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    Soaring Costs Push Shoe And Clothing Enterprises To Raise Prices And Reduce Pressure

    2010/8/25 18:38:00 38

    Cost

       "Now Raw material The prices of raw materials are rising. clothing The cost is also going up, which is a thorny problem. " A few days ago, Chen Lingmei, the chairman of the winner's clothing, told reporters that the company is the leader of China's high-end high-end women's clothing. What makes Chen Lingmei feel awkward is the rising labor cost besides raw material costs.


    Reporters yesterday learned that in order to alleviate cost pressures, many brands of clothing this year have raised the sword of "raising prices". brand The retail price of clothing has generally risen by 10%-15%. Some clothing companies said that the price will continue to increase in the second half of the year. Some people in the industry expect that the wholesale price of clothing products in autumn and winter will also increase by 10%-15% this year.


       Footwear brand collective "raise price"


    Rising prices have become the mainstream of this year's clothing industry. Yesterday, a reporter looked at the latest earnings and quarterly reports of several listed companies, and found that a number of clothing brands were making up the price this year.


    In the field of sportswear, 01368.HK announced semi annual report yesterday that the average selling price of footwear products increased by 6.6%, and the average selling price of clothing products increased by 13.9%. After raising prices, the average selling price of footwear products is 85.7 yuan, and the average selling price of clothing products is RMB 52.5 yuan. The other two brands, 02020.HK, also raised the price of products in the first half of this year: in the first half of this year, the average selling price (wholesale price) of footwear products increased by 2% to 96.9 yuan, and the price of clothing products increased by 7.1% to 49.6 yuan. Also announced in June this year, the average retail price of footwear products increased by 7.8% in the fourth quarter of this year, and the retail price of clothing products increased by 17.9%.


    In the field of casual wear, Haitong Securities (9.91, -0.03, -0.30%) research data also showed that (12.79, -0.17, -1.31%) launched new products in 1-5 months this year, the average price increased 15-16%, resulting in its clothing sales increased by 4-5%, sales volume increased by 20%, gross profit 50%.


    "Price increase" provides protection for the major garment enterprises to maintain their performance. In the first half of this year, the overall revenue increased by 22% to 2 billion yuan, gross profit margin increased 2.1 percentage points to 40.7%, and operating profit margin increased 2.4 percentage points to 22.2%, the company said. The semi annual report also showed that the company's turnover increased by 22.6% to 3 billion 453 million yuan in the first half of the year, net profit rose 25% to RMB 760 million and gross margin increased 2.2% to 43.7%. It is explained that one of the main reasons for the increase in turnover is the increase in average selling price and sale volume.


       Soaring costs push enterprises to raise prices and reduce pressure


    Behind this year's collective price increases in the garment industry is a substantial increase in raw material and labor costs. A few days ago, Chen Lingmei, chairman of the winner Clothing Co., Ltd., in an interview with our newspaper reporter, pointed out that the labor cost and fabric cost of the company have increased sharply this year, and the pressure has suddenly increased.


    "Just got a raise again, on average, every worker adds 200 yuan a month, now the workers' monthly salary is basically more than 2000 yuan, and still needs to eat and lodge." Chen Lingmei said that if such a level could not be reached, it would be very difficult to retain skilled workers. On the other hand, the price of raw materials has gone up very badly. "The price of imported fabrics has increased by more than 30% this year".


      Other garment enterprises are also troubled.


    According to the semi annual report, staff costs increased from 81 million 318 thousand yuan to 95 million 345 thousand yuan in the same period last year, an increase of 17.2% compared with the same period last year. The cost of raw material sales was 537 million yuan, an increase of 18.7% over the same period last year. The expenditure of raw materials in the first half of this year was 287 million 200 thousand yuan, an increase of 51.6% over the same period last year, and the direct wage expenditure was 144 million 900 thousand yuan, an increase of 20.6% over the same period last year.


    Insiders pointed out that in addition to the above cost pressures increased, some fashion, fashion brand advertising marketing, publicity costs are also growing.


    In addition to the means of raising prices, some enterprises have expressed the pressure to digest high-end brands. Chen Lingmei, chairman of the winner Clothing Co., Ltd., said that the brand clothing of the company was sold for about 5000 yuan, and some dresses even sold to 10000 yuan.


    It is reported that the sales target set up by the company increased by 42% this year, which has been completed according to the original plan in the first half of the year.


    Some people in the industry suggest that the best way to reduce the pressure of garment enterprises is to adjust the product structure.

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