Chapter 425 Lou Xiao'e's Insights



"Alright, alright, you two stop bickering."

Normally, Lou Xiao'e would be cracking sunflower seeds by now. Watching the mother and daughter argue is quite amusing.

But not now.

To be honest, is Qin Jingru really stupid?

She's not stupid.

She's just been spoiled too much.

When I was a child, I longed to marry into a family in the city.

In families where sons are favored over daughters, which girl would even entertain such thoughts? Most girls would simply be married off when they reached a certain age, becoming slaves to their husbands' families. Qin Jingru, however, had the courage to marry into the city and actually come. Behind this was the unwavering support of her parents. Even though they weren't well-fed back then, they truly loved Qin Jingru.

It goes without saying that she married into Wang Shouren's family.

We provide her with plenty of food and drinks, and on weekends, we take her out to play.

At the same time, her studies were not neglected; otherwise, she would not have been able to get into the highest university when the college entrance examination was reinstated.

It takes a lot of intelligence to achieve this level of skill.

The same goes for Wang Xirou; it must be said that the Wang family's genes are truly excellent.

"Xi Rou, tell me your thoughts." Lou Xiao'e pulled Qin Jingru aside, made her sit down, and then picked up the Fu (a type of traditional Chinese gift) and handed it to Qin Jingru.

Finally, her firepower was reduced.

Lai Fusheng glanced at Lou Xiao'e with a look of utter despair. This woman was definitely a bad person.

At this moment, Xu Weiwei also came out; she was quite interested in these things.

"The reason why they can't sell at high prices domestically is because of the brand. The understanding of brands in China is still at a rather rudimentary stage, while foreign brands are established brands and trendsetters, so they can command higher prices," Wang Xirou said.

When it comes to garment manufacturing costs, they actually account for a relatively small percentage of clothing sales. Take jeans, for example; the cost of a single pair can vary greatly, depending on the source of the fabric. It's generally only a few dollars to a dozen dollars. Anything higher, and that's it. Garment manufacturing costs in Europe are indeed higher, but only by a factor of ten or twenty at most.

No matter how much they hype it up, those things are still just chemical fabrics; the cost is fixed. What's valuable is the brand and the design.

"You're only seeing the surface. Going deeper means thinking."

"A deeper level?" Wang Xirou pondered for a moment: "Because there aren't enough wealthy people in our country?"

"No, it's that there aren't enough suckers. Or rather, there aren't enough female suckers," Xu Weiwei calmly added from the side.

In fact, the main consumer group in China has always followed a cycle. Leaving aside those who couldn't afford food in the past, once people have enough to eat and the economy recovers, the primary consumer group isn't, as some later generations have suggested, women and children—whose money is easiest to earn. The primary consumer group is men. This can be seen from the sales figures of the Universiade.

During this stage, men are the primary consumers. They'll flaunt and spend money on things like a motorcycle, and similarly, if they have money, they might even keep a mistress. Why? Because during this period, in terms of society as a whole, men are the heads of their households. At this stage, pursuing a girl is far less important than their own spending. They won't look at clothes or coats costing thousands of dollars. For men, keeping warm is enough; there's no need for anything fancy.

Even if they want to be flashy, it shouldn't be in the form of luxury brands. If you say the price is twice as high as others, plus there are well-known brands with TV commercials, they won't mind. But if you say it's ten times higher, sorry, not many suckers are willing to buy it.

After entering the 21st century, women's consumption levels gradually caught up, and the concept of luxury goods gradually emerged. Slowly, the main consumers also shifted towards women. This trend continued even with the later development of the "licking dog economy" (a term referring to the obsessive pursuit of unrequited love).

After the rise of the "simp economy," which marked the peak of women's spending power, men will once again become the main consumers. In short, it's a cycle.

“No, you can’t call it being a sucker. To sell at a high price, you have to be confident in your own design and your own artistic level.” Lou Xiao’e shook her head and said, “If it’s just an ordinary brand, you don’t need to go to so much trouble. But if you’re going to cooperate with the Ministry of Textile Industry, then you need to know the ins and outs. There are different consumption habits abroad and in China.”

"What you need to know is the current consumption habits, which is not difficult. But what you need to see more is the future consumption habits, and whether you can cultivate their consumption habits."

No luxury brand is built overnight; it takes years of cultivation and gradual word-of-mouth spread. In the past, this might have taken a very long time. Now, with the advent of television and other new forms of communication, brands that previously required extensive promotion can now surpass established players.

Advertising has always been a very important channel for luxury brands.

Lou Xiao'e doesn't pay much attention to the domestic market; what she wants to focus on is the overseas market.

The reason she didn't prioritize it wasn't that she looked down on the domestic market, but rather that she felt the domestic economy wasn't fully developed and there wasn't much room for growth. She wanted to directly compete in the international market. The domestic market, naturally, was left to Wang Xirou. For her, this was also a form of training.

Given the Wang family's current capabilities, it wouldn't be a problem if, upon the completion of this factory, the higher-ups directly declared them the number one garment factory in the country. The resources are there.

It is foreseeable that Wang Xirou will succeed; the supply and marketing cooperative will give her face, and various department stores will also give her face.

However, this kind of success is not true success.

Therefore, today, Lou Xiao'e must break these things down and explain them to her in detail. Otherwise, her work will be nothing once it reaches the international market. The international market is actually an extremely difficult market to compete in, especially for artworks.

Many people have a rather superficial understanding of art.

Most people believe that foreign films are better, at least for a long time in the 21st century. There's also a bunch of people mindlessly praising them.

But only those who have done business internationally understand how important the phrase "acclimatization issues" is.

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