Cotton Price Rises 260%&Nbsp; Pressure Operation Of Garment Enterprises In Pearl River Delta

The rising cotton price has already pushed pressure to

In July 13th this year, the domestic 328 grade cotton spot rushed to a record high of 18373 yuan / ton, while in February it was about 5000 yuan / ton, and it rose to 260% in just a few months.

Wang Yisheng, a clothing trader in Hongkong, has dozens of cooperative garment production enterprises in Dongguan and other places. He told the first Financial Daily yesterday that he has often encountered failing garment factories in recent months. "It is a headache. Almost all garment factories increase their prices every month. What we are facing is not only the problem of cost increase, but also the time of delivery and the problem of unstable quality. Some factories secretly pfer our orders to other small factories for failing to recruit workers or unable to digest the cost.

In order to deliver the goods smoothly to overseas buyers, we can only pay a high price for the factory to guarantee production. "

Wang Yisheng said.

According to Wang Yisheng, this year

China Customs Administration statistics show June

Lin Yan, manager of the cotton textile department of Hangzhou light industry craft textiles import and Export Co., Ltd., said yesterday that orders are still numerous. It is estimated that the export growth will be maintained by October this year. But behind the growth of the data, the actual operation of the enterprises is very bitter, the price of orders is generally not good, the profits are getting thinner and thinner, and many factories around have already been in the predicament of losing money.

Wang Qianjin, chief textile analyst and senior textile analyst, said that cotton suppliers and cotton mills were making full profits in the first half of this year because of the warmer orders of textile and clothing. The cost of rising cotton has been successfully pferred to the downstream garment enterprises in the past six months, but it is estimated that the performance of the first half of the year will be difficult to continue in the second half of the year.

At present, some garment enterprises, especially export garment enterprises, have reached the limit of rising costs. If they can not continue to increase their prices to overseas buyers, clothing enterprises will gradually close or reduce production. This will affect upstream enterprises and push cost pressures onto upstream enterprises.

"Enterprises are looking forward to new cotton harvest. I hope that after August, the new overseas cotton and the new cotton market in September will ease the cost of raw materials, but at the moment it is not well judged," Wang said. "Enterprises should also increase the added value of their products and digest the cost pressure to buyers."

Lingfeng, President of global market group, said that a pair of jeans of the same quality, the domestic factory price was 5 dollars, while in foreign countries it could sell for 99 dollars, about 5 times the difference, and most of the profits were earned by overseas buyers.

In order to get higher profits, Chinese enterprises have to compete for pricing power. The rapid development of e-commerce has created such an opportunity for Chinese enterprises. China can attack and form a group brand. Through innovative network sales mode and one-stop supply chain management mode, the M2C (Manufacturer to Consumer) mode of manufacturing directly facing consumers can be realized, and the pattern of excessive reliance on OEM OEM production of Chinese manufacturers will be broken.