Rising Or Not? Secrets Behind Textile Materials

Cotton and so on this year Raw material The price is rising all the way, and labor costs continue to rise. Many experts predict that the price of clothing will increase substantially in the second half of this year. The National Bureau of statistics data show that clothing products consumer prices are declining.

What is behind this "rise or fall"?

Rising or not?

For Wu Yunfeng, general manager of Dali garments company, this problem is a bit scratched: the price of fabrics has risen, the wages of employees have been raised, but the products of the company dare not raise their prices hastily.

Wu Yunfeng's mentality is quite representative in this year's clothing manufacturers.

　　 Raw material cost This is really rising.

In July 5th this year, the domestic cotton "328 index" reached 18371, an increase of 43% over the same period in 2009, rising by 24% over the beginning of this year. The highest bid in history has surprised fabric companies. According to Qingdao customs statistics, imports of cotton at Shandong port increased by 7 months earlier than the same period last year. 65.1% and One point three Times, up 39%.

Cotton prices are rising, and fabric companies complain incessantly, which directly leads to the rising cost of raw materials for garment production and processing enterprises. Dali company Wu Yunfeng introduced cotton yarn to the end of the year or per ton. Two point two Ten thousand yuan, up this year. Two point eight 000 yuan, the total cost of fabrics has risen by 1/4.

But the rising cost of raw materials is not a big problem for clothing manufacturers. Zhao Sunli, chairman of Zhengzhou Ya Li Da clothing company, said that the price of fabrics this year increased by 10-15% compared with last year. However, the proportion of fabric to clothing costs is not large, so the fabric price increases have some impact on enterprises, but not too big. Lou Ming, director of Zhejiang Reich Garment Co., Ltd. also told our reporter that the price of the fabric purchased by the company has increased, but it has not been much worse than before. Moreover, the company purchased the fabric in advance for a quarter, and now it still uses the stock of the fabric purchased in June.

It seems that the price rises from the cotton raw materials to the fabric enterprises. Garment manufacturing enterprises Finally, to the consumer market, this is a long process. Moreover, the price of raw materials is also fluctuating with the market. Since August 10th, the state has launched 600 thousand tons of cotton throwing and storage, according to the daily dumping reserves. One point five Ten thousand tons, take away the holidays, the total throw can be held for about 2 months, the throw will continue until the national day, catch up with the new cotton listing, the price will be further explored.

Employee wages: this must go up.

According to the Ministry of labor and social security, in early February of this year, after the Jiangsu province took the lead in raising the minimum wage, China's wage surge gradually spread from the south to the inland provinces and cities. 14 provinces and municipalities such as Jiangsu, Zhejiang, Guangdong, Fujian, Tianjin, Shanxi and Shandong gradually raised the minimum wage standard, and the adjustment ranges above 10%. The average increase in Guangdong province is even higher. 21.1% 。

The nationwide wage increase has a direct impact on the labour intensive clothing industry. Chen Lingmei, chairman of Shenzhen winner Clothing Co., Ltd. introduced that the company recently increased 200 yuan per worker every month, and now the workers' monthly salary is basically over 2000 yuan, and they also need to eat and lodge. If they fail to achieve this level, it is difficult to retain skilled workers in Shenzhen.

According to a report released by XTEP, the cost of XTEP employees in the first half of this year was the same as that of the same period last year. Eight thousand one hundred and thirty-one point eight Ten thousand yuan to Nine thousand five hundred and thirty-four point five 000 yuan, an increase year on year 17.2% And another listed company, Anta, reported that direct wage expenses were in the first half of this year. One point four four nine Billion yuan, an increase year on year 20.6% 。

However, despite the high social appeal of pay increases, many enterprises seem to be very low-key, especially small and medium-sized garment enterprises. Zhejiang's Reich company has not responded positively to the topic of employees' pay increase. Fujian Dali company said there was an increase, but not very much. Only the Henan Zhengzhou Yali company, located in the central part, said that the remuneration of the employees was no longer lower than that of the coastal areas.

According to an industry analysis, domestic labor price rise is the trend of the times, but the salary increase of different industries, regions and enterprises of different sizes will not be synchronized. Generally speaking, the low end labor force is still oversupply, and the pay increase will not be great; the wage increase in the Midwest labor force will not be very obvious; a large number of small and medium enterprises will not be very optimistic about the wage increase.

Advantage brand enterprise: this can rise.

Together with the cost of raw materials and the wages of employees, it is the large and medium-sized enterprises that have brand strength in the clothing arena.

The latest information released by apparel listed companies has proved this fact: XTEP's semi annual report shows that the average selling price of clothing products is increasing. 13.9% Anta reported that the price of clothing products increased in the first half of this year. 7.1% to Forty-nine point six Yuan, Li Ning Co also announced in June this year that the retail price of clothing products increased in the fourth quarter of this year. 17.9% 。

YOUNGOR also announced that the average price of new products increased by 15-16% this year, resulting in a sales increase of 4-5% in its clothing business, a sales increase of about 20%, and a gross profit of more than 50%.

As a famous brand of women's trousers, the company of Zhengzhou is not big. Zhao Sunli, chairman of the board, told reporters that the price of this year's women's trousers has been raised, because the company has been trying to improve its brand value. Therefore, even if the fabric price is not rising, the company will also raise its price. Zhao Sunli also believes that the impact of raw materials on consumers is not too big, because clothing is mainly "buy feeling", consumers will not be too sensitive to some price increases. Now the sales of 20-30% are growing at an annual rate.

Export oriented enterprises: this has risen.

Recently, the Chinese garment industry has been very refreshing. The export situation is excellent: knitted garments and knitted fabrics have maintained strong export growth in the first half of this year. Moreover, a signal worthy of great concern is the emergence of "volume and price increase": 1-6 months in 2010, China has exported to all over the world knitted garments. Two hundred and thirty-six point three seven Billion dollars, an increase over the same period last year. 23.65% 。 Average price of knitted garments exported in 1-6 months of 2010 Two point five two US dollar / piece, year-on-year growth 6.33% 。 Among them, the average price of wool knitted garments in June Five point nine six US dollar / piece, year-on-year growth 27.08% 。

This phenomenon has also been verified in domestic garment export enterprises. Wu Yunfeng, a Fujian Dali company, said that during the process of rising cost of raw materials and wages, the company had been trying to raise prices when negotiating with foreign clients. Of course, some of them had already signed orders. Wu Yunfeng remembered that it was mostly cotton yarn per ton. Two point four Ten thousand yuan, to win a little price to customers, up to Two point six Wan Yuan he Two point eight Ten thousand yuan and then raised a little price. {page_ Break}

Another export garment company also admitted that their export quotations increased by about 10%. But while the price is rising, the profit of the products is decreasing.

Domestic small and medium enterprises: This is really not up.

Compared with export market, domestic brand enterprises are not raising prices, especially small and medium-sized enterprises.

Zhejiang Reich company clearly stated: "we will not raise the price, the price is almost the same as last year". Wu Yunfeng, general manager of Dali clothing company, said: "our company has a small number of domestic sales, and this part of the price in the second half of the year should not change much."

And for those small and medium sized processing enterprises whose brand is not well-known, especially those with no brand effect, their prices will not rise. This phenomenon is more obvious in the wholesale clothing market. A large number of clothes without brand and small brand clothing can only compress their profit margins, and can not see signs of price rise at all.