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    Expert Analysis: Clothing Prices "Imminent" Two Confused

    2010/9/4 20:04:00 103

    Clothing Policy

     

    Higher cotton prices and higher labour costs

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    There are signs that the rise in clothing prices is "in the firing line".

    However, according to recent data from the National Bureau of statistics, the clothing prices of clothing products increased by 2% in July compared with the same period last year, but consumer prices fell by 0. 8% year-on-year.


    Price rises or falls?


    To this end, the reporter interviewed the relevant experts.


    "One rise and one fall" is not surprising.


    Chen Guoqiang, deputy director of the Institute of industrial economics of China Garment Association, told reporters that this "one rise and one drop" is not surprising: "the cost of production factor has been raised in a large area, and enterprises will inevitably have an impulse to increase prices.

    But at the same time, we should also clearly realize that in view of the fact that our clothing market in China is still in excess of demand, the production of garment enterprises is still in full swing, and a steady stream of products is pouring into the market.

    Another point is worth noting that in the past two years, due to the impact of external demand, part of the original "productivity" of foreign trade has shifted to the domestic market, so how to digest these products is still a problem.


    Meanwhile, the reporter also contacted the Institute of economics of the Chinese Academy of social sciences.

    Macro economy

    Yuan Gangming, director of the research office.

    In the interview, Yuan Gangming also mentioned the problem of oversupply: "when the market is in excess of supply, manufacturers often compete for customers through competition.

    Without enough market purchasing power, it is difficult to ignite the price of a fuse.

    This is why most of the clothing brands are still in the wait-and-see state, and dare not blindly rise in price.


      

    Consumer

    Do not buy it


    Since supply exceeds demand, it can be said that the clothing industry is still a buyer's market. Consumers' "buy or not buy" becomes a delicate lever to regulate the market price.


    Yuan Gangming pointed out: "unlike other consumer goods, the price of clothing consumer goods is limited by cost.

    Clothing is an enjoyable commodity, not a necessity.

    Under the current economic situation, consumers have not increased their incomes on the one hand. On the other hand, they have to face the pressure of rising prices of other necessities, and only reduce some of their expenditure.

    No matter whether the price of oil rises or the price of cotton rises, it is of little significance. After all, the price is set too high, and consumers will not buy it. "


    Indeed, as an ordinary consumer, we tend to be very flexible in terms of clothing consumption.

    Today, if you have money, you can buy more. If there is no money tomorrow, life will not be affected even if you don't buy new clothes.


    "Although the country has been emphasizing the expansion of domestic demand, this" domestic demand "covers more of the demand for safeguards, and the purchasing power of clothing is also hard to expand in the next few days.

    Chen Guoqiang said.


    To sum up the above reasons, when asked about the trend of clothing prices in the second half of the year, Yuan Gangming and Chen Guoqiang gave a similar answer: in a short time, the price of clothing is still dominated by bearish.


    How can an enterprise increase its price?


    Prices will not rise and fall, and supply and demand can not be left and right. Should enterprises wait to die?


    Chen Guoqiang said: "the price of a few high-end products in the market will go up.

    In the long run, clothing prices may not necessarily fall.

    To see that many of our brands are upgrading, part of our product quality is changing and value-added is improving. "


    In the final analysis, it is still a stubborn disease in China's manufacturing industry. For the cost of raw materials and labor costs are too reliant, the downstream market has been in turmoil at a time when the upstream market is boding.

    A truly mature enterprise will have some cost space which can be relatively free to operate, that is, management cost and process cost.

    We can do something about it.


    Therefore, Chen Guoqiang pointed out: "the key is that our garment industry must do a good job of specialization, so that we can fundamentally guarantee the healthy development of the industry and the ability to resist risks.

    There is no need to mention industrial upgrading, and run to the "brand" in a single wind. In a short time, the overall upgrading of an industry is unrealistic.

    For now, the most practical way is to optimize horizontal industry division and cooperation.

    Large enterprises have the strength to make brands. Small businesses have no strength and can make international OEM (OEM) very specialized.

    It is not difficult for enterprises to develop their strengths, integrate their resources and achieve effective control of the industrial chain.

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