What is the reason for the high cost performance of childrens clothing?

What is the reason for the high cost performance of children's clothing?

Cost advantage

Low raw material procurement cost:

Children's clothing source manufacturers directly with fabric suppliers to establish long-term cooperative relations. Due to the large volume of purchases, it is often possible to obtain more favorable prices. For example, purchasing fabrics directly from cotton planting bases or large textile factories can enjoy discounts, batch rebates and other benefits compared with small batch purchases, reducing the cost of unit fabrics.

For accessories (such as zippers, buttons, labels, etc.), the source manufacturer can also buy at a lower price. They can choose to work directly with accessory manufacturers to reduce intermediate mark-ups, thereby controlling the overall procurement cost of raw materials.

Scale effects of production costs:

Source manufacturers usually have a large production scale, which allows them to achieve cost sharing in the production process. For example, large production workshops and advanced production equipment can carry out large-scale mass production. In the cutting process, through efficient cutting equipment and reasonable typesetting, fabrics can be fully utilized, waste can be reduced, and fabric costs per unit of product can be reduced.

Personnel costs can also be effectively controlled. Because the production task is full, the worker is more efficient, and the labor cost per unit of product will be reduced. At the same time, large-scale production facilitates the introduction of efficient production management mode, further improving production efficiency and reducing production costs.

We will reduce intermediate price increases

The price advantage of direct selling model:

Children's clothing source manufacturers adopt a direct sales model, selling products directly to retailers or consumers, eliminating the intermediate link of multi-level dealers. In the traditional sales model, products have to go through agents, wholesalers, retailers and other links to reach the hands of consumers, each link will increase a certain cost and profit margin. The direct sales of the source manufacturers can yield the price increase of these intermediate links to consumers, so that the product price is more competitive.

For example, a piece of children's clothing sold through traditional channels may experience 2-3 price increases from manufacturers to consumers, and the price may increase by 30%-50%. The source manufacturers sell directly, the price may only be 10%-20% higher than the factory cost, greatly improving the cost performance of the product.

Product positioning and strategy

Small profits and quick sales strategy:

Many children's clothing source manufacturers in order to occupy market share, the use of small profits and quick sales strategy. They attract more customers to buy by reducing the profit of individual products. Due to the large scale of production, even if the profit of a single product is low, through a large number of sales, it can still obtain considerable profits.

For example, the price of a children's clothing is positioned at a level 10% to 20% lower than that of competitors, while ensuring product quality. In this way, in the market competition can attract more price-focused customers, the increase in sales can make up for the reduction in the profit of a single product, and improve the cost performance of the product as a whole.

Rich product line to meet different needs:

The source manufacturers usually have a rich product line, covering different styles, materials, and prices of children's wear. They can provide high, medium and low grade products according to market demand and cost accounting. For price sensitive customers, there are lower price but qualified basic products to choose from; For customers who pursue quality and fashion, there are also high-end products with high-end fabrics and fine workmanship. This diversified product strategy can meet the needs of different customer groups and improve the cost performance of the entire product line.

The balance between quality and price

Reasonable pricing under quality control:

Although the source manufacturers pay attention to cost control, they also attach great importance to product quality. Through strict quality control system, under the premise of ensuring that products meet the safety, comfort and other quality standards, reasonable pricing. For example, in the selection of fabrics, fabrics of qualified quality and moderate price will be selected to avoid the use of too expensive or poor quality fabrics. In the production process, strengthen quality supervision to ensure fine product workmanship and reduce cost waste caused by quality problems.

This balance of quality and price makes the product more cost-effective. Customers can buy reliable quality children's clothing at a relatively reasonable price, rather than sacrificing product quality in pursuit of low prices, or paying excessively high prices for high quality.