Vanke-Meibang T-shirt Wars: 29 yuan T-shirt direct cost 20 yuan

Leisure Brand: Where the customer Eslite VT

More than 40 singles a day, this is the current amount of traffic for the courier Peng Song. Compared with April, this workload has increased by 1/3 and doubled compared to the beginning of the year.

Peng Song is the dispatch commissioner of “Wind Wind” Express, which is owned by Vanke Eslite. His Shantou Station originally governed the area from the East Fourth Ring to Chongwen District. Now due to too many orders, the East Fourth Ring’s courier traffic is widespread. Doubled, recently the company has simply separated the Chongwen District business.

Peng Song told reporters that since the customer's T-shirt category "VT" has gone online in the week before rival Uniqlo UT at the end of March, the most important type of goods to be added is the T-shirt. "There are usually T-shirts in each list and there are other things."

This is a market that has grown exponentially every year. In the past year, Vanke Eslite’s CEO stated that in the past year, about 50 million branded T-shirts had flowed to the market, not counting the wholesale markets of Beijing Zoo Wholesale Market, Shanghai Qipu Road, and Guangzhou Baima Market. These low-cost wholesale markets test the bottom line of T-shirt costs, and T-shirts under 30 yuan are common. Gao Jian, the founder of the T-shirt factory who also makes t-shirts for various companies and who also manufactures T-shirts for independent design brands, says that among all T-shirts on the market, T-shirts under 30 yuan are mainstream. In this market, the cost of a round neck T-shirt varies from 4 yuan to 17 yuan, while for a brand T-shirt, the cost is between 15 yuan and 30 yuan. The cost of T-shirts such as Uniqlo, Vango Essence and Metersbonwe are roughly in this range.

Each segment has set ambitious sales targets: Meteresbonwe T-shirt category MTee has just sold 1 million units in 2009, and after one year this figure has grown to 4 million units. This year it is expected that sales will reach 700. 10,000 pieces. Uniqlo prepared to allow UT sales to double compared to last year, and Vanke Eslite will be ready in 2011 to complete its sales target of 10 million pieces, which is more than double the number of last year.

Vanke has set a large number of T-shirts at 29 yuan for the second consecutive year. According to the estimate of the clothing industry insiders, if it is cotton knitted material, a 29 yuan T-shirt material is about 150 grams, according to the price of 70 yuan / kg, fabric costs about 10 yuan; if the chest printing is a conventional offset printing, The cost is about 3 yuan; the basic technology is simple, the processing fee is not more than 5 yuan; in addition, the cost of various types of identification on clothes is about 1 yuan, so the direct cost of an ordinary T-shirt is about 20 yuan. In 2010, Vanke's VT team initially proposed a price of 39 yuan, which was negated by CEO Chen Nian. He wants a T-shirt that is cheaper than a zoo. Beijing Zoo is a well-known wholesale and low-cost clothing distribution center. Young people often carry a big bag to go there to “fight goods” because of the cheap styles. "Is it possible to drop it to 19 yuan?" After learning that 29 yuan is close to the cost, the old man can't help but compromise.

29 yuan is almost impossible to make money. Even the competitor Metersbonwe said so affirmatively.

In order to reach this price floor, Vanke has stored raw materials in advance to cope with its rise, and has racked its brains to be different in the design costs, and the cost is as low as possible. This solution is a local original design.

These fashion designers, illustrators, and cartoonists who are obscure or famous are offering a total of 1,500 patterns for Vanke designs, covering almost all subculture interest topics that young people can think of in the VT team. These include nonsensical, small, fresh, Retro and so on. The e-magazine VT Thought Power, which is based on the ideas of local freshmen's design power, was launched at the same time. In order to objectively select the patterns that the consumer group may like, and reduce the subjective factors of the review, Vanke has formed a pattern selection team consisting of three departments: the production department, the sales planning department, and the marketing center.

"Because you're so jealous, so eh," "This killer is not too cold," the little girl's question "Does life always be so difficult, or is it only in childhood?" These words are printed on VT and become attitudes.

Old age is hardly profitable. It is also necessary to determine that the price of 29 yuan is first to attract price-sensitive young people, such as university students, and then to boost sales, such as the 10 million expected this year. However, things are not that simple. This pricing method is not something that all companies dare to use. The courage to use it is because their T-shirt design is just a "simple, easy to copy" route - this is actually a kind of Infiltration pricing strategy, "It is usually conducive to the company's long-term expansion of sales, more suitable for imitation, features are not outstanding, simple technology products." From this perspective, Vanke's "basic" T-shirt products are suitable for this low-cost strategy. On the other hand, where the "approach cost" pricing is actually a marketing tool for apparel B2C, although this very low-priced product can not make money, it can attract consumers to the platform of customers. Not all products on the platform are 29 yuan. Consumers pick and choose here. They may eventually purchase nearly 200 yuan. At this time, if they find another sales strategy of Vanke - 200 yuan free shipping, I would think: It's better to use a T-shirt to make up for the difference, and get enough free shipping for 200. This way, the ultra-low price of 29 yuan will greatly affect its influence on the entire customer network sales platform. .