news

Down jackets are a double-edged sword in summer

Industry insiders: Deepen original design to enhance product added value

In July and August this year, the temperature kept breaking new records, but surprisingly, down jackets sold very well. Market research results show that in July, 43% of merchants in Pinghu China Garment City, a professional market for down jackets, saw an increase in orders; in August, the momentum remained unabated, with 1.6 million down jackets sold in three days, more than 4,500 merchants purchasing, up to 2,000 people at peak times, and sales reaching 320 million yuan. The higher the temperature, the better the sales. What is the logic behind the "hot sales" of down jackets in summer?

Yao Xiaoman, Honorary Chairman of the China Down Industry Association, said in an interview with reporters that the off-season sales of down jackets are not a new sales model. "This sales model has actually been around for more than 20 years." Yao Xiaoman told reporters that most down product companies sell the products that were not sold in the winter at a low price or much cheaper than the regular price in the summer. In fact, this is to recover funds and use them to purchase new fabrics and other raw materials for reproduction. "This is also the reason why merchants are eager to sell off-season in the summer and sell them at a cheap price."

How cheap are the off-season down products? The media quoted Ms. Li, a customer who went to Pinghu China Garment City for purchase, as saying: "The wholesale price of down jackets is half of that in this season. The average purchase price of a piece of clothing was 400 yuan in the peak season, but now it is less than 200 yuan." The relevant person in charge of Pinghu China Garment City also said: "Since 2017, many merchants have started to sell off-season models. This year, they put up discount promotion signs early, and some even shouted '10% off for the whole store', which attracted many wholesale buyers. Some merchants also display their products directly to consumers through live broadcasting and short video marketing."

"Most of the products sold off-season are products with inventory backlogs. This is because the new products of the year cannot be left in inventory. Once they are left in inventory, the company will be 'unable to operate'." Yao Xiaoman introduced that off-season sales are a method of clearing inventory, which exists not only in the down industry but also in other industries.

For enterprises, it is to clear inventory and sell off, and for consumers, it is to get a bargain. So, can the quality of products sold off-season be guaranteed? In this regard, Yao Xiaoman said, "As long as it is a regular, market-recognized brand and the quality is good, consumers can buy it."

In this way, on the surface, off-season sales are good for both ends of the down industry, that is, the production end of enterprises and the consumption end of the market, but is this true? The "Pinghu China Down Jacket Index Briefing" for July 2024, released this month, said that "down jacket summer marketing strategies may become a double-edged sword". Off-season live broadcast sales of down jackets have set off a craze, and have gradually changed from clearing inventory to a marketing tool, but the surge in sales in the short term may overdraw consumer demand and impact the autumn and winter market. The reason is that the off-season down jacket market is hot, and merchants need to clear off-season stocks before the peak season arrives, but the sales boom during the off-season consumes some of the potential demand in autumn and winter in advance. In this regard, the briefing gives industry advice that merchants need to delve into the field of original design, use unique creativity as a driving force, and increase the added value of products in order to stand out in the upcoming peak season.

Text | Reporter Shi Xiaofei