Acting Factories Worry About Profits, But Afraid Of Orders.

Bu Xiaoqiang, general manager of red cotton international fashion city, told the author that cotton raw materials and cotton materials increased by more than 30% over the same period last year. Clothing companies generally postponed the autumn and winter production period. It is expected that the new products will be listed in mid 8, and the wholesale price is expected to increase by 10% to 15% this year.

By July, the peak period of clothing orders in autumn and winter has now come.

However, because of the substantial increase in raw material prices this year, it has affected the clothing pricing system and the time to market in autumn and winter.

Operating women's clothing at the white horse clothing tower

Lin Yuanyuan, general manager of the women's clothing brand in the red cotton international fashion city, said that the new products were postponed to the market and also related to the agents. Now the agents take a wait-and-see attitude and are afraid to take more goods. "As far as I know, many enterprises will not be able to place orders for autumn and winter."

She said that many agents were uncertain about the market demand in the second half of the year. When ordering, they adopted a cautious attitude of "multiple batches and fewer batches". If clothing companies launched new products too early, they would become stock if they were not booked. Under the pressure of cost, they would undoubtedly accelerate the "death" of enterprises.

I understand that for large enterprises, the impact of rising raw materials is not large.

Shi Mingxiao, the boss of backstreet boys, is a more forward-looking one.

Due to the relatively accurate judgement of the situation in the second half of last year, many of the cotton fabrics were taken off in the autumn and winter fabrics at lower prices in the off-season, and the supply of raw materials is relatively stable now.

One side of the cost pressure continues to rise, the other end of the market demand has slowed down performance, for clothing manufacturers, the impact can be imagined.

"Now the OEM has a low gross profit margin, and 8% to 10% of it is terrible.

We make orders for big customers, and after getting rid of the cost, a shirt actually earns 3~4 yuan.

Huang, a boss of a shirt factory in Dongguan, says that the cost is rising so fast that I am afraid that this profit will be eaten up.

On the other hand, the pressure comes from labour.

According to the survey of China Textile Association, the cost of labor in domestic textile industry has increased by more than 10% this year. The shortage of labor resources and the rising cost of labor have become one of the main problems facing the home textile industry.

Qin Yingfu, Deputy Secretary General of Humen clothing and apparel industry association, is deeply touched by this.

In fact, clothing companies are not short of orders at present.

One important reason is lack of work.

Because if the enterprise is accepted, it will not be delivered on time, and the penalty for breach of contract will be lost. "

"Rising labor costs can also be accepted because the rise is relatively slow and controllable.

But the price of raw materials is endless at the moment, which makes clothing enterprises panic.

Lin Yuanyuan, the general manager of the women's clothing brand, said that only one or two kinds of fabric prices fluctuated in the past year. When designing, they could use this fabric less and replace it with other complementation. This year, including fabrics such as cotton spinning, wool spinning, linen spinning, silk, knitting, chemical fibre and even printing and dyeing, the fabric has gone up, which is really not enough for clothing companies.

It is understood that this year's nationwide abnormal weather plagued farming, the Xinjiang and Yangtze River Basin cotton sowing schedule has been postponed compared with the same period last year, resulting in inadequate cotton production.

In addition, India, China's second largest source of cotton imports, has recently suspended cotton export registration, making it more stressful for the international supply and demand relationship to be in the "high price shock".

Statistics show that by the beginning of June, the standard grade cotton had risen to 17591 yuan / ton, up 37.10% compared with 2009, viscose staple fiber increased by 54.7%, and polyester staple fiber increased by 33.5%.

Bu Xiaoqiang, general manager of red cotton international fashion city, said that the cost of cotton yarn is generally 60%~70% in the cost of garments, and the increase of cotton yarn has exceeded 30% this year.