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Facing The Rise Of Raw Materials Such As Cotton, Garment Enterprises Will Make Every Move.

2010/6/24 10:10:00 14

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Since the end of 2009, the price of international cotton has been rising. The rising tide of cotton has rapidly spread to all the raw materials, processing and garment industries and consumer terminals of the textile industry.

"Crazy" cotton trouble, brand clothing enterprises say little impact

Due to

cotton

And cotton spinning and other raw materials prices rose, textile enterprises are generally faced with the high cost of production.

In the face of high cotton prices,

Spin

The industry has to carry on the price to the downstream through the way of cost pfer.

As the downstream of the textile industry, how will the garment industry cope with the hot potato thrown by the textile industry?

Insiders predict that in the second half of this year, garment enterprises will have a pattern of rising prices across the board, and garment processing enterprises receiving foreign orders will directly abandon their orders due to the increase of raw materials.

Zhou Dewen, President of Wenzhou SME Development Association, said that this wave of cotton boom will have a certain impact on Wenzhou's clothing enterprises, but the smaller the impact on the bigger enterprises, the smaller their risk control ability is.

In addition, clothing enterprises have suffered more and more setbacks. Enterprises have learned to reduce internal friction, raise prices or even abandon foreign orders by improving management level.

At the same time, Zhou Dewen suggested that the best way for clothing enterprises is to adjust their product mix.

Although the whole country is actively responding to the rise in cotton prices, the reporter observed the brand clothing counters of the shopping mall did not find that the price fluctuated significantly, and some shopping malls had some promotional activities such as "father's Day" and other price promotions.

Youngor

Liu Xinyu, deputy director general, said that since the second half of last year, cotton prices have been rising all the way, and for YOUNGOR, because of the relatively accurate judgement of the situation in the second half of last year, the more than 10000 tons of long staple cotton were taken at a lower price, which made us relatively stable in the raw materials of high yield products.

In addition, YOUNGOR has an industrial chain from cotton planting, spinning, weaving, finishing, garment manufacturing to channel retailing. The proportion of cotton in the whole industry chain is very small. YOUNGOR, as a brand retail enterprise, has strong bargaining power and market pricing power. Therefore, the price of upstream raw materials has little impact on YOUNGOR.

According to YOUNGOR's public information, by the end of the first quarter, YOUNGOR clothing achieved 1 billion 474 million yuan of revenue, including 813 million yuan of domestic revenue, an increase of 23.83% over the same period last year, and export income of 660 million yuan, down 10.22% from the same period last year.

The domestic sales of YOUNGOR brand clothing have formed a healthy growth trend, and the total profit has increased by 50% over the same period.

Wu Rongzhao, executive vice president of Hongxing Erke, a Singapore listed company, also said that the rise in cotton prices had no effect on Hongxing Erke.

Wu Rongzhao said that Hongxing Erke is well aware of the power of "brand".

After the Beijing Olympic Games, China's local sports brand became more mature. In the 2010 World Cup, although the top sports resources were monopolized by the two giants of Nike and Adidas, China's local sports brands still sought their focus.

Hongxing Erke is a very typical example. Since he was the first company to list abroad in all sporting goods industry in China, the company went public in Singapore in 2005. Therefore, in terms of capital market grafting, Hongxing Erke is also in the forefront of the whole industry.

At the moment when enterprises are in the 10th anniversary place, a new round of strategic offensive is ready.

(Securities Daily)