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    Humen Garment Enterprises Cost Up 30%

    2010/7/1 11:06:00 20

    Cotton Price Tiger

      


    Since the beginning of this year, the domestic cotton market has surged, and the cost of raw materials and labor has soared. The cost of clothing enterprises in Humen has increased by 3.

    According to the press survey, many enterprises in Humen chose to increase the price of finished products by 10% and keep the merchants in a way of reducing profits. However, 20% of the difference will keep the real difficulties in this winter.

    Tan Zhiqiang, director of Humen economic and Trade Office, said optimistically that there was a media forecast that the failure of the 20% garment enterprises would not happen.


    Cotton price anomalies all the way up


    Mr. Ren Ling of Hubei has a cotton production plant in her hometown, and the sales point is chosen in Taixing, Guangdong, Humen.

    Not long ago, Mr. Ling contacted all the state-run factories in Shaanxi, and got only one sentence, that is, "do not come out of stock, say two months later."

    Cotton price had reached 17289 yuan / ton at that time.


    In the face of reporters, Mr. Ling said that even if the price exceeds this price, it will not be able to get the goods.

    After half a month, cotton price rose to 18000 yuan per ton.

    At the beginning of last year, the price of standard cotton was only 10966 yuan / ton, and now the cumulative increase is approaching 60%.


      

    Cotton price

    Still rising.

    Compared with the practice of the price drop in the Spring Festival, the steady rise in cotton prices in 2010 is particularly strange.

    For direct downstream cotton producers, the tension in raw material purchasing means rising prices.

    "In the past, we took the goods first and then paid the bills. Now we have to pay the full amount two months in advance to get the goods, and we have to get the first shipment in more than 20 days.

    Today, cotton prices have also risen, rising by more than 1/3.


    Another consequence of the rise in cotton prices is that the "daring" of cotton dealers has become smaller.

    Mr. Lee, a cloth retailer, said that it used to be a Monday price list, which is now one price per day.


    Cost of service increased by 30%


    The downstream of the cloth industry is the clothing industry.

    After the minimum wage increase and welfare increase, the cost of enterprises has increased again with the increase of cloth.


    Miss Zhao, who opened the stalls in the international garment trade city of Daying Ying Dong, calculated a book to reporters: the garment factory in town mouth, the per capita wage increased by more than 20%.

    The goods are distributed to other processing plants, but even if the cost per garment is increased by $1, no one is willing to accept it.

    Moreover, raw materials are rising day by day, and the cost of a short set of costumes with a small number of materials has increased by three or four yuan.


    In addition to making small factories of ordinary OEM, many large garment enterprises with independent brands in Humen are also facing rising pressure.

    For example, children's clothing brand "

    Xiao Hu Han Ni

    It is mainly distributed to the factories. The original processing fee is 20 yuan, and at least 25 yuan will be available.


    In addition to the tigers, Han Ni, and G.I and other clothing brand executives also said: compared with the past, the cost of clothing this year increased by an average of more than 30%.


    {page_break}


    Only 10% increase to keep customers


    Miss Tao worked for many years in Buji, Shenzhen. The price of clothing this year is particularly obvious.

    "In the past, more than 30 yuan can buy a relatively summer jacket, and now no 70 yuan can not buy it."


    Many of the summer clothes in Shenzhen come from Humen, Dongguan.

    Compared with terminal retailers, wholesalers in Humen dare not blatantly go up, especially those who run low price clothing.

    Xiao Fen (alias) runs women's trousers on the 5 floor of fuming fashion city. The wholesale price of one yuan last year was 10 yuan, and now it has to sell 11 yuan to maintain profits.

    The consequence of the direct increase is the dissatisfaction of merchants.

    The solution is to make some changes in the style design and increase the cost on the basis of the new model so that the merchants can accept it.


    Compared with these small garment factories, Humen clothing brand enterprises appear more cautious in terms of price rise.

    As early as 3 and April, the industry was exploring each other, with the theme of how much the price should go up.

    This index means the strategic orientation of business: is it "protecting merchants" or "protecting profits"?


    The final result is: protect customers.

    Reporters learned from G.I, Yi Xun, Xiao Hu Han Ni and many other clothing brands that the price of these brands in autumn and winter clothing has only risen by about 10%.

    After all, the brand needs to have a pitional period to survive.

    If the market rises too fast, the market will not be able to adapt to the brand. The key point is to keep the marketing channel.


    There will be no "20% enterprise failure".


    Indeed, simply raising prices and shifting pressure is not the best policy.

    Humen brand clothing enterprises recognize that more importantly, enterprises should work hard to control costs and expand the market.

    However, some people expect that more than 20% of the difference will be very stressful for enterprises, and the real difficult period will be in winter.


    In fact, there are many predictions about the trend of the industry.

    The most amazing thing is that as early as March cotton began to rise, some people expected 20% businesses to fail after six months.

    Will Humen's clothing industry face major crises if there are thousands of garment manufacturers?


    "It is not reported that there are enterprises going bankrupt, so the overall environment is so unlikely that the whole region will be hit hard."

    Tan Zhiqiang, director of the Humen economic and Trade Office, said that the founders of Humen's clothing enterprises were mostly self-made. Such enterprises have strong vitality and will not be hurt because of the slight cost rise.

    Moreover, after more than 20 years of development, Humen's garment industry is mature and well matched. It has a solid industrial foundation to meet the challenges of the industry.

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