Xiamen Clothing "Latent" Intention To Raise Prices

For those who want to dress up, the price increase of clothes is not a pleasant thing - they have to pay tens of dollars or even hundreds of dollars for this purpose. Despite the reluctance, the news of the clothing industry in Xiamen has confirmed this: because of the rising price of raw materials in the textile and garment industry, the clothing prices of some enterprises have risen quietly.

Since the beginning of this spring, there are two things that have troubled Mr. Hou: one is the difficulty in recruiting workers, and the other is the rising price of all kinds of textile materials. "At present, the first thing has not yet been completely resolved, but the average wage of workers has risen by 15% to 20%, and textile raw materials have risen by an average of about 15%."

Mr. Hou is a member of the marketing department of a brand clothing enterprise in our city. To some extent, his troubles reflect the difficulties faced by most garment enterprises in our city. Data show that as of mid March, the domestic grade 328 cotton price has exceeded 15600 yuan / ton, viscose staple fiber exceeded 20100 yuan / ton, spandex broke through 58000 yuan / ton, and most products increased by nearly or even more than 10% this year, which is more than 40% over the same period last year.

Of course, there is an average increase of more than 10% of human cost. According to the relevant personage, the recovery of industry stimulates the price of raw materials and the rise of textile prices, largely due to factors such as abundant market funds and the existence of inflation expectations. However, for enterprises, the downstream demand is lagging behind, and the cost transmission 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.

Cost pressures have forced businesses to squeeze profits. But for raising prices, enterprises are generally conservative. Even raising prices, they must pay attention to strategy and tactics, taking into account the feelings of consumers.

"The competition in the clothing market is fierce now, especially since last year, many enterprises tried to export to domestic sales, products increased, consumers were more sensitive to prices, and all enterprises did not dare to act rashly." Mr. Hou said.

The head of another clothing company in the lake also said that although the current profits have declined, the company still controls various production links to save money, including reducing the wastage in the tailoring process to a minimum, and implementing a semi contract system in increasing sales volume. "Let salesmen be like doing their own business when developing the market."

"There is another way to speed up the promotion of new models." Some businesses say that some of the best sellers may change their fabrics and stop production if they are not profitable. "In addition, it is to design new models, and the new ones will be slightly improved in pricing." Mr. Hou admitted that the general cost rose by 10% and the price rose by 5% to 8%. "After all, the new price increase is more acceptable to consumers."