Raw Materials Will Rise, Autumn And Winter Orders Will Be Cold 2

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 is very low in gross profit margin, 8%~10% will be terrible.

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

"Mr. 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 able to deliver the goods on time, and the penalty for breach of contract will be lost.

"

The cost of analysis is endless, rising to an "unbearable weight".

"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.

The "women's wear brand" is constantly in circulation, "said Lin Yuanyuan, general manager." there are only one or two kinds of fabrics that will fluctuate in price in the past year. When designing, they can use this fabric less and replace it with other complementation. This year, all fabrics including cotton spinning, wool spinning, linen spinning, silk, knitting, chemical fiber and even printing and dyeing are all up, which is really not enough for clothing companies.

It is understood that this year's nationwide abnormal weather plagued farming.

Bu Xiaoqiang, general manager of Hong Kong International Fashion City, said that in the cost of garments,

All kinds of tricks

The price of 1: should be reported within a week.

"If the raw material rises more than expected after receiving the bill, it will not make money or even lose money.

"Huang Huang, the shirt processing plant, said that many of his peers only accept the price within a week," the longer the risk, the greater the risk, so the company tends to make short-term orders for up to half a month.

"Huang said that this year, many enterprises are more willing to do domestic sales orders, because the delivery cycle is short, easy to grasp the cost, not like the past crushing their heads to grab the foreign trade list.

Deal with 2:'s dark push new price raise

In the face of rising costs, increasing wholesale prices is a common magic weapon for clothing companies. However, for some small factories, it is still not daring to blatantly raise prices.

Although the cost of clothing has risen by three or four, many autumn and winter wear prices have risen by only about 10%.

"In the past year, a piece of clothing was awarded a profit of 20 yuan. We only need 10 yuan this year, and another 10 yuan to our customers.

"Lin Yuanyuan said that it is possible to win with the agents in this year.

In addition, some small and medium-sized clothing enterprises are working hard on the clothing styles, by speeding up the introduction of new clothing to raise the price secretly, or to try to use more affordable fabrics in the same design.

Coping with 3:, reducing total amount and increasing style

Faced with the pressure, many clothing wholesalers say that the production will fall in autumn and winter this year. "This year, our total amount will be reduced from more than 300 to 200, with a reduction of 1/3. At the same time, it will reduce the order of 3 times a year to 2 times.

"Huang said that the total amount of money compressed is that it is difficult for the agent to carry so much. The reduction of orders is to lengthen the production time of the factory.

Now, he is more inclined to look for those orders and R & D departments in Guangdong, manufacturing links in the mainland factories.

Because they cost less than the factories in Guangdong, including plant rents, utilities and wages.