Shishi OEM Processing Company Is Having A Hard Time.

"In the 80s of last century, we made products, and those who had products could make big money; in 90s, we could make money.

This year, our city

One is the lack of labour and the inability of enterprises to keep up.

Two, the rise in production costs has led to shrinking profits.

With the increase of raw materials, the cost of production and export increased significantly.

Cotton prices have risen all the way since the end of last year, and China's cotton price index has risen from about 10830 yuan per ton in November last year to 20.5% per ton in May this year, and the cost of dyes and chemicals has increased by 15% to 20%.

In addition, in recent years, the increasing trade barriers in the European and American markets, such as all kinds of new certifications, have also increased the processing cost.

Three, cotton prices and rising oil prices directly increase the cost of production in the textile industry.

Because the current clothing products in addition to all cotton and wool fabrics, most of the cotton and polyester and other synthetic fabrics, including polyester and other accounted for about 70% of the proportion, and polyester fiber and other synthetic fibers are closely related to the oil field.

In addition, raw materials, especially accessories, are indispensable to the oil products, such as lines, buttons, zippers, dyestuffs, synthetic fabrics, etc., which are all related to petroleum products.

Because the products are different in category, enterprises are affected by the rise of crude oil prices. For example, jacket clothing is more affected than infant clothing.

According to the figures concerned, the cost of clothing at a market price of 100 yuan will increase at least by 5-8 Yuan due to the rise in oil prices.

During the interview, the reporter learned that the product quality of the OEM enterprises in our city is not high, the independent technology content is low, and the added value of products is low.

The ability to resist risks is poor, and the growth of orders is lagging behind the growth of production capacity, bringing vicious competition and price war.

At the same time, Mr. Zhu told reporters that most OEM orders were signed last year, and many factors of cost rise were not foreseen in advance.

He said: "take their company as an example, most of the documents on hand were signed before the price increase last year, so we have to bite the bullet in order to deliver the goods on time."

Industry analysts believe that Shishi OEM processing enterprises want to get rid of the fate of shrinking profit margins, first of all, we should increase our independent innovation and optimize the industrial structure.

In the post crisis era, OEM enterprises can not cope negatively. Only by actively pforming, improving product quality, optimizing product mix and increasing market share can we expand the profit margins of enterprises.

Secondly, the OEM enterprises should speed up the pace of technological pformation, make great efforts to reduce the energy consumption of enterprises, work hard on water saving, electricity saving and fuel saving, and improve the ability of increasing digestion costs. Only in this way can enterprises remain invincible.