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    Xiamen'S Foreign Trade Clothing Store Loses Money.

    2008/11/6 9:44:00 20

    Xiamen'S Foreign Trade Clothing Store Is Selling At A Loss.

    The global textile industry has also been implicated in the global economic downturn.

    Because of the poor export this year, many garment factories can only turn their inventory into domestic sales, and even in Guangzhou, "1 yuan clothes".

    Reporters yesterday visited some foreign trade clothing stores in Xiamen, and found that the cheapest T-shirts in the autumn were priced between 9 yuan and 29 yuan. Many businesses said they were losing their goods at a loss.

    Clearance sale in peak selling season

    It should be the peak season for autumn and winter clothing sales.

    But in Jiangtou and Tiger City night market, Ding An square, Zhongshan Road east section and big middle road and other foreign trade clothing shops gathered, many businesses play "sell at a loss", "clearance sale", "business withdrawal and sale" and other advertising words.

    The reporter understands that most of these foreign trade garments come from Guangzhou and Jiangsu and Zhejiang provinces.

    A salesperson who specializes in Guangzhou foreign trade clothing store in Zhongshan Road said that last year, the same style of pure cotton clothes, at least 35 yuan, this year, only 19 yuan.

    In addition, a lot of foreign trade clothing stores outside Ding An square also hang out the "special sale" brand.

    The cheapest autumn cotton T-shirt is priced at only 9 yuan per piece, and the most expensive one is not more than 29 yuan.

    These shopkeeper frankly, no matter be manufacturer or dress shop, storehouse is full of goods, and the price and profit of foreign trade clothing are already low, now many clothes sell at a loss.

    The rejection price is only 30% of the cost price.

    Liu Hao, a clothing export company in Quanzhou, said that the return rate of the factory was too high this year. If the goods had already come out of the factory, many manufacturers would give a discount at the port and port in order to minimize the loss.

    If the goods are overloaded in the factory, they will be sold to wholesalers or other foreign customers in the form of 70 percent off of the cost price.

    Manager Liu further stated that the gross profit of export garment manufacturers is only 10%, and net profit is only 1% to 5%.

    Take a jacket with an export price of $10, for example, the cost of raw materials, labor costs, factory management fees, taxes and so on has cost more than $9, and little money has been made.

    But if the export is not going out, the producer can only clear the warehouse at home and sell it to wholesalers at a price of only $2~3 per item.

    "Those stores are actually profitable. They can buy from $2 to $3, and they can sell US $4 to US $5, and net profit can be maintained at 10% to 30%.

    The real loss lies in the production enterprises. Most of the factories are now operating poorly, some of them are closed down, and the manufacturers are still eager to clear up their inventory.

    There is no way to sell at a loss, because it has to be managed in a warehouse, and it will be even more costly.

    Liu manager said.

    New fashion for sale and sale

    Last night, in a foreign trade clothing store in Dazhong Road, Wang told reporters: "now the economic situation is not good, everyone is tightening up their belts, and the new style, low price, good quality foreign trade clothing just satisfied everyone's needs.

    On weekends, there are quite a few people who come to these stores to sweep Taobao.

    Ms. Wang said that if the vision is good enough, we can still get good quality clothes, and these clothes can be sold for nearly 5 times more if they are placed in the store.

    Reporters saw that many young white collar workers came to buy these cheap clothes.

    Miss Chen, an export company, said that if a large number of clothing with a complete number of codes were not needed, it would be unnecessary to worry about junk products. However, these backlogs might be put in a longer time and there would be problems such as dropping lines.

    It is understood that most of the foreign trade clothing products are European, Korean and Japanese styles, and some of them are sold better.

    Jiangtou night market, a monopoly of foreign trade clothing boss said: "foreign trade clothing generally from foreign trade tail goods, brand inventory and foreign trade imitation three aspects.

    Among them, foreign trade tail goods, brand stock style is more advanced, fashion, price is not high; foreign trade imitation clothing is rough, but the style is basically copied abroad.

    Production enterprises strive for capital withdrawal

    A data show that since 2005, China's textile and clothing export situation has been in a dilemma of "internal and external troubles", especially this year, rumors of enterprises shutting down production are common.

    Influenced by factors such as RMB appreciation, labor cost rising and economic depression, 2/3 of the textile and garment enterprises in China are in a state of loss or profit.

    Although Xiamen is not a major textile and garment export country, textile and apparel products are among the top ten export commodities in Xiamen.

    Miss Guo, a freight forwarding company in Xiamen, said that the production factories of Xiamen clothing export enterprises are generally in Quanzhou. At present, many Quanzhou garment manufacturers are in a semi shutdown state. A pile of overloaded clothing is directly placed outside the factory. Xiamen has also been sold off. In Zhongshan Road and other old cities, people often sell these clothes with a big black bag.

    "In the case of export slump, exporting to domestic sales is a passive choice for businesses to avoid capital risks."

    According to the insiders, the global financial turmoil triggered by the subprime crisis has led the United States, Japan and the European Union to spin China.

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