Zhuzhou Garment Factory Price Rise Is Not Up To The Loss Of Most Processing Plants.

Yesterday, Jiang Yune, the boss of Xianglong garment factory in Zhuzhou, was quite helpless in the empty and tranquil production workshop. She told reporters that this year, the rapid rise in costs has oppressed the bosses of most garment factories in this city, including her.

"Wages and fabric prices have gone up too fast, and business has been losing money." Yesterday, Jiang Yune, the boss of Xianglong garment factory in Zhuzhou, was quite helpless in the empty and tranquil production workshop. She told reporters that this year, the rapid rise in costs has oppressed the bosses of most garment factories in this city, including her. Jiang Yune's anxiety comes from the rising price of clothing materials. Driven by the rising price of cotton and crude oil, cloth prices in the market have soared. On the other hand, the "shortage of labor" years ago has promoted the rise in the price of the whole industry in Zhuzhou, especially in the clothing industry.

Artificial and raw materials are rising in price.

When Huzhou's Silk Reeling Enterprises are suffering for soaring cocoon prices, Zhuzhou's clothing enterprises are also worried about the rise of cotton cloth. "I feel very stressed." Cheng Zhi, the chairman of YAGE Belle, who plays an important role in the women's trousers Market in Zhuzhou, is also worried about the rising price of clothing materials. The latest price of his cowboy fabric has reached 23 yuan / yard (one yard is equal to 0.9441 meters), and two months ago, the price of the fabric was still around 20 yuan, up 15%.

For this reason, Miss Cohen, director of Xingda garment factory, which has been engaged in garment production for a long time, said that in recent one or two months, the prices of raw materials such as denim fabrics and chemical fibres, including cotton fabrics, have risen to varying degrees, with an average increase of 1 to 3 yuan per yard. Some people in the industry say that cotton prices have risen rapidly since 2009, and there is no sign of stagnation in 2010. The fabric of the textile industry has also started to rise sharply, or even more than cotton prices. On the other hand, since the beginning of the year, the increase of labor cost brought by the rise in labor costs is also causing many garment enterprises to suffer.

"Our labor costs have risen by about 20% to 30%." Cheng Zhi said that since the beginning of the year, the company has increased the price of piecework, the highest from the original 1 yuan to 5 yuan now. "Now the company's general workers can get more than 2000 per month, otherwise the workers will not stay." The same is true in Jiang Yune's factory. The factory's general wage increased by more than 40%, and some jobs rose from the original 700 yuan / month to the current 1000 yuan / month.

Clothing factory price rise, most processing plant losses

Even with the increase in raw material and manpower costs, from the current Zhuzhou garment processing industry, few manufacturers dare to pass the rising cost directly to downstream distributors. "No sales now. If the price is raised, the dealer will not do it." Jiang Yune said, now is still the first to stabilize the dealer, not to mention the clothing processing enterprises in Zhuzhou so many, you raise prices, dealers will certainly abandon you, and turn to others. "My clothing sales this year dropped by more than 30%." Mr. Li, a clothing dealer from Hubei, is buying goods in Zhuzhou. He admitted that the market is not going to work now, and sales will continue to decline if prices rise.

Miss Cohen, who has been engaged in garment production for a long time, analyzed that because of the increase in temperature this year, it was slower than half a year, which was lower than that of the same period last year, resulting in some clothes being unsalable, especially in summer. This situation has resulted in the loss of most garment factories. From now on, Xianglong garment factory has lost tens of thousands of yuan. "We are pretty good. Some factories have been shut down." Jiang Yune said. Taking a male trousers produced by the factory as an example, the cost of cloth has risen from 20 yuan to 25 yuan, plus the cost of wage and mechanical depreciation cost is 44 yuan, which is 48 yuan sold to distributors. "The 4 yuan in the middle is not enough to maintain our business."

Even the YAGE Belle, which integrates the design, development, production and sales of all kinds of fashion pants, has suffered a partial loss. "We have a factory deficit, a factory to make money, losses accounted for 30% to 50%." Chairman Cheng Zhi said. At the moment, more clothing companies are waiting for the fall in cost and sales growth.