Rising Prices Of Raw Materials In Textile Industry

The rising price has hit again.

It is not hard to find that since the beginning of this year, with the rise of international commodity prices, all kinds of raw materials in China have returned to the trend of growth. In February, PPI rose to 5.4%, and many commodities began to rise.

Reporters recently learned that the raw materials of textile and garment industry have risen a lot this year.

For this reason, many enterprises said they dare not raise their prices arbitrarily, but they knew that the number of enterprises had increased by 5%.

"The average wage of workers has increased by 10%-15%, and the average of raw materials has increased by 10%."

Liu Sheng (a pseudonym) has worked as a middle-level manager in a number of well-known clothing brands in Guangdong. He told reporters that "this year, our production costs have increased significantly, like wool, the highest increase of 20%."

According to statistics and analysis, as of mid March, the domestic grade 328 cotton price has exceeded 15600 yuan / ton, viscose staple fiber has exceeded 20100 yuan / ton, spandex has broken through 58000 yuan / ton, and most products have increased nearly or even more than 10% this year, which is more than 40% over the same period last year.

Industry experts told reporters that in addition, the human cost of freezing for more than a year has begun to soar this year, generally increasing at least 10%.

He believes that the excessive cost increase will overdraw the recovery results.

From the analysis of the rising factors of the upstream and downstream industries of the industry chain, the increase in upstream raw materials is mainly attributable to the comprehensive factors such as inflation expectations and rising production costs.

But in general, the downstream demand is lagging behind, and the cost pmission is not smooth.

At the same time, the marginal effect brought by higher cost than expected is that companies are more cautious and even afraid to take orders.

There is no doubt that corporate profits have begun to shrink.

A Guangdong top middle class men's clothing brand manufacturer said that despite the surge in cost pressures, it did not dare to raise prices arbitrarily.

At present, the competition in the clothing market is very fierce. Especially since last year, many enterprises tried to export to domestic market, the products increased, consumers were more sensitive to prices, and all enterprises did not dare to act rashly.

Interviews with many foreign trade enterprises have received the same reply.

Export companies also say that the foreign economy has not yet fully recovered, and buyers have not substantially reduced their prices.

Liu Sheng also told reporters that at present, the women's wear brand profits of their posts fell by 5% over the same period last year.

The company now relies on controlling production links to save money. "For example, our tailoring process will minimize wear and tear.

And in addition to increasing sales volume, we implement a semi underwriting system, so that salesmen can be seen as doing their own businesses in developing the market. "

Another main way is to speed up the promotion of new models.

Liu Sheng said, "some of the best sellers may change their fabrics, and if they are not profitable, they will stop production."

On the other hand, it is to design new models, and the new ones will be slightly improved in pricing.

He admitted that the general cost rose by 10% and the price would rise by 5%-8%.