Chinese And Foreign Brand Down Clothing Sales Are Hot, But Why Do Processing Enterprises Shout No Money?

This winter, the down jacket Market has had a "warm winter", not only the stock price has reached a new high, but sales are also rising all the way.

It is worth mentioning that in recent years, the domestic down garment market is also showing a trend of overall upward trend.

Statistics show that the overall growth of China's down garment market is upwards: the market scale is less than 100 billion in 2017, and the market of Chinese down garment market has reached 106 billion 800 million in 2018, an increase of nearly 11% over the same period last year, and it is expected to grow to 160 billion in 2022.

Because of the increasing cold air this year, down jacket has become a hot word for online consumption.

In the past New Year's Day holiday, in the cold wind of five degrees below zero, there was a long queue in front of a shop in Sanlitun, Beijing. In fact, these customers came from a down jacket.

In Hangzhou, Zhejiang, more than 1000 kilometers away, after the second snowfall, customers in the shopping mall were also squeezed.

Many businessmen said that since the winter, frequent cold air has come, and the sales of down garments category have increased to varying degrees compared with the same period in previous years.

Baidu search index showed that the peak value of search for "down jacket" in the past month was closely followed by the search words such as "cold wave" and "cold air".

It is understood that many clothing brands look down on the characteristics of down clothing products with high price per unit price, plus the number of down jacket products, which account for half or even higher in winter clothing styles.

In addition, a number of famous down garment brand manufacturers have adopted online and offline linkage promotion methods, and even used social interaction platform to promote new products, which has led many young people to try them on.

Online stores, according to Tmall big data, down clothing category usher in the "sales year", "double 12" Shopping Festival week, nearly 100 million people click and look at the down jacket, men and women wear down clothing increased 48% over the same period last year, sold nearly 2 million pieces, 1500 yuan price belt down clothing has become a new consumption blue ocean.

In Jingdong, from November 20, 2018 to December 10th, the frequency of consumer search down clothing increased by nearly 30% compared with October 2018, and sales grew by more than 30% over the same period.

Vip.com data show that in December 2018, the sales of vip.com's down jacket increased by 24.85% compared with the same period last year, and the sales of down garments in Hangzhou area increased by 61.6% over the same period last year.

With the sales of down garments rising all the way, prices are rising.

It was found that the overall average price of the famous brand down jacket in 2018 was generally higher than that in 2017. It was nearly $2000 less than that in 2017. The fashionable big name down garment is even more obvious. For example, this year's fashionable CK down jacket has a five thousand or six thousand yuan quotation, which is much higher than that of the previous $three thousand or four thousand.

Overall, the price increase of this winter down jacket is almost 10%.

Looking back on the price of down garments since 2010, it is easy to find that "three years of one rise" is almost a rule.

Then, with the increase of sales and prices, will the profits of the downstream down processing industry increase?

According to CCTV financial report, the technology of feather down processing is to extract the lightest fuzz from feathers to make down garments through cleaning and sorting.

In a down processing workshop in Xuancheng, Anhui, 30 tons of raw wool can be processed a day.

In the country's largest feather and down processing enterprise, the raw material wool of a car is constantly being pported into the factory. The official said that the key word of raw material prices in this winter's down season is only one.

Fu Miaokui, chairman of the Liu Qiao group, said that from 2016 to now, feather down material is like 50% white eiderdown, and 100 yuan per kilogram in 2016, and now it is 250 yuan per kilogram.

It is understood that in the mainstream of the white cashmere with 90% cashmere washing volume, for example, the market price in December basically maintained at around 450 thousand yuan per ton, more than doubled compared with the beginning of the year, at a historical high.

According to insiders, the market of feather and down products has warmed up, the production of meat and poultry has declined over the past 18 years, and the price of substitute cotton has been increasing.

But many enterprises said that the current hot market situation did not bring more profits to them.

Fu Miaokui revealed that 70% of the list was fixed in 2019.

Therefore, if the price of raw materials is rising, we will have a lot of risks, pressure, small profit margins, and even if the price is much higher, we should lose money.

Du Dasheng, executive deputy general manager of Zhejiang Samsung down Limited by Share Ltd, said that because of the high selling, low buying and low selling, the main right to speak down raw materials is still in these enterprises that raise ducks.

The purchase cost of raw materials will increase by about 30%.

It is understood that as the traditional light industry, the overall profit margin of the down processing now fluctuated between 3% and 5%.

In order to reduce the risks brought about by the fluctuation of raw material prices and increase profit margins, many down processing enterprises have chosen to extend the upstream and downstream industries, such as joint ventures with breeding enterprises, or the establishment of self run downstream products factories.

Some enterprises have also increased investment in production equipment to produce higher value added feather products.