Because Bally is a luxury product, the characteristic of luxury goods is that the brand premium is high. After all, luxury brands have invested a lot of publicity costs in the early stage. How can they recover the cost if the premium is not high? And generally people who can afford luxury goods don’t care about the price, so it doesn’t matter no matter how high the premium is, most people won’t be their customers anyway.

It is normal for clothes to have high premiums. I have learned about light industry and inspected it in Quanzhou, Fujian. No matter what kind of clothing it is, the manufacturing cost, that is, the cost of raw materials, is only two yuan at most based on a T-shirt. As for some brands saying that their clothes cost more than ten yuan, that is because most of the money is given to the OEM, so that the clothes made by the OEM are of high quality. Just like Apple's foundry. Of course, no matter what brand of clothes it is, the highest cost is only a dozen yuan, and rarely exceeds 20 yuan (T-shirt). But the selling price is generally more than 5 times the cost price. If it is a luxury brand, the selling price multiple is even higher, and even more than 100 times is normal for some intermediaries.

There are two main reasons for the high premium of clothes. First, the cost of clothes is low, and second, the brand premium is high. For the clothes on the market now, basically the premiums of various brands are generally above 70. For luxury goods, the premiums are basically above 90, and some are even above 99. Because the brand allocates the brand's marketing costs equally. But don’t think that the premium for clothes is not high. Even if all costs are included, the premium for a single piece of clothing, or the net profit, is only over 30. For example, in a clothing wholesale company I worked for before, their net profit from a single piece of clothing was exactly 30.

In general, the premium for clothes is high, mainly because brands invest a lot of money in the marketing of clothes, and the manufacturing cost of clothes itself is very low, so the premium seems to be very high. , but in fact the premium for clothes is indeed very high.