August 25, 2009
Retailers to launch low cost jeans to lure consumer
| Recently, Japanese retail giant Aeon Co. launched a new collection of jeans priced at 880 yen each. The creation of this new clothing line is to attract more customers and will be released under the company's private brand "Topvalu". The new line, which includes dress shirts and ties, will hit the shelves of Aeon group stores on August 25. Retailers that offer clothing at such reasonable prices, such as Aeon’s new collection, pose a challenge for specialty retailers like Fast Retailing or Uniqlo in Japan. These stores released a 990-yen priced denim series in March and surprised many people at the shocking low price since the average price for jeans in Japan is 2,000 to 3,000 yen. Retailers have managed to slash prices by ordering fabric in bulk, simplifying designs, switching its production base to a lower cost contractor and manufacturing during the off-season. Additionally, retailers offer a variety of sizes and colors for this new line. Aeon Co. expects to sell one million pairs of the 880-yen jeans within six months. Retailers need to attract customers, due to the economy and consumers wanting to save money. They are leading the way by offering attractive products that attract more customers which increases sales overall. |
