Export Profits Have Shrunk, And Textile Enterprises Have Been Forced To Raise Prices.

Nowadays, Wuhan's textile and garment export enterprises must complain when they negotiate with foreign businessmen. "The appreciation of the renminbi keeps rising and raw materials are rising too much, so we can't afford to increase prices."

Affected by the serious shrinkage of export profits, Wuhan textile and garment foreign trade enterprises continue to try to raise prices.

"It's like crossing the river by feeling the stones."

Gu Yiruo, director of Hubei cotton import and Export Corporation of China Textile Group, said that foreign businessmen knew well about the international situation and could only make some gestures for some products.

A garment export enterprise will bring a cost table when negotiating with customers. For example, because of the increase in employee wages and welfare security costs, labor costs will rise by 15%, the cost will increase by 3 million 200 thousand yuan over the same period last year, and dye chemicals will rise by 20% over the same period last year, and the total cost will increase by about 3 million yuan. In addition, there will be RMB appreciation and coal price rise.

The head of the enterprise told reporters that the overall cost of the enterprise is more than 10% this year than that of last year, but the unit price of export can not mention the level of satisfaction.

"A considerable part of the textile and clothing exported is a staple goods. China has, Vietnam, India and other countries are also producing."

Price increases mean that customers are more likely to lose. In order to stabilize their customers, foreign trade companies are competing to keep prices down while prices are rising. "Now only 1% to 2% individual varieties are available."

He said.

For enterprises that have established brands in the foreign trade market, the price increase is relatively simple.

"As the cost goes up, we will digest part of it and foreign businessmen should also take part in it."

A person in charge of Aidi group told reporters that the price of clothing in the first half of this year was RMB 33.17 yuan and US dollar 4.77 yuan, which increased by 20.18% and 32.86% respectively.

"We must pay attention to the method of raising prices. The buyers of the same products will not agree to raise the price."

AI Chun, head of foreign trade of Ai Di Group, said, for example, AI actively develops new products and uses new materials to improve the added value of products.

In addition to raising the unit price, Wuhan textile and garment enterprises are also actively seeking their way. For example, Aidi and China Textile Group have started to adopt the euro exchange settlement with relatively stable exchange rate since 2007. According to the established international trade channel, AI changed the single OEM production mode, increased the export of its own brand, and began to develop the markets in Africa, Southeast Asia and South America.

A person in charge of the foreign trade department of Wuhan commerce bureau thinks that the added value and export price of textile and garment industry are relatively low. Changing the product structure and increasing the added value is the general trend. Enterprises should adapt to it as soon as possible.