand operation?
Reporter Yang Zhaokui
Workers' Daily (December 2023, 12 04 edition)
Recently, topics such as "domestic down jackets sold for 7000,<> yuan", "when will down jackets be sold to five figures", "down jacket price hikes have given the market to military coats" and other topics have rushed to the hot search on Weibo, and caused the public to question the high price of domestic down jackets.
Many consumers complained: "I can't pick a favorite down jacket within a budget of 1,000 yuan." In this context, some college students use practical actions to "rectify" the down jacket market and wear military coats in a pile, as they say: it's not that down jackets can't be bought, but military coats are more cost-effective. And some professionals quickly found a "flat" jacket.
In recent years, it is an indisputable fact that the price of domestic down jackets has risen. According to data released by the China National Commercial Information Center, from 2015 to 2020, the average price of down jackets in China rose from 438 yuan to 656 yuan, and the price of large cold-proof clothing exceeded 1000,2000 yuan, of which nearly 70% were more than 30,<> yuan. Some industry insiders pointed out to the media that the overall price of down jackets this year has increased by about <>% compared with the same period last year.
Behind the rise in the price of down jackets, it is related to the rising cost of raw materials. The composition of down jackets is mainly fabrics and down, the price of fabrics has not changed much this year, but the price of down has risen a lot, coupled with factors such as rising labor costs, the price of down jackets has risen reasonably. According to data from the DT Research Institute, from 2016 to November 2022, 11% of white duck down rose from 90 yuan per kilogram to about 200 yuan, and 360% of white goose down rose from less than 90 yuan per kilogram to about 400 yuan.
Since the cost of raw materials and labor is rising, why do consumers complain about the price increase of domestic down jackets? On the one hand, the price increase of some brands is significantly higher than the price increase of raw materials, and on the other hand, some brands have begun to take the high-end route, so that down jackets are not only cold products, but also fashion design and brand marketing. This can indeed cater to the needs of some consumers, who are willing to pay for more fashionable and designed products, but some consumers have questioned the marketing gimmicks that some brands claim to use aerospace materials in order to sell at a high price.
According to the Price Law and other relevant laws and regulations, down jackets belong to a fully competitive industry, and operators have the right to set prices independently according to market supply and demand under the premise of clearly marking prices. That is to say, legally speaking, as long as the price is clearly marked, it is not illegal to set the price of domestic down jackets very high.
However, from Zhong Xue's high-priced ice cream being complained about, to the 79 yuan Huaxizi eyebrow pencil being questioned, and then to the hot search on the "expensive" domestic down jacket, it also shows that domestic brands should come up with excellent products while enjoying independent pricing power, so that the price is worthy of quality. If a high-priced product cannot withstand consumer scrutiny, its high-priced strategy will inevitably backfire on the brand.
For domestic down jacket brands, especially some start-up brands, it is still necessary to design and produce products based on the real needs of consumers, improve the quality of products, achieve rational pricing, and let consumers truly feel that the products are worth their money, so as to win the recognition and trust of consumers.
Of course, while the domestic down jacket is "expensive" on the hot search, it should also be seen that China's low-end down jacket market is facing problems such as serious product homogenization and involution. Therefore, there is nothing wrong with domestic down jacket companies moving towards the middle and high-end.
However, some domestic down jacket brands should understand that when consumers consume more rationally and pay more attention to practical value, if there is no improvement in production technology, no blessing of hard power such as new materials and patented technology, and no growth of soft power such as brand story and fashion design, it is difficult to establish a high-end image in front of consumers by relying solely on high-price strategies and marketing gimmicks.