Producing less seems like it would rather raise the price, so how does the price go down?
In an article introducing the brand strategy, I came across the line, 'Minimizing production quantities to lower prices.' Because producing less and lowering prices are put together in one sentence, it is hard to grasp which is the reason for which.
Producing less to lower prices is the strategy stated by the brand, but how those prices are lowered has not yet been confirmed.
Produce less, and lower prices. These two statements are usually not placed side by side in one sentence. Generally, as the quantity produced increases, the cost placed on a single garment decreases, and producing in small quantities tends to drive up the unit price.
What LOW CLASSIC has disclosed goes up to the direction: keeping production quantities to a minimum while lowering prices[1], and that this choice is part of a direction that places weight on qualitative growth rather than quantitative growth[2]. CEO Lee Myeong-sin also says that taking step-by-step growth is more important than steep growth[3].
If so, exactly where does the price decrease while producing less? This part remains an open question. Generally, two paths are discussed through which room to lower prices emerges in small-quantity production. One is inventory—if there are few unsold leftover clothes, there is less need to make up for losses with end-of-season discounts, and the buffer added in advance to the initial price also becomes smaller. The other is distribution—if there are no margins added each time intermediate stages are passed, the consumer price decreases even at the same cost. However, this does not mean that these two paths are necessarily LOW CLASSIC's method of calculation.
hmmm, looking at this alongside the fact that there are not many channels outside the official website[4], this line about producing less reads not only as a story about the amount produced, but also as a story about where it is sold.
At what level production quantities are kept, and in what manner that is reflected in the price, has not yet been confirmed.